Dell Company Analysis

Competitive Strategy

Dell Enterprises

the company

Dell Inc., founded by Michael Dell in 1984, is one of the largest technology corporations in the world and is engaged in the design, development, manufacturing, and marketing of a range of information technology (IT) products and services. It is ranked 51 on the Fortune 500 list.

The company operates through the four business segments:

End-user computing (EUC) | Enterprise solutions group (ESG) |

Dell Software Group | Dell Services |

Current Scenario

Dell has transitioned from personal computer (PC) systems to complete IT products and services by following a robust inorganic growth strategy. The company has undertaken a number of strategic acquisitions in the recent past to diversify its portfolio and enhance its footprint. However, company currently faces significant threats to its leadership position due to multiple factors such as the decline in the PC market (coupled with macro-economic factor of slowing demand in emerging markets), substitution by tablets and smartphones which has led to a downfall in PC sales and the intense competition in all areas of its business, including from both branded and generic competitors.

What our group aims to analyse

* We wish to look at the Dell’s aggressive expansion in the PC market in early 90’s - how its innovation in the product manufacturing & channel distribution helped Dell, a new entrant, to outsmart powerful incumbent rival PC vendors such as Compaq, Gateway Inc., IBM, Packard Bell, and AST Research, who struggled and eventually left the market or got bought out

* We wish to look at the how Dell evolved from a traditional PC company to a provider of complete IT products and services and its growth strategy which helped it offset the decline in traditional PC industry and open new avenues of growth. Further, we wish to analyse the rationale behind the decision to privatize the company and how this will lead to growth avenue...