Dell Computer Case Analysis Term Paper


Dell Computer Corporation: Strategy and Challenges for the 21st Century, by Thompson and Gamble. This case analysis will evaluate a variety of factors including, the role of Michael Dell as CEO, and his strategy. Further, a brief SWOT analysis will be given, and a competitive strength assessment will compare Dell to major competitors. Advantages of Dell's strategy and an assessment of the company's financial performance will be given. Finally, a brief personal assessment of Dell will be given. Michael Dell is an excellent CEO. Remarkably, he founded the highly successful Dell Corporation at the age of 19. He had a vision that personal computers could be built to order, based on customer specifications. This vision has been the basis of Dell's success, and has seen the company and the CEO through many financially difficult times. As such, I would have to note that it is Michael Dell's vision which makes him a great CEO, combined with his persistence and ability to weather difficult times.


In the early years, Dell struggled to keep the cost of its product low, and thus increase sales by making an excellent product at an affordable price.
Interestingly, by 2000, the average Dell computer sold for exactly double the price of a similar clone. Dell has continued to evolve, and now aggressively markets toward higher end computers. To this end, then, Dell is attempting to have a "better" value chain than rivals, by producing a very high quality, personalized product.

Dell's greatest strength is likely the ability of its people. Michael Dell is known for hiring talented, competent people, and then letting them do their jobs, rather than micromanaging them. Dell also has a great strength in its highly recognized and respected brand name.

Dell's greatest weakness is the high price of its computers. This price keeps them…

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