Dell is a key competitor in the computer hardware industry. Dell provides its products to the general public, governments, businesses, and educational institutions. Dell operates primarily on two business segments – computers and servers. Dell’s business-level strategy is composed of a focused differentiation approach. In turn, the corporate-level strategy Dell uses is a global approach. Dell’ s mission is to be the most successful computer company in the world at delivering the best customer experience in markets they serve.
In doing so, Dell aims to meet customer expectations of highest quality, leading technology, competitive pricing, best- in-class service and support, flexible customization capability and financial stability. Dell serves four main customer segments; Home Users, Large Enterprise, Small and Medium Businesses and Public Sector. An External Analysis: Due to the rapid technological innovations in computer electronics and the high level of dependency of many businesses and home users, there are no direct substitute products for Dell’s product portfolio.
While there are no threats from substitute products, there is increasing competition from new entrants in the Home Users market segment. General External Environment: Dell’s global presence creates opportunities for expansion in the overseas markets. Its awareness about the environment makes it a responsible investor. In emerging markets, Dell’s strategy is to focus on providing region-specific products to meet the needs of emerging markets such as China, Brazil, Russia, and India.
Customers in these markets need a low cost PC that provides the basic functionality. Furthermore, its user friendly web site makes it easy for those who are not computer expert to go online and do the shopping in a very safe environment. Dell’s ability to adapt to changing circumstances is its great strength. The internet is a great opportunity for companies to get their name into the public domain as well as a fast way to tailor services to its customer segments. Dell achieves this by having customer specific Premier Pages within dell. om. These Premier Pages offer Dell’s special customers exclusive discounts on many of their packaged systems and individual products that are available over the internet. Internal Analysis: Dell’s core competencies are their cost/differentiation strategy. Dell produces high quality PCs by using their Direct Business Model approach and sells them directly to the customers. With this innovative process, Dell cuts out the intermediary, excluding the associated cost as well as detecting shifts in consumer preferences earlier than competitors.
In consistent to being an integrated cost leader, Dell demonstrates diversification to maximize its value. Diversification for Dell means increasing revenues through the delivery of new products to existing markets, increasing market power in existing markets, and identifying new markets to serve. The continuous advancement in technology and innovative approach to manufacturing and assembly keeps Dell the low price leader in the PC industry.