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  • Essay / Strength and Weakness of Dell - 957

    Based on the external environment and historical perspective of Dell, Michael Dell must realize that its nearly 20-year-old business model requires a radical change. It should get the product into the hands of customers (before point of sale), focus on quality customer support/service, and use customer metrics as a sign of areas that need improvement/strengthening within the business. Additionally, limited options based on narrow perceptions (using only Intel chips) not only cost Dell market share, but also financial (operations) costs. Failing to listen to the needs and wants of loyal consumers can lead to loss of market share, which Dell experienced. ACTIONS REQUIRED In my opinion, Dell will only regain its growth percentage when it stops focusing on measuring profitability via ratios of delivery times and number of units sold and starts focusing on what the markets foreigners expect, depending on their cultural differences. It appears Dell did little research before opening several overseas manufacturing plants and attempting to develop international business relationships. As a result, they have failed to change their American business model to meet the needs of other (foreign) consumers. Furthermore, because of this ignorance, they also sacrificed the brand name and initial marketing efforts. SUPPORT INTERNAL RESOURCES Strategic groups should be used as internal resources to analyze the industry and use competitor analyzes to observe if the business mission is still being met, or if it may be needed. modification to respond to changed environmental factors. The company could use its Internet associations to present customers with a survey to gather their feedback on product offerings – what they would like to see added to the product line, or perhaps what service could be added or improved. Seeking direct feedback from loyal customers is easily accessible when they contact customer service/support for assistance with an issue. Not only is this a great opportunity to reestablish or strengthen a relationship, but it is also an opportunity to receive quality feedback from the group of consumers purchasing the Dell product. STRATEGIC WEAKNESSES The weaknesses necessary to implement a new strategy are self-designed by providing poor customer service, limited consumer choice, limiting the consumer's purchasing experience to a single method (indirect – telephone, sales mail order, Internet) and failing to measure quality before selling thousands of defective products, costing the company significant profits and negatively altering the customer base. following these actions.