Matching Dell Case Solution

Case Solution

After a period of success having its vaunted Direct Model for computer manufacturing, marketing, and distribution, Dell Computer Corp. confronts efforts by rivals to enhance its strategy. This case describes the backdrop in the PC industry, Dell's strategy, and efforts by Compaq, IBM, Hewlett-Packard, and Gateway 2000 to capture the benefits of Dell's approach. Students are classified as onto formulate proper plans of action for Dell which is various rivals.

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Questions Covered

How attractive is the personal computer industry as an arena in which to do business in the late 1990's?

What strategy and which tactics did Dell employ to make the industry more attractive for itself?

What are the key assumptions underlying Dell’s business model?

Why have Dell’s competitors not imitated Dell and removed its advantage?

How did the PC industry come to have the level of attractiveness it had in the late 1990’s?  To whom would you assign responsibility for the state of the industry?

How would you go about calculating Dell’s advantage over Compaq in serving a corporate customer in 1996?  What do you need to know?

What strategies did Intel and Microsoft follow with respect to the PC industry?