Evaluation Of Michael Dell, Dell Strategy, Expansion And Swot

1866 words - 8 pages

1. What is your evaluation of Michael Dell as CEO? How well has he performed the task of strategic management discussed in Chapter 1?Strategic Management Tasks- Analyzing External Environment- Analyzing Company resources and Position- Knowing Which strategy to Apply- Identify Opportunities- Select Right Business ModelM. Dell started his business when the market for the computers was still growing very fast thou it already was dominated by big players with the strong brand image such as IBM. Even thou he did not have the resources to compete with such strong competition he had the vision that some day his company may be the market leader.His success was based on finding the opportunity to ...view middle of the document...

Moreover, in the 2002-2004 when he realized that the market for the computers is slowing he was able to find another opportunities for his company. He started producing Dell printers and sell digital cameras, camcorders and event the high definitions TVs. Dell is a visionary that newer stops looking for innovative solutions for his business and he is not afraid to be first to apply it and that is what makes him so successful.2. What are the elements of Dell's strategy? How well do the pieces fit together?Is the strategy evolving?Dell initial strategy was to sell directly to customers and eliminate the markups of the resellers and build-for -order. Build -for - order and keeping low cost is something that usually does not go together, though Dell's strategy pieces fit together perfectly.To be able offer low prices Dell had to find many cost effective solutions, and build -to- order gave him many cost advantages that other manufacturers did not have.The value chain of Dell's company reflects how good the strategy is applied.The company is connected very closely with its suppliers who provide just-in-time inventory parts. The computers are assembled after the order is placed and are delivered to the customer within 3 to 5 days what reduce the cost of warehousing. This also ensures that Dell does not have inventory that he is not able to sell, and he is able to be flexible and respond fast on changing the market preferences and prices of computer parts.Is the strategy evolving? Yes, Dell still introduces changes into his business. One of them was when he decided to enter new products on the market. His new strategy was to "identify product with a good margins, figure out how to build cheaply enough to be able to significantly underprise competitive products and market the new products to Dell's steadily growing customer base" (Thompson 221).3. Does Dell's expansion into other It products and services make a good strategic sense? Why or why not?Yes and yes again. It does make sense for at least two reasons. First reason is that the computer market is maturing. Many computer users are yet not ready to replace their computers. Second is that Dell has a large customer base. Dell's customers are very loyal and I know that because I am one of them. This loyalty reflects not only appreciation for Dell's high quality products but also Dell's excellent customers service (thou I have to admit that it needs to be expanded because it takes too long to talk to representative).Dell enters the new markets very carefully. I noticed on its website it only sells high quality products such as Canon digitals cameras therefore I do not think it may be in any danger of loosing its brand image. In addition, because it stays close to IT products is not in danger of diluting its brand.4. What a SWOT analysis reveal about the attractiveness of Dell Computer's situation?Internal StrengthsInternal WeaknessesStrong position of market leaderEffective modelHighly efficient...

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