Halden Zimmermann: Dell new horizons case Part 1

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Information about Halden Zimmermann: Dell new horizons case Part 1
Business & Mgmt

Published on February 20, 2014

Author: haldenzimmermann

Source: slideshare.net

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Since it was founded in 1984, Dell Computer Corporation has generated phenomenal growth of market share and revenue generation on a steady basis. With products such as desktops, notebooks, enterprise systems, servers, storage devices, printers, and handheld computers, Dell attempts to sustain the dominance in the computer systems market by providing customized solutions at a very low cost.

I. Executive Summary Since it was founded in 1984, Dell Computer Corporation has generated phenomenal growth of market share and revenue generation on a steady basis. With products such as desktops, notebooks, enterprise systems, servers, storage devices, printers, and handheld computers, Dell attempts to sustain the dominance in the computer systems market by providing customized solutions at a very low cost. Dell’s ability to effectively leverage its resources is evidenced by its year-to-year financial and market share growth. By continuing to efficiently package its resources, Dell will continue its steady growth and industry dominance while creating value for its clients and shareholders. As the U.S. market becomes increasingly saturated, however, Dell will need to identify how their direct sales approach can be translated into the growing and mostly untapped overseas markets. Although there are numerous possible strategies they could employ, any given strategy would arguably require Dell to attend to the myriad of cultural barriers, government and trade restrictions, as well as maintaining the integrity of the business model that has driven their tremendous success thus far. Given the complexity of these varied considerations, it is our recommendation that Dell work toward the development of a virtual integration software suite while increasing its international market penetration. The suite would aggregate Dell’s unique resources and virtual integration abilities into specific software packages that could be licensed by customers who are in need of more efficient value chain management and control. Dell would thus be able to capture the benefits of their unique resources and business model, while allowing for rapid overseas growth at a relatively low cost and at great sensitivity to protecting the copyright and patentrelated issues surrounding technology in the market place.  

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