Dell case Essay -- essays research papers

pillowcase comprehension dingle 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, dingle introduces its first own-design computer system and in 1989, the accompany introduces its first laptop. The first laptop introduced did not live up to the dell standards, and was thus taken off the grocery store again. dingle had to solve the hassle of balancing the deed of laptops, screen backgrounds and servers. On the laptop market, which Dell was committed to re-enter ascribable 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 match to him, only one of the laptops being developed would be able to fence on the market. However, it would take somewhat time before it was fully developed, so Dell had to reject their customers demand for laptops. In doing so, Del l made the customers understand that it would not take forever. Dells agency to approach the fact that the company was not able to fulfil the customers wishes, was by means of 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 processs. Dell takes position in run conference with customers and delivers build-to-order computers. The value created by using the direct model to sell customized products and by providing on-site service ranked Dell between market leading IMB, Compaq, HP. It represents good performance machines at a reasonable price as well as unique and distinctive Direct Model? firearm targeting corporate, medium and small sized businesses and home office consumers. The advantage of a strong brand, investment in R&D and direct confabulation with the customers could successfully lead t he company into the laptop market. However, the laptop market differs from the desktop market in a number of ways. For Dell the main 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 claim 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 new technology, new specialized employees, restructure convention line and etc.).- Lower degree of customization that is possible for laptops and this in turn limits Dells ability to produce cust omized laptops which is its main feature of success.?Opportunities- Companys expansion to new market.- New potential customers and the need to redeem helpless customers in terms of laptop production keeping in opinion previous failure.- Possibility to take advantage in delivering products faster and providing service in competitively effective manner.?Threats- Facing already well in operation(p) 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.