Home/Essays Examples/Business/Dell Company’s Successful Diversification Strategies

Dell Company’s Successful Diversification Strategies

Analysis of strategies

Dell is a company that is trusted by people around the world for delivering technology solutions. Its products include laptops, tablets, mobile phones, and accessories. The company makes it possible for people to access information be they in their office, on their way to work, from work or at home. The success of Dell is mainly attributed to its diversification strategies. Dell’s products are found in the European, Asian, Africa, and the US markets. The company keeps surprising competitors in the industry through its continued production of new excellent goods, which enable the company to keep its place of one of the giants in the market today (Day 2010).

Dell has attracted customers for more than thirty years, who value their strongly run business. Its products are designed in such a way that the prices are pocket friendly and affordable for average income earners. The company has also been supplying its products across the world. In trying to catch up with the market leaders such as Hewlett- puckered (HP), Dell has ensured that most electronic outlets stock its products.

By means of this, Dell has managed to cut its niche of the market share (Levinthal, 2010). Such performance is always very difficult especially in this type of industry. Efficiency has been the area that the company has majored among other areas. In areas where the company has products similar to others in the market, the difference consists in its efficiency to deliver its products. The firm has managed to beat all other competitors including market leaders in this area.

These strategies together with the company’s low-cost model of business operation have contributed to its successful performance. Sections of the company that have done well include clear-cut values for customers. The speed at which the company delivers products to its customers is fantastic, which in turn has created trust among its customers.

Recommendations

However, it is worth noting that there are specific areas of strategic diversification that need improvement. First of all, the company has to focus on the customer needs as much as it is interested in making its profits since the company has lost some of its customers due to complacency. The advantage initially enjoyed by Dell, namely, lower prices have almost been lost. Competitors, such as Gateway, have discovered the secret behind Dell’s efficient supply chain; they have moved to adopt the same yet Dell has not made efforts to improve further. HP exploited this strategy to dislodge Dell as the market leader.

Considering that the products in the industry are almost similar, competitive strategies come from the best logistics. The company has failed to venture into exploring new products for its customers in the market. This could be another opportunity for the company to increase sales and expand its market share. Apple, for instance, beat most of its competitors when it released its iPad in the market.

Other companies in the industry such IBM learnt a lot from the success of Dell. However, Dell has to take the initiative and learn from Apple (Whittington, 2006). The company despite all its achievements lags behind in innovation. The company has never invented notable products in the market; its strength has been efficiency in delivery and prices. Dell should combine innovation, efficient supply chain, and customer satisfaction. This would easily take it back to its original place as the market leader in the industry.

References

Day, G (2010). Strategy from the Outside in. New York: Knowledge@Whorton Publishers.

Levinthal, A. (2010). Strategic Management. New York: Knowledge@Whorton Publishers.

Whittington, K. (2006). Exploring success strategy. New York: Prentice Hall publishers.