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This was the actual birth of the company and it was from here that Michael Dell moved on to build one of the world’s largest PC manufacturing companies. Dell at present holds as much as 13.2% of the total markets of the world, however the company has slipped down from its major position in the market over the past few years (Krangel, 2009).
Dell uses a business model which is direct and very transparent and simple. The company’s business model is one which is focused on better execution and minimum inventory. Considering the various attempts in the markets where companies try and imitate other companies it has been noted that in the case of Dell this has not been the case (Liker, 2003). There are several underlying reasons for the fact that other companies do not imitate the products of Dell and these have been discussed as below:
a) Economies of Scale: Dell has over the years been able to develop the operations to a level where the company faces Economies of scale. The term Economies of scale refers to the advantage that a company gains with the expansion of its business. This is an microeconomic theory and here the businesses are faced with a reduced costs in terms of per unit when the scale of production increases. The concept is a long term concept and is based on the level that businesses reach over years. Dell started with a very small operation however over the years the company has been able to gain a major part of the markets and by doing this the company has been able to also reduce the costs that they incur in terms of each unit of production. The company has built a strong image for itself and a strong level of suppliers across the world within each of the local markets.
b) Highly Effective and Efficient Processes: Dell’s overall processes are very effective and efficient. Here the company has been able to follow a business
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Marketing a product usually requires a company to perform extra promotions to increase consumer awareness towards the company. However, the promotions that a company decides to run in a market have to be agreeable to all segments of the population. This is because the market in which a company operates is diversified and the customers have to be equally satisfied.
The decline in sales was attributed to many factors that the corporation has long since tried to cope up with. The solutions derived aimed at revitalizing its image and improve on sales. Factors that led to decline in sales are internal and external issues.
In late 1980s, the company grew to become a strong brand in the market with rapid growth rate and substantial high amount of profit; at that time, Apple almost went bankrupt in year 1996 as there were some problems within the management. In 2000’s, Jobs changed the name of company to Apple Inc.
This report will also analyse the Hewlett Packard (HP) Case Study relative to Business Strategy and Organisational Identity modules. Both of these modules will be discussed separately and then they will be integrated to give a complete picture of HP's problems possible solutions for the future.
The management principles, strategy and its vision are responsible for all the success of Dell.
It was founded in the year 1984 as PC's limited. In June 1988, when its first stock offering entered the market, the name officially changed to Dell Computer Corporation.
In 2001 it was assumed that Apple was simply a ninch player with a captive market and that Dell was a mass producer that won market share by outstanding levels of cost competitiveness. How true is this in 2009' Your answer should show an understanding of the recent history of the firms, strategy utilized and the conditions of the market today.
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.
The author of this research paper describes that the company applies the principles of resource savings through the following strategies: recycling, it has environmental responsibility goals, forest stewardship. The company uses workplace health and safety program and recycles or reuses 99 percent of waste from manufacturing operations.
The CEO of Dell Company was still hopeful that the company was able to increase their profitability from $6 billion in the year 2002 to $60 billion by the end of year 2007 (President and Fellows of Harvard College,