Crafting And Executive Strategy Assignment 1

Case Study # 6 Dell Inc. In 2008 : Can it overtake Hewlett – Packard as the worldwide leaders in personal computers ?

Submitted to : Prof. James Farmer

Submitted By : Roshni Patel Student Number : 300686000

Question 1: Dell inc. Began with a ‘winning strategy’. At this time (2012), this strategy is not used to the extent that it was once was and the company is now not the company that it was once. Did Dell’s strategy fails, did the company fail to effectively execute the strategy or did the environment changes around Dell? Evaluate the possibilities. Answer: Dell is a global company that delivers products and services in more than 190 countries and company had given employment to over 4000 employees. The company deals in enterprise computing products, monitors, printers, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and downs from its inception in 1984 and has to face many challenges and competitors to stay ahead in the market. Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to consumers which would eliminate the additional cost of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risk associated with carrying large stock of parts, components and finished goods. The company later became a public limited company and raised $34.2 million in its first offering of common stock and achieved sales of $388 million in 1990. Dell computers strategy was built around a number of core elements: build to order manufacturing, mass customization, partnership with suppliers, direct sales market segmentation,