How and why did the personal computer industry come to have such low average profitability? The PC industry has started to develop fast in the 80 ’s when IBM launched its first PC series and later on when numerous small companies entered the market. PC is a new product and companies had to create the demand to it from the scratch. We shall apply the Porter ’s 5 Forces model to examine the PC market and see how forces of competition influence the profitability of the market players. (See Appendix
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considered an innovative company‚ you need only to accomplish one task. This task is to introduce something new to your customers. Dell fits this description perfectly. Dell sits at the forefront of the computer industry and exemplifies this innovative approach in its functions of management. As noted in the other factors discussed within this paper‚ the management functions of planning‚ organizing‚ leading and controlling all exemplify the innovative approach of Dell. We all try to live by
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Matching Dell Between 1994 and 1998‚ the revenue of Dell Computer Corporation rose from $3.5 billion to $18.2 billion‚ and profits increased from $149 million to $1.5 billion. The company’s stock price rose by 5‚600%. During the same period‚ Dell grew twice as fast as its major rivals in the personal computer market and tripled its market share. In the first half of 1998‚ Dell reported operating earnings that were greater than the personal computer earnings of Compaq‚ Gateway‚ Hewlett Packard
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Matching Dell 1. Perform an Industry analysis on the personal computer industry Substitutes Buyers • Compaq • IBM • HP • Hacer • GateWay • Apple • Large and midsize Business • Government • Small Business • Individual Customers • Educational • Most of them have a strong purchasing power and a easy way to change of supplier in commodity PC product Suppliers Barriers to entry in this Industry • Intel • Microsoft • Others • They have a strong Power • Intel and Microsoft
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Dell Case Study. 1. What is Dell’s strategy? What is the basis on which Dell builds its competitive advantage? Dell’s Strategy: The Company was focused on a simple idea of understanding the need of the customer and efficiently providing the most accurate Product that could satisfy the need. And this was done by direct selling cutting the role of middleman hence bringing a change in the Supply Chain. This meant that Dell knew the desire and need of the customer before any of its competitor
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1. Evaluate the attractiveness of the PC industry. In short‚ at the time of the Matching Dell case study the PC industry was essentially in a boom‚ and particularly in the United States. Steady growth and expansion continued from the first waves created in the mid-1970s by firms like Apple‚ and exploded in the 1980s with IBM’s first PC offering. Companies likely envisioned a huge potential for growth due to the fact that PC had become attainable as a household commodity‚ and was almost certainly
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Matching Dell 1. Describe Dell’s strategy. 2. What are the key trade-offs involved in Dell’s strategic positioning? One trade-off is Dell’s strategic positioning of personalized computers refrains it from the benefits of supply-side economies of scale. The personalized products and customer-centric services mean higher cost. The other trade-off is that Dell loses sales opportunities to a variety of distributors by focusing on direct sales. Although the strategic positioning of direct sales can
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Our Dell Global Fulfillment and Logistics (GF&L) organization aims to develop and sustain a global transportation and logistics network that uses the most efficient and effective means for us and our transportation providers to distribute our products to our customers. Our job is to get the right product‚ to the right place‚ at the right time. Furthermore‚ our Dell Logistics teams must do this at the right cost. We continue to optimize transportation costs while improving quality and striving to
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about the success and challenges of Dell Inc.‚ which was started by Michael Dell in 1984 (Wheelen & Hunger‚ 2012‚ p. 9-1). They explain how he started the corporation by buying and reselling computers. Eventually he began to manufacture his own computers. They explain the market share between Dell Inc. and competitors. They list problems of the corporation buy growing too quickly. They had to slow down the growth process and focus on organization of the company. The business model‚ product lines
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Dell is also one of the in the market setting the tone for horizontal structure communication. It has adopted Hofstede’s low power distance dimension. In the Retention‚ Acquisition‚ and Development account‚ communication involves much horizontal communication with lean hierarchy. The organization has been able to run much like an entrepreneur startup even though it has reached gargantuan size. The lean hierarchy is one of Dell’s key success factors because it creates more efficiency in the workplace
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