Dell Case Notes - Dell: From a Low-Cost PC Maker to an...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Dell: From a Low-Cost PC Maker to an Innovative Company CASE ASSIGNMENT The company's recent financial results and other performance measures have led you to join analysts and shareholders who are questioning the potential for Dell's turnaround strategy to succeed. Last week you cleared your schedule to reevaluate the company's turnaround strategy and to fully assess its strategic fit with the company's current environment. As you look over your assessment and consider the challenges the company faces, you decide to call in Dell's top management team to discuss your findings. Your analysis includes the following elements: 1. Based on your assessment of the external environment, what conclusions have you drawn, and what actions are required of the company? 2. What internal resources and capabilities at Dell would support these actions, and what weaknesses might interfere with the company's ability to implement a new strategy? 3. Define Dell's business-level and corporate-level strategies. Do they integrate the suggested actions? 4. Under what conditions would you recommend a change in Dell's unique business model? 5. What other commitments are necessary to reignite growth, position the company for the future, and win a competitive advantage by exploiting Dell's core competencies? Based on your discussion with Dell's top management team, you expect to achieve agreement on the strategic direction and moves that will fulfill the company's immediate and long-term goals. 96
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Dell: From a Low-Cost PC Maker to an Innovative Company STRATEGIC MANAGEMENT INPUTS 1. Based on your assessment of the external environment, what conclusions have you drawn, and what actions are required of the company? Threats Suggested Action Mature PC market - US saturation High penetration in traditional markets Stagnation in replacement market Price declines - lower revenues and profits Consolidations and mergers in the industry Need to identify new drivers of growth New competitors with increasing global shipments Conduct market-specific analysis of major competitors Innovative competitors successfully identifying industry trends and consumer preferences Develop innovative skills to keep up with growing segments and consumer appeal Business model does not work in China - biggest open market for future PC growth Customer education Develop model consistent with Dell capabilities and adds value to other markets WIN-TEL technology no longer has a lock on the market - simple box of technology no loner appeals to consumers Expand cooperative networks Engage in more flexible technology agreements Hypercompetitive market Increase company's flexibility, speed of identifying and reacting to changing environment Opportunities Suggested Action Growing segments and markets Developing countries Consumer electronics Media PC Digital entertainment Gaming Mobility products and services Software peripherals Diversify (extend) offerings into products with growth potential and a natural fit with
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/06/2012 for the course MGT 4027 taught by Professor Stein during the Winter '11 term at Southeaster Oklahoma State University.

Page1 / 8

Dell Case Notes - Dell: From a Low-Cost PC Maker to an...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online