Dell

University of Santo Tomas

Dell Inc. In 2008: Can It Overtake Hewlett-Packard as the Worldwide Leader in Personal Computers?

A

Case Presentation

Submitted to

Sir Real Carpio So

In

Partial Fulfillment

Of The Requirements

In

Entre 7 Strategic Management

Submitted By:

Abril, Maricris

Aguilar, Joanna Czarina

Alfonso, Christopher

Aquino, Charles

Atienza, Ron Jerald

11 January 2011

I.BACKGROUND

Dell Computer Corporation, incorporated in October 1987, is a computer systems company and a provider of computing products and services. The Company's primary product offerings include enterprise systems, notebook computers and desktop computer systems. The Dell line of high-performance computer systems includes Power Edge servers, PowerApp server appliances, PowerVault storage products, Power Connect networking products, Dell Precision workstations, and Latitude and Inspiron notebook computers. Dell Computer became the world's largest personal computer vendor, and gain market share and post profits in an industry. Dell sells 90% of its PCs directly to the final customer, largely bypassing the reseller channel that accounts for most of the world's PC sales. This direct customer relationships the key to Dell's business model, and provides distinct advantages over the indirect sales model like Acer, Compaq, Lenovo, and more. Dell competitors are primarily in the Personal Computers industry. Dell also competes in the Computer Networking Equipment, Computer Peripherals, and Mass Storage Systems sectors.

Dell is renowned for its direct sales to customers by phone, Internet and now through e-business enabling consumers to go through the whole sales process online. What is less well known is that Dell, in 2005, took on 150 salespeople to sell their products in United Kingdom/Europe. The reason for this change from direct selling to personal selling is that the cost of a salesperson for an individual customer makes no economic sense, but if you are...