Dell: New Horizons
Executive Summary
Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years.
The products of Dell are known for their quality, service & on time delivery. Their focus on customer satisfaction helped them overtake their competitors and acquire Number 1 position in the market.
Now with the success in its hands Dell wants to take a larger bite in server and storage market. Also it wants to explore more opportunities in international markets.
Contents
Executive summary 2
Situation Analysis 4
The Problem 5
Solution 6
Evaluation criteria 9
Evaluation 10
Recommendations 11
Situation Analysis
Dell, the most successful company in PC industry is evaluating its options on how to proceed further. What strategies it should follow to continue the same growth rate which it has been enjoying over the years.
To continue the same Dell employees are looking into international markets & also to venture into greater pie of Servers and storage market. However there is ambiguity among employees if this new model will be compatible with the Dell’s existing model. How well will the new model compliment Dell’s Low cost, direct customer relationships and Virtual Integration strategies?
So there is a need to evaluate the expansion plans vis-a-vis existing model.
The Problem
The following questions need to be answered.
1) What has made dell successful to date?
2) What is Dell’s position in the Industry as of 2002?
3) On august 12 2002 Business Week article, indicated that by 2007 Dell intended to double revenue to $ 60 billion. How should Dell go about building the nearly $6 billion annual sales growth?
Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years.
The products of Dell are known for their quality, service & on time delivery. Their focus on customer satisfaction helped them overtake their competitors and acquire Number 1 position in the market.
Now with the success in its hands Dell wants to take a larger bite in server and storage market. Also it wants to explore more opportunities in international markets.
Contents
Executive summary 2
Situation Analysis 4
The Problem 5
Solution 6
Evaluation criteria 9
Evaluation 10
Recommendations 11
Situation Analysis
Dell, the most successful company in PC industry is evaluating its options on how to proceed further. What strategies it should follow to continue the same growth rate which it has been enjoying over the years.
To continue the same Dell employees are looking into international markets & also to venture into greater pie of Servers and storage market. However there is ambiguity among employees if this new model will be compatible with the Dell’s existing model. How well will the new model compliment Dell’s Low cost, direct customer relationships and Virtual Integration strategies?
So there is a need to evaluate the expansion plans vis-a-vis existing model.
The Problem
The following questions need to be answered.
1) What has made dell successful to date?
2) What is Dell’s position in the Industry as of 2002?
3) On august 12 2002 Business Week article, indicated that by 2007 Dell intended to double revenue to $ 60 billion. How should Dell go about building the nearly $6 billion annual sales growth?