Dell Changing the Business Model
Based on the Case Study "Dell Inc.: Changing the Business Model" Case 32, starting on page 32-1, complete the following requirements:
?Write a complete synopsis
?Identify their resources, capabilities, and core competencies
?Write one finding of fact, with a fully justified recommendation/justification
Wheelen, Hunger, Hoffman, Bamford. Strategic Management and Business Policy. Boston: Pearson Learning Solutions, 2015.
STRUCTURED TO BE REVISED AND EDITTED
Dell Inc. was founded in 1985 by 19 year old Michael Dell. While living in a dormitory at the University
of Texas, Michael Dell came up with the ideal to purchase personal computers from local retailers? excess
inventory. He did added additional memory along with disk drives. He did not have a store front to sale
his computers but he did have the trunk of his car. Advertising was done in the local newspaper where the
computers were offered for 10 to 15% lower than the retail price. During his first year, his sales reached
over $600,000 and doubled each year after. Dell left school after his freshman year to put more time into
his business. All of his computers were made to ordered and delivered to the customer that cut out the
middle man. The computers were listed as the best personal computers by PCWorld and PC Magazine.
Computers were manufactured cheaper and quicker than their competitors because they had no cash flow
problem due to the customers paying before the suppliers received their payment. There also was no parts
Dell discovered how to simplify IT management, and accelerate results with their software solutions from
enterprise solutions to software services and licensing.
Dell is one of the largest corporation that sells, manufacture and supports computer products and related
hardware components. Dell has been doing well in the presence of strong competitors HP, IBM, Toshiba,
Sony, and Apple. The core competencies of Dell Computer which make it strong and competitive is the IT
Finding of Fact
The largest direct-sale computer vendor in the world, Dell Computer Corporation sells desktop personal
computers, notebook computers, network servers, and a variety of computer peripherals and software. The
manufacturer sells its equipment directly to consumers, largely businesses and government agencies,
through its toll-free number and its web site. Dell also sells workstations, network servers, and high-end
Wheelen, Hunger, Hoffman, Bamford. Strategic Management and Business Policy. Boston: Pearson
Learning Solutions, 2015.
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