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Dell Case Analysis

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Dell Case Analysis
Table of contents

Case comprehension p. 2

Situation analysis p. 2

Diagnosis p. 4

Alternative choices p. 5

Predicting outcome p. 5

Choice p. 7

Solution outline p. 8

Case comprehension
Dell Computer Corporation was founded in 1984 by Michel Dell, as a result of a growing demand for his pre-formatted hard-disks and upgraded IBM-compatibles.
Within a year, Dell introduces its first own-design computer system and in 1989, the company introduces its first laptop. The first laptop introduced did not live up to the Dell standards, and was therefore taken off the market again.
Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to re-enter due to its growing customer base, there were a number of technological problems. Dell had hired John Medica, lead developer of Apple computer 's Powerbook line, and according to him, only one of the laptops being developed would be able to compete on the market. However, it would take some time before it was fully developed, so Dell had to reject their customer 's demand for laptops. In doing so, Dell made the customers understand that it would not take forever. Dell 's way to approach the fact that the company was not able to fulfil the customers wishes, was through honesty. The question was whether this strategy was an advantage for Dell or not.
The brand "Dell", which serves various consumer segments, is efficiently delivering attributes such as good quality computers along with operative support services. Dell takes position in direct communication with customers and delivers build-to-order computers. 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. It represents good performance machines at a reasonable price as well as unique and distinctive "Direct Model", while targeting corporate, medium and small sized

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