Case Study on Strategic Management

Presented to:Business media

Presented By: Muhammad Umar khan

History

It was founded in 1984 and was known as PC’s Limited.

Founder of Dell was Michael Dell.

They changed their name to Dell Computer Corporation in 2012.

Product Line

SoftwareHardwareWorkstationsElectronicsPrintersTabletsMobile Devices NetworkingStorage DevicesServersSecurity ProductsOther Electronic ProductsInformation Technology Products

Uniqueness

Dell provided unmatched service for their customers in their first PC , “Turbo PC”.

Dell provided a “risk free returns and next day at home product assistance”.

Another significant feature in Dell’s growth is that they provided the longest battery life in comparison to other companies by providing a lithium-ion battery.

Strengths

Customer intimacy (product differentiation & customer relationship management)

Used Direct Model Approach to provide customization to customers, to get rid of distribution channels & retailers.

Gave customers payment options.

Provides a 24/7 tech support for customers.

Provides warranty on whole package.

Cost leadership strategy.

Weaknesses

Wait for their customization.

Dell can’t compete in innovation.

Can’t personally meet the technician or employee.

Weak internal control (Didn’t thoroughly check for the products ready to sale).

Opportunities

Should get the loyalty of university students that are the biggest target market for them.

Should search for other markets such as Asia & Africa where low cost products is of outmost importance.

Threats

New Technology

Competition

No retail stores

Best differentiation strategy of Apple

Other brands can compete by achieving low cost

SWOT Analysis

Looking at the strengths, weaknesses, opportunities and threats, it’s obvious that Dell is not competitive anymore. Dell is slowly losing its competitive edge because of its highly innovated competitors and because competitors such as Apple are able to capture the consumer’s attention by offering differentiated and innovated products in the market.

Business Level Strategy

Hierarchy of Dell

Advantages to Dell

Direct Selling Strategy

Benefits to employees (medical benefit, retired plan, saving plan & specific discounts on computers & other products)