The aim of the paper is to understand the current position of Dell in terms of its market position, its strategies, its strengths and weaknesses and the various external and internal threats it faces and opportunities it has. With this background we can then define strategies for the company to help it surpass its major competitor, HP, and sustain a top market position.
Dell has been a pioneer in the business of manufacturing made to order PCs and laptops and manufacture of x86 servers. To diversify its portfolio, it has expanded its product range to include data storage hardware, printers and their cartridges, networking switches and hand held PCs as well as proving software solutions. The company has a global reach and has offices in Europe, Asia and Japan besides America. The company aims to produce high quality products at a low cost and use this strategy to achieve profitability. Michael Dell, who is the founder and currently the Chairman and CEO, held around 10% of the company’s shares as of 2008. Rest of the key stake holders are institutional and mutual fund owners besides the small time investors.
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