Strategies of Dell Company
Since its establishment, Dell has set itself as a leading enterprise in the personal computer segment of the technology industry. Its “Dell Direct model” of conducting business makes it stand out as offering innovative products to customers at lower prices and providing great customer experience (Dell & Fredman, 2006). The business model eliminates inventories and intermediaries that often resulting in lower prices of its commodities. The company strategy emphasizes on minimum spending on research and development of technologies.
The company has in the past largely depended on the evolutionary technolgies by associate firms thus lacks its propriety technology. This fact leads to it absorbing innovations from developers instead of spending its revenue (Ignatiuk, 2008). Surprisingly, without spending on research and development, Dell managed to reinvent the PC industry. The basic principles of the Dell Direct model including preventing intermediaries, maintenance of clear communication and charging no extra costs on products drive it to competitive advantage.
The company maintains a remarkable customer relationship that meets the changing customer demands and maintaining their loyalty (Ignatiuk, 2008). The firm also customizes its products to customer specifications thus resulting in incredible satisfaction. Ensuring the customer satisfaction is reminiscent of the company’s mission statement of providing the best customer experience in the computer industry (Dell & Fredman, 2006). Dell also uses an integrated marketing approach, which involves the sale of items in both the electronic platforms and print media. This marketing enhances its brands and expands the customer base.
Dell Business Strategy Analysis
Technology, research, and development are undergoing drastic changes that entrepreneurs have to contend with to retain both brand advantage and profitability. Dell must consistently diversify its range of products to increase revenue base. It has to venture progressively into sophisticated hardware that drives corporate and personal computing such as network switches (Ignatiuk, 2008). At the end of this restructure, the firm should redefine its business image as being a computer systems and service merchandise. Nonetheless, with this entry into new fields, Dell has to develop strategies to overcome the current competition with other giants such as HP, Toshiba, EMC, Hitachi and Compaq (Dell & Fredman, 2006).
Dell needs to improve its industry strength by actively leveraging the challenge posed by its opponents at the apex of operations characterised by high stakes and high profit margins (DuBrin, 2012). One critical thing that Dell has to do is increase its investment in the research and development instead of leaving it to its business associates (In Thanuskodi, 2015). This choice means the Dell Direct Model has to be reframed to accommodate the express development of software and hardware. Through this approach, the merchandise will gain a propriety grip of the industry to maintain its progress.
Dell offers a variety of computer products ranging from the quality and highly priced to premium systems for business and individual customers. In essence, it always has quality products that meets both the need and budget of the customers. The company also produces original designs that embrace new models including edge-to-edge screens and creative coloring. For instance, some Dell computers including XPS 15 and XPS 13 affords the buyers a unique sense of technological aesthetics through their thin display bezels made up of black, carbon fiber interiors.
The PCs are also very portable and light. The 13-inch Dell model has a defining lightweight that surpasses even the MacBook Air. Inspiron 15 5000 comes with great flashes of uniqueness. The Inspiron 15 7000 also bears a striking tinge of modesty and sexy with a characteristically black soft-touch finish. Another unique feature of the Dell desktops and laptops is that they are developed to stick with the de-facto standards of the industry. For instance, they run Intel microprocessors and Windows or Linux Operating systems. These traditional systems do not restrict the users to any particular computer hardware thus making it a liberal brand (Shaw, Ivens & Palgrave Connect (Online service), 2005).
Based on its central focus on ensuring customer satisfaction and innovative products, Dell has established an elaborate plan that involves transforming the industry, informing and protecting both client and their products (Saunders, 2000). The firm also works at the behest of its “Dell Direct” model that nurtured success by developing strategic partnerships with corporations whose contributions in the computer industry is significant. For instance, Dell collaborates with leading IT companies including Google, Dropbox and Microsoft to provide computing solutions (DuBrin, 2012). These undertakings aim at integrating the Dell Internet Protocol with the Information technology products of Google, Accenture, and others.
Through the partnerships, Dell consistently builds Dell excellent security solutions without necessary posing competition to them. The basis of these collaborations is a fundamental need to improve the brand quality of the computers and desktops without jeopardizing the principle of mutual business relationships. This pioneering model propels the tech firm to competitive heights. Through the elimination of longer chains of distribution, Dell has been able to offer its high quality products at lower prices than its closest competitors offer (Saunders, 2000). The change within merchandise from having a particular concentration in personal computers to providing various solutions and services keeps it relevant within the PC market that is changing at unprecedented rates.
Dell, M., & Fredman, C. (2006). Direct from Dell: Strategies that revolutionized an industry. New York: Collins Business Essentials.
DuBrin, A. J. (2012). Essentials of management. Mason, Ohio: South-Western/Thomson Learning.
Ignatiuk, A. (2008). Analysis of Dell’s business strategy: [research paper]. Munchen [u.a.: GRIN-Verl.
In Thanuskodi, S. (2015). Handbook of research on inventive digital tools for collection management and development in modern libraries. Hershey, PA: Information Science Reference, an imprint of IGI Global,
Saunders, R. (2000). Business the Dell way: 10 secrets of the world’s best computer business. Oxford: Capstone.
Shaw, C., Ivens, J., & Palgrave Connect (Online service). (2005). Building great customer experiences. Houndmills, Basingstoke, Hampshire: Palgrave.