The report covers the developments, challenges, and strategies that Dell Corporation has adopted to maintain its top status in the U.S. computer industry. The authors provide an analysis of how Dell Company enlarged its supply chains, cut down costs, and engaged a team of competent management to outperform its main competitors in the technology industry for a long period.
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In the report, the authors have clearly described the problem facing Dell, which concerns the company’s abrupt loss of customers and market share to its competitors. The loss of market share has been associated with the competitors copying Dell’s cost reduction strategies and supply chains.
The solution to this problem will not only enable Dell to win more customers but also revive its energies and regain its original top position in the PC industry.
The report examines how Dell Company’s success resulted from its ability to reach both the low income and high-income customers by expanding its outlets and making computers affordable and less technical to use. Dell had a policy of always seeking measures to reduce its production costs and listen to customers in order to understand their needs and obtain considerable market information.
Dell’s mantra states that the current company’s technology is its future commodity. Dell operates at considerably low costs and manages to hold low volumes of stock besides selling its products directly to consumers. The high-profit margins in Dell’s market segments give the company a competitive edge over its competitors.
Dell sells its products to governments and big companies in large quantities and at high prices; an aspect that places the company a step ahead of its competitors due to the high-profit margins and economies of scales. The authors have also stated the prioritization of customers’ needs, customization of products, and the expansion of service portfolios as the recent company’s resolve to tackle the emerging threats.
The report is clearly presented and provides an informative analysis of the strengths and weaknesses of the company. However, the report does not indicate the methodologies and techniques that the authors employed in coming up with the historical analysis of Dell Corporation. The industrial surveys referred to by the report are also not referenced or quoted in the report.
The report must be commended for its comprehensive analysis of the company’s marketing strategies and its recommendations. The recommendations provided by the report include expanding the company’s product line, charging competitive and affordable prices, enhancing marketing to reach the youth market, and opening a retail outlet stall.
These recommendations are adequate to restore the company to its original status, with the recommendation of raising prices to an affordable level being more successful than the option of lowering prices to outshine its competitors. Competitive prices act as an indication of quality to consumers and augment companies’ revenue margin.
Therefore, the new recommended marketing strategy is more effective compared to earlier alternatives since it is more concentrated and broad. However, the report did not provide sufficient recommendations about Dell’s long term problem of concentrating too much on data collection from customers rather than the alternative of relation-building that is advantageous.
This is an area where future reports should focus on and formulate appropriate recommendations to solve this problem. Nonetheless, the report is excellent, and the implementation of these recommendations can restore Dell to its original number one position in the computer world.