What is dell’s business strategy or Analysis of Dell’s Business Strategy?
In the world of developing computer technologies, Dell is one of the superiors. Founded in 1984 by Michael S. Dell, this company is now worth $70 million! It ranked 165th in Fortunes “Global 500”, in 2013. Dell is widely popular for its innovative e-commerce and supply chain management. It has seen many ups and downs, and the founder of Dell has gambled this company quite a few times; still, it managed to survive with its unique business strategies and continuously offering people with powerful laptops consist of high-end processors to have a premium experience. Since its inception, this company has wisely and steadily moved towards success and became the market leader. And how it did so? That’s what we’re going to find out, and knowing more about business analysis and strategy of other global giant companies around the world, please visit The Strategy Watch!
#1 “In it to win it” Strategy
Selling PCs were never an easy job. It requires constant attention to increase sales and growth volume. That’s why Dell’s vice chairman Jeff Clarke has made a strategy named “In it to win it.” Here they focused on four aspects.
- Simplify the product and services
- Obtain new customers
- Win with industry-leading end-user-computing-solutions
- Scale alternative computing solutions
First, Dell has changed its shipment process, which required 7-10 days after ordering. It began to produce products with the most hype on the market and started to deliver it within 24hrs. This process is called built-to-order. Then it made its move to capture Apple’s market by providing various hybrid solutions that can satisfy people who want tablets for convenience but with laptop’s functionality. It broke down Apple’s monopoly, and Dell emerged as another competition with Windows tablets. It also started to target cloud-computing clients who added another volume on its customer base. And all these steps and strategies have gained a long-term achievement for Dell.
#2 “Multi-Cloud” Strategy
Dell has recently launched a “Multi-cloud” journey for its customers. Dell EMC and VMware will enable new cloud solutions with a hybrid operation over the private, public cloud, and the edge. It’ll help this company to minimize the complexities of supervising numerous clouds. Native public cloud ownership costs up to 47% more than the new cloud platform offered by Dell through a hybrid operational hub cloud environment. Now customers can enhance themselves towards the public cloud and be a part of the global network as VMware cloud provider has partnered with more than 4200 hyperscalers and clouds as well as Microsoft Azure. All these things have made Dell to provide a more customer-friendly environment by focusing on disaster recovery, backup, bursting capabilities, etc. as the partnership is giving this company the benefits of security, enterprise-grade data services, and resiliency.
#3 “No more Middleman” Strategy
Dell initiated its services as a direct seller. It never used any middleman to sell its products. At first, it delivered through the mail-order process. Then it expanded itself on the online platform. It may sound typical, but Dell is different. It started to develop its online selling platform way before internet shopping became viral famous. As a result, Dell has one of the strongest and well-built online platform with utmost customer satisfaction. The strategy of “No more Middleman” has helped this company save a considerable amount of operating costs. As a result, Dell can offer more discounts than its rivals in the market, even on its high quality customized products. This strategy also helped this company gather market data directly and consult with the customer in a one-on-one way, which helped Dell to be always one step ahead of others whenever it came to develop and launch new technologies with maximum user-friendly interfaces.
Dell has always believed in one thing that is, not offering all things to all people. It has always focused on in-depth market specialization and segmentation. And to make that successful, this company has developed many wonders on its business strategy than any other rivals such as Lenovo, Hewlett-Packard, Acer, and Asus. Also, their business strategies contribute a lot to its market research, which resulted in Dell to position itself in the market with the slogan of “Power to do more.”