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Dell
The current situation for Dell is that it is trying to recover from a downturn in its business. The company has a good brand name, a strong online distribution channel and good relationships with its suppliers. Key weaknesses are a lack of innovation, poor offline distribution channels and the company's finances are not great anymore. There are opportunities for Dell to rebuild its corporate business, or enter new consumer segments like tablets. The company could also focus on growth in overseas markets, as these remains a major source of growth in the PC industry. There are a lot of different threats for Dell, however. The company is threatened by competition, the state of the economy, by increasing costs at suppliers and technological changes such as the commodification of PCs, even though this was once an opportunity for Dell.
In order to succeed again, Dell has undertaken a number of different steps. One of those steps has been to introduce Dell computers into stores, as a means of reaching more consumers. Dell had long focused on the corporate market, ignoring consumer use, but moving into stores signals that...
For a time, Dell had not really met the needs of these customers and so Dell has sought to remedy that. By forging closer relationships with its key corporate customer base, Dell is seeking to renew growth in what has traditionally been its best market. A third strategy undertaken by Dell is to streamline the company's operations. The environment is challenging, and margins are being squeezed. Furthermore, Dell is not anywhere near the forefront of innovation. This implies that the best strategy for Dell should be as a cost leader, and Michael Dell's return has spurred a renewed commitment to cost control, which is a key element of that strategy.
3. In order to implement these strategic elements, Dell has undertaken some restructuring in order to focus his organization on these strategies. He brought in…
Works Cited:
Edwards, C. (2009). Dell's extreme makeover. Business Week. Retrieved June 19, 2012 from http://www.businessweek.com/magazine/content/09_43/b4152036025436.htm
MSN Moneycentral. (2012). Dell. Retrieved June 19, 2012 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=DELL
No author. (2011). Dell's transition from phase I to phase II restructuring creates best buying opportunity. Seeking Alpha. Retrieved June 19, 2012 from http://seekingalpha.com/article/296433-dell-s-transition-from-phase-i-to-phase-ii-restructuring-creates-best-buying-opportunity
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