Professional Documents
Culture Documents
Table of Contents
I. Introduction
II. Dells Strategy
a. Vision Statement
b. Mission Statement
c. Strategies and Objectives
III. Recommended Vision and Mission Statements
IV. External Assessment
a. Porters Five Forces Model
b. External Factor Evaluation
c. Competitive Profile Matrix
V. Internal Assessment
a. Value Chain
b. Internal Factor Evaluation
VI. Porters Five Generic Strategy
VII. SWOT Analysis
a. SPACE Matrix
b. Boston Consulting Group Matrix
c. Internal-External Matrix
VIII. Strategy and Objective Recommendations
IX. Recommended Implementation Plan
X. Strategy Review and Evaluation
References
Appendixes
10
11
12
13
14
V. Internal Analysis
Value Chain Analysis
The Companys value chain analysis is standard to the rest of the
PC industry and can be reviewed in Appendix D.
Internal Factor Evaluation
Michael Dells recent company buyout held a weight of 13% in
the companys strategy factors. The companys pace of internal
transformation should quicken with the company going private
because any proposed strategy will no longer be subject to
shareholders. Michael Dell has argued that revamping his company
into a provider of enterprise computing services in the mold of IBM is a
complex undertaking that is best performed outside of public markets
(Gupta, 2013). Going private gives Dell, Inc. the opportunity to do
everything they have hoped for.
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16
17
18
19
20
21
22
23
competitors
24
25
26
Tablets and smart phones are reducing the need for personal
computers in homes and certain businesses
Cloud Drives are changing the storage needs for the personal
computer
SUPPLIERS
SUBSTITUTE PRODUCTS
Customers prefer
customizable PC options.
They purchase what they
need.
Customers dictate product
pricing since there is a large
selection of PC brand
alternatives for them to
choose from
There is a size of order
single to large- preference
for large custom orders in
order to drive down costs.
(ex: Schools and
Businesses)
Customers have the ability
to change between different
types of PC brands that use
the same software (ex:
M icrosoft)
Porters Five-Forces
Model
27
Weight Rating
Weighted
Score
0.03
0.03
0.12
0.48
0.11
0.44
0.11
0.09
3
2
0.33
0.18
0.09
0.07
0.11
0.1
0.08
0.04
4
3
3
4
3
2
0.36
0.21
0.33
0.4
0.24
0.08
0.05
0.05
3.13
Lenovo
Dell
Weight
Rating
Score
Rating
Score
Rating
Score
Adver sing
0.11
0.33
0.33
0.44
Product Quality
0.17
0.68
0.51
0.34
Price compe
0.21
0.84
0.84
0.84
Management
0.09
0.27
0.27
0.36
Financial posi on
0.15
0.45
0.45
0.3
Market Share
0.14
0.42
0.56
0.28
Global Expansion
0.13
0.52
0.39
0.26
on
1.00
3.51
3.35
2.82
Supplier Costs
Raw M aterials
Merchandise
Transportation
Shipping Costs
Component parts
Inspection
Warehouse Storage
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Production Costs
Inventory System
Receiving Costs
Plant L ayout
R&D
Cost accounting
M erchandise
tracking system
Quality Control
Distribution Costs
Loading
Shipping
Budgeting
Personnel- Trucks,
Ships, Plane
Internet System
Fuel
Maintenance
Customer Service
Costs
Sales reps
Dell.com website
Advertising and
publicity
Transportation
Promotions and
sponsorships
Shipping
Phone Support
Online Email
Support
Online Chat
Support
Internet K nowledge
Base
Warranty
Weight Rating
Strengths
Creating a Global Recyling program
Boomi and Perot system acquisitions will diversify product portfolio
Client Reinvention Initiative launched in 2011
Re-org towards a more customer centric model
Michael Dell taking the company private in 2013
Focusing on customized products for businesses
Global Expansion to India abd China- two large technology markets
Weighted
Score
0.07
0.08
0.04
0.05
0.13
0.04
0.08
3
4
3
3
4
3
4
0.21
0.32
0.12
0.15
0.52
0.12
0.32
0.14
0.14
0.08
0.08
0.07
0.09
1
2
0.07
0.18
0.13
0.13
Weaknesses
Followership Strategy into Market- Low investments in R&D
Dell is highly reliant on the increase of outside manufacturers producing
their hardware products
Dell's current debt to income ratio poses as a financial weakness.
Price Wars with other competitors
Dell is losing market share to new competitors such as Acer, Asus and
Lenovo
Total
2.36
Small
29
Differentiation
Large
Size of M arket
Cost Leadership
SWOT M atrix
STRENGTHS-S
WEAKNESSES-W
OPPORTUNITIES-O
List External Opportunities
1.
2.
3.
4.
5.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
Followership Strategy
High manufacturer dependency
Price Wars with other competitors
Dells current debt to income ratio
Losing M arket Share
SO STRATEGIES
1.
2.
THREATS-T
WO STRATEGIES
ST STRATEGIES
1.
2.
WT STRATEGIES
Source: Fred R. David, Strategic Management Concepts & Cases: A Competitive Advantage Approach , (2013), 14th ed.
H. Space Matrix
Space M atrix
FP
CP
IP
SP
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StabilityPosi on (SP)
2Rateof Infla on
2Technological Changes
3PriceElas city
4Compe vePressure
4Barriersto Entry
3
IndustryPosi on(IP)
-3Growthpoten al
3Financial stability
-7Easeof entryto market
0Profit poten al
-7ResourceU liza on
-2.8
-2
-7
-3
-7
-4
-4.6
3
2
-7
3
-4
-0.6
BCG M atrix
Relative M arket Share Position
High 1.0
Low 0.0
M ed. 5.0
High
20+
Stars
Question M arks
M ed.
0
Low
-20
Cash Cows
Product Development
Diversification
Retrenchment
Diverstiture
Dogs
IE M atrix
L ow
M edium
High
Strong
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Average
II
Product Development
Backward, Forward and
Horizontal Integration
Weak
IFE 2.36
EFE 3.13