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This strategic management case study deals with the recent problems of the computer manufacturer Dell. For decades the company established one record after another. However, recent headlines relating to Dell are somewhat different: declining growth, disappointing earnings, the missing of financial targets, executive departures, customer satisfaction problems, the largest safety recall in the history of consumer electronics, heavy stock price plunges and the repeated assumption that Dell lost its once awesome cost advantage to name just a few. After a short introduction of the computer industry, the business strategy of Dell is described. This section deals with the company''s direct customer relationships, its supply chain management, its product diversification strategy and especially its regional diversification strategy. The main focus here lies on Dell''s entry into China and India. The intentions the personal computer (PC) maker had and what strategy the company followed to enter these completely different markets are presented. Finally Dell''s main competitors Hewlett-Packard and Lenovo are examined and how they are now or how they can become a threat for Dell is discussed. The aim of this case study is to show that even the most successful business strategy will not guarantee success under all circumstances. The importance of continuous adaptation of the business strategy to specific regional, time and competitive characteristics and changing consumer needs can not be overstressed. In solving this case study, students come across different strategic management concepts like: (1) diversification strategies; (2) cost leadership vs product differentiation strategy; (3) Porter''s Value Chain; (4) Porter''s Five Forces; and (5) strengths, weaknesses, opportunities and threats (SWOT) analysis. This case study contains 17 exhibits providing a wide range of data concerning the computer industry and the company Dell. A teaching note supplement ''307-235-9'' containing a presentation handout is available to accompany the teaching note.