Overview of the Dell organization and how it can improve its stability in future

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Overview of the Dell organization and how it can improve its stability in future

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Abstract

Over the course of the last two decades a number of new companies have made their mark on the business world. In many cases, these organizations have been successful because they have made the choice to utilize unique business models or organizational cultures that set them apart from more traditional companies. Such is the case with Dell Computers. A small start-up company that was founded by Michael Dell, Dell Computers has evolved to become one of the most profitable independent computer companies in the world. Despite the organization's notable success, it currently faces a number of daunting challenges to ensure its viability over the long-term.With the realization that Dell Computers currently faces a host of notable strategic challenges, there is a clear impetus to examine these issues and determine what course of action will provide the best outcomes for the organization. Clearly, Dell Computers is a modern organization that was borne out of innovation and change. As such, any investigation of the organization must consider the company's history as well as the most current issues impacting development

Introduction.
Dell computers: An overview.
1. History.
2. Current Challenges.
SWOT analysis.
Analysis of the problems.
Recommendations.
Conclusion.

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[...] Lee and Ante (2005) in their examination of the Dell organization note that the substantial success of the organization in selling personal computers to customers has promoted the company to expand the products and services it offers. According to these two authors, Dell is expanding not only the products that it offers, but also it is expanding the services that it offers. In short, Dell Computers is now looking to offer comprehensive computer services to its customers. While Lee and Ante argue that this move will further force other computer manufacturers to reduce costs in an effort to remain competitive, they also note that Dell may have notable challenges to its core business model when it comes to providing computer services. [...]

[...] In addition to the fact that the Dell organization has not changed its methods when it comes to its business and marketing models, it is clear that the organization has also done very little to meet the needs of consumers in emerging foreign markets. Even large organizations such as Wal- Mart and Starbucks have learned that the same business and marketing models that work in the US will not work in foreign countries. Despite a plethora of information which effectively demonstrates the challenges that organizations have faced when it comes to developing marketing strategies in foreign countries, Dell continues to adhere to its American standards as a benchmark for expansion. [...]

[...] Specifically, researchers examining the statistics of the organization note that: Dell is ranked number one, both in the US, and worldwide, in terms of desktop and notebook computer shipments in 2005. It is ranked number one in the US and number two worldwide in shipments of x86 servers. Dell has a 20% market share in the US PC market. The company holds top positions in other markets worldwide. Dell is the number three vendor in the Chinese PC market with market share and number one served vendor with market share (Dell Inc p. [...]

[...] While the personal history of Michael Dell provides a clear understanding of how Dell Computers got its start, it does not explain why this organization became such a notable success. Gillmor (1998) in his examination of the Dell organization notes that the company was able to rival its competitors by selling directly to the consumer. Dell's central business strategy was to eliminate the middleman, and the costs associated with the middleman. By doing so the customer could not only receive a price break, but also the customer could have a computer tailor made to his or her needs. [...]

[...] As such, Dell is now struggling to improve it market presence and regain its overall dominance of the market. In addition to the fact that Dell has begun to lose its market share, researchers also note that the organization has lost much of its competitive advantage. Dell's central business tactic was to provide low- cost hardware directly to the consumer. While this business model forced competitors to lower their prices, it also forced the streamlining of the supply chain. As a result, all computer hardware manufactures are now able to offer prices that are competitive to those of Dell. [...]

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