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Dell Case 2009

In: Business and Management

Submitted By Azzea
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Major Case Assignment

Case: Dell 2009

Concordia University
John Molson School of Business
July 22, 2010

INTRODUCTION

Situation Synopsis
After almost 20 years of unprecedented growth and industry leadership, Dell has started losing market share to its competitors: HP, Apple, Acer and Lenovo. Furthermore, its stock price has plummeted from its record 1998 high of US$139.88 to almost US$20.00 in July 2008. Due to poor performance, the founder of the company Michael S. Dell has returned to the company as CEO and has devised a plan to bring back Dell as a market leader in this industry and to improve its stock price.

Company’s Current Strategy
Vision: To be the world’s leading supplier of computer systems
Mission: To enable millions of businesses and consumers to get online for the first time
Objectives: Improving Dell’s stock price

Corporate/Business Strategy: • Outsource full system manufacturing facilities in China for retail business. • Split product design departments into commercial and consumer teams. • Listening & reaching customers, expanding and customizing their product and service portfolio • Low cost structure - drive costs out of the company’s supply chain and expand into foreign markets • Grow company in consumer, enterprise and emerging markets

1. EXTERNAL ANALYSIS
1.1. General External Environment
Demographic: Global commercial and consumer markets; Wide range of income distribution among customers from individual consumers to governments and large corporations.
Socio-cultural: Customers value aesthetic designs.
Technological: Business liked process of having computers pre-configured to their specifications. Previously customized components have now become the standard in the consumer market.
Global: Commercial and consumer markets world-wide, increasing as countries continue to industrialize.…...

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