Dell’s Dilemma
Nov 17th, 2012 by asfvinpugunisparam
Based on Lau, Longwei post titled “Dell: No Longer Unique?” there are many questions that are remain unanswered for Dell in the future. As mentioned by him in his post, Dell is no longer the only company that uses virtual integration as a strategy; other players in the PC industry such as Lenovo are using the similar strategy to gain market share and more profit. What is clear here is that, it is time for Dell to start of a new strategy. The virtual integration strategy that kept the turnover rate of Dell low must now be reconsidered in order to progress and to improve their company. Dell should start researching about their point of difference and point of parity of their company and others in order to start making changes to their strategy.
Moreover, it is mentioned that tablets and smartphones are now possessing a huge market share in the electronic device market. If Dell were to think of making a tablet and launching it into the market, the tablet should follow cost leadership strategy. The reason is because of the numerous other competitors in the market such as Apple, Google, Blackberry and etc. The other reason would be that Dell is new to the Tablet industry and so in order to gain more popularity and recognition it must start as a cost efficient product first.
http://nicosiamoneynews.com/2012/11/15/mobile-devices-spur-dell-contraction/