The Strategy of Dell - Case Study Example

Dell Case Study Dell Strategy Since its launch in 1984, Dell company has been experiencing­­­ tremendous growth to become a leading producer and trader of computers, especially laptops and desktops (President and Fellows of Harvard College, p.3). However, at the end of the year 2001, the company started experiencing a decline in profit though sales were still soaring. The CEO of Dell Company was still hopeful that the company was able to increase its profitability from $6 billion in the year 2002 to $60 billion by the end of the year 2007 (President and Fellows of Harvard College, p.16).In the President and Fellows of Harvard College (p.22), for Dell Company to attain its target it should expand its market beyond the US to cover the entire world.

They should start offering other electronic gadgets and software which they can market online. This will help to increase sales and reduce expenditure on sales hence increasing their earnings. They should provide an online selling website where clients can acquire music and computer software onlineImplications Lowering the cost of their company’s products might make consumers perceive those products as if they are of inferior quality (President and Fellows of Harvard College, p.21). This may result in to decline in sales as consumer loses confidence in the products.

Also, by diversifying its products and services, Dell increases its cost of operation hence the decline in profit. They will have to invest intensively in research and innovations to meet required standards resulting in further increases in operating costs. Finally, the company may lose customer loyalty due decline in customer services as they embark on online marketing services which results in to decline in customer services (President and Fellows of Harvard College, p.22). The company may not be able to keep track of its clients if they sell its products online.

This may result in to decline in sales since not all customers will trust online services.