Case 5:"Dell Inc. in 2008: Can it Overtake Hewlett Packard as theWorld Leader in Personal Computers?"
1992: Michael Dell becomes the youngest CEO of a Fortune 500 company at age 27b.
Michael Dell has been the key factor for Dell, Inc. growing into the corporation it istoday. In my oppinion, his top 5 key strengths that helped Dell, Inc. grow include:i.
Foresight & Visioniii.
Willingness to take risksiv.
Ability to executec.
5 Tasks of Crafting and Executing Strategy:i.
Developing a Strategic Vision: Dell's vision was to be the low cost provider.This is arguably the most important key to Dell's success. He decided thiswas the direction the company was going to go and stuck with it, and hisability to reduce overhead allowed him to achieve it.ii.
Setting Objectives: Dell's objective was focused on increasing margins,while keeping the end price low. He was able to achieve this by cutting outthe middle-men and selling directly to the end user.iii.
Crafting a Strategy: All of Dell's strategies were geared towards increasingthe bottom line. If it didn't align with the overall goals, the idea wasrejected.iv.
Implementing and Executing: Dell's ability to stay ahead of the curve byoffering completely customizable PCs build to the customers specificationallowed the company to maintain the explosive growth it saw in the earlyyears of the company. Strategic acquisitions allowed the company toaugment and expand its offering to target additional markets.v.
Evaluating Performance and Initiating Corrective Adjustments: Dell's earlyadoption of the newest technology has allowed the company to gain fullvisibility into the profitability of each piece of hardware it sells and helpedpredict future trends in consumer demand.
Dell's strategy includes the following:i.
Sell customizable PCs directly to the customerii.
Add customer valueiii.
Streamline manufacturing and supply chaine.
The core elements of this strategy include:i.
Decreased overhead by decreasing costs associated with built to ordermanufacturing1.
Part of this required reduction of materials through partnership withsuppliersii.
Targeting end users directly through sales effortsiii.
Expand offering to enter additional markets and niches through acquisitionsiv.
Standardize company processes
From Essentials of Strategic Management - The Quest for Competitive Advantage, Second Edition, byGamble & Thompson and published by McGraw-Hill.