Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 10 pages
Data source: Published sources
Abstract
This is part of a case series. Dell Inc was the second largest PC company in 2007 in terms of global market share. The success of Dell was largely attributable to its direct selling business model, which was suitable for corporate buyers and bulk purchasers. Dell had an inbuilt advantage of lower costs due to its highly efficient manufacturing operations and supply chain management efficiencies. However, with the changing competitive dynamics, Dell was losing its cost leadership in the industry. Dell's cost advantage against its competitors was eroding as competitors were following practices like mass manufacturing and just-in-time inventory management. After Hewlett-Packard became the market leader in 2007, Dell was considering various options to sustain and regain its leading position in the PC industry.
About
Abstract
This is part of a case series. Dell Inc was the second largest PC company in 2007 in terms of global market share. The success of Dell was largely attributable to its direct selling business model, which was suitable for corporate buyers and bulk purchasers. Dell had an inbuilt advantage of lower costs due to its highly efficient manufacturing operations and supply chain management efficiencies. However, with the changing competitive dynamics, Dell was losing its cost leadership in the industry. Dell's cost advantage against its competitors was eroding as competitors were following practices like mass manufacturing and just-in-time inventory management. After Hewlett-Packard became the market leader in 2007, Dell was considering various options to sustain and regain its leading position in the PC industry.