Dell case Essay -- essays research papers

Case comprehensionDell Computer Corporation was founded in 1984 by Michel Dell, as a result of a growing demand for his pre-formatted hard-disks and upgraded IBM-compatibles.Within a year, Dell introduces its first own-design computer system and in 1989, the company introduces its first laptop. The first laptop introduced did not survive up to the Dell standards, and was therefore taken off the securities industry again.Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was move to re-enter due to its growing customer base, there were a number of technological problems. Dell had hired John Medica, lead developer of Apple computers Powerbook line, and according to him, only one of the laptops being developed would be able to compete on the market. However, it would take rough time before it was fully developed, so Dell had to reject their customers demand for laptops. In doing so, Dell made the customers un derstand that it would not take forever. Dells way to admittance the fact that the company was not able to fulfil the customers wishes, was through honesty. The question was whether this strategy was an advantage for Dell or not.The brand Dell? which serves various consumer segments, is efficiently delivering attributes such as good quality computers along with operative support services. Dell takes position in direct communication with customers and delivers build-to-order computers. The value created by use the direct model to sell customized products and by providing on-site service ranked Dell between market leaders IMB, Compaq, HP. It represents good performance machines at a reasonable price as hale as unique and distinctive Direct Model? while targeting corporate, medium and small sized businesses and home business leader consumers. The advantage of a strong brand, investment in R&D and direct communication with the customers could successfully lead the company into the laptop market. However, the laptop market differs from the desktop market in a number of ways. For Dell the master(prenominal) problem will be the manufacturing process. When producing laptops, most parts will be delivered by suppliers and Dell just ads the last parts. This limits the degree of customization possible and since one of Dells most important distinguishing features is computer customization, the company risks not att... ... companys desire to experiment without being afraid of taking risks that could bring failure as well. The IT industry is ever changing, and being innovative is a must if a company wishes to be successful.?Weaknesses- The need to form market share in the laptop market from nothing.- Reentering the market causes further production costs (investments in vernal technology, new specialized employees, restructure assembly line and etc.).- Lower degree of customization that is possible for laptops and this in turn limits Dells ability to produce customize d laptops which is its main feature of success.?Opportunities- Companys expansion to new market.- New potential customers and the need to redeem lost customers in terms of laptop production care in mind previous failure.- Possibility to take advantage in delivering products faster and providing service in competitively effective manner.?Threats- Facing already well operating and widely spread competitors.- Other companies are adopting Dells direct model - Dell is losing its uniqueness.- The threat of rejection to buy Dells portables, because some former customers are prejudging Dell as producing low-quality laptops.