Matching Dell Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Matching Dell Case Solution

Situation Analysis

Dell Computer Corporation came into existence as a company, and it was developed it 1984. The company was named after its founder Michael Dell. Michael Dell started off the business as part time business while utilizing the space available to him in his dorm room. In the beginning he used to format hard disks for the personal computers as well as he was also offering disk drives, extra memory and modems to the IBM’s different clones where he sold all these services at a much lesser price in comparison with the IBM machines. Dell was built and started its business operations with a capital of only $80,000. Initially the operations of the company were only limited to the mentioned service offerings and expanded with time as per increasing demands.

It was decided by the company to assemble Dell’s branded personal computers rather than upgrading the machines made available by the competitors in the market. The company has effectively been following a Direct Model as its business model. The respective model sufficiently helped the company in connecting with the customers of the company directly; they even offered high performance PCs to their corporate customers at much cheaper and reasonable prices. Nowadays, the PCs are intended to directly meet and satisfy the needs of the customers. Dell realized this need of the market and proficiently capitalized upon the available opportunity by taking order directly from the customers in the market.

For enhancing their level of offerings in the market, Dell switched from a Direct Business Model to a business model which majorly depended upon the retail channels and their efficiency. Intentions of the company with respect to adapting to an innovative strategy wereto create new opportunities and increase the penetrations in the market by improving their quality and market share. The newly adopted retail model did not satisfy the organizational goals of the company as it did not show a significant success for the company with respect to their revenues and market share.

In 1996, Dell decided to launch their own website through which the customers of the company were able to gain access to the required information related to the product, configurations, prices, place order and stay updated regarding the process of their ordered products. With this establishment the company was able to increase and improve their performance while meeting the needs and demands of the customers. Revenues for the company increased between the time span of 1994 till 1998 as these implementations adequately supported the company in increasing the business activities. Not only the revenues, but the company also enjoyed increase profits in this time period.

Dell was enjoying increased stock prices and it tripled its market share in the same time span. The markets hare of the company increase rapidly in comparison to their competitors and rivals in the market as the company was the pioneer in connecting with the customers directly with respect to meeting their needs and requirements. Due to their direct model, the company was able to directly deal with the customers which enabled it in gaining increased level of information regarding the customer needs.Matching Dell Case Solution
Issue
The market in which the company is operating its business activities is facing challenges with respect to increasing their profits margins; however Dell is still able to gain increased level of profits with the support of their direct approach. Due to success of the company, the rivals of the company are making attempts to imitate the successful approach used by the company and Dell is facing challenges in creating a competitive advantage for them while operating in the PC industry.

Problem Statement

“Dell is concerned about its acquired market share, due to the neutralization of its competitive advantage of directly dealing with the customers as it is being imitated by their rivals in the industry.”.......................

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