Revitalizing Dell Case Solution & Answer

Revitalizing Dell

Learning and Growth

Learning and innovation could lead to improved overall company operations that would certainly satisfy the customers. Dell announced its largest acquisition to date, a $3.9 bn buyout of Perot Systems, in September 2009. Perot provided commercial clients with a wide range of IT services, including managing client data centres, hosting client websites, constructing client computer infrastructures, creating client-specific software, offering consulting services, and more. Dell’s decision to increase its investment in IT services has been compared to HP’s 2008 acquisition of EDS and IBM’s more than ten-year shift away from hardware and toward services. At 29 times profits, some detractors claimed Dell had overpaid for Perot.

Financially, Dell would gain from an increase in the funding for research and development. If the business can develop cutting-edge technology that is distinct and more user-friendly, it may be able to reclaim its market leadership.

Customers

In terms of customer satisfaction, Dell excelled. The business cut out all middlemen and dealt directly with its clients. This made it possible for it to assist clients when they were in need. After Michael Dell’s return, Dell also made an attempt to work with resellers more aggressively to place Dell products in small and midsized enterprises. Dell would provide qualified resellers with exclusive technical, marketing, sales, and financial support through its Partner Direct programmed. There are undoubtedly the end-customers out there who prefer not to purchase directly, according to Michael Dell. These clients will now have the opportunity to purchase a Dell product as well. According to him, the corporation will have two distinct businesses, the direct and the indirect business.

Recommendations

Improved Internal Control:

The first is to improve the caliber of its financial reporting and accounting. This is especially crucial in light of the recent questionable investigations regarding company’s accounting practices from the government.

The company can achieve this goal by employing qualified accounting professionals and granting them discretion over their work. Along with the annual audit, The Company must hire external audit team to analyze their reports in order to gauge the success of this objective. Additionally, Dell needs to develop and implement a new code of ethics.

Creating an ethics committee would be another tactic to accomplish this goal. The promotion of moral conduct within the company would fall within the purview of this group. It would take any ethics-related complaints and respond to them. Additionally, it would deter unethical behaviour and promote moral behaviour. These actions will encourage moral behaviour at Dell.

Dell can enhance supply chain management to lessen instances of delays and lower sales costs. The effectiveness of Dell’s quality control system may be compromised. Therefore, in order to maintain a strong internal position as a player in the business, the corporation must not compromise on the quality of its products.

Product Development

In order to survive in the market the company needs to increase its investment in its R&D and immediately come up with a new and advanced product. Product development is the creation of a new product in its current market. Dell can use its current PC manufacturing capabilities to satisfy new client needs. To ensure that the product meets customers’ requirements, the company will need to conduct additional research. For Dell, nevertheless, the creation of a new product is not entirely unknown area given its expertise in the PC industry. The business will be successful in this market if it can control the supply chain effectively, as it did with PCs.

Dell could need to compare its new product to the top seller on the market. It will be possible to learn what features clients are willing to pay for in this way. Additionally, it will stop Dell from making errors. It should not, however, replicate the goods of the rivals. The R&D team should create a unique design that is reasonably priced and meets client expectations.

Market Penetration

Market penetration entails protecting the company’s existing market share. Dell’s sales of computers have decreased. The corporation should be concerned about this issue. Dell must make strategic moves if it wants to keep its existing market share. Rebranding, increased marketing, existing customer’s follow-ups and feedbacks to increase loyalty, and bettering customer service are a few of such efforts.

If the business wants to keep its existing market share, it must make significant internal adjustments. While a product development strategy will help Dell achieve sales and revenue growth, a market penetration strategy will allow Dell to preserve its existing position. If these strategic recommendations are properly put into practice, Dell’s profitability will rise. The organization will be well-perceived by its clients and other stakeholders.

Conclusion

To help the company reclaim its market leadership, Dell Computers requires a fresh approach. The company has seen numerous issues over the last seven years, including a loss in sales, a drop in the value of its stock, and a drop in investor confidence. The Balanced Scorecard was used in this study to evaluate Dell’s present strategic position. Dell used to invest very little in research contrary to its rivals.  Dell should execute the above-mentioned strategies and remains being the strong market player in the industry….

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