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Answered: - Dell Changing the Business Model Based on the Case Study &


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

 


 

Synopsis

 

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.

 

Resources

 

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

 

inventory.

 

Capabilities

 

Dell discovered how to simplify IT management, and accelerate results with their software solutions from

 

enterprise solutions to software services and licensing.

 

Core Competencies

 

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

 

industry.

 

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

 

storage products.

 


 

Works Cited

 

Wheelen, Hunger, Hoffman, Bamford. Strategic Management and Business Policy. Boston: Pearson

 

Learning Solutions, 2015.

 


 

 


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