1. Executive Summary
Dell Computer Corporation is one of the world's largest computer systems companies. Since its establishment in 1984, Dell has been selling personal computer systems with a great after sales support. It designs and customizes products and services according to the requirements of the end-user. It also offers them the extensive list of peripherals and software which can be chosen while placing an order.
The company has experienced a very good growth over the last several years and has been incredibly profitable. Its products and services are sold in more than 140 countries to customers ranging from government agencies, major corporations and educational and medical institutions to small businesses and individuals. Traditionally, Dell has been targeting its products to a small number of segments. So, in future it has to break into segments which are currently controlled by its customers. According to our analysis of the data, Dell is financially into a very good position currently and it is predicted that in the next year also it will continue to grow. The analysis, strategy and financial predictions are henceforth discussed.
2. Situation Analysis
The case has been analysed using the 5C analysis where 5C's stand for: Company, Consumers, Collaborators, Competitors and Context.
o The founder Michael Dell started off by opening a part-time business upgrading PCs.
o Once the revenue of the business reached revenue $80,000 he started Dell Computer Corporation.
o Dell shifted from upgrading the machines of other manufacturers to assembling Dell-branded PCs.
o Dell was the pioneer for Direct Model in the PC Industry. They Dell took orders directly from the customers and supplied to them directly.
* Sales and Marketing
o In 1990, Dell departed from the Direct Model and entered retail channel. This was to cater to the entry level customers who wanted to touch and feel a unit before buying.
o Dell subdivided its consumer base into finer and finer categories to cater customised goods to each section.
o By 1994 they withdrew from retail stores owing to the poor financial results in 1993 due to poor retail sales.
o Additionally they divided the sales effort by region and, within region, by country.
o This helped to identify unique opportunities and economics.
o Helped to manage the company more easily.
o Dell launched its web site www.dell.com and increasing customers were using the site to contact Dell.
o Dell designed custom Premier Pages for Relationship Customers where the employee would find the info regarding the deals with the customers.
o Occasionally, Dell sold about 5% to resellers.