Dell is a growing technology-based organization. It is a successful organization of the United States but recently it lost is lead position in the technology market to Hewlett Packard. This became a matter of great concern for the management of Dell. And therefore, research started on the reasons as to why this happened. It was found that in late 2006, HP sold more units globally than did Dell. This was the statistical part of it. But the theory behind it says that Dell should now use reactive management in dealing with this loss.
They should focus on all sorts of key e-business elements to recover their position. They can focus on better customer relationship management (CRM), enhanced human resource management (HRM), wider availability of Dell products to its customers, value-added services, promotions and offers and lastly, better communication and collaboration within all components of the supply chain. Dell has been effectively performing all the above functions but at this stage in time, it needs to further elaborate and build on all of these functions so as to regain its leadership position.
Dell is still growing as an organization but not at the speed with which its competitors are growing. Dell still maintains a favourable position in the marketplace. Furthermore, Dell should keep on using Internet technology to attain that competitive advantage. It should further invest in doing e-business and e-commerce for its trading ad conducting purposes so as to receive more loyalty from its customers and ensure their utmost involvement in the company. INTRODUCTION TO DELLDell is a very old and successful company of America which deals with the sales of products that are technology-based.
Its business scope not only includes selling these products, but it also encompasses development and manufacturing of these components of technology. Moreover, it also will support these products and their presence in the market. Dell has very diligently used technology in making a very prominent place in the market. For years and years, Dell had the competitive advantage over other companies in the same field. It managed in maintaining this competitive edge for many decades, but only recently the company Hewlett Packard has made its name prominent in the market place and has left Dell behind in the technology race.
USING INTERNET FOR COMPETITIVE ADVANTAGEDuring the time at which it was at the peak of its success, it had very intelligently used the Internet technology to achieve that competitive advantage. We can call the world of Internet as one of the core competence of the company Dell as it was the business activity which it used particularly more efficiently than did the other organizations in the same industry. Firstly, Dell provided value to its customers through presenting their products online.
Not just that, they gave special promotions of quick buys and discounts for those who would pay immediately. This created value for those customers who wanted to buy Dell products and yet save on their pocket. This provided further incentive to the customers to go online and shop, with convenience for themselves as well as for their budget. Moreover, Dell was giving their valued customers the same service and performance which they would find it they go to a physical Dell store. This quality really attracted customers.
The website was absolutely user-friendly. The customers found navigation within the site very easy and there were many useful tabs to help them go to useful links and let them know of the content of the website. Furthermore, Dell was thoughtful enough to provide personal attention to the customers. This was done through the use of personalized web sites for different target audiences, for example there would be separate web pages for the ladies, the men, young children. Of course there are variations in likes, dislikes and choices in adult men, adult women and young children even when it comes to the use of technology.
Moreover, bio-data of the customers who visit the website are asked and fed and then likewise, personal suggestions for buying a particular product out of a whole product-line are given to them. Likewise, personalized special offers can also be made to the customers based on their bio data. Adding to this, Dell also indulged in providing a sense of community living to the customer when they visit the website. This can be achieved by the discussion boards and chat rooms that are open and free for anyone to come and use.
This generates discussion between various people and allows a positive image of the brand to develop.