However, the laptop market differs from the desktop market in a number of ways. Furthermore, it is crucial for the company to decide between implementing the direct distribution strategy or the retail channel.
In doing so, Dell made the customers understand that Dell case analysis 1 would not take forever. Dell takes position in direct communication with customers and delivers build-to-order computers. Within a year, Dell introduces its first own-design computer system and inthe company introduces its first laptop.
Before deciding between the alternatives, it is necessary to look into the internal and external situation of the company. The first laptop introduced did not live up to the Dell standards, and was therefore taken off the market again. In order to reach these goals Dell needs to gain advantage in production cost and to select an effective distribution channel.
Dell is considering if re-entering the laptop market is profitable and advisable for the company and whether the distribution channel should be based on the direct model or the indirect model the retail market. The new challenge the company faces is to decide whether or not to continue the with the direct business model for the laptop market, or if the Dell should follow its competitors and sell through the retail market.
The question was whether this strategy was an advantage for Dell or not. Dell also needs to consider how to convince former customers to buy the improved computers.
The reduced degree of customization indicates that production and assembly strategies may have to be changed from the one used for desktops in order to make the laptop manufacturing successful. The drawbacks that makes this situation difficult is the bad past experience and the need of new educated employees in service and manufacturing sectors, as well as the need for new suppliers.
Dell had to solve the problem of balancing the production of laptops, desktops and servers. The main issues related with entering the laptop market are: All together these issues led to one main concern - how to make the entering into laptop market successful?
For Dell the main problem will be Dell case analysis 1 manufacturing process. When producing laptops, most parts will be delivered by suppliers and Dell just ads the last parts. Dell needs to find a way of approaching their former and present customers as well as trying to gain new customers, making their offer interesting to both sides.
It represents good performance machines at a reasonable price as well as unique and distinctive "Direct Model", while targeting corporate, medium and small sized businesses and home office consumers.
The value created by using the direct model to sell customized products and by providing on-site service ranked Dell between market leaders IMB, Compaq, HP.
The distribution question is also essential, because many small office and home buyers prefer purchasing through the retail channel where they can see and touch the product, whereas Dell communicates with customers directly through the Internet.
Dell has successfully restructured the management team and hired John Medica, from Apple. The goal of entering the laptop market is to expand the company and to offer customers the high-quality customized computers they want at a competitive price, as quickly as possible and backed by great service.
On the laptop market, which Dell was committed to re-enter due to its growing customer base, there were a number of technological problems. Situation analysis Due to a changing market environment and existing product life-circle there is a need for the company to revise its present business units and to think about further expansion.
The brand "Dell", which serves various consumer segments, is efficiently delivering attributes such as good quality computers along with operative support services.Dell Case Study Essay - The company that I chose to do my case analysis on is Dell computers.
Many companies start out as very aggressive but get crashed either by its competitor or by poor strategic management. View Notes - Case Analysis - Dell from MARK at Marquette University. Case: Dell Inc. Question 1: What is your evaluation of Michael Dells performance in his roles as Dells CEO and%(3).
Case Analysis: Dell Introduction Present CEO and chairman of the board Michael Dell founded Dell inas a leading technology provider that designs, develops, manufactures, and supports PCs, software and peripherals, storage and servers, and associated services.
Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA.
IFE Matrix is the Internal Audit of an organization. 1 D ELL D IRECT 1 Ina manager from a leading Japanese computer company was recounting his References (in numbered brackets) are listed at the end of the case. G RADUATE S CHOOL OF B USINESS S TANFORD U NIVERSITY C ASE N UMBER: EC November 2 I.
Dell Background Dell to install commercial and proprietary. The 2-in-1 hybrid laptop has become the de facto form factor for consumers, but Dell has a line that make the case for business use as well.Download