Dell Strategic Management

PROJECT ON STRATEGIC MANAGEMENT
NAME : JEBASTIN JOSEPH

ROLL NO.: 25008
SUBJECT: STRATEGIC MANAGEMENT
SUBMITTED TO:
Prof. RAHUL MISHRA
1
Acknowledgement
This project comes out to be a great source of learning and experience. A lot of
effort has been put by various people to make this project a success. This has
greatly enhanced our knowledge about Dell Inc. I greatly acknowledge our
indebtness to Mr. Rahul Mishra,for helping me throughout this project and for
providing me in-depth knowledge. This project is a culmination of efforts of my
friends whose sincere inputs and focused attitude could bring this project to
fruition. Finally, thanks to almighty God who has been a source of strength and
confidence.
2
INDEX
SR. NO PARTICULARS PAGE NO
1 ABOUT DELL 4
2 KEY TOWARDS STRATEGIC PLANNING 6
3 PEST ANALYSIS 10
4 STRATEGIC MANAGEMENT PROCESS 13
5 SWOT ANALYSIS 20
6 7-S FRAMEWORK OF McKINSEY 22
7 LEVELS OF STRATEGIC MANAGEMENT 25
8 MICHAEL PORTER’S MODEL OF 27

COMPETITIVE ADVANTAGES
9 BCG MATRIX MODEL 29
10 GE MATRIX 31
11 GRAND/CORPORATE LEVEL STRATEGY 34
12 SUGGESTIONS 36
13 CONCLUSION 38
3
CHAPTER 1
ABOUT DELL
Founded in 1984 by Michael Dell. No.1 PC provider in the U.S. and No.2
worldwide. Based in Round Rock, Texas. Employs more than 82,700 people
worldwide. Grew during the 1980s and 1990s to become a brand. Direct Business
Model is the foundation for Dell’s business. Dell maintains a consistent focus on
offering the best value and customer. Dell is a trusted technology innovator with a
diversified, comprehensive IT portfolio. Dell is a global company committed to its
customers and employees
History :
• In 1996, Dell began selling computers via its web site

• Introduced the 316LT, the company’s first notebook
computer in 1989
• Joined the top-five computer system makers worldwide in 1993
• Earning appr. $1 million per day 7 months after the launch of dell.com in 1996
• Introduced E-Support, an online tool to provide technical support to customers
1999
• 1999, Dell overtook Compaq to become the largest seller of personal computers
in the US
• 2007, Dell set a goal of becoming the greenest technology company on Earth for
the long term. The company launched a zero-carbon initiative
• For the first time, Dell achieves No. 1 ranking in global market share in 2001
• 2003, name was changed to "Dell Inc."
• 2006, Dell purchased the computer hardware manufacturer Alienware
• January 2007, started a turnaround plan that promises to yield $3 billion in annual
savings over the next three years.
4
Recent Developments :
• In January 2009, Dell announced that they will withdraw all manufacturing from
Limerick and move it to its new plant in the Polish city of Lodz by January 2010.
• Raised their cost-reduction target to $4 billion.
• Dell also announced that it aimed to become a "onepercent company," giving
away 1 % of pretax profits to education and digital inclusion projects mainly in
emerging markets, by February 2010.
Product line
5
CHAPTER 2
KEY TOWARDS STRATEGIC PLANNING
VISION STATEMENT
“Through effective and strategic community partnership, dell supports educational
services programs that address the critical and most basic technology access needs
of its neighbours in Dell communities prerequisite to success in digital world.”
Dell provides a classic example of how the principles of strategic management

have been used to translate an innovative vision into a successful and sustainable
enterprise. Their vision statement basically tells the way they do their business.
They want to be successful in the digital world for this they rely on latest
technology. Dell provides quality products to cater the needs of the people. In
intend to build good relationship with their customers and suppliers.
MISSION STATEMENT
6
“To provide customers with superb value, high quality, relavent technology,
customized systems, superior service and support and products and services that
are easy to purchase and use.”
VALUES
Their first priority is to be a successful business and that means investing for
growth and balancing short term and long term.
OBJECTIVES
Following are the objectives of Dell Corporation
1. Modify laptop designs according to student’s preferences.
2. Double laptop sales in student market.
3. Increase revenues by 25% by the end of the second year of launching.
7
4. Develop a promotional campaign to promote the modified laptops.
5. Increase awareness of the existent agency project objective research strategic

plan conclusion.
GOALS
Goals are the specific interim or the ultimate time based measurement to be
achieved. While implementing strategies in pursuit of companies objectives. The
goal of the organization are set consistent , achievable and realistic. As per
survey’s the present major goal of the organization is to adopt the best technology
and appoint few more personnel that would bring efficiency in the organization.
PROGRAMS
Last but not the least “program” plays a significant role in maintaining a smooth
track within the organization. Dell has got an implementation plan followed up by
the above strategic plan. The Program of Dell creates opportunities to develop
real-world skills in an environment that encourages personal and professional
8
growth and gain exposure. It learns the ins and outs of one of the high-tech
industries in the same sector.
STRATEGY
To do business with its customers one on one through the phone and internet. In
doing so, Dell will meet its customers’s expections of :
· Highest quality.
· Leading technology.
· Competitive pricing
· Individual and company’s accountability.
· Best in class service and support
· Flexible customer capacity
· Financial stability.
“The direct relationship continues throughout the

customer experience”
9
CHAPTER 3
PEST ANALYSIS
A scan of the external macro-environment in which the firm operates can be

expressed in terms of the following factors:
 Political
 Economic
 Social
 Technological
POLITICAL
The political environment in the US has been changing abruptly in the previous
year. Dell being an integral part of this economy has also been greatly affected by
these changes and has not been able to counter them. Changes in the legislation
and laws of the US govt. have tried to revive the PC business but the reciprocations
have been less then what was expected. The company has been able to beat the
10
expectations of Wall street who predicted more dip by posting less losses by utting
costs. The conservatism that exists in the consumer spending has been increasing
which has adversely affected Dell’s performance. Issues of environment policies
has also affected Dell as Dell came under significant pressure from environmental
groups across the US to assume responsibility for its old products and this
experience sensitized company officials to the risks and opportunities of state and
federal e-waste regulations and the need to take proactive steps against them.
ECONOMIC
High tarrifs on IT products makes Dell difficult to enter other markets apart from
USA . since most of the population of the world is young and adaptive to change in
technology, dell aimed to manufacture its products which are more user friendly
and can be afforded by young professionals, because purchasing power of working
population saw an increase over the past few decades. Since the economy saw a
change due to the meltdown and recession, dell also had to modify some of its
policies to cope up with the changing scenario.The change in the US economy also
effected Dell with it bring change in its core policies of inventory and credit
management of receivables and inventory conversion days to decrease its operating
cycle and thus reduce cost.
SOCIAL
Increase of younger population and working population have led to the increase of
the use of computers. A technological revolution has been around the corner,
people have become techsavy ,that have resulted in the increase in the demand for
computers .These days people have time constrains and as a result of it they prefer
to buy the product online ,which has given Dell an advantage over others because
of dell.com.
TECHNOLOGICAL
11
Tecnological changes are happening at a very fast rate due to which Dell is able to
provide advanced technology products to the customers.As a result of chnological
changes Dell has also increased their product line.It is adopting to the echnological
changes as he old technology is becoming obsolete.One of the most important
affets of technological changes that have led to the increase of the demand of Dell
computers is their Direct Business Model.They have excellent ecommerce
capabilities, which can be seen with the success of the dell. The recent chnological
changes can be seen in their recent products like New PowerEdge Servers , New
Enterprise Computing Portfolio, Innovation Aids Recovery, Ultra-Thin Laptop,
Adamo,which will be in the market very soon. Dell could exploit the network-
internet,extranet to reach the corners of the world.
12
CHAPTER 4
STATEGIC MANAGEMENT PROCESS
Strategic thinking provides the foundation of the strategic management. By

providing an insight into the forces behind the intense competition, by developing
a sustaining competitive advantage based on organization core competency. It can
be broadly divided into three phases:
PHASE 1
Strategic formulation
It is referred as a strategic plan
1. Framing mission objectives:

The first step adopted by Dell Corporation was to frame the mission and
objectives for the organization.
For example mission: the purpose of the organization is to achieve the honor of
becoming the best consumer friendly company
13
2. Analysis of the internal environment:

After setting the mission and objectives the next step is to analyses the internal
environment.
E.g.: Dell Corporation needs more qualified manpower, machines adopted by

Dell Corporation should be highly Resultant.
3. Analyze of external environment:
The management conducts the analyses of the external environment.
E.g.: Dell Corporation manufactures product that are hygienic and long lasting.
4.Gap analyses:
Management also conducts gap analyses that is for this purpose the
management compares and analyses its present performance level and desired
future performance level.
E.g.: Dell Corporation has in acted gap analyses as it compared the last 5yrs.
The performance level with the present level and came with a conclusion that in
future they will surely come up with the new brand launch
5 Framing alternative strategies
The management needs to frame alternative strategies and accomplish the

objectives of the firm.
6 Choice of strategies:
Dell Corporation already has a highly sophisticated server with alternative

strategies it chooses the best among the various strategies.
14
Phase 2
Strategic implementation:
The strategies are formulated for each and every functional area.
Once the strategies are formulated the next stage is strategic implementation
Step 1
Formulation of plans, programs and projects
Setting strategies will not guarantee success, so every organisatron also needs to
work laboriously in order to achieve the desired results. Dell Corporation has a
broad plan which includes the goals, policies and procedures.
Step 2
Project implementation
The project passes through various stages i.e.
1 Dell Corporation makes it a point that their concept is achievable.
2 Their plans are organized in such a way that the results are achieved without any
damage or duplications.
3 clean up phase: Dell Corporation follows follow up action of above listed phases.
15
Step 3
Procedural implementation:
Dell Corporation before implementing any new strategies examine all the
government regulatory framework
E.g. Dell Corporation before dealing with any foreign company needs to be aware
of all the export and import charges.
Step 4
Resources and allocation:
It deals with the arrangements and commitment of physical financial and hr, Dell
Corporation allocates all its resources in such a way that there is no duplication of
work and also aims at avoiding wastage
e.g. it sets different goals for the delegates
Step 5
Structural implementation
There is a need for an organizational structure for implement strategies. Dell

Corporation follows the divisional structure and therefore the implementation
strategy moves on division wise.
Step 6
Functional implementation
16
Dell Corporation as an organization implements all its functional plans and its
policies .
Step 7
Behavioral implementation
After implementing the strategy an organization studies the behavior of the

strategy.
E.g. Dell Corporation studies the impact of its strategies by keeping a small
conference meeting with all its divisional heads
Phase 3
Strategic evaluation and control:
It is the phase in which the manager tries to assume that the strategic choice is
properly implemented and is meeting the objective of the organization
Step 1
Setting standards
Dell Corporation in order to initiate control is done by setting standards and

making them aware of the tolerance limit they should keep.
17
Step 2
Measurement of performance
The next step is to measure the actual performance with the planned one.
E.g. the organizational heads compares the set targets with the achieved one.
Step 4
Finding out deviation
At this step the organization pin points the deviation or blockages if any
E.g. while implementing a strategy for a new branded product Dell Corporation
faced a difficulty as the packaging of that product was done with the help of low
quality plastic
Step 5
Analyzing deviations
Here the top executives are the cause of deviations
E.g. Dell Corporation could not procure better spare parts from the company it
used to buy earlier.
The emotional bonding was the main cause for its dependence of that company
providing low quality spare parts.
Step 6
Taking corrective measures
18
The top level management of Dell Corporation will analyze the blockage and give
an alternative
E.g. in order to remove the blockage Dell Corporation may replace the low quality
spare parts and find out other good quality plastic at the low price.
19
CHAPTER 4
SWOT ANALYSIS
STRENGTH
No inventory buildup
Acquition with Equalogic
Quality product and service
Whole world focus
Brand name
Customer service
Cost efficiency
Direct sell model=customization + fast+ delivery + low cost
Winning culture
latest technology
First mover advantage
e-commerce capabilities: www.dell.com
Buid to order manufacturing process
Product design+after sales service
Expert Supply Chain Management
20
WEAKNESS
No proprietary technology
High dependency on component suppliers
occasional product recall.Eg.In 2004 Dell had to recall 4.4 million laptop
adapters
because of a fear that they could overheat, causing electric shocks or fires.
unable to switch supply dues to the lack of large suppliers in the World
high attrition rates among visitors to Dell.com
no physical presence ofservice centres
slow in introducing fancy features
Lack of innovation
OPPORTUNITIES
Network-internet, intranet and extranet
Developing nations market
Low costs and growing advanced technology
Growth in business, education and government markets
Global wide access to customers and market.
Expansion
Increasing income of consumers
Globalisation
THREATS
Competition
Currency fluctuation in
countries outside the US
Political instability
Tariff trade barriers
Recession
Decling sales
21
CHAPTER 6
7-S FRAMEWORK OF McKINSEY
The 7-s framework of McKinsey is a Value Based Management (VBM) model that
describes how one can holistic and effectively organise a compan. Together these
determine the way in which a corporation operates.
Dell Corporation has become a leading company as it has a very strong product
marketing focus it has certainly adopted the basic 4p’s of marketing ie
price,product, place,and promotion mix are the 4 strong weapons with the help of
which Dell Corporation has overcome all the consequences it has faced during its
inception.
22
SHARED VALUE
The interconnecting center of McKinsey’s model is: Shared Values. What does the
organisation stands for and what it believes in. Central beleifs and attitudes. As the
hand works in the human body the shared values are the core values of the
organization as it connects soft skills of the Dell Corporation.
STRATEGY
Plans for the allocation of a firms scarce resource, over time, to reach identified
goals. Environment, Competition, Customers. As Dell has already adopted the
brand name Dell it has reached its saturation stage now in order to sustain for a
longer term they need to renovate or launch new products under the same brand
name which they are doing.
STRUCTURE
The way the organisation’s units relate to each other : centralised, function
divisions (top-down); decentralised(the trend in larger organisation); matrix,
network, holding,etc. Chief company official all the essentials departments in order
to acquire efficiency and effectiveness. This assits the organization to achieve the
desirable goals. the company saw to if they have acquired expertise knowledge to
develop faith and trust of the consumers.
SYSTEM
The procedures, processess and routine that characterise how important work is to
be done: financial systems; hiring, promoting and performance appraisal systems;
information system. The Dell Corporation has followed formal as well as informal
procedure that governs the day to day activity. The mis system of Dell Corporation
is so strong that they can analyze consumer response by a easy going system
whereas due to its dignified image it has acquired intermediaries confidence within
them. the agent of the organization conduct various market surveys with the help
of the retail system, call centre system,etc. such a informal system avails the
organization to have crystal clear information in the to progress.
23
STAFF
Numbers and types of personnel within the organisation. Dell has also appointed
people from below poverty line session so that they can also their livelihood on the
same side,in oder to motivate their staff they provide various financial as well as
non financial incentives.
This will make their employees to work in more enthusiasm and intrest.
STYLE
Cultural style of the organisation and how key managers behave in achieving the
organisation’s goals.ie; Management Styles. The top level management of Dell
Corporation has maintained a discipline aatmosphere. They make sure that they
achieve result within a defined time. They supervise their subordinated in such way
that they work in deliberate manner.
SKILL
Distinctive capabilities of personnel or of the organisation as a whole. The
capability of the organization has bound that the consumers with their standardized
quality product. The competency of the organization is to provide its product at an
affordable price and in addition to it,its products are convention able, available in
urban as well as remote areas.
24
CHAPTER 7
LEVELS OF STRATEGIC MANAGEMENT
LeLevel
al vel
Busi
Fun nal
ness
tio
Operation
CORPORATE LEVEL
Dell’s corporate strategy is to provide products directly to customers.To provide
high technology quality products and services through customization.Their strategy
also includes cost cutting where ever possible.
25
BUSINESS LEVEL
Dell's business strategy combines its direct customer model with a highly efficient
manufacturing and supply chain management organization and an emphasis on
standardsbased technologies. This strategy enables Dell to provide customers with
superior value; high-quality, relevant technology;customized systems; superior
service and support; and products and services that are easy to buy and use.
FUNCTIONAL LEVEL
 Cost leader ship through direct sell model. In direct sales model it sells
directly to Customers ,which has the following characteristics:
 Efficient supply chain/distribution system
 Just-In-Time inventory system reduces costs
 Direct sales by using www.dell.com
 Internet increases good relations with consumers & suppliers
 Impressive Supply Chain Management
 Strong strategic alliances with other companies
 Direct Business Model = Customisation+ Customer service
OPERATIONAL LEVEL
Dell has built one, global, end-to-end operational chain from customer to supplier
and back again that sets it apart from all others in terms of cash flow and
responsiveness.
In short,the company is increasingly leveraging these new conditions to reinvent

their cost structures, set new industry performance standards, and create
unmatched customer experiences in their business strategies.
Dell believe that Changing the game on competitors, sometimes permanently, is

the outcome of a winning operations management strategy.
26
CHAPTER 8
MICHAEL PORTER’S MODEL OF COMPETITIVE

ADVANTAGES
Threat of New Entrants: MODERATE
The entry of new comers is quite difficult because of the entry barriers that
are caused by:
· Buyer loyalty
· Brand name
· Low price
· Award winning customer service
· Customisation
Decreasing profitability shows that there is a threat of new entrants.HP
overtook dell few yrs back
27
Rivalry: HIGH
· Price War
· Decreasing profitability
· Low differentiation
However, in the midst of sever competition, Dell can still gain market
share from other competitors. That proves Dell’s business strategies
have been successful.
Threat of Substitutes: LOW
· Strong presence of PC’s throughout society

· One computer for every three people in the U.S.
· Customer service
· Direct Business Model
However, high price, and lack of software support prevent people from
switching to Apple system.
Bargaining Power of Buyer: High
· Highly price sensitive

· The cost leader has high market share which leads to high bargaining
power relative to its suppliers
· Reliability and customer service become important factors.
· Dell’s products are very reliable and customer service is outstanding.
These two factors help Dell to create certain brand royalty. But that’s
given the fact that the Company set the prices very low. If the prices
are raised too high, customers will not hesitate to switch.
28
CHAPTER 9
BCG MATRIX MODEL
No strategic management or marketing text appears to be complete without the

inclusion of the Boston Consulting Group (BCG) growth-share matrix. The BCG
Growth-Share Matrix is based on two dimensional variables: relative market share
and market growth. They often are pointers to healthiness of a business (Kotler
2003; McDonald 2003). In other words, products with greater market share or
within a fast growing market are expected to wield relatively greater profit
margins. The reverse is also true. Let’s look at the following components of the
model:
Market Growth
Market growth axis, correlates with the product life cycle paradigm, and predicates
the cash requirement a product needs relative to the growth of that market. A fast
growing market is generally considered attractive, and pulls a lot of organisation’s
resources in an effort to increase gains. A case in point is the technological market
29
widely consider by experts as a fast growing market, and tends to attract a lot of
competition. Therefore, a product life cycle and its associated market play a key
role in decision-making.

CASH COWS
These products are said to have high profitability, and require low investment for
the fact that they are market leaders in a low-growth market. This viewpoint is
captured by the founders themselves thus:
The cash cows fund their own growth. They pay the corporate dividend. They pay
the corporate overhead. They pay the corporate interest charges. They supply the
funds for R&D. They supply the investment resource for other products. They
justify the debt capacity for the whole company. Protect them (Henderson 1976).
According to experts (Drummond & Ensor 2004; Kotler 2003; McDonald 2003),
surplus cash from cash cow products should be channelled into Stars and
Questions in order to create the future Cash Cows.

STARS
Stars are leaders in high growth markets. They tend to/should generate large
amounts of cash but also use a lot of cash because of growth market conditions.
Dell computers are placed in this stage which possess a large share in the rapidly
growing market.

QUESTION MARKS
Question Marks have not achieved a dominant market position, and hence do not
generate much cash. They tend to use a lot of cash because of growth market
conditions. Consider Hewlett-Packard’s small share of the digital camera market,
behind industry leader Canon’s 21% (Canon 2006). However, this is a rapidly
growing market.
Eg. Dell Mobiles are newly introduced in the market and thus possess low market
share in a growing Market.
30

DOGS
Dogs often have little future and are big cash drainers on the company as they
generate very little cash by virtue of their low market share in a highly low growth
market.
Thus to conclude with dogs these are the products that should be divested because it is these are
of no good for the company and has become a kind of liability for Dell Computers.
31
CHAPTER 10
GE MATRIX
The 9 cells of ge matrix are grouped on the basis of low to high industry
attractiveness and week to strong business strength and competitive position.
There are 3 zones indicating 3 different combinations.
1 “GO AHEAD”
Under these phase the signal is to proceed and take decisions such as Dell has
become universally acceptable and now it should go ahead and take up more
marketing development and expansion .
2 “wait and watch”
These is the 2nd zone of ge matrix, this indicates hold and maintain current strategy.
3“STOP”
Coming to the 3rd zone it gives signal to stop under the product of Dell Corporation
Thus to conclude with ge matrix it allows the user to select whatever criteria they
feel are more appropriate to their business situations.
32
Dell Corporation possess highest attraction through its highly innovative and
technical products of mobile and computers and stands first in the Ranking of
Revenue and hence placed in the category as shown in the above table.
33
CHAPTER 11
GRAND/CORPORATE LEVEL STRATEGIES
Grand strategies adopted by Dell corporation are explained below with the help of
the above table.
Dell adopts the combination of two strategies that is the 1,2; (Stability Strategy and
Growth Strategy)
34
In the stability strategy Dell adopts the Sustainable growth Strategy wherby the
company wants to get a consistent profit through its products irrespective of any
new entrance of companies, Competiton, Technologyetc.
And in the second strategy Dell adopts the Product Development Strategy which
fall under Intensification Strategy. This Strategy is concerned with the Internal
Growth of the Company.
As the Company has a very good strenght in case of market attraction through its
innovative and user friendly products and with a great business strenght, the
company prefer to enter into more products in the same field.
New Products that are introduced by Dell are provided briefly in Chpt-1. Example,
dell has come up with some new softwares, started producing new electronic
products like Mobiles, High tech Laptops. And hence the dell Corporation adopts
the combined Strategy of Stability and growth.
35
CHAPTER 12
SUGGESTIONS
Should look for Alliance-mergers and acquisitions that would bring synergic
benefits for the company
Reduce the attrition rate by Converting visitors into customers(people who

visit the Dell site)
Focus on developing nations
Physical presence of Service centers would add value to their customer

service
Invest more in Research and Development.
Reduce errors in Dell’s direct Internet ordering system and create a

“Clearance” area on its website
Enhance customer support services
Increase Company recognition through a national advertising campaign.
36
Should not only depend on the internet sales, should give equal importance
to retail stores. Though they have started with the retail selling but they
should give equal importance to it as they give to online selling
Build a variety of competencies (build core competencies into diverse

product lines)
Should focus on developing nations like India, China etc.
Demand for laptops will increase in the coming future therefore they should
try to exploit this situation.
37
CHAPTER 113
CONCLUSION
Dell computer is successful in global markets as a result of best understanding of

customers' needs and their direct sell business model.
Dell's environmental programs for product asset recovery and product design for
environment have spanned more than a decade.
The company designs and customizes products and services to the requirements of
the organizations and individuals, and sells an extensive selection of peripheral
hardware and computing software.
Dell is a well known name in the world that has been very successful towards its
mission.
It has focused on customization and maintaining low cost that has been very
profitable for the company.
But are faced with the problem of slipping sales in the U.S. They are being forced
to look at alternative ways of bringing revenue to the company and will be able to
tackle this situation and would maintain a tight grip on the market due to their cost
leadership and because of their coming strategies.
38

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PROJECT ON STRATEGIC MANAGEMENT

PROJECT ON STRATEGIC MANAGEMENT

NAME : JEBASTIN JOSEPH

2 KEY TOWARDS STRATEGIC PLANNING 6

4 STRATEGIC MANAGEMENT PROCESS 13

6 7-S FRAMEWORK OF McKINSEY 22

7 LEVELS OF STRATEGIC MANAGEMENT 25

8 MICHAEL PORTER’S MODEL OF 27

11 GRAND/CORPORATE LEVEL STRATEGY 34

• In 1996, Dell began selling computers via its web site

Dell provides a classic example of how the principles of strategic management

Following are the objectives of Dell Corporation

1. Modify laptop designs according to student’s preferences.

2. Double laptop sales in student market.

3. Increase revenues by 25% by the end of the second year of launching.

4. Develop a promotional campaign to promote the modified laptops.

5. Increase awareness of the existent agency project objective research strategic

“The direct relationship continues throughout the

A scan of the external macro-environment in which the firm operates can be

STATEGIC MANAGEMENT PROCESS

Strategic thinking provides the foundation of the strategic management. By

It is referred as a strategic plan

1. Framing mission objectives:

2. Analysis of the internal environment:

E.g.: Dell Corporation needs more qualified manpower, machines adopted by

3. Analyze of external environment:

The management conducts the analyses of the external environment.

5 Framing alternative strategies

The management needs to frame alternative strategies and accomplish the

Dell Corporation already has a highly sophisticated server with alternative

Formulation of plans, programs and projects

The project passes through various stages i.e.

1 Dell Corporation makes it a point that their concept is achievable.

Resources and allocation:

e.g. it sets different goals for the delegates

There is a need for an organizational structure for implement strategies. Dell

After implementing the strategy an organization studies the behavior of the

Strategic evaluation and control:

Dell Corporation in order to initiate control is done by setting standards and

Finding out deviation

Here the top executives are the cause of deviations

Taking corrective measures

LEVELS OF STRATEGIC MANAGEMENT

In short,the company is increasingly leveraging these new conditions to reinvent

Dell believe that Changing the game on competitors, sometimes permanently, is

MICHAEL PORTER’S MODEL OF COMPETITIVE

Threat of New Entrants: MODERATE

Threat of Substitutes: LOW

· Strong presence of PC’s throughout society

Bargaining Power of Buyer: High

· Highly price sensitive

No strategic management or marketing text appears to be complete without the

2 “wait and watch”

Reduce the attrition rate by Converting visitors into customers(people who

Focus on developing nations

Physical presence of Service centers would add value to their customer

Invest more in Research and Development.

Reduce errors in Dell’s direct Internet ordering system and create a

Enhance customer support services

Increase Company recognition through a national advertising campaign.

Build a variety of competencies (build core competencies into diverse

Should focus on developing nations like India, China etc.

Dell computer is successful in global markets as a result of best understanding of

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