What should dell do better

For the future Dell should apply following strategies: continuously improvement of existing core elements to keep the competitive advantage; try other distribution channels to reach broader customer base; the development and product innovation in PC, server and storage area needs to be pushed to be competitive; Dell should intensify the strategic alliances further and should try to boost acquisition of small companies or rivals to strengthen competitive capability; expansion of the service group should be pursued and Dell should look for possibilities to optimize the two manufacturing plants in China to gain market share and revenue increase.

With this view word Michael Dell explained briefly how Dell Incorporation managed to become the worldwide number one in the computer industry Anon , p. Back at this time he was a 19 year old undergraduate student at the University of Texas. This little company, now headquartered in Round Rock, Texas, has turned into a huge corporation with more than Today Dell is a huge global player in the information technology industry and offers a wide product range from personal computers, notebooks, monitors, printers, scanner, plasma and LCD TVs, projectors, storage and server systems.

It is the object of this assignment to examine the crafting and executing strategy of Dell Incorporated. In the assignment a multi step approach will be used to present the objectives of chapter 1. Basis for this study is the period until Therefore developments after will not be analysed or considered in this study.

In the third step the strengths, weaknesses, opportunities and threats SWOT analyses will be performed. Finally in the last step it will be discussed how Dell can improve its strengths and what is a suitable approach to beat out the competition. For this analyse the development of the company which is closely associated to the development of Michael Dell as a leader is studied base for the study: Thomson, Arthur A.

The young Michael Dell had an instinct for successful business creation and he proved this when he started in with a simple idea to sell PC components out of his collage dormitory, which he bought from IBM dealers, who had often excess supplies on hand, because they were required to order monthly quotas from International Business Machines IBM.

He sold these components for 15 percent below the regular retail price. Dell decided to drop out of college and formed PCs Ltd.

His simple strategy was to sell the PCs direct to end users to eliminate the retail markup. This low price strategy worked out very well and generated enormous revenue growth. In the company was already assembling its own PC designs. The young Michael Dell was back at this time a enthusiastic hard working individual full of ideas.

During that time he had to refine the strategy several times even after it was implemented, but because of missing business, financial knowledge and leadership qualities shy person and terrible public speaker he was unable to develop his business further.

The young company was therefore struggling with growing pains. Michael Dell was aware of this problem and brought in Lee Walker, a 51 year old venture capitalist, to provide the needed managerial and financial experience to develop the company. In the company was renamed into Dell Computer and first international offices were opened.

In Walker had to leave the company because of health reasons. The hiring of Walker and Meyerson shows that the young Michael Dell understood very well the important role of corporate governance.

Michael Dell developed a new style of management based on both technical knowledge and marketing know-how. And last year, he decided that the answer was to take the company private, to escape the hectoring of the public market. For more background on the potential deal, click here. But even if he succeeds in convincing shareholders to let him buy back his company, the real challenges lie ahead.

Luckily for Dell — both the man and the company — the history of corporate turnarounds provides clues as to what the company must do to get back on track. The bulk of sales came from business and government, as big customers appreciated the ability to customize a large number of PCs; Dell also offered these companies customized portals where employees could buy one of several company-approved computers directly.

This simple strategy proved wildly successful. Competitors like IBM and Compaq struggled with the politics of managing their various channel partners and lagged Dell in inventory management. When competitors tried to copy the direct model, their channel partners — fearing for their own businesses — objected, preventing other PC makers from fully going direct.

In , Michael Dell left the company, replaced by Kevin Rollins, a former Bain consultant who joined the company in Though Rollins held the job for just two and a half years, he presided over a brisk decline, attributable to everything from bad customer service to shoddy batteries to questionable accounting practices.

Dell returned as CEO in It was against this background that Michael Dell last year hatched a plan to take the company private, with the help of the private equity firm Silver Lake Partners. And Dell was doing very well in personal computers, but the market was declining.

The server market was very competitive and they were doing relatively well there against HP and Lenovo. But I think they felt they didn't have the breadth and scale to compete longer term. In , Dell announced it would buy data storage company EMC, a deal that still stands as the largest technology acquisition of all time.

In , Dell returned to the public markets as Dell Technologies.