Dell 2008: a Case Analysis

Table of Contents

Executive Summary…………………………..3

Industry Snapshot…………………………….4

Leading Companies…………………………..5

Dell……………………………………5

Hewlett-Packard……………………....7

Acer……………………………………10

Apple…………………………………..11

Competitive Environment……………………..12

Company SWOT………………………………14

Dell…………………………………….14

Hewlett-Packard………………………18

Acer……………………………………21

Apple…………………………………..24

Recommendation………………………………27

References……………………………………..30

EXECUTIVE SUMMARY

Dell’s competitive advantage is their direct customer sales and customer support; this has made the company one of the leading suppliers of computer systems. Dell has a better understanding of its customers computer needs through continuous online and telephone interaction. This constant interaction drives individual and enterprise productivity. The computer industry anticipates that growth rates will be less than previous years however, Dell can still be profitable. One of the main problems that Dell faces is the struggling United States economy which Dell has no control over. Additionally, the PC market has been saturated resulting in lower profit from price wars. Dell needs to capitalize on their ability to enter and dominate new markets, as it did in the low-end server and workstation markets. The company must pursue an international expansion of their middle and high-end server products. Through the acquisition of a company like EMC Corporation Dell can pursue the external data storage market. Dell has already captured a large share of the United States market and must increase its server, storage, and service segment overseas to gain more international market share, particularly in China and Latin America. The only viable strategy in order to achieve Michael Dell’s goal to double Dell Computers’ current revenue to $60 billion by 2007 is to work on methods to improve sales in the stated new areas. A combination of service, storage and server product growth across newly established international...