PROJECT REPORT ON

STRATEGIC MANAGEMENT OF DELL COMPANY

SUBMITTED TO:-

SUBMITTED BY:Roll no.Class:-

ACKNOWLEDGEMENT
With profound sense of gratitude and regard, I express my sincere
thanks to my guide . valuable guidance and the
confidence she installed in me, that helped me in the successful
completion of this project report. Without his help, this project
would have been a distant affair.
While working on the project my Classmates have been very
considerate and supportive.
Finally I thank my supportive friends Studying in different colleges
and Universities for their support and would appreciate valuable
suggestions for improvement of the Project.
I wish to express my appreciation to all those who have helped
shaping this project.

Declaration
I hereby declare that this case study title STRATEGIC
MANAGEMENT OF DELL CORPORATION. submitted in the partial
fulfillment of the requirement of M.COM 2nd year is a bonafide
work undertaken by me and it is not submitted to any other
university for the award of any degree diploma/certificate or
published any time before.

CONTENT
1. Introduction
2. Vision and Mission
3. Dell Strategy
a. Business Level Strategy
b. Corporate Level Strategy
c. Strategic Framework: Market Perspectives
d. The channel Strategy: Resources perspectives
4. Competitive Analysis
5. SWOT Analysis
6. PEST Analysis
7. Conclusion
8. Bibliography

INTRODUCTION
Dell, a company best known for selling affordable personal
computers and laptops, was founded in 1984 by Michael S. Dell
whose success made him one of the wealthiest men in Texas.
From its inception, the Dell model became synonymous with
efficiency, outsourcing and tight inventories. However, over the
years the company has been plagued by serious problems,
including declining sales, misreading the desires of its customers,
poor customer service, suspect product quality and improper
accounting.
Dell Inc. (Dell) is a global information technology company that
offers its customers a range of solutions and services delivered
directly by Dell and through other distribution channels. Dell is a
holding company that conducts its business worldwide through its
subsidiaries. The Company operates in four segments: Large

Enterprise, Public, Small and Medium Business, and Consumer. Its

Large Enterprise customers include large global and national
corporate businesses. Its Public customers, which include
educational institutions, government, health care, and law
enforcement agencies, operate in their own communities. Its SMB
segment is focused on helping small and medium-sized
businesses by offering products, services, and solutions. Its
Consumer segment is focused on delivering technology
experience of entertainment, mobility, gaming, and design. In
February 2012, it acquired AppAssure. In April 2012, it acquired
Clerity Solutions. In September 2012, it acquired Quest Software
Inc
Michael Dell is one of the world's most successful IT
entrepreneurs. There are numerous reasons for Michael Dell's
success. Michael Dell uses direct selling to sell its computer. Dell
once said inventory should have the shelf life of lettuce. This
means that Dell holds just three days' inventory supply. Dell was
indeed the first company in the IT sector to ordain that no
computer should be built without first being sold in advance. This
also ensures that Dell holds no extra surpluses. The stock in the
company does not stick at a place for a long time. Dell best
understands consumer needs and efficiently provides the most
effective computing solutions to meet those needs by selling
computer system directly to the customer. This direct business
models eliminate retailers, who added unnecessary time and cost,
and also allowed the company to build every system to order,
offering customers powerful, richly configured systems at
competitive prices. Dell introduced the latest relevant technology
much more quickly than companies with slow-moving, indirect
distribution channels, turning over inventory an average of every
four days. In less than two decades, Dell became the number-one
retailer of personal computers, outselling IBM, Hewlett-Packard,
and Compaq. According to Michael A. Verespej, Michael Dell feels
that to have high levels of raw materials or finished goods in a

warehouse can be very dangerous in a business where the value

of these materials is going down about 1% a week.

VISION AND MISSION

STATEMENT
Vision Statement
Its the way we do business. Its the
way we interact with the community.
Its the way we interpret the world
around us. Our customers needs, the
future of technology, and the global
business climate. Whatever changes
the future may bring our vision. Dell
Vision will be our guiding force.So
Dell needs
full
Dell Mission Statement
customers
satisfaction.
become the
"To be the most
successful
successful computer
company,
company in the world
the newest
at delivering the best
and
loyal

Mission

customer experience in
markets we serve."

In order to
most
computer
they need
technology
customers.

Dell

Statement
Dells mission is to be the most successful Computer Company in
the world at delivering the best customers experience in markets
we serve. In doing so, Dell will meet customer expectations of:

 Highest quality
Leading technology
Competitive pricing
Individual and company accountability
Best-in-class service and support
Flexible customization capability
Superior corporate citizenship
Financial stability

Dell Strategy
Dell's business strategy is a successful
cost leadership strategy. The company's
formula for success has been based
upon its unique customization, delivery,
and cost proposition. In reaction to
faltering performance and the need to
pursue new growth opportunities, a
dual-strategic approach is required to
confront
rapidly
changing
market
conditions. First, Dell must integrate its cost leadership skills with
differentiated product features and related services to create
value for its customers and achieve the benefits of an integrated
cost leadership/differentiation strategy.
Additionally, becoming a diversified IT company opens up
opportunities in related businesses, where similar products,
buying processes, target customers, or other operationally-related
activities can produce synergies. This business-level and
corporate-level strategy combination offers Dell a method of
dealing with the company's competitive realities. Both strategies
are discussed below.

Business-Level Strategy

Dell built its reputation as a leading technology provider through

listening to customers and developing solutions that meet
customer needs. We are focused on providing long-term value
creation through the delivery of customized solutions that make
technology more efficient, more accessible, and easier to use.
We are focused on improving our core business, shifting our
portfolio to higher-margin and recurring revenue streams over
time, and maintaining a balance of liquidity, profitability, and
growth. We consistently focus on generating strong cash flow
returns, allowing us to expand our capabilities and acquire new
ones. We seek to grow revenue over the long term while
improving operating income and cash flow growth. We have three
primary components to our strategy:
Improve Core Business:-Dell seeks to profitably grow the
desktop and mobility business and enhance the online
buying experience for our customers. We have improved our
competitiveness through cost savings initiatives, which are
focused on improving design, supply-chain, logistics and
operating expenses to adjust to the changing dynamics of
the industry. We are also committed to simplifying our
product offerings to eliminate complexity that does not
generate customer value. We will continue to focus on
product leadership by developing next generation
capabilities. Additionally, we will continue to deepen our skill
sets and relationships within each of our customer-centric
business units with the goal of delivering best in class
products and services globally.
Shift Portfolio to Higher-Margin and Recurring
Revenue Offerings:- We are focused on expanding our
customer solutions business by delivering best-value
solutions in the enterprise, including servers, storage,
services and software. Our view is that a large majority of
the data centers and the server and storage opportunities
now and in the future will be based on best value,
simplification, and more open data center solutions. These
are the kind of solutions that we believe Dell is well
positioned to provide. We believe that our installed customer

base, access to customers of all sizes, and capabilities

position us to achieve growth of our customer solutions
business. We will focus our investments to grow our business
organically as well as inorganically through alliances and
strategic acquisitions. Our acquisition strategy targets
businesses that we believe will expand our customer
solutions business by delivering best-value solutions in the
enterprise, including servers, storage, services and software.
Balance Liquidity, Profitability, and Growth:- We seek
to maintain a strong balance sheet with sufficient liquidity to
provide us with the flexibility to respond quickly to changes
in our dynamic industry. As we shift our portfolio focus more
to enterprise products and solutions, our financial flexibility
will allow us to make longer term investments. We continue
to manage all of our businesses with the goals of delivering
operating income over the long term and balancing this
profitability with an appropriate level of long-term revenue
growth.
Provide great value to customers and partners
through direct relationships:-We are committed to
innovating without legacy, creating efficient solutions, and
providing price, performance, and feature leadership across
all of our businesses. In addition, we will deliver the power of
cloud computing and connect with our customers through
the Internet. We are focused on helping customers identify
and remove unnecessary cost and complexity in IT
architecture and operations. In addition, we seek to broaden
our profit stream to capture complementary opportunities in
new solutions for customers that include search, services,
and 3G originations. To that end, during Fiscal 2009 we
released a broad lineup of dedicated virtualization solutions,
including software, servers, services, and storage.

Corporate-Level Strategy
A corporate-level strategy specifies actions a firm takes to gain
a competitive advantage by selecting and managing a group of
different businesses competing in different product markets.

Corporate-level strategies help companies select new

strategic positions to increase the firms value. They are also a
means to grow revenues and profits.
By 2006, Dell has already diversified from a purely desktop PC
provider to operating in the following additional product
categories: mobility, server, storage, printer, enhanced services,
software, and consumer electronics. More than thirty percent of
its revenue is generated outside of its dominant business.
Because of this ratio and because there are existing links between
its
diversified
businesses,
a
related
constrained
diversification strategy is being employed. With a related
constrained diversification strategy, Dell will be able to expand
the value of its resources and capabilities by sharing activities
and exploiting economies of scope between its businesses.
Available to companies operating in multiple product markets or
industries, economies of scope are cost savings that the firm
creates by successfully sharing some of its resources and
capabilities (operational relatedness) or by transferring one or
more corporate-level core competencies that were developed in
one of its businesses to another of its businesses (corporate
relatedness). To create economies of scope both tangible
resources (such as plant and equipment or other physical assets)
and intangible resources (such as knowledge or other bases of
core competencies) can be shared. In at least two ways, the
related linked diversification strategy can help Dell create value.
First, because a core competence has already been developed
(and paid for) in one of the companys businesses, transferring it
to a second business eliminates the need for that second business
to allocate resources to develop it. Resource intangibility is a
second source of value creation through corporate relatedness.
Intangible resources are difficult for competitors to understand
and imitate. Because of this difficulty, the unit receiving a
transferred corporate-level competence often gains an immediate
competitive advantage over its rivals. One thing to keep in mind,
however, is that it can be difficult for investors to actually observe
the value created by a firm as it shares activities and transfers
core competencies. For this reason, the value of Dell's assets
being used to create economies of scope may be discounted by
investors.

Dell's business model became successful in the PC industry

as personal computers gained acceptance in the market. The
company's growth was achieved by taking away share from
industry leaders and "commodifying" the product. Rather than
being the market leader in other consumer electronic products
(HDTV, digital cameras, etc.) when new product prices are high
and consumers are doing extensive research prior to the purchase
(needing retail outlets to touch and feel the product), Dell's place
might be to jump into the market as consumer electronic products
begin to transition into commodities. The company can be
prepared to capture the second wave or tier of consumers who
have not adopted new technologies and products until prices
lower and technology becomes accepted (capturing the market
after the product/technology is proven, offering low prices, great
quality, new features, and complementary services at this time).
This second (or late) mover strategy is a competitive
response to first movers' competitive actions and is typified by
imitation. Taking the time to monitor customer reaction to product
innovations and avoiding the mistakes and costs of new product
introductions are compatible with Dell's successful business
model. The approach also provides Dell with time to develop more
efficient processes and technologies or create additional value for
consumers.
Overall, the outcomes of first mover competitive actions can
provide an effective blueprint for Dell's late mover approach,
especially as the consumers get comfortable with making
investments in new technologies and begin to equate dependable
quality and good value with the Dell brand. It is also going to be
important for Dell to properly scale its aging businesses (such as
PC's) to the size of the replacement market. [Of course, the
company should always continue to look for advancements that
might breathe life into mature products - such as it has done by
turning home PC's into media centers).

STRATEGIC FRAMEWORK: MARKET

PERSPECTIVES
An Internet strategy must be considered within the context of
the company's overall business plan. The framework starts from
the premise that supply chain decisions must be evaluated in a
strategic context. The goal is to create a fit between the desired
strategic position and the supply chain capabilities and
processes used to satisfy customer needs and priorities. A
company defines its desired strategic position by first ranking its
customers' top priorities and then articulating how it plans to
respond to these needs. Typical customer needs include
timeliness, accessibility, availability, customizability, quality of
service, and price. At the same time, the company must consider
the trade-off between how it would like to respond to customer
needs and the supply chain costs incurred to meet those needs.
Each point on the frontier corresponds to a particular supply chain
structure, employing the best available technologies, managerial
policies, and inputs to meet the desired level of a customer need
at the lowest cost. As such, the efficient frontier constitutes the
state of best practices at a given point in time. It also shows the
inherent trade-offs that a company must consider when selecting
its strategic positiongiven limitations in process technology and
policies. Companies can use such a characterization to decide
how they can best use e-business initiatives to support their
strategic position. As a result, Dell enjoys higher margins than
do traditional PC manufacturers that must share some margin
with retailers.

Clearly, retailers are in a weaker position to exploit this ebusiness opportunity than are other members of the supply chain.
Making online product and other information accessible to all
members of the supply chain allows flexibility on price, product
portfolio, and promotions. Dell uses the Internet to change prices
and delivery times for different PC configurations regularly, based
on demand and component availability. A new-product
introduction in a traditional model requires a substantial volume
of new product to be manufactured and transported to fill the
physical channels. Negotiating prices and contracts with
customers and suppliers online allows price and service
customization. By accommodating individual requests, the ebusiness may customize and price its product/service accordingly.
Keeping customerprofiles and having clients "log in" facilitates
such price and service discrimination by allowing subsequent
customer-specific routing.

THE CHANNEL STRATEGY: RESOURCE

PERSPECTIVES
An effective channel strategy which is a necessary element of
supply chain mastery, the process of choosing a channel
strategy, the supply chain master can create a powerful new
channel that reduces its competitors' access to important target
accounts and market segments. In many industries, a battle
looms between producers and distributors and among horizontal
competitors over customer ownership through inter-company
supply chain relationships. Most successful supply chain-based
strategies offer significant advantage that is either explicit and
the ability to control pricing through direct customer relations is
another key element of channel strategy.As it does with incustomer operations, the Web opens both new channel
opportunities and new dimensions of customer service. However,
this newly created channel must maintain the fit between a

company's account set and its business model. All too many
companies lose sight of this critical factor as they indiscriminately
pursue incremental revenues. Dell's direct-to-customer channel
strategy certainly is a breakthrough in the industry. In the early
stages of a technology product's lifecycle, distributors are
important for supporting new adopters. Dell has discerned a
lucrative set of high-end customers that were ready for direct
distribution with arm's length customer support from help lines.
An innovative direct channel strategygave Dell these crucial
elements of its powerful business model:
Real-time customer feedback and market insights
The ability to "sell what you have"--that is, using day-to-day
pricing and sales incentives to shift demand toward products
that are currently makeable
Extremely crisp product life cycle transitions
Elimination of the obsolete and excess dealer stock that
plagues the non-direct competitors
The ability to control pricing on a real-time basis.
The capabilities were rooted in each company's core business
processes, many of which focused on supply management. The
new supply chain masters consolidated their supplier bases in
order to form more effective partnerships. The masterful suppliers
that they kept realized large market share gains. Insightful
suppliers also can help supply chain managers accelerate their
supply chain mastery. Dell developed a set of new operations
capabilities in five crucial areas as it created the flawless maketo-order system that has been widely noted (but in fact is only
one part of its business model. Dell worked at length to build an

effective supplier management function in order to shorten

component lead times and maintain the absolute quality
standards required by the just-in-time operation.

Dells Value Web Model

As Dell has moved beyond its home market in the U.S., it has had
to adapt its business activities and organizational structure to the
different markets in which it operates. In effect, Dell has had to
create similar but distinct value webs in each of the major
regions, and to further customize its marketing and service
functions for individual countries. The process of globalization has
shaped Dells own structure, but Dells success has conversely
helped to reshape the global structure of the PC industry.

Competitive Analysis
Dell is no doubt is operating in an industry where there is a rapid
change in technology and innovations in hardware and software,
services and the competition among products and prices and all
the related areas of business from our standard competitors. Dell
compete with its competitors with its competitive ability of giving
profitable and good solutions to their customers that provide the
new and required product features with customer services, a
standard quality and reliability. All this is only possible due our
direct linkage with our customers, which proves the best way of
getting the information about the changing needs and wants of
customers more efficiently than any other company. No doubt
that this strong and healthy connection between Dell and its
customers and the understanding of customer's needs offers Dell
a competitive advantage. By IDC, Dell grew 0.2 points of share by
calendar 2008 as Dell's 11.1% increase in units outpaced the
company's general growth of computer system which is 9.7%. in
the share was due to a well overall performance in half FY 2009
followed by a decrease in units shipments in dell's business in last
6 months of FY 2009. Which was somewhat equalized by the
potency in our globalized business. Dell's growth of commercial
business's units was slow which shows their decision in an erode
demand atmosphere to enable the growth in units while saving
the profitability. For the duration of the second half of FY 2009,
the intact business faces a difficult IT end-user demand situation
as present economic situation impacted on global customer ways
of spending. The companies like technology grow by increasing
their offerings and piercing new natural features. For achieving
this level of growth, companies will bring innovation and will also
lesser price. Dell's capability to sustain or increase market share
is predicated on our capability to be competitive on product
functionality, quality and geographic saturation, and pricing.
Furthermore, The efforts of Dell to equalize its mixes of services
and variety of products to optimize profitability, elasticity, and
chances of growth may affect the position of Dell's market share
in short term. In the last of the FY 2009, Dell by sustaining its

position in the market remained the top rated supplier in personal

computers in U.S and worldwide was at 2nd position.

Positioning Strategy Analysis

Dells unique selling proposition has always been defined by its
direct business model. Its founder, Michael Dell, lead the way
using the direct-sales approach for computers. Dell has a simple
formula: eliminate the middleman and sell for less (Hoovers).
Dell keeps it simple by providing customers with built-to-order
boxes that help with lower inventories, lower costs, and higher
profit margins.

Products/Services Strategy Analysis

Dell is the major player in the personal computer industry and its
aim is to market both PCs and Non-PCs related products to the
consumers. It uses to target its market the differentiated
approach. Such as it provides the products to the markets
according to the needs to consumers, as according to home,
health, government, small and large scale markets etc. It
differentiates its products from others which is the key point to
target its market.

Pricing Strategy
Dell made $18.2 billion in revenue with a net profit margin of 8%.
In 2006 their revenue was almost tripled to $55.9 billion, but with
a lower net profit margin of 6.4%. Dells net income has almost
constantly risen throughout the years, due to their highly
competitive cost structure. Their elimination of the middleman
keeps their costs low and profits high.
Distribution Strategy Analysis

Dells main factory is located in Texas with its regional

headquarters in Texas, Tennessee, and Brazil. Dell always tries to
centralize its headquarters to where it can provide the service to
its customers in timely and effective manner. Dells location has
helped the company organize its distribution model. When Dell
Americas operations were expanded, Dell chooses middle
Tennessee because the transportation infrastructure allowed Dell
to reach 70% of its customer base within twenty-four hours by
ground. With the Internet and the phone as its biggest distribution
channel, Dell is able to reach customers faster and with its
distribution network streamlined it can meet each customers
demand successfully and speedily.

SWOT Analysis
Strengths
Dell's Direct Model approach of enables the company to offer
direct relationships with customers such as corporate and
institutional customers. Their strategic method also provides
other forms of products and services such as internet and
telephone purchasing, customized computer systems; phone and
online technical support and next-day, on-site product service.
This extensive range of products and services is definitely one of
Dells strengths.Dell Computer's award-winning customer service,
industry-leading growth and consistently strong financial
performance differentiate the company from competitors for the
following reasons:
Price for Performance Dell boasts a very efficient
procurement, manufacturing and distribution process
allowing it to offer customers powerful systems at
competitive prices.
Customization - Each Dell system is built in order to meet
each customers specifications.

 Reliability, Service and Support Dells direct customer

allows it to provide top-notch customer service before and
after the sale.
Latest Technology Dell is able to introduce the latest
relevant technology compared to companies using the
indirect distribution channels. Dell turns over inventory for
an average of every six days, keeping inventory costs low.

Weaknesses
Dells biggest weakness is attracting the college student segment
of the market. Dells sales revenue from educational institutions
such as colleges only accounts for a measly 5% of the total. Dells
focus on the corporate and government institutional customers
somehow affected its ability to form relationships with educational
institutions. Since many students purchase their PCs through their
schools, Dell is obviously not popular among the college market
yet. For home users, Dells direct method and customization
approach posed problems. For one, customers cannot go to
retailers because Dell does not use distribution channels.
Opportunities
Personal computers are becoming a necessity now more than
ever. Customers are getting more and more educated about
computers. Second-time buyers would most likely avail of Dells
custom-built computers because as their knowledge grows, so do
their need to experiment or use some additional computer
features.Demand for laptops is also growing. As a matter of fact,
demand for laptop has overtaken the demand for desktops. This is
another opportunity for Dell to grow in other segments.The
internet also provides Dell with greater opportunities since all
they have to do now is to visit Dells website to place their order
or to get information. Since Dell does not have retail stores, the
online stores would surely make up for its absence. It is also more
convenient for customers to shop online than to actually drive
and do purchase at a physical store.
Threats

In a volatile market such as personal computers, threats abound.

Computers change in a constant sometime daily basis. New
software, new hardware and computer accessories are introduced
at a lightning speed. It is essential for Dell therefore to be always
on the lookout for new things or introduce new computer systems.
The threat to become outmoded is a pulsating reality in a
computer business. Not only that, companies must produce
products that are high in quality but low in price. This is one
challenge that Dell contends with.One of the biggest external
threats to Dell is that price difference among brands is getting
smaller. Dells Direct Model attracts customers because it saves
cost. Since other companies are able to offer computers at low
costs, this could threaten Dells price-conscious growing customer
base. With almost identical prices, price difference is no longer an
issue for a customer. They might choose other brands instead of
waiting for Dells customized computers.The growth rate of the
computer industry is also slowing down. Today, Dell has the
biggest share of the market.
Technological advancement is a double-edge sword. It is an
opportunity but at the same time a threat. Low-cost leadership
strategy is no longer an issue to computer companies therefore it
is important for computer companies to stand out from the
rest.Technology dictates that the most up-to-date and fastest
products are always the most popular. Dell has to always keep up
with technological advancements to be able to compete.

PEST ANALYSIS
A PEST analysis is an analysis of the external macro-environment
that affects all firms. P.E.S.T. is an acronym for the political,
Economic, Social, and technological factors of the external macroenvironment. Such factors usually are beyond the firms control
and sometimes present themselves as threats. For this reason,
some say that PEST is an appropriate term for thesefactors .
However, changes in the external environment also create new

opportunities and the letters sometimes are rearranged to

construct the more optimistic term of STEP analysis.
Many macro-environmental factors are country-specific and a
PEST analysis will need to be performed for all countries of
interest. In the following, the analysis of the political, economic,
social and technological factors leads to a description of the
macro environment of DELL COMPUTERS Like in all markets, DELL
computers is also subject to laws that regulate virtually all
aspects of their business, including such areas as health safety,
pollution, and advertising and labeling requirements. Problems
can arise in countries where political stability is not guaranteed,
no matter whether companies operate production facilities or if
they do business with that country through exports. Many
countries still have restrictive policies which are maintained
to protect domestic manufacturers and production. Such policies
often hinder foreign companies from entering into these markets.
However, DELL computers see great potential in those countries
which lose their restrictions.

Economic Environment
Economic environment refers to the aggregate of the nature of
the economic system of the country, the structural anatomy of
the economy to economic policies of the government, the
organization of the capital market, the nature of factor
endowment, business cycles, the socio economic infrastructure
etc. The economic environment includes factors and trends
related to income levels and the production of goods and
services.

Political Environment
The political environment of a country is influenced by the
political organizations such as philosophy of political parties,

ideology of government or party in power, nature and extent of

bureaucracy influence of primary groups etc. Political factors
include government regulations and legal issues determining the
conditions under which companies have to operate. In this field,
DELL computers have to face certain restraints.DELL computer
expects a growth of approximately ten percent over the next five
years. This growth is influenced by the economic situation in a
specific country, having an impact on the purchasing power
of potential customers. Additionally, changing inflation rates and
currency fluctuation also determine the profitability of a
company. Another economic factor that can adversely affect the
computer industry is the exchange rate of home currency all
branded products are imported, and their prices vary with
changes in change rate Also with an increase in income,
consumers are likely to purchase higher quality products rather
than to simply purchase more. Thus there is a growing market for
higher quality and priced computers.

Social Environment
The social dimension or environment of a nation determines the
value system of the society which, in turn affects the functioning
of the business. The social environment includes all factors and
trends related to groups of people, including their number,
characteristics, behavior, and growth projections. Because
consumer markets have specific needs and problems, changes in
the social environment can affect markets differently. Trends in
the social environment might increase the size of some markets,
decrease the size of others, or even help to create new markets.
The potential for internet growth is huge in Asian countries like
India and China, giving foreign computer companies, the
opportunities to expand into a new market. DELL computers have
to invest in door-to-door or face-to-Face operations to gain
consumers faith and consumerstrust in the company and product.
The national demand for DELL computers is dependent on the

educational level prevailing in a specific country. The higher the

educational standard, the higher is the demand. Furthermore, Dell
computers get more and more involved in daily life. Today,
children already get familiar with the use of computers at a very
young age, representing a generation that will hardly live and
work without a computer in the future. Additionally, the brand
image of a computer and lifestyle trends get more and more
decisive for the purchasing decision. DELL computers adapts to
this trend, e. g. by offering a wider range of notebooks and by
trying to create a strong brand name.

Technological Environment
The technological environment includes factors and trends related
to innovations that affect the development of new products or the
marketing process. These technological trends can provide
opportunities for new product development; affect how marketing
activities are performed, or both. For example, advances in
information and communication technologies provide new
products for firms to markets, and the buyers of these products
often use them to change the way they market their own
products. Using these technologies products can help marketers
be more productive. In the Computer industry, technology
continues to be smaller and faster than ever. Providing access to
technologies developed by institutions has proven a key
government Resource. It was observed that by the year 2000,
mainland Chinas annual PC production would Reach 7.6 million
making it the third largest in the world. The internet is a great
opportunity for companies to get into their public domain as well
as a fast way to tailor services to its customer segments. A threat
in the technological segment to dells business in China is that
access to the internet is costly.

CONCLUSIONS
This project was an exploratory qualitative study into how
MICHAEL s. dell's success made him one of the wealthiest men in
Texas. However, over the years the company has been plagued by
serious problems, including declining sales, misreading the
desires of its customers, poor customer service, suspect product
quality and improper accounting.
The findings indicate clear factors that led to the success and
downfall graph of the dell's DELL inc. the key part of the success
is that the site offers consumers "choice and control." Buyers can
click through Dell and assemble computer system piece by piece,
choosing components like hard drive size and processor speed
based on their budgets and needs. However there were some
missed expectations in 2005, while earnings and sales continued
to rise, sales growth slowed considerably, and the company stock
lost 25% of its value that year. By June 2006, the stock was
trading around $25 which was 40% down from July 2005. There
was also criticism that Dell used faulty components for its PCs. A
battery recall in August 2006, as a result of a Dell laptop catching
fire caused much negative
attention for the company, although later Sony was found to be
responsible for the faulty batteries.
Further from the study, I was able to conclude the future plans,
product life cycle process, market share, major competitors, etc.

BIBLIOGRAPHY
WEBSITES
- http://www.slideshare.net/HMueller11/dell-case-study

- http://www.slideshare.net/Alistercrowe/case-notesdell-strategy
http://topics.nytimes.com/top/reference/timestopics/people/d/michael_s_dell/i
ndex.html
- http://www.scribd.com/doc/74270543/PEST-Analysis-of-DELL-Computers
http://www.hoovers.com/companyinformation/cs/companyprofile.Dell_Inc.3d1
0a81e8e6a6d30.html
http://www.businessweek.com/stories/2003-11-02/what-you-dont-knowabout-dell
- http://content.dell.com/in/en/corp/d/corp-comm/about-dell-india-country
- https://en.wikipedia.org/wiki/Dell