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Business strategy: How Dell Computer uses technology to gain competitive advantage and keep its leader position on the PC market ?

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documents in English
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case study
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22 pages
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  1. Firm's presentation
    1. Company background
    2. Who is M. Dell?
    3. Managing the dell way
  2. Industry concerns and context
    1. PC market position from 2000 and over
    2. Competitors
    3. Players and profile
    4. Key success factors (competing on value chain)
    5. Dell's position over 2000
    6. Dell computer's strategy
  3. Technology
    1. The Use of the Internet and E-Commerce Technology
  4. The future
    1. The recent changes in the strategies of PC Makers
    2. Michael Dell's view of Dell computers biggest challenges
  5. How Dell Computer uses technology to gain competitive advantage and keep its leader position on the PC market?
    1. Importance of Dell's resources and capabilities
    2. How to become a leader?
    3. Understanding Dell's Competitive Advantage throughout technology (e-commerce)
    4. Pioneering leadership in the use of the Internet and e-commerce to sustain its market position and competitive advantage
    5. Dell?s efforts to promote good strategy execution

When Dell's CEO, Michael S. Dell and President, Kevin B. Rollins met in the fall of 2001, they were confident that the company was recovering from the global crash of personal computer (PC) sales. In fact, Dell is the master at selling PCs directly and bypassing middlemen and thus delivers PCs cheaper than any of its rivals. Some would argue that it's the model of efficiency, with a far-flung supply chain knitted so tightly that it's like an electrical wire that is humming 24/7. Yet, all this has been true for more than a decade. And although the entire computer industry has tried to replicate Dell's tactics, none could spot a blemish on the company's results. Today, Dell's stock is valued at a price-earnings ratio to the multiple of 40 that is loftier than IBM, Microsoft, Wal-Mart Stores, or General Electric.
As it turns out, the management of Michael Dell has elevated it far above its sell-direct business model.
The Chairman, the CEO, and other executives analyzed the actual position and determined Dell's strategic orientation based on a middle term outlook. In other words, they had to understand how technology must be used to sustain Dell's competitive advantage and to reinforce its leadership position inthe PC market up to 2006.

[...] Finally, the technology is used and integrated through all the stages of the internal and external value chain Pioneering leadership in the use of the Internet and e-commerce to sustain its market position and competitive advantage Michael Dell believed that the Internet had revolutionary business potential, and he was instrumental in making Dell Computer a pioneering first-mover in using the Internet and e-commerce technologies. Further, Michael Dell thought that for a company to harness the power of the Internet and succeed in revolutionizing the way business was done, it had to observe three rules: Give customers a better experience online than they could get offline. [...]


[...] Dell was partnering with Intel, Microsoft, Computer Associates, and other prominent PC technology providers to help customers make more effective use of the Internet and the latest computing technologies. Dell, which used Intel microprocessors exclusively in its computers, had been a consistent proponent of standardized Intel-based platforms because it believed that those platforms provided customers with total value and performance. Dell management considered both Intel and Microsoft as long-term strategic partners in mapping out its future. Customer Forums: In addition to using its sales and support mechanisms to stay close to customers, Dell held regional forums to stimulate the flow of information back and forth with customers. [...]


[...] Competitors Dell is the world's leader in direct computers sales and their market position has increased over the last year in the computer vendor rankings. The International Data Corporation (IDC) ranks the five top computer vendors as Compaq (includes Digital Equipment Corp. PCs) that owns of the market, Dell with IBM with Hewlett-Packard with and Gateway with of the market for Q398. The remaining of the market for Q398 comprised all other computer vendors. Dell experienced the largest increase over the IDC Q397 to Q398 timeframe. [...]

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