Dell Inc. in 2008: Can It Overtake Hewlett-Packard as the World Leader in Personal Computers? Introduction In the category of enterprise IT, Dell Company has been seen to compete with the Hewlett- Packard (HP) Company for a very long time, though there has been a very stiff competition, Dell has always maintained the leadership in the market of personal computers (PCs) all over the world. This may be attributed to the Dell’s singular strategy of building and selling products cheaper and more efficiently than its competitors. Dell company Chief Executive Officer has been strategizing and venturing in other fields of IT; this has boosted its competition with rival companies.
Companies’ management is very essential in delivering quality products to the consumers as well as driving the profits of the company high, as in the case of Dell compared to rival H. P. This case study is aimed at assessing the performance of the Dell’s C. E.O in executing the strategies of the company, the various strategies put in place in order to stay ahead of H. P., the major problems and challenges as well as the actions or strategies that has to be implemented to scale up the vision of Dell Company.
What are the elements of Dell’s strategy? Which one of the five generic competitive strategies is Dell employing? How well do the different pieces of Dell’s strategy fit together? In what ways is Dell’s strategy evolving? The main strategy put in place by Dell Company is manufacturing and selling its products in low prices and more efficiently compared to its rivals especially the Hewlett- Packard (HP), thus increasing its market share as well as its revenues (Madden 2005, p. 3) . Dell has been adapting this generic strategy of cost leadership as it targets a broad markets.
Dell depends on this particular strategy as it has some strength especially in regard to Dells efficient distribution channels, high expertise in the entire engineering process and quality skills in the design of products for efficiency in manufacturing. The Dell’s simple plan to focus mainly to both the consumers and business customers has led to the growth of Dells overall enterprise strategy. As described by Aurthur, John and Strickland (2005, p.
568) Dell’s strategy model gives a room for selling products directly to the customers; this a very efficient in marketing the company as it is able to eliminate some retail dealers and wholesalers who act as a hindrance in Dell’s understanding of the needs as well as the expectations of the customers in relation to its products and services. Dell also gives an opportunity to the customers to buy products that are custom build and customer tailored services effectively while trying to meet the needs of the clients.
The other and most important component in the strategy of Dell Company is the efficiency in the supply chain whereby the use of standardized technology and selling of its products directly acts as a cost saving strategy the overall enterprise strategy for Dell is maturing and growing stronger each year and has led to crystallization of the main vision of scalable enterprise. The Dell’s strategy is evolving as the management keeps on holding to the components of its strategy. Dell aims at making a build-order manufacturing and makes it more efficient in relation to the cost.
The strategy also aims at using a direct sale to attract customers as well as expansion of the company into additional services and products and to provide good customer service and support. The company’s main aim of their evolving strategy is to reduce costs through out the supply chain and direct sales (Dell Company 2011).