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Dell’s Sales Decline: Analysis and Solution Research Paper

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Updated: Jul 23rd, 2021

Dell’s decreasing sales in a highly competitive market is an issue that needs to be addressed quickly by the company’s management. They need to find out specific improvements that need to be made to help the company achieve its objectives in the industry. In addition, Dell needs to find out if its distribution channels and strategies conform to general consumer purchasing patterns in different markets. The firm may be forced to look for alternative marketing and distribution networks to complement existing ones to help it increase its sales volumes in the market. In addition, managers in the firm should evaluate the performance of all products which the firm sells to find out how they contribute to its long term financial performance. This will enable the firm to find out if it needs to make upgrades to existing products to increase their brand value in the market.

Dell also needs to address its high expenses to enable it to compete effectively with other firms in the industry. Since the firm is highly dependent on personal computer sales in different markets, it needs to implement new production policies to cut on its high production costs.

The firm needs to outsource its manufacturing processes to Asian countries which have low costs to help it reduce its high operational costs. This approach will help the firm to focus more on its core functions to help it increase the value of its products in various markets they are sold in. The global technology industry experiences a lot of constant changes due to consumers’ shifting needs and expectations. Therefore, Dell needs to find out the manner in which various market trends are likely to impact on the performance of their products in different markets they are sold in.

Dell’s managers need to find out how its current research and development processes conform to its long term growth targets in the industry. This requires the firm to assess the viability of some of its current and future research and development projects. Moreover, the firm needs to link its R&D processes with other important functions such as marketing, manufacturing and human resource development.

This will enable the firm to develop business valuable business concepts which conform to its long term growth targets in the industry. In addition, the firm will be in a better position to anticipate and deal with different types of challenges that are likely to affect its financial performance in the market. As a result, the firm’s managers will be able to allocate resources appropriately to ensure the firm’s current and future needs are addressed.

Dell needs to restructure its operations to reduce the expenses it incurs on goodwill and intangible assets. The management needs to use alternative financing options to reduce the firm’s dependence on loans from external financiers. In addition, managers also need to find out appropriate ventures which the firm can invest in to strengthen its future performance in the industry. In addition, Dell needs to align its research and development processes to current and future marketing needs to enable it to satisfy the needs and expectations of its customers more effectively. Therefore, the firm needs to interact with its customers through different communication tools to find out how it can develop products which satisfy their needs and expectations. Consequently, this will improve the long term performance of the firm in the industry.

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IvyPanda. "Dell’s Sales Decline: Analysis and Solution." July 23, 2021. https://ivypanda.com/essays/dells-sales-decline-analysis-and-solution/.

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IvyPanda. 2021. "Dell’s Sales Decline: Analysis and Solution." July 23, 2021. https://ivypanda.com/essays/dells-sales-decline-analysis-and-solution/.

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