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Strategic Analysis of Dell Inc

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 Strategic Analysis of Dell Inc.
Balasingham Ragulan
Sri Lanka Institute of Information
Technology
ragulans08@yahoo.com
Colombo, Sri Lanka
I. INTRODUCTION
The Dell, Inc. was formed by Michael Dell in 1984 as PC’s
Limited. At the time of the first stock offering took place the
company changed the name as the Dell Computer Corporation
in June 1998. The company was able to commence their
business dealings across country boundaries in 1989. The
company was able to go outside of the United States to
Europe, and the company was able to achieve $50 million of
sales turnover. Adding to that the concept of segmentation was
initiated in 1993 while integrating a consumer concentrated
approach. At the core of the business the company was
initiated build-to-order strategy. Through this strategy
customers were able to order directly, and their orders were
routed by means of a credit check and soon after directly to
the manufacturing. Finally, the orders were then built, tested
and eventually shipped to the customer. Adding to that the
consumers were able to receive the order 5-7 days after the
order was taken place.
These strategies were able to reap rich harvest to the
company. At the very first beginning the company took steps
to reduce the middle man. This strategy was basically formed
in order to reduce cost. By implementing this strategy, the
company was able to pass the benefit to the consumer while
reducing the cost of the product. By identifying the customer
need the company was able to position their value proposition
in a sound manner. Further Dell practiced just-in-time
manufacturing as well. Finally, they achieved impressive
results and gained a competitive advantage. Moreover, the
company’s product portfolio is diverse. The company has
implemented various categories for each segment of the
market. Those are, for home, for small home and office, for
small and medium business, for education, government and
healthcare and for large enterprises. Sub categories have
applied for each main segment. These strategies are vital for
the company’s success. The company has developed their
grassroots across the globe. In almost every country the
product is available for consumers. Mainly, the company
operates in countries like, US, Canada, Mexico, Brazil,
France, Germany, Italy, India, China, Japan, Malaysia and
Australia [1].
II. MISSION, OBJECTIVES
A. Mission
Dell’s mission statement is “to be the most successful
computer company in the world at delivering the best
customer experience in markets we serve. In doing so, Dell
will meet customer expectations of the Highest quality.” The
statement has the following components [2]:
1. Delivering the best customer experience. To satisfy this
component of its mission statement, Dell prioritizes on
providing its customers with products whose quality has
been tested and proven. At Dell, every design goes
through a rigorous process to ascertain that it meets the
minimum expected standards. The meticulous culture
has distinguished dell products such as the all-powerful
Inspiron 15 Gaming and many others because of the
work and precision that goes into ensuring the customers
get maximum experience while using the items.
2. Exceeding expectations. Dell does not settle for
anything less than the highest quality as expressed in this
mission statement. The company commits all its
resources to produce products that agree with the
changing needs in the consumer market. For instance,
the demand for customizable computers has seen Dell
adapt to provide just that, opening a door to a wide range
of technological exploration for the company. Other
than flexibility in satisfying the needs of its customers,
Dell also embraces an innovation-oriented partnership
where it helps develop IT skis through integrated
educational programs.
B. Vision
Dell’s vision statement is “It’s the way we do business. It’s
the way we interact with the community. It’s the way we
interpret the world around us– our customers’ needs, the
future of technology, and the global business climate.
Whatever changes the future may bring our vision — Dell
Vision — will be our guiding force. So Dell needs full
customer satisfaction. In order to become the most successful
computer company, they need the newest technology and
loyal customers.” In this statement, Dell outlines its major
attitudes and practices that demonstrate it is the leader in the
computer technology industry. The statement has the
following characteristics [2].
1. Community Interaction. In this component of the
vision statement, Dell underscores the importance of all
the stakeholders that surround the company. For
instance, these comprise customers, investors, and
communities. To kindle success, Dell ensures that it
creates healthy relationships with all these entities
through quality technology products and services.
2. Become the most successful company. Dell wants to be
the leader in the computer technology industry, and it
can only do so by being unique in how it fully satisfies
the needs of its customers. In fact, the company
recognizes that bringing the latest technological
designs is its ingredient for customer loyalty, and
consequently, success.
III. SWOT ANALYSIS
A. Dell’s Strengths
• Global Presence: Dell has 363 offices spread across the
world and is currently the third-largest PC manufacturer
and vendor in the world with more than 15% of global
PC a market share. It increased its global PC market
share in Q1 of 2020 to 19.7%.
• Strong Financial Position: While other countries
struggle with the effects of the pandemic, Dell’s total
revenue for Q1 of 2020 was to $21.90 billion, which
beats the projected $20.81 billion. In this quarter,
revenue from its PCs, notebooks, and tablets division
and software increased by billions.
• Excellent Brand Reputation: As a brand, Dell has
nurtured a very strong brand reputation and was ranked
137 top regarded company and #90 world’s most
valuable brand and # 12 World’s Best Employers
• Diversified Offerings: From desktops to laptops,
notebooks, tablets, smartphones, TVs, software, cloud
services, data centers, and networking, Dell caters to a
wide range of tech-needs. Diversified offerings enhance
stability [3].
• Increased Investment in R&D: Research and
development are critical for success, particularly in the
tech industry. In the past five years, Dell has increased
investment in R&D to $20 billion.
• Highly Innovative: Innovativeness is one of the main
ingredients for success. Dell was ranked #26 Top 100
Digital Companies in 2019 and exploited its
innovativeness and resilience to beat Q1 2020 projected
earnings.
• Quality Products: Dell is highly respected by consumers
globally for its quality products. Dell’s line of Latitude
Rugged Express is regarded as the most durable and
practical laptop in the market.
• Personalized Customization: Technologically spoilt
consumers of the 21st-century demand VIP treatment
and services that allow for personal customization. Dell
is one of few tech companies that allows its customers
to walk into its shops and customize their laptops.
B. Dell’s Weakness
• Overdependence on Tech: Dell operates primarily in the
tech sector, which can experience erratic fluctuations.
This exposes the company to the risk of catastrophic
losses in case the tech sector declines.
• Lack of Diversification: Dell depends heavily on PC
sales. Even though PC sales drive Dell’s earnings, any
issues in this sector can be financially devastating for the
company.
• Few POS: Having several Points of Sale (POS) ensures
that the customer can access products and services
quickly before they are poached by competitors. Dell
insists on direct selling through a few of its outlets only
in major cities and towns across the world.
• Declining Service Delivery: Cost-cutting should never
undermine the quality of service. At the turn of the
century, Dell and other companies focused on cutting
costs by moving call centers to India and other
developing countries leading to a drastic decline in the
quality of customer services [3].
C. Dell’s Opportunities
• Focus on Emerging Economies: While markets in
developed countries reach maturity and saturate,
opportunities in emerging economies grow rapidly. For
one, Dell can offer its enterprise solutions in Africa to
capitalize on the growing demand for cloud computing
services.
• Expand Growing Divisions: The demand for
smartphones is expected to remain high and increase
over the coming years with an increase in mobile usage.
Dell also offers smartphones and can expand this
division to exploit the ever-increasing demand.
• Increase Acquisitions: All major companies have
expanded rapidly into different markets and sectors
through acquisition. Dell has the resources to finance
large scale acquisition of innovative startups and
companies for rapid expansion.
• Strengthen Networking Services: More companies are
relying on networking services for data management and
efficient business operations. Dell is already in this
market; all it has to do now is strengthen its networking
services [3].
D. Dell’s Threats
• Shrinking PC Market: Dell depends heavily on revenue
from PCs, but the PC market has been shrinking since
2006. The company’s profits will be threatened if the
demand for PCs declines beyond a sustainable level.
• Second Wave of the Pandemic: From manufacturing to
distribution and sales, the business operation was
brought to a standstill by the global pandemic. With the
experts warning about a second wave, Dell will have to
go through the devastation one more time.
• Stiff Competition: From HP to Lenovo, Toshiba, Acer,
Sony, Microsoft, and others, Dell’s market share is
threatened by competitors.
• Looming Recession: As the world gradually reopens, the
economic devastation and job losses have left most
countries on the downward spiral deeper into recession.
Just like any other business, Dell is susceptible to the
negative effects of a recession.
• Effects of Tariffs: In 2019, Dell and other tech
companies rejected proposals to impose tariffs on
electronics. If the governments succeed in imposing
tariffs in the future, Dell’s profitability will be
threatened.
• Legal Issues: In December 2019, Dell was named in a
lawsuit along with several other companies for profiting
from child labor in Congo. The implications and ruling
threaten both the reputation and finances of the company
[3].
IV. TOWS MATRIX
SWOT and TOWS analysis helps to get a better
understanding of the strategic choices that a company face. It
helps to ask, and answer, the following questions: how do a
company:
• Make the most of your strengths?
• Circumvent your weaknesses?
• Capitalize on your opportunities?
• Manage your threats?
2
 A next step of analysis, usually associated with the 10. Relatively Buyers
externally-focused TOWS Matrix, helps to think about the large market cannot
options that a company could pursue. To do this a company share. physically
match external opportunities and threats with company’s 11. Partnership touch or see
internal strengths and weaknesses. with the tangible
This helps to identify strategic alternatives that address the Microsoft product
following additional questions: Corporation. they want
to purchase.
• Strengths and Opportunities (SO) – How can a company
Opportunities Strengths - Weakness -
uses your strengths to take advantage of the
Opportunities Opportunities
opportunities?
1. The growth 1. Strategies to 1. Increase
• Strengths and Threats (ST) – How can a company takes of enter or R&D
advantage of company’s strengths to avoid real and developing develop the spending
potential threats? economics. growing on PC
• Weaknesses and Opportunities (WO) – How can a 2. Growth in number of developme
company use company’s opportunities to overcome the online sales. developing nt and other
weaknesses company is experiencing? 3. Developme economics. product
nt of new 2. Utilize Dell’s portfolio.
• Weaknesses and Threats (WT) – How can you minimize technologies customization 2. Continue to
your weaknesses and avoid threats? such as ability and reduce
cloud integrate into costs and
storage, all possible increase
The following table no. 1 represents the application of
tablets, products. sales, by
TWOS matrix for Dell.
mobile 3. Using a continuing
Table 1: TWOS matrix phones and strong brand to
business name and implement
Strengths Weakness
servers. global their online
1. Direct sales 1. Due to low
presence, platform.
business R&D
Dell has the With an
model & spending in
ability to increase in
online sales. PCs, lack
continue to online
2. Product of
develop their retail, Dell
Customizatio competitive
products could
n. edge &
portfolios. continue to
3. Effective product
increase
Supply Chain innovation
their sales,
Management 2. Leadership
whilst
process. and
operating a
4. Inorganic managemen
more cost
growth t
effective
structure. 3. Financial
online
5. Business to debt
strategy.
business 4. Dell’s sales
Threats Strengths - Weakness -
(B2B) sales. revenue
Threats Threats
6. Providing from
1. Patents, 1. Use 1. Review
good educational
copyrights previously their
customer and
and design adopted pricing
service both universities
2. Financial inorganic strategy
before and only
recession growth to against
after sales. accounts
such as Dot expand, competition
7. Brand name for a
Com Crash taking over , gaining
and global merely 5%
3. Online possible competitive
good will. of the total
dependence competition advantage.
8. Leadership PC sales.
4. Industry life and / or 2. Target
and 5. Customers
cycle acquiring educational
management cannot go
5. Competition firms in institutions,
& to retailers
different building a
Privatization. because
industries. larger client
9. Diverse Dell has
2. Using the base and
product very
strong brand gaining a
portfolio. limited
image and large
retailers.

3
 partnership market
with share.
Microsoft to
develop tab
let portfolio
and other
Information
Technology
products such
as servers.
I. PORTER’S FIVE FORCES
Porter’s insights started a revolution in the strategy field
and continue to shape business practice and academic thinking
today. A Five Forces analysis can help companies assess
industry attractiveness, how trends will affect industry
competition, which industries a company should compete
in—and how companies can position themselves for success.
Porter's Five Forces is considered a macro tool in business
analytics – it looks at the industry's economy as whole, while
a SWOT analysis is a micro analytical tool, focusing on a
specific company's data and analysis [4]. The following figure
no. 1 represents the application of Porter’s Five Forces of Dell.
Figure 1: Porter's Five Forces
Bargaining Power of Suppliers: Moderate / High:
Moderate: Some suppliers have limited bargaining power due
to the saturated supplier market. High: Items in computer and
laptop construction are extremely important and usually
sourced from trusted partners. For example, there are only two
main suppliers of processors: Intel and AMD. With this,
partnership and relationships have to be built in confidence for
both parties, giving the supply considerable bargaining power.
Threat of New Entrants: Low: Capital requirement: A
large amount of capital is required to be able to enter the
mobile phone market, as technological and R&D costs are
extremely high. Economies of scale: It would be extremely
difficult for new entrants to be able to compete with current
large brands in the mobile phone market as it is highly
saturated and they would not be able to compete with the large
scale that the main competitors of the mobile phone market
are operating at. Product differentiation: There are hundreds
of mobile phone handsets and the main competitors in the
mobile phone market rely on brand recognition and customer
loyalty to sell their products.
Bargaining power of buyer: High: High competition: the
personal computer industry is somewhat vulnerable against
the bargaining power of buyers. In recent years customers
have more and more alternative options to the personal
computer. Alternative products are suggested to be taking the
majority of consumers’ spending that might have otherwise
gone to laptop or desktop computers. Large market: The large
market gives them a greater influence and buyer power. High
competition has resulted in the vulnerability of PC
manufactures, allowing consumes a large range of relatively
similar products from various companies.
Threat of substitute products and services: Moderate:
There is strong presence of computers throughout society and
will continue to be in the coming years. However, the PC
industry is being influenced by the development of substitutes,
possibly resulting in future sale. The current substitutes are
tablets, smart phones and smart TVs, which are growing in
popularity. Currently, these substitutes still do not have the
computing power in comparison to PCs or laptops, which may
change in the near future.
Rivalry: High: High concentration: There is fierce
competition between the top manufactures in the personal
computer industry. Competitors are contending to produce the
cost effective platform at the best price for their consumers.
Industry: Due to the previous profitability of the industry,
competition are using all their available resource to become
the market leaders.
II. BUSINESS STRATEGY
The four market segments in a industry are thought as
Business to Business, Business to Consumer, Consumer to
Business, and Consumer to Consumer. Dell targets Business
to Business and Business to Consumer commerce to satisfy
their business and specific customers. Dell differentiates
between classes of customers because the needs of these
business customers, who buy large quantities of computers,
are different than the who want to configure an individual unit.
"Dell's business design is no top secret, of course, and it's
really been emulated with considerably less success by many
of its opponents (Henricks, 2003). "
Dell's preliminary success was due to its early
implementation of the internet as the means of sales and
marketing. "Dell's direct-to-the-customer strategy presents an
extremely attractive cost benefits that's rough to ignore. Their
direct interaction using their customers is still "a key drivers
in sales for the quarter. " Dell's early on work with utilizing
the web helped them get a join their competition while their
competition was finding it difficult to conduct successful
Business to Business procedures online since "exchanges are
still in their infancy and many haven't even ended up live yet.
Matching customer ease of ordering and direct interaction
through the internet proven successful because Dell believes
that it's the client that drives the business model [5].
Dell acknowledged the challenges in working with the
customers and fragmented them into two distinctive
communities with different needs, working with the business
customers (like businesses) and working with specific
customers. Dell did an exceptional job managing both of these
different kinds of consumers so far. Within the last year or
two, Dell made a decision to split their procedures into two
different websites with different B2B sites. With distinct sites,
Dell planned to "simplify the Internet procurement process for
businesses and organizations of all sizes, generating personal
savings that can range to huge amount of money annually for
large customers. " However, this notion failed, and "Dell were
required to turn off its B2B site, four months after it launched.
4
Dell said "the website failed to appeal to more than three
suppliers".
III. COMPETITIVE STRATEGY
Dell’s business model focuses mainly on compliance
with laws and rules, credibility with stakeholders, business
ethics, being a part of compliance groups and focusing on the
changes coming due to how they reach customers, taking
advantage of their cloud computing technologies and
preventing bribery and corruption in the emerging free-
market. The following figure no. 2 represents Porter’s Generic
Competitive Strategies of Dell.
Figure 2: Porter’s Generic
Cost Leadership: It is observed that “low cost leadership”
helps a company to maintain above-average returns,
regardless of the competitors [6]. Cost Leadership strategy is
usually chosen by a company that is looking to product and
market resources at a more affordable rate than its
competition. The profitability and market shares influence this
strategy as low cost leaders are able to compete with their
competitors and tend to aim at consumers with basic needs.
The importance of consistence in this strategy, and claims that
a lack of consistency [7] “dilutes the positioning of the
company”. Thus, a company must maintain that expenditure
is at a minimum while investing enough to remain competitive
in the market. To implement a cost leadership strategy [8], an
organization must attain a significant relative market share,
“which requires capital investment in product R&D and
manufacturing, as well as aggressive pricing.”
Differentiation: This type of strategy looks to be unique
within the industry via differentiating its service/product
(Porter, 1980). This type of differentiation is achieved on the
basis of a certain skill or competence that offers the firm a
competitive advantage other its competitors.
The primary aim of this strategy is to provide a better
quality service/product to help produce a distinctive market
proposition. The type of organization which can implement a
differentiation strategy will have to have an above average
performance in the market. Cost leadership strategy is
“characterized by a successive reduction of the selling price”,
a differentiation strategy means that an organization is
“capable to use a premium price, with higher profit margins.”
Therefore companies look to build price loyalty and
“inelasticity” to produce entry barriers against competitors
[8].
Cost focus strategy: Unlike the previous two strategies,
focus strategy is founded in the choices of a small competitive
ranger within an entire industry. If an organization is deciding
upon a focus strategy then they have to primarily target a
certain sector of a market. This can be influenced by buyer
type of geographical location. These factors therefore
influence a company’s approach to this strategy (Porter,
1980). In order for an organization to implement focus
strategy, a firm must be able to develop expertise within a
sector – meeting the specific demands of specific sector. This
strategy offers the organization the potential to have the
competitive advantage of one sector of a market, rather than
across a wider range of that market.
Focus strategy can adopt many different shapes and
forms, but primarily has two forms: “cost” and
“differentiation”. Within cost, an organization looks to attain
a cost advantage over a target sector. In differentiation it looks
to differentiate amongst a certain sector [8].
Competitive strategy is the approach that an organization
takes in order to gain advantage over its competitors.
According to Porter, there are two major sources of
competitive advantages: costs and differentiation. Cost-based
competitive advantage involves reducing production costs so
that an organization can earn higher profit margin or offer
products at lower price compared to competitors.
Differentiation-based competitive advantage involves
offering unique properties that are not offered by competitors’
products. Differentiation allows an organization to charge a
premium for their products because they offer additional
benefits to buyers.
IV. DISCUSSION OF COMPETITIVE STRATEGY
Looking at Porter's Generic Strategies DELL follows a
cost leadership strategy – best value for the best price. They
achieve to increase their market share through charging lower
prices while still being profitable because of their effective
direct sales model. Except of Apple – their customers are
considered less price sensitive – the majority of competitors
on the market as HP and Lenovo follow cost leadership
strategy. Differentiating is difficult on this market as PC
standards have been set and determined long time. While
customers are primarily interested in products with low prices
the quality still is extremely important. Mobile products,
smartphones and tablets, will make it more important for
DELL to begin to differentiate as these may be considered by
many people as substitute products.
Dell uses efficient cost structures to protect their markets
from the competitors by responding to competitors’ move of
making in-roads in the market space by reducing prices. Such
reactive response may makes Dell inward focused. Better way
to strategically position Dell on advantage of cost is to
increase market share by transforming from lowest cost
producer to lowest cost supplier of products. This way the
company translates its cost advantage into price advantage for
its customers and thereby improves the market share. The
prospect of increasing the market share provide great
opportunity for Dell to leverage the economies of scale
coupled with the ruthless cost cutting measures it plans to
execute. More the competitive space it occupies which also
means that more competitors eliminated effective are
economies of scale and as a result the costs are driven still
lower.
5
 Dell’s initial competitive strategy was to focus mainly on differential more
differentiation. Its strategy was to sell customized personal to offset sophisticated
computer systems directly to customers, which was a rapidly competitors’ ;
emerging market at that time (1). This was done by targeting brand • Imitation
second-time customers, those that already understand images or narrows
computers and know what they wanted. Meanwhile other other perceived
companies at the time was selling “’plain brown wrapper’ approaches differentiatio
computers” (2). By offering customizations, Dell gained a
to n, a common
better understanding of customers’ needs and wants. This
differentiatio occurrence
helped the organization position itself differently against the
more popular brands, such as Compaq and IBM. n. as industries
mature.

V. RISKS OF GENERIC COMPETITIVE STRATEGIES VI. CORPORATE LEVEL STRATEGY

Cost leadership imposes severe burdens on the firm to In managing an optimal set of businesses, Dell's strength
keep up its position, which means reinvesting in modern is rooted in a wide range of products and services, along with
equipment, ruthlessly scrapping obsolete assets, avoiding their associated cross-selling opportunities [9]. Dell's
product line proliferation and being alert for technological distribution and logistics business model provides the basis for
improvements. Cost declines with cumulative volume are by multi-business synergies within its product portfolio:
no means automatic, nor is reaping all available economies of originally developed for Personal Computers, the com-pany
scale achievable without significant attention. Cost leadership gradually expanded and adapted its innovative business model
strategy is vulnerable to the risks, such as relying on scale or to sell servers, printers, peripherals, and storage equipment
experience as entry barriers. [10]. Similarly, Dell's strategic competencies are highly
Table 2: Risks of Generic Competitive Strategies synchronized, thereby aligning strategic activities with
fin-ancial value. Dell's balanced approach of centralizing
Risks of Cost Risks of Risks of Focus certain strategic decisions and functions such as global
Leadership Differentiation sourcing and product development, while input from the
• Technologic • The cost • The cost regions provides the basis for local market responsiveness. In
al change differential differential terms of its value chain, Dell utilizes a strategy which
that nullifies between between decentralizes primary activities, but centralizes sup-port
past low-cost broad-range activities.
investments competitors competitors Dell rarely acquires other corporations, and if so, it is
or learning; and the and the certainly not for the sake of sheer growth. In these cases, the
• Low-cost differentiate focused company rather aims to strategically streamline and enhance
learning by d firm firm widens its portfolio of products, services, and customer segments: for
industry becomes too to eliminate instance, Dell's acquisition of Alien ware targets the segment
newcomers great for the cost of gaming and media content consumers.
or followers, differentiatio advantages
through n to hold of serving a VII. THE TECHNOLOGY OF DELL TECHNOLOGIES
imitation or brand narrow Dell’s core value proposition is that of providing
through their loyalty. target or to customers with built to order technology goods such as PC’s,
ability to Buyers thus offset the notebooks, servers and network & storage equipment. Dell
invest in sacrifice differentiati alters its value proposition slightly by the market it caters to.
state-of-the- some of the on achieved Dell provides IT products and solutions for big, medium &
art facilities; features, by focus; small enterprises. It also caters to foreign and local (U.S.)
• Inability to services, or • The government agencies. Dell is known for pioneering the direct
see required image differences sales model in the PC industry and has multiple channels of
product or possessed by in desired distribution including retail stores, its website and on
marketing the products or telephone. Clients may contact Dell directly.
change differentiate services Over the course of its history, Dell has used IT &
because of d firm for between the innovation to deliver highly efficient supply chain systems,
the attention large cost strategic big data intelligence and has revolutionized the competitive
placed on savings; target and landscape of the IT industry. Dell’s efforts have led it to create
cost; • Buyers need the market new barriers to entry by successfully enhancing the value of
• Inflation in for the as a whole its products and services. This report evaluates that Dell has
costs that differentiatin narrows; used IT within its organization to create a highly innovative
narrow the g factor competitors and agile organization. IT has also given it greater control over
firm’s ability falls. This find sub- its organization. Analysis has shown that Dell uses IT in
to maintain can occur as markets mission critical business processes. Dell’s priorities are in the
enough of a buyers within the decentralized management of IT services and products. Its
price become state. focus is to continually deliver pioneering technology and IT
services. Using IT has given Dell sustainable competitive

6
advantages which help drive its revenue growth and asset
efficiency while also delivering cost savings organization
wide [11].
VIII. SUCCESSFUL STRATEGIES OF DELL TECHNOLOGIES
The company has concentrated on the analysis of the
growth opportunities in the future, to consider the customer
segments, geography and business groups, but in order to
obtain these opportunities, they continue to produce
developments to become to the market effectively.
Dell believes that if it builds an excellent technology with
direct sell, then clients will want to buy this technology, except
it must be effective in selling their technologies as it is an
image in the first place. So far, it had conducted a long-term
analysis of its sales strength; Making sure that they have a
sufficient number of appropriate skills and experience with
account managers, and the correct management of the
accounts in the correct places, and in its target with the
opportunities available for development. In this method, this
aims to get better results of sales, while declining costs in the
sale off. In order to make the service provided to their clients
and clear and accountable, Dell has made several new
programs; therefore the development of new incentive
schemes in the process to achieve greater growth and profits
for both Dell and its partners.
The company will be the potential for growth can be
achieved only by gaining customer loyalty and customer
respect the outcome of positive experiences. There must be
better coordination of sales and marketing with targeted
investment if the company is to increase growth and achieve
an improved return on investment in those regions where it is
seeking to create more demand, it also a need to interact with
customers in those regions where the clients spend a lot of
time on the website [12].
IX. THE FUTURE OF DELL TECHNOLOGIES
Dell Technologies’ next-generation Power product lines in
storage, servers, data protection and networking include tailor-
made solutions for the SMB market all the way up to the
largest enterprises in the world. Its new PowerEdge servers
aim to become the bedrock of modern data centers, while its
PowerMax storage line is chock-full of automation. Dell
Technologies also is betting that its PowerSwitch networking
gear will drive new wins in 5G and at the edge. And, as
protecting data becomes paramount for customers, its new
PowerProtect data protection appliances are able to manage,
recover and secure data at scale.
The new streamlined portfolio spanning from the edge to
the core to the cloud is now locked and loaded, executives
said. And, according to Michael Dell, now is the time for
solution providers to sell across the full Dell Technologies
portfolio. Dell Technologies, noted that the future is where
data will flow across various systems. AI-powered
experiences are going to make our lives better. Dell
Technologies is going to need a stronger application
revolution to unlock the new data era. Dell Technologies is
also going to see a lot of automation.
Dell is also expanding its extensive flexible consumption
portfolio to support Dell EMC PowerEdge servers and the
new Dell EMC PowerOne autonomous infrastructure system.
It supports pay as you grow, and flex on demand. This will
also enhance the data center utility. It offers ProSupport – the
AI- and ML-based support. ProDeploy accelerates technology
deployment in the enterprises, and accelerates client and
infrastructure managed services. Dell is providing value-
added services with ProDeploy, ProSupport and Managed
Services. They can be bundled effortlessly and paired with all
the financial consumption models, bringing a tailored as-a-
service experience. The multi-cloud world is here and will
only grow, which means customers need on-demand and
consistent infrastructure that yield predictable outcomes
across all of their clouds, data centers and edge locations. Dell
has 2030 moonshot goals. For every product a customer buys,
Dell will reuse or recycle an equivalent product. 100% of our
packaging will be made from recycled or renewable material.
More than half of our product content will be made from
recycled or renewable material [13].
X. CONCLUSION
DELL quickly became incredible successful in its early
years growing within short time from a start-up into one of the
market leaders. Their business model and philosophy, and
their sophisticated supply-chain-management-system enabled
them for a long time to sustain their competitive advantage by
providing low price products while still delivering high
quality. This brand image is still alive although the company
had hard years in the mid 2000's. Competition is getting
stronger and profit margins smaller. While Apple grew
quickly with their high-prized iPods, iPhones and iPads and
the related services, DELL missed the point to jump on that
train and still relied on desktop, laptop and server business.
Considering the decline of the PC industry they finally
made the right choice to expand their product palette with
exactly these devices while still expanding on corporate
business. The decision to take the company private again at a
perfect time, shares were incredibly low, brought them the
necessary flexibility to operate without the restrictions of a
public company. For many years the strategy of not providing
'all things to all people', their strong market segmentation and
specialization, brought the lasting success. Based on market
research they were able to formulate their action plan which
ultimately became DELL's brand repositioning and the 'Power
to do more' campaign.
Finally the decision to generally stick to their direct model,
but with modifications of pre-built configurations but to enter
the emerging markets China and India with thousands of own
retail stores was the right choice. For corporate customers this
may be easy through dedicated sales and service
representatives but for PC consumers they closely need to
monitor product and customer service reviews on dedicated
portals and on their own web clients.
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