Case ID: 799158     Solution ID: 33364     Words: 2005 Price $ 45

Matching Dell Case Solution


Strong economic growth and ubiquity of web and World Wide Web fuelled the notoriety of PCs. Therefore, unique organizations began producing PCs at lower costs with a specific end goal to target mass market. The vast majority of the PC makers sold their items through a middle person as affiliate or wholesaler. A noteworthy outlook change was recorded in the PC business with the approach of Dell, which presented a totally new plan of action. Dell's immediate model empowered it to kill the mediators by focusing on straightforwardly the clients. This permitted the organization to give modified PCs to clients at low costs. In a comparative way, Dell could make a reliable client base, which for the most part comprised of organizations and government foundations. Taking after the accomplishment of Dell, whatever is left of the opposition additionally got changes their methodology to give tweaked PCs straightforwardly to clients. This further lessened the cost of PCs and expanded their request in the market, making the PC business profoundly alluring.

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Questions Covered

  1. How attractive is the personal computer industry as an arena in which to do business in the late 1990's?
  2. What strategy and which tactics did Dell employ to make the industry more attractive for itself?
  3. What are the key assumptions underlying Dell’s business model?
  4. Why have Dell’s competitors not imitated Dell and removed its advantage?
  5. 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?
  6. How would you go about calculating Dell’s advantage over Compaq in serving a corporate customer in 1996?  What do you need to know?
  7. What strategies did Intel and Microsoft follow with respect to the PC industry?