PC Industry, DELL(Strategic Analysis and Suggestions) 등록 DV

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PC Industry, DELL(Strategic Analysis and Suggestions)

PC Industry, DELL(Strategic Analysis and Suggestions)

PC Industry, DELL

: Strategic Analysis and Suggestions

INDEX

1. Introduction

2. Dell`s Success Formula

1) Characteristics of PC Industry : General Environment

2) Dell`s Core Competency

3. Dell`s Internal Analyses

1) Dell`s Value Chain Analysis

2) Strength & Weakness

4. Dell`s External Analyses

1) Porter`s Five Forces Model and Current Issues

2) Opportunity & Threat

5. SWOT Analysis

1) 4 Possible Scenarios

2) Business - level Strategy

1. Introduction

`Relationships with cus...PC Industry, DELL

: Strategic Analysis and Suggestions

INDEX

1. Introduction

2. Dell`s Success Formula

1) Characteristics of PC Industry : General Environment

2) Dell`s Core Competency

3. Dell`s Internal Analyses

1) Dell`s Value Chain Analysis

2) Strength & Weakness

4. Dell`s External Analyses

1) Porter`s Five Forces Model and Current Issues

2) Opportunity & Threat

5. SWOT Analysis

1) 4 Possible Scenarios

2) Business - level Strategy

1. Introduction

`Relationships with customers and suppliers allow us to know what we must be able to supply in real time and then very quickly and precisely meet that demand while maintaining low inventory.`

(Dave Schneider, engineering manager of Dell)

As of July 2002, Dell Computer Corporation (Dell) was the world’s largest direct selling computer company, with 34,800 employees in more than 30 countries and customers in more than 170 countries. Headquartered in Austin, Texas, Dell had gained a reputation as one of the world’s most preferred computer systems companies and a premier provider of products and services that customers worldwide needed to build their information-technology and Internet infrastructures. Dell’s climb to market leadership was the result of a persistent focus on delivering the best possible customer experience. Direct selling, from manufacturer to consumer, was a key component of its strategy (2002).

The company was based on a simple concept: that Dell could best understand consumer needs and efficiently provide the most effective computing solutions to meet those needs by selling computer systems directly to customers. This direct business model eliminated retailers, who added unnecessary time and cost, and also allowed the company to build every system to order, offering customers powerful, richly configured systems at competitive prices. Dell introduced the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory an average of every four days. In less than two decades, Dell became the number-one retailer of personal computers, outselling IBM, Hewlett-Packard, and Compaq (2002).

However, current change in the PC industry has been urging Dell to take different strategic approach. The advent of substitutes - tablet PC, smart phone, Galaxy note, etc. has taken away significant market share and managing the cost of compartments, which are turning into commodities, has been a challenging task. Furthermore, customers` preference is changing due to the emergence of smart devices and cloud computing service. And low price competitor such as Lenovo and Acer is triggering a price war. These two factors are incurred due to the fact that PC market has entered mature phase in product life cycle.

Michael Dell currently announced Dell`s strategic change that Dell will stop selling hardware and shift to software. And according to Gartner`s statement in a conference `PC industry is faced with risk`. Is De

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