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The Dell Inc., being a renowned cost leader, makes and produces top value PCs through the direct business model they own and directly sells its products to its clients. The case study was done to analyze the competitive attributes of Dell Inc. and the strategic objectives that it has been following. In doing so, the researcher discussed the history of the company and its current position in the market then analyzed, with the help of the Porter’s five forces and PESTEL models, the environment that strategically surrounded the company. Furthermore, it was presented in the paper the other crucial areas of Dell Inc. such as the broad business strategies of the company, directions and objectives it strategically pursued, the strategic implementation, and the involved issues. All these areas have been very critical in the study since they gave an in depth analysis on the overall goals, marketing techniques, core competencies of the company, and also how the company relates with the stakeholders. In particular, the low cost strategy of Dell Inc. which has been its core competency was also analyzed. Through conducting a step by step evaluation of the company via triple three bottom-line reporting, the position of the company in relation to the economic, environmental, and social perspectives was identified.

Table of Contents

Introduction. 5
Strategic analysis. 5

2.1 External Environment Analysis. 5
2.1.1 The General environment 5
2.1.2 Specific Environmental Analysis. 6
2.1.3 Conclusion on External Environment Threats and Opportunities. 6
2.2 Internal Analysis. 6
2.2.1 Core Competencies. 6
2.2.2 Sustainable Competitive Advantage. 6
2.2.3 Internal Weak point 6
2.2.4 Conclusion on Internal Strengths and Weak pointes. 6
2.3 Conclusion about Organization’s Competitive Position in the Market 6

Strategic Directions and Strategic Objectives. 6

3.1 Vision. 6
3.2 Summary of the Vision, Mission and Ethics Statement 6
3.3 Strategic Objectives. 6
3.3.1. Ethics Position. 6
3.3.2 Stakeholder Table and Analysis. 6
3.3.2 Conclusion on Organization’s Strategic Directions and Objectives. 6

Strategic Choice: The Broad Business Strategies Pursued. 6

4.1 Ansoff’s Product Market Strategies. 6
4.2 Miles and Snow Business Level Adaptive Strategies. 6
3.3 Porter’s Competitive Business Level Strategies. 6
3.4Business Level Strategies. Error! Bookmark not defined.
3.5Conclusion on Broad Business Strategies being Pursued to Achieve objectives. Error! Bookmark not defined.

Implementing Strategically. Error! Bookmark not defined.

5.1 The General perspective. Error! Bookmark not defined.

2 Proof of Strategic Flux. Error! Bookmark not defined.

5.3 Boston Consulting Group Matrix. 6
5.4 Second Curve Activity. Error! Bookmark not defined.
5.5 Conclusion on corporation’s Overall Business Strategies Implementation. 6

Strategic Implementation Issues. Error! Bookmark not defined.

6.1 Leadership. Error! Bookmark not defined.
6.2 Innovation. Error! Bookmark not defined.
6.3 Technology. Error! Bookmark not defined.
6.4 Conclusion on the Strategic Implementation Issues. Error! Bookmark not defined.
7 Strategic Evaluations. Error! Bookmark not defined.
7.1 Triple Bottom Line Reporting. Error! Bookmark not defined.
7.1.1 Economic. Error! Bookmark not defined.
7.1.2 Social Error! Bookmark not defined.
7.1.3Environmental Error! Bookmark not defined.
7.1Conclusion on Strategic Objectives. Error! Bookmark not defined.

Conclusion. Error! Bookmark not defined.
References. 6

Dell Case Study
1. Introduction
The name Dell is a renowned household and workplace name in the computer business. This name pops up when a discussion on computer brands and accessories is in session. Michael Dell founded the Dell Inc. in the year 1984 because he strongly believed that personal computers should be made and sold to consumers directly.
According to Holzner (2006), Dell is an international information technology enterprise that provides a wide range of products such as servers, software, mobility commodities, PCs, storage commodities, among others computer services. Since its inception in 1984, Dell has grown to be a leading international supplier of PC systems in the US and the second supplier internationally.
The corporation’s revenue has also gone up in a tremendous way. For instance, in the 2nd quarter of the year 2011, the revenue increased by 22%, to be $15.5 billion in comparison to the previous year. There is no doubt that Dell Corporation is making big profits with most of its returns coming from sales and project services. Business for the corporation continues to grow swiftly, especially in the developing nations. Revenues from nations such as Russia, Brazil, China, and India account for12% of the corporation’s total revenue (DELL, 2011).
The growth of the corporation can also be seen in its large number of employees. Dell has more than 103,300 employees in its workforce, proof that it is one of the world’s biggest firms.

2. Strategic analysis
2.1 Analysis of the External Environs
2.1.1 The General Surrounding
In assessing strategic surroundings, the Porter’s five forces and PESTEL analysis were employed to establish some aspects which control the tactical macro-environment.
PESTEL Analysis
Spulber (2007) says that a major emphasis was laid on main tendencies against social, economical and technological realms In order to evaluate the general surroundings and the main prospects and risks of Dell Inc. and to make use of the PESTEL analysis
The social aspect relates to the cultural principles, feelings, and opinions of a community. PC corporations attest to the fact that some communities are quite hesitant when it comes to card transactions. Particularly, Dell Inc. has to go to their level and venture right to their homes or personal operations in order to win the trust of these potential clients. Therefore, the latent development of the internet is massive worldwide that allows for foreign PC enterprises such as Dell Inc. to develop a whole new market (Ireland & Hitt, 2008).
The economic aspect describes the makeup and course of market whereby a corporation contends or can contend. Holzner, (2006) observes that the setback of the software piracy is one of the chief threats that DELL encounters. In addition, very few consumers own bank accounts, thus, most of them go for the cheapest computers. Also, some of the countries where DELL operates in lack skilled labor, despite having lots of economic opportunities (Ignatiuk, 2009).
The technological section is about establishments and tasks implemented in turning new ideas into goods, processes, and resources. Technology is a prerequisite in the PC business and the computer sector. The challenge faced by DELL in the technological sector is that the rival firms may introduce new and enhanced products, therefore, resulting in stiff completion.
2.1.2 Analysis of Specific Environs
Porter’s Five Model
Rivalry and Buyer Power
The computer economy is characterized by stiff rivalry. According to Ignatiuk (2008), the main rivals of Dell Inc. are HP and Apple. Legend, a PC supported by the public, is leading in the China market. The other competitors include IBM, Compaq, Hewitt-Packard, and others.
The computer business also depends on the bargaining power of the buyers as its very crucial. Consumers strive to get the best quality at the lowest price and Dell Inc. deals with this challenge by avoiding the use of a middleman, thus, selling the products directly to the consumers at lower prices and going ahead of its rivals (Blair & Harrison, 2010). According to Schwenk (1984), this could be the reason why buyer part is usually very powerful in most countries since PCs are so costly that customers do their best to acquire the finest transaction for the most reduced cost. Triumph needs to collaborate with these firms to obtain market access and distribution-channel even as they run their own sovereign subsidiaries (Ferrell & Michael, 2011).
This is because other corporations are able to present their own computers at reduced costs which could intimidate the growing price-conscious customer base of the company.
2.1.3 Conclusion on Threats and Opportunities of the External Environs
Rivalry and buyer power poses a threat to the company since some competitors are able to present the products at lower costs (Spulber, 2007). Some countries pose challenges such as lack of skilled labor, software piracy, and the rapid growth of technology that threaten the company’s efforts to present their products to consumers. Ignatiuk, (2009) also says that a key opportunity of Dell Inc.’s external environment is the rapid growth of the internet, allowing the company as well as other PC firms the chance to develop into an innovative market
2.2 Analysis of the Internal Environment
In the examination of the internal atmosphere, the core competencies, sustainable competitive advantage and the weak pointes of Dell Inc. have been explored.
2.2.1 Core Competencies
The most crucial and vital aspect of the company’s success is its core competencies. In line with being an incorporated cost principal, DELL creates lofty value computers and trades them straight to the clients through direct business model (Holzner, 2006).
Spulber (2007) also thinks that the core competence of Dell Inc. is its low cost strategy which helps realize the desires of its customers and at the same time achieve its possible prospects like expanding in foreign economies.
The Employees
The Dell Inc. company has numerous computer systems in localities such as Nashville, Texas, and Austin (Ignatiuk, 2009). The company has more than 103, 300 workers all over the world (Holzner, 2006). The company therefore regularly carries out training for all of its workers to lessen their absenteeism and failures in the production.
The Brand Value
Dell Inc. has a well established administration and an excellent brand name’s understanding and recognition.
2.2.2 Sustainable Competitive Advantage
All core competencies provide Dell Inc. with a sustainable competitive advantage (SCA). The direct sales model is an exclusive podium that is only made available to its clients.
2.2.3 The Internal Weak Point
Fortunately, Dell Inc. has few internal weak points. According to Michael Dell, the greatest challenge that the company faces is its ability to get hold of qualified persons who will ease the growth of a stronger hold in the global market. Also, the CEO majorly focuses on the internal growth of the company, making him to have less time to catch up with the emerging external competition (DELL, 2011).
2.2.4 Conclusion on Internal Strengths and Weak Points
By offering products at reduced costs, the company is able to attract many customers. Ignatiuk (2009) observes that the core competence of DELL lies in its cost strategy. Some of the competencies used by the company are personnel training, brand value forms, and direct sales model. However, the company has some internal weak points including its inability to get the right personnel and the inability of the CEO to catch up with emerging external competition.

Unique Business Model
Business Brand
Low strategy cost


Core competence


Direct sales model to the consumers.
alcompetencies orec other


Competitive Advantage

Figure 1. This shows the summary of the competitive advantage and the core competencies.
2.3 Conclusion on Organization’s Competitive Position in the Market
Despite the many threats that Dell Inc. encounters in the market, the company competes very well with its main rivals; HP and Apple. This can be attributed to its core competencies of cost strategy, direct sales model, and brand value. The fact that the company lacks very few internal weak pointes makes it to maintain its position as one of the leading PC firms.
3. Strategic Objectives and Directions
3.1 Vision
Dell Inc. intends to do business in the right way, interact well with the society, and consider the consumer’s needs, prospect of technology, and international business environment (DELL, 2011).
3.2 Mission Statement
Dell (2011) states that Dell Inc.’s mission is to emerge as the most renowned PC Corporation in the world in the provision of excellent services, most superior products and the best consumer experience at the best value.
3.2 Summary of the Vision, Mission, and Ethics Statement
The customs of the Dell Inc. form the basis for the vision and mission statements. The company is totally committed to its corporate social responsibilities within the environment it operates.
3.3 Strategic Objectives
3.3.1. The Position of the Ethics
Dell Inc. has a corporate accountability policy which it puts to effect through actions that reflect corporate nationality. Dell incorporates economic, environmental, and social accountability in everything it does. Diversity is an aspect that the company seeks to maintain so that the personnel in the company mirror the consumers. The company also promotes that diversity remains so that their personnel mirror their customers (Lucas, 2003). Its goal is to establish the correct associations with its clients, supplies, workers, shareholders, societies, among others.
3.3.2 The Analysis and Table of Stakeholders
Dell satisfies the environmental parties by introducing into the market recycling projects and managing their own carbon footprints (Pearce & Robbins, 1989). This ensures that they cover all the needs and desires of the stakeholders. This is why corporations should pay close attention to their definitive stakeholders and consider the wants of all stakeholder groups (Merrill, 2010). It means that objectives should be strategically made to suit the needs and desires of the stakeholders. The consumer needs are met by ensuring that high quality products are provided to them. As long as the market condition of Dell Inc. remains in a steady upward curve, the assets increase, and no arrears are present then the stakeholders will remain satisfied. Workers’ needs are satisfied through a well-built company background which provides education courses, well pay, and career growth (Spulber, 2007).
Table 1
Stakeholder Analysis

Critical Factors
Stakeholder ‘s desires and needs that require attention
Strategic objective(s) to address the desires and needs


Sufficient salary
Training and Education

Career development

Recruitment of intelligent minds

Guarding of intellectual property


Innovative commodities
Demand for value


Create customer loyalty.
Precedence in the market
High-level marketing

Environmental Groups



Raw material variety



Unrelenting association
Clear prospects


Growth of performance based deals
Quality guarantee


Economy development
New products
Revenue strengthening

Bankers and other supporters

Profits on ventures
Superior income per dividend
Arrears reduction
Market share
Increase in Profits
Debt diminution

The above table shows how the Dell Corporation meets various needs of the stakeholders. The stakeholder groups include shareholders, consumers, suppliers, financiers, and environmental groups.
3.3.2 Conclusion on Organization’s Strategic Objectives and Directions
Stakeholder demands and strategic objectives are closely associated. Dell Inc. strives to be accountable socially, economically, and environmentally in all the activities it undertakes. This ensures that the company can sufficiently meet the needs and desires of the stakeholder group.
4. Strategic Choice: The Broad Business Strategies Pursued
4.1 Ansoff’s Product Economy Strategies
Dell is well established and grounded that has eight original design manufacturers (ODMs) in many regions, five international disseminated design centers, and several remote team affiliates that are all contributing to the drawing and expansion of its industry-leading hardware policies (Courtney & Pedersen, 1997). Wallace (1992) acknowledges that Dell Inc. seeks to pursue a product development strategy. The company strives to maintain its innovativeness to uphold its current position in the market. The S-curve demonstrates that expertise has utmost effect at the prelude stage although it levels eventually, thus, creating a requirement for another innovation arc (Ansoff, 1957; Moussetis, 2011). Also, this will enable the company to be ahead of its rivals in terms of market share.
4.2 Miles and Snow Business Level Adaptive Strategies
Dell Inc. is classified as a prospector in reference to Miles and Snow’s model of business-level adaptive strategies (Miles & Charles, 1978). A prospector is usually a leader who is set to endure threats in a vibrant surroundings and tracking lofty expansion (Teece & Adams, 1997). DELL, being inventive and lithe, generates uncertainty as well as economy shifts, which compels rivals reactions in an evolving and extremely impulsive atmosphere.

1st curve PC
2nd curve Enterprise


Figure 2. This shows Miles and Snow business level adaptive strategies (Miles & Snow, 1978).
4.3 Porter’s Aggressive Business Level Strategies
Dell Inc. appreciates its brand’s value and this guides the high pricing for its products (Hitt & Robert, 2011). The corporation puts into place an incorporated differentiation and cost control plan that is consistent with Porter’s business level strategies which prove to be very competitive (Boeker, 1997). It means that the company can adopt core competencies from other business units. Also, the company can create goods that have diverse features and are sold at reduced costs. However, in this case, the dependence on the reduced cost plan does not necessarily denote that reduced pricing is mandatory. Lowered costs in fabrication have been brought about by the absolute control on suppliers.
4.4 Business Level Strategies
Knight (1921) articulates that Dell has supply chain management that enables the company to make direct sales to consumers. Kim and Fouser (1997) also observe that the international techniques that Dell employs involve the combination of core competencies and SCA in chosen foreign markets. Dell is following a worldwide strategy with a focus on standardizing goods and the economies of scale.
4.5 Conclusion on Broad Business Strategies being pursued to Attain Objectives
Spulber (2007) asserts that Dell Inc. adopts a global strategy which assists in creating a room for the dependence on standard commodities and cost efficiencies for its international markets. Ansoff (1975) formed the basis of all consideration including Ansoff, Miles, Porter, and Snow’s business level strategies. In this case, it is clear that Dell Inc. is focusing on the development of products quadrant called “prospector”. Also, the company follows a strategy that combines cost leader and differentiation in order to attain the objectives it has strategically set.

Implementing Strategically

5.1 The General perspective
Having strategic objectives implies that making swift implementations and staying alert is of paramount importance. This is because the functioning of the industry is a highly turbulent one which is dominated by swift change and is characterized by high levels of competition (Rindova, 1999). Dell Inc.’s move to employ the model of supply chain management contributed to its rise in the industry. However, he also observes that the profits have considerably dropped from their peaks (Baum 2003).

2 Proof of Strategic Flux

The Dell Corporation always strives to provide enhanced business commodities and services (Eisenhardt, 1990). The corporation also plans to present vast IT outsourcing that is similar to its competitors such as HP and IBM. This will ensure that the corporation is able to protect its brand by solving the rising number of complaints from the clients. Therefore, this will enable the company to increase its revenues through improving its services.
Figure 3. This shows the proof of Strategic Flux/Drift at Dell Inc. (Adopted from Hong et al., n.d.).
5.3 Boston Consulting Group Matrix
BCG points out that there is a possibility of categorizing a firm’s business components into four possible classes. This is done by joining market growth and market shares in correspondence to the top rival (NetMBA, n.d.). The fact pointed out above is true as seen in the incident curvature that accounts for results of reduced fabrication costs. Consequently, Dell Inc. is well able to increase its gross earnings and its continued expansion.
Fig 4 Adopted from (NetMBA, n.d.)
Ignatiu (2009) says that Dell Inc. can be viewed as a star actor because it demonstrates high productivity through lofty market growth and share. In the above BCG matrix, the location of Dell Inc. is between the “cash cow” and the “star”.
5.4 Second Curve Activity
Dell has been able to revitalize the S curve by redefining its markets fruitfully. The company has successfully graduated from a PC provider to an electronics dispenser. This has been achieved by maximizing its core competencies in supply chain, distribution and consumer satisfaction (Ignatiuk, 2009). This has resulted in the significant extension of the high revenue growth duration for the Dell Corporation.

Figure 5. This shows Dell Inc.’s second curve activity.
5.5 Conclusion on corporation’s Overall Business Strategies Implementation
There is proof of strategic flux where Dell Inc. is concerned. The corporation intends to upgrade its business commodities and services. The company is also located at a position that lies in between the cash cow and the star. The corporation is the star actor that demonstrates high profitability through the lofty market share and its growth. Finally, the company remains within the steady second curve activity as a pacesetter in a modern turbulent and fast, shifting market.

Strategic Implementation Issues

6.1 Leadership
The CEO of Dell Inc., Michael Dell, utilizes a specific approach of management by motivating workers to go beyond their self-interests and labor for the whole good of corporation. Quinn (1980) says that Dell Inc. is currently using transformational management approach. This can be done by forming a unique development program and incorporating into their management styles the very heart of Dell Inc. Ignatiuk (2009) says that the company knows that self-awareness is, in itself, a vital competency and that in the core of a strong leadership group. The leaders at Dell Inc. are encouraged to work to winning the people under them by inspiring and leading them in a unique way. The company also encourages inspiration of its members, financial and company insight, development of efficient teams, tactical agility, and client focus (DELL, 2011).
6.2 Innovation
Dell Inc. ventured into grounds that had not been ventured into in 1986 by providing crucial expansion for personal, home, business and small industry computing. The research and development (R&D) ventured into the world, propelled by several designers and engineers of the group. At the heart of Dell Inc.’s invention is a firm dedication towards the provision of new and enhanced solutions that suit the consumer’s needs and meets them.
In order to provide valuable solutions that fulfill the needs and desires of consumers, Dell emphasizes on critical standards that trigger technological innovation in the future. DELL (2011) notes that leadership at Dell Inc. strives to locate a special unit to assist in setting up building blocks for future innovation. The unbreakable record set by Dell Inc. for pioneering activities and a vast network of a powerful coalitions works to give the company an upper hand with the clients. Most inventions start at home, under the direction of an international panel of top engineers, product designers and technical experts (DELL, 2011). Dell provides a wide range of choices, interoperability, and lower cost. The main goal of the company is to provide reasonable prizes for their commodities.
Dell Inc. has very strategic ways of keeping up with the changing needs of its consumers. Daily communication with consumers, the social media sites, consumer boards, and planned events provides the needed knowledge. These interactions provide the company an extensive outlook on the computing needs of consumers and helps Dell to remain relevant to these needs (Duane & Michael, 2008).
The R&D, which is an international branch established to influence industrial development. The corporation facilitates industry technologies and principles through premeditated partners. In this way, Dell Inc. stimulates invention and innovation which conveys value to consumers. The corporation also manipulates the growth, expansion and official recognition of high standard expertise via its involvement in a wide range of main standard groupings and also technical functioning one.
6.3 Technology
The idea behind Dell Inc’s computing operations is to provide computing solutions aimed at supplementing the customary PC offerings. It is also meant to allow technology to propel the corporation’s composite atmosphere (Ignatiuk, 2009). The customer computing techniques of Dell have the advantage of the virtualization of tools, network, and the system bandwidth such that it meets the needs and desires of both consumers and IT right on point.
The Dell Inc.’s resolutions on client computing are grounded upon the principle that getting genuine IT simplicity will necessitate a paradigm shift from running a growing figure of appliances to running the customer’s digital distinctiveness (Wertheim, Rogers, & Bair, 1996). The shift provides a major stride toward presenting IT services to a wide variety of customer devices. Dell achieves this objective by planning solutions to offer IT with buyer information that is centrally organized. In addition, the company allows customers to work anywhere and ultimately on any device.
Dell also works to provide solutions that are based on unified Ethernet fabric that facilitates the transmission of virtualized workload within the area. The Ethernet fabric provides a suppleness that channels IT infrastructure closer to the expectations of an expert enterprise with virtualized resources. For example, storage and servers, in order to meet the available workload and application requirements need administration, provisioning and installation.
6.4 Conclusion on the Strategic Implementation Issues
Leadership, technology, and innovation are considered to be Dell Inc.’s core strategic implementation issues. Presently, the company employs the transformational leadership style where leaders are encouraged to achieve the numbers while at the same time win their people via unique leadership and inspiration. The heart of the company lies in the strong dedication related to the provision of new and enhanced solutions that meet the desires of the consumer. This dedication also provides valuable solutions for their computing needs. The corporation’s consumer-computing standards impel future technological inventions and are tailored to address the needs of consumers by upgrading progress in virtualization tools, network-founded computing and system bandwidth.
7 Strategic Evaluations
7.1 Triple Bottom Line Reporting
7.1.1 Economic
According to Holzner (2006), Dell Inc. ranked 41st in the Fortune 500 list, which reflects its good faring in the economic measure. The company owes its growth and development to acquisitions and the mounting of its customer base. Also, Dell Inc. generates spectacular cash flows. The corporation’s revenue for the second quarter of the year 2011 was $15.5 billion which was a 22% increase from the year 2010.
7.1.2 Social
The corporation has thrived due to its culture of adapting well to shifting markets (Ignatiuk, 2009). Just like in the economical sector, Dell Inc. also does well in the social sector. Dell’s perspective on communal responsibility and ethics is controlled by an environment of accountability, and both personal and collective responsibility in the workers.
7.1.3 Environmental
Dell Inc. clearly understands and appreciates its responsibility to the environment. Holzner (2006) observes that the company initiated steps to restrain its carbon footprint. Dell has also initiated a recycling program in order to conserve the environment.
7.1 Conclusion on Strategic Objectives
Dell is certainly a tough economic player, as evidenced by the satisfaction of the shareholders with the fiscal returns. Miller (1660) says that the corporation is a superior venture that is also characterized by a strong share price. Dell Inc. responds in a very effective way to the stakeholder groups concerning any social or environmental issue. The company also boosts the confidence of its workers by providing adequate training that motivates them to advance their careers and also to produce better results.


By investigating both the internal and external environment of Dell Inc., it is safe to say that the corporation functions and thrives in a very turbulent atmosphere defined by swift technological shifts. The strengths of Dell Inc. include the direct sales model, a good number of employees, and brand value. These strengths provide the company with a sustainable competitive advantage (SCA). However, the company has also its weak pointes. Particularly, it has problems getting hold of qualified staff to facilitate the strong hold of the global market. Another is that the CEO concentrates very much on the internal development and has less time to concentrate on crucial external competition. The rampant growth of the internet provides a major opportunity in Dell Inc.’s external environment by allowing foreign PC corporations, such as Dell Inc., the opportunity to grow in a new market. Dell faces certain threats such as lack of trained workers in certain countries, software piracy, and the swift shift of technology.
The buyer power and competition by its rivals who provide consumers with computers at a cheaper rate are also one of the threats that Dell Inc. has to address. The fact that these rivaling firms are able to provide customers with computers at a cheaper rate could threaten the Dell Inc’s position in the market. Since the prices are almost the same, the disparity between the pricing of different firms is no longer a big issue. This is because they may select other brands instead of waiting for the tailored computers from Dell Inc. Currently, Dell Inc.has the largest hold of the market share that is threatened by the fact that the computer business expansion rate is dropping. If the demand by the consumers goes down, competition will become rigid. This means that Dell Inc. has to work hard to register exemplary results among the companies within the industry in order to retain its hold on the market. Therefore, it is recommended that the company comes up with workable strategies that will be used to identify the appropriate personnel.

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