Jhoana Marie Mendoza AC501

Maria Louisa J. Omega October 25, 2019

Quennie Rose D. Perales BPSN01B
Mariah Alliah Daphnie J. Rotea
Rhon Ryan Tamondong

CASE ANALYSIS

I. TIME CONTEXT

Time context of this study was in the period of great recession in the years 2008-2009,
when the market share of the Dell deceased to an alarming level, resulting in Dell to change
its business model.

II. VIEWPOINT

This case study will have a view point of Dell's CEO, Mr. Michael Dell.

III. CENTRAL PROBLEM

The problem presented in the case is the continuous changing of the business model
being used by Dell. In terms of changing the business model, Dell didn't adopt innovation in
its products and services in order to compete with the modern trends in the global computer
industry. Because of this, Dell started to split its business into different models such as
assembling and selling personal computers, software developing, and developing
miscellaneous products such as printers, storage products and other services.

IV. STATEMENT OF THE PROBLEM

IV.A. MUST OBJECTIVE

 To be able to create a product that offers more value to customers
 To be able to enhance the market share of the introduced product efficiently and the
company’s as well.
 To be able to retain high profits for the product in the coming years by establishing new
customers and retaining them.

o IV.B WANT OBJECTIVE

 To be able to extend the product selling to other countries by satisfying customers’ needs
and wants.
 To be able to build brand and product loyalty in the face of steep competition by creating
quality products and innovation.
 V. AREAS OF CONSIDERATION

Strengths
o Dell is one of the first companies that engage in online selling
o Maintains Just-in-Time Inventory Management
o One of the well-known computer brands
o Produce high standard, quality custom-made products
o Directly markets product to consumer
o Uses Customer Relationship Management and Information Technology

Weaknesses
o Dell has disorganized business model
o Absence of retail store
o Low investment in R&D
o Low differentiation from competitor’s products
o Dependent on suppliers

Opportunities
o Personal computers/laptops are becoming a necessity
o Fast growth market for the use of laptop, tablets, computers and other
electronic devices
o Diversifying products to different range
o Growth opportunities and higher profit margin for various services and
enterprise solutions

Threats
o Customers prefer to use mobile phones or tablets which are handy instead of
computers or laptops
o Declining margin for hardware products
o Competitors in computer industry are increasing

VI. ALTERNATIVE COURSE OF ACTION

ACA DESCRIPTION ADVANTAGE DISADVANTAGE

ACA #1 – Growth
through Horizontal To expand to new This will result to Because of the
Diversification less developed additional income, unstable political
countries as Dell’s since Dell will environment in
out-dated cheap establish itself on some countries, this
products could be new markets. will require
more interesting for additional
them. marketing costs.
 ACA #2 – Advance To know more Dell can use its This will require
through Concentric about the market strengths to learn more investment in
Diversification needs and offer about customers’ R&D, and thus
such products needs faster than its additional funds.
competitors and is
in position to
quickly offer new
products based on
the feedback.
ACA #3 – Enhance To produce more This will respond to Producing
R&D Strategy innovative the market needs innovative products
products. and Dell is in will incur new
position to provide. additional costs,
since it will
completely change
the current strategy
of Dell, Inc.

VII. DECISION

The conclusion of this case study is to take the ACA #2 – Advance through Concentric
Diversification. Before expanding its market and producing more innovative products, the
company should first know more the needs of its market. Dell should conduct its research about
its target market and what does it need the most. For example, developing a product for those
persons in the field of business but who are also on-the-go or for those persons who runs a
computer shop but wants an energy saving device. By understanding its target market, the
company can build more of its brand by keeping its product alignment. Product-driven
companies may struggle to keep pace with the evolving marketplaces. However, customer-
centric companies maintain a closer level of interaction with key customers. This close
connection to customers allows the company to more quickly and regularly address product
design issues or make improvements in their products and core technologies. A company should
understand its customers to deliver persuasive messages that resonate. If a company don’t land
emotionally with its customers, their investments and expenses in research and development,
marketing and in other areas won’t generate a strong return.

All these Alternative Courses of Action has its own disadvantages and that is all about
incurring additional cost or needing an additional fund. Incurring an additional cost is really a
necessity for a company to improve its operation and to be able to generate much more returns.
The company should only be wise in choosing and making its decision. For short, the results
should be more worth it than the sacrifices or losses that the company incurred. To be successful
for a very long time, the company’s main character should be its customers.