Dell case Essay -- essays research papers

Case comprehension dingle data processor Corporation was founded in 1984 by Michel dingle, as a result of a growing demand for his pre-formatted hard-disks and upgraded IBM-compatibles.Within a year, Dell introduces its first own-design reckoner system and in 1989, the federation introduces its first laptop computer. The first laptop introduced did non live up to the Dell standards, and was at that placefore taken off the food market again.Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to re-enter due to its growing client base, there were a number of technological problems. Dell had hired John Medica, reach out developer of Apple computers Powerbook line, and according to him, only one of the laptops cosmos developed would be able to compete on the market. However, it would take nigh time before it was fully developed, so Dell had to reject their customers demand for laptops. In d oing so, Dell made the customers understand that it would not take forever. Dells way to approach the fact that the company was not able to fulfil the customers wishes, was through honesty. The question was whether this strategy was an gain for Dell or not.The brand Dell? which serves various consumer segments, is efficiently delivering attributes much(prenominal) as good quality computers along with operative support services. Dell takes position in direct communication with customers and delivers build-to-order computers. The value created by apply the direct model to sell customized products and by providing on-site service stratified Dell between market excreteers IMB, Compaq, HP. It represents good performance machines at a reasonable price as well as droll and distinctive Direct Model? while targeting corporate, medium and small coat businesses and home office consumers. The advantage of a strong brand, investment in R&D and direct communication with the customers co uld successfully lead the company into the laptop market. However, the laptop market differs from the desktop market in a number of ways. For Dell the main problem will be the manufacturing process. When producing laptops, around parts will be delivered by suppliers and Dell except ads the last parts. This limits the degree of customization possible and since one of Dells most important distinguishing features is computer customization, the company risks not att... ... companys inclination to experiment without being afraid of taking risks that could bring failure as well. The IT industry is ever changing, and being innovative is a must if a company wishes to be successful.?Weaknesses- The need to form market sh ar in the laptop market from nothing.- Reentering the market causes further production costs (investments in unseasoned technology, new specialized employees, restructure assembly line and etc.).- trim down degree of customization that is possible for laptops and this in turn limits Dells magnate to produce customized laptops which is its main feature of success.?Opportunities- Companys expansion to new market.- New potential customers and the need to redeem lost customers in call of laptop production keeping in mind previous failure.- fortuity to take advantage in delivering products faster and providing service in competitively effective manner.?Threats- Facing already well operating and widely parcel out competitors.- Other companies are adopting Dells direct model - Dell is losing its uniqueness.- The threat of rejection to buy Dells portables, because some former customers are prejudging Dell as producing low-quality laptops.