Case Analysis on Dell, Inc.
PART I: INTRODUCTION/BACKGROUND SUMMARY My name is Natasha Mortimore and I have provided a detailed case analysis based upon “Dell, Inc. in 2006: Can Rivals Beat its Strategy?” In 1984, Michael Dell formed a company now known as dell, Inc. with a strategy to sell build-to-order computers directly to its customers. Customers would have to phone, fax, or order their custom built computers which eliminated the expense of middlemen known as resellers. Between the years of 1986-1993, Dell had to refine its strategy in order to gain market-credibility against its rivals. Such rivals included IBM/Lenovo, Hewlett-Packard, and Gateway.
By 2005, Dell, Inc. had acquired a 33.9% share of PC sales within its industry inside the United States with plants also located in Japan, China, and Brazil. It had also been named #1 in a survey in CIO Magazine for its impeccable customer service.
Although Dell, Inc. has been remarkably successful in its marketing approach that aided in in rapid growth in market share, it had its share of short-comings. This was mostly due to its reactive approach to situations that were pertinent to its success and could have been minimized or eliminated with more thorough research. Dell had tapped into markets suffering losses and disadvantages due to its direct sales strategy and lack of research.
PART II: PROBLEM IDENTIFICATION
Although Dell was reputable and successful with parts of its direct sales strategy, it was affected by its reactive approach to the plan. Reactive planning is best defined as the process in which future action is a response to a situation that has already or is now occurring; similar to a reflex. (http://wiki.answers.com/Q/What_is_reactive_planning) This type of planning can hinder success because being unaware of specifics within a targeted market can cause negative responses from that audience. For instance, in the US, handshakes are short and firm which indicates self-confidence. A limp handshake from a man is
By 2005, Dell, Inc. had acquired a 33.9% share of PC sales within its industry inside the United States with plants also located in Japan, China, and Brazil. It had also been named #1 in a survey in CIO Magazine for its impeccable customer service.
Although Dell, Inc. has been remarkably successful in its marketing approach that aided in in rapid growth in market share, it had its share of short-comings. This was mostly due to its reactive approach to situations that were pertinent to its success and could have been minimized or eliminated with more thorough research. Dell had tapped into markets suffering losses and disadvantages due to its direct sales strategy and lack of research.
PART II: PROBLEM IDENTIFICATION
Although Dell was reputable and successful with parts of its direct sales strategy, it was affected by its reactive approach to the plan. Reactive planning is best defined as the process in which future action is a response to a situation that has already or is now occurring; similar to a reflex. (http://wiki.answers.com/Q/What_is_reactive_planning) This type of planning can hinder success because being unaware of specifics within a targeted market can cause negative responses from that audience. For instance, in the US, handshakes are short and firm which indicates self-confidence. A limp handshake from a man is
Cited: "Answers.com - What Is Reactive Planning." WikiAnswers - The Q&A Wiki. Web. 03 Apr. 2011. . Thompson, Arthur A., and John E. Gamble. "Case 5, Dell, Inc in 2006: Can Rivals Beat Its Strategy?" Crafting & Executing Strategy, The Quest for Competitive Advantage. 15th ed. New York: McGraw-Hill Irwin, 2007. C-89--115. Print.