Essay: Dell’s Business Strategy
Dell’s current business strategy is lesser costs, greater value for customers in order to develop customer relationship management process further and always to stay ahead of their competitors in terms of market share and profits. Their core competencies have milked their business strategy and since its good for the customers and for the company the strategy has been an outright success. The strategy can be analyzed using the generic strategies by Porter and Ansoff’s matrix of growth.
Dell is addressing the challenges of this market in the Asia-Pacific region because in the past people could not afford to buy PC’s and they went to cafes mostly but now things have changed and the consumer market for PC’s is more lucrative and people can afford PC’s. But since the market in this region is not very used to purchasing online since the trend of purchasing online is still in its infant stages and price is a deciding factor for customers so it’s important that they get to see and check before purchasing expensive items like a PC so selling through retail outlets is a social norm. Customization in PC’s has still got to inculcate in the psyche of customers of this region. Thus, Dell has now come up with retail outlets to sell its computers to the mass markets and this is a challenge for Dell since they had to break their business norm and competency in order to serve the market in this region. Although this must have been tough for Dell but the company is addressing challenges of these markets effectively.
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