Strategic Plan for Dell

Solution Preview

---

1) Executive Summary:
The document below summarizes the strategic plan for Dell to excel in the computer peripheral industry. The plan highlights the environmental analysis, followed by strategic choices that the company has, alongwith recommendations and strategies to implement such plans and choices. It is seen that Dell's unique model in this extremely competitive industry and leadership position is sustainable only if Dell pursues a longer term vision to excel in its product and customer service quality, along with ability to penetrate new and emerging markets with its wide range of innovative products.

2) Company background:

Dell was founded in 1983 by Michael Dell, an 18 year old college freshman from Texas who started out upgrading hard drives for IBM compatibles on nights and weekends. Within a year, his service business had grown to an incredible $6 million fromperforming computer upgrades for local area businesses and he dropped out of school to concentrate on the business. When Dell changed his strategy and started offering custombuilt-to-order machines, the business exploded, with $70 million in sales by the end of 1985. Evolving into an assembler company, Dell was able to exploit certain events occurring in the industry and swiftly adapted to meet market conditions. Five years later, total sales had grown to an unbelievable $500 million and Dell became nationally known as a supplier of state-of-the art desktop and portable computers. Dell continually achieved phenomenal records in sales and profit growth, eventually making it the most successful company ever in the PC industry, surpassing $25 billion in 2000

3. Vision statement

"To become the undisputed leader in the computer peripherals industry by displaying unparalleled excellence in customer service and product quality."

The vision statement is in consistency with the company's core objective to provide highest quality in terms of product quality and customer service to its customers. This vision statement will act as a key guide and motivator to excel in the objective.

4. Mission statement

"The mission it to establish and consistently maintain highest possible benchmarks in customer service by embedding quality in each aspect of the business process."

The mission statement is in consistency with the overall objective to display best possible quality standards.

5. Environmental analysis - Internal & External

Internal Environmental Analysis: SWOT

Strengths:

Excellent brand reputation and brand awareness.

Cost efficient and low cost online business model

No inventory buildup

Direct to customer business model - latest technology ·

Customization ·

Internet sales leadership

Weaknesses:
No proprietary technology

High dependency on component suppliers

No offline distribution presence

Opportunities:

Opportunities to capture increased market share in the ...