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In 2005, Dell Company was valued at over $ 100 billion, which was double the market value of HP and Apple (Edwards, 2009). Today, its market worth is less than 1/3 of the proportion that market rivals control with an estimated value of $ 30 billion. Dell has struggled to find its place back as a centre of technology.
Michael Dell, the founder and owner of the company has undertaken radical measures to change its now sinking company. By identifying the challenges that led to the failures and counteracting them with positive reinforcements, Dell can transform his company back to its former glory.
The company has faced stiff competition in the recent past. Their market presence has reduced drastically over the years since modern technology products engineered by their competitors have overtaken most of their merchandise. As such, it needs to improve by increasing their market presence within the global setting. This means adapting to new manufacturing processes that are client specific and addressing growth at the management level (Burrows, 2005). The company also experiences challenges pertaining to the slow purchase of its key products such as the personal computers in an already saturated market. A majority of the Personal Computers (PCs) in the United States are replaced by technological upgrade and development of new items.
The company should focus on strengthening relationships with suppliers and product customization (Ricadela, 2009). Another challenge is strengthening the declining customer service. Indeed, Dell prides itself in superior customer service but it should strengthen and maintain their customer service and relation (Ricadela, 2009).
The company should consider forming mergers with other strong companies. This will increase their capital base as well as expand their products variety. Merger of companies will offer a mutual benefit to both companies as
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Dell computers, a leadership industry in the area of technology and computers follows a highly innovative market strategy to gain competitive advantage in the cut throat environment of contemporary global business. Its strategic market plans are primarily people centric and focus on the changing preferences of the people.
The company had gone through many ups and down from its inception in 1984 and has to face many challenges and competitions to stay ahead in the market (Kolter and Lee, 2008). This paper strategically discusses the fall and rise of Dell Inc from 2007 to 2008 and to compare Dells strategy with that of Hewlett Packard with due reference from the case study “Dell Inc in 2008: Can it overtake Hewlett Packard as the worldwide leader in personal computers.” A) Dell’s Strategy to overcome HP in Personal Computers Michael Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to the consumers which would eliminate the additi
Additionally, poor quality products and pricing strategy of the company were also considered to be the major cause behind company’s bankruptcy (Eisenstein, 2013; Isidore, 2009). This paper intends to identify the key challenges associated with the reorganization plan that has been proposed by the company.
However, on the other hand, conflicting interests may include the actions which may be against one group of employees i.e. management and union conflicts etc. (tutor2u.com, 2008)
It has been reported that Dell was facing bureaucracy where the interests of the management and the employees were at conflict as there have been major gaps between the compensations (Gonsalves, 2007).
The main idea is to find out why the computers of Dell Inc. are so popular among the people of UK. Customer contentment is always related to the quality of the product and the affordability. In case of consumer electronic goods, especially in computer and related products, support and after-sales service is of huge importance.
Since technology is changing so rapidly, Dell computer must also look to the future, and address forces which will affect their business if they wish to stay in the forefront of the marketplace. One of these forces is Porter's force of the Threat of Substitutes.
A new manager should follow a democratic leadership style. As a democratic leader, the manager will seek to persuade and considers the feelings of persons and encourages their participation in decision making. This style will give employees greater job satisfaction and enables them to co-operate better (Armstrong, 2001).
most any one seeking computers for home or business use, comparative products from suppliers like HP are often more attractive in terms of price, design or features which means that Dell’s product line up often fails in comparison without discounts or special offers.
In 2009, Dell launched its first ever smartphone that most of its supporters, consumers and other stakeholders had been waiting for with a lot of fanaticism, which is understandable considering its reputation in computer technology.
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