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Abstract

This structured assignment is to accompany the case ''306-274-1''. The abstract of the case is as follows: During the late 1980s, Michael Dell and his company, Dell Inc, revolutionised the global personal computer (PC) market by the latter''s ''Dell direct business model'', where it eliminated all kinds of middlemen and directly supplied customised PC''s to the customers. For the last two decades, the company continued to be the market leader in the small household PC segment. However, after enjoying supremacy for two decades, since 2005 it has started to face competition. The company''s revenue and profit failed to match expectations. Besides, it had to write off US$450 million for the installation of defective capacitors in its computers and opt for workforce alignment. The analysts were thus sceptical about the future of the organisation. The company was termed as less innovative than its competitors as it failed to launch innovative products in the market. To be on the growth trajectory again, it planned to enter into the consumer electronics segment. But analysts were doubtful about the success of Dell''s direct business model in the consumer electronics segment. The case deals with Dell''s business model and its success in the consumer electronics segment. It provides scope for discussing whether the turnaround strategy of Dell would be successful, the scenario of the global PC industry, and the global consumer electronics market.
Location:
Industry:
Other setting(s):
2006

About

Abstract

This structured assignment is to accompany the case ''306-274-1''. The abstract of the case is as follows: During the late 1980s, Michael Dell and his company, Dell Inc, revolutionised the global personal computer (PC) market by the latter''s ''Dell direct business model'', where it eliminated all kinds of middlemen and directly supplied customised PC''s to the customers. For the last two decades, the company continued to be the market leader in the small household PC segment. However, after enjoying supremacy for two decades, since 2005 it has started to face competition. The company''s revenue and profit failed to match expectations. Besides, it had to write off US$450 million for the installation of defective capacitors in its computers and opt for workforce alignment. The analysts were thus sceptical about the future of the organisation. The company was termed as less innovative than its competitors as it failed to launch innovative products in the market. To be on the growth trajectory again, it planned to enter into the consumer electronics segment. But analysts were doubtful about the success of Dell''s direct business model in the consumer electronics segment. The case deals with Dell''s business model and its success in the consumer electronics segment. It provides scope for discussing whether the turnaround strategy of Dell would be successful, the scenario of the global PC industry, and the global consumer electronics market.

Settings

Location:
Industry:
Other setting(s):
2006

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