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DELL company update - Research Paper Example

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Executive Summary The Case The case study discusses the overall strategy of Dell and how it has focused on the customer driven strategy to ensure its leadership in the PC market. It also discusses the rise of Dell in the PC industry as to how it’s focused strategy of selling directly to the customers and reducing the inventory cost has resulted into the improvement of profitability and market share…
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DELL company update
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"DELL company update"

Download file to see previous pages This strategy has helped the firm to actually capture that segment of the market which was looking for low priced computers in place of expensive IBM PCs- Over the period of time, Dell has expanded into other markets by forming strategic partnerships with different other players in the PC industry. Starting as a PC manufacturer, Dell has subsequently expanded into the Servers, Printers, memory and storage devices, LCD TVs, portable music players etc. Dell however, has subsequently discarded some of the products due to thin margins. Case also further discusses as to how the better assembly and manufacturing system, effective inventory management as well as direct sales approach of the firm has helped it to gain market share. The Update Since the end of 2008 there have been major changes in the information technology market as the new products and services changed the way market behaved in the past. The introduction of the Smartphones as well as the tablets in the market has made a great impact on the personal computers industry as more and more consumers preferred to use products like IPAD and Iphone to have entertainment on the go. There has been also a great change in the business computing as more focus was placed on the information technology security and safety. Recognizing this change in the market, Dell has also responded to these market changes and introduced new products and services which were potentially aimed at catering to the changing needs of the consumers. The introduction of new products such as Dell Venue Pro as well as Dell Streak outlines the shift in the strategy of the firm towards offering innovative products and services. Dell Inc has also focused on making a transition towards a services oriented firm rather than a purely hardware manufacturing firm. The use of social networking services to initiate a more personalized interaction with the customers therefore outline the necessary change in the attitude of the firm. The offering of enterprise wide services such as IT security Services, Data Storage Services etc therefore suggest that Dell is making a gigantic shift in its strategy to systematically lessen its dependence of personal computers as the major source of revenue for the firm. The Strategy Since 2008, Dell Inc has focused on the strategy of acquiring new firms in order to build its capacity to serve the different segments of the market. Dell Inc has systematically initiated the strategic acquisition process to acquire firms which can build its capacity to offer diversified range of services across different segments of the market. The acquisition strategy has proved successful for the firm as Dell Inc specially has been able to cater to the needs of its business customers. By acquiring firms like SystemWorks, Dell has been able to offer enterprise wide services to its customers. Acquisition strategy has been successfully implemented and executed by Google therefore it seems that Dell is also following into the footsteps of Google to expand its overall base of services by acquiring small and medium businesses and utilize its research and development expertise to bring in more innovation and creativity into the overall product offering. There may also be a shift in the way Dell Inc has traditionally marketed ...Download file to see next pagesRead More
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