Strategic Management Analysis: Dell's Past, Present, and Future

This report provides a comprehensive strategic analysis of Dell, examining its past and present strategies, and potential future directions. The report begins with an overview of Dell's strategic direction over the past five years, followed by a PESTLE analysis to evaluate external environmental factors. It then delves into a critical discussion of Dell's competitive advantages, utilizing Porter's Five Forces model, and explores probable industry scenarios. The analysis further includes an assessment of Dell's strategic capabilities, vision, and mission statements. The report also features a Business Canvas Model to understand Dell's business model. The final sections offer insights into potential strategies for defending its core business and recommendations for resource implications. The report concludes with a summary of the key findings and recommendations.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic direction that company has followed in past and the way it is developed in past five
years............................................................................................................................................1
TASK 2............................................................................................................................................2
Pestle analysis of the company to review external environmental factors..................................2
Critical discussion on company's competitive advantage among its direct competitors............3
Probable industry scenario which faced by company from its existing market domains...........4
TASK 3............................................................................................................................................5
Extent in which company face strategic draft.............................................................................5
An analysis of company's vision and mission statements which align to demand of the market
place or not..................................................................................................................................5
Company's strategic capabilities.................................................................................................5
Business Canvas Model of the company....................................................................................6
TASK 4............................................................................................................................................8
Possible strategies that company could follow to defend its core business................................8
TASK 5..........................................................................................................................................10
Recommendations for the resource implications in company..................................................10
Conclusions....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management is the process which is implement by company to meet its future
goals and objectives by doing continuous planning, monitoring, analysing and all other
assessments by which company able to meet its goals.(Strategic management,2018.) Under this
present report chosen organisation is DELL. This present report will cover strategic direction
which company followed in the past and the way it is developed in past fiver years. Appropriate
model is applied to measure external environment factors, its competitors, and also industry
scenario. Company's capable strategies and their vision and mission for facing strategic draft is
also to be explained in this report. Possible strategies which company would follow to defend its
core business is going to be explained in this report. Further, in this report recommendations is
provided for the resource implications of the company.
TASK 1
Strategic direction that company has followed in past and the way it is developed in past five
years.
To minimise competitive advantage and to achieve targeted organisational goal Dell
company is continuously developing strategic management by which their targeted future goals
of the company get achieved. In the year 2013 company has made a strategic management to
achieve goal up-to 2020. Their goal is to maintain social and environmental factors by which
they will able to develop effective relationships with the customers.
Company has followed effective strategic directions in past five years by which they will
able to maintain their effective relationships with customers as well as in business market as
well. Dell strategy is to develop effective market environment under which they are being closer
to customers to find their expectations which they able to carry marketing strategies.
Firstly they have applied effective internet infrastructure where they provide facilities to
customer in booking products online which helps them to develop effective customer base in
existing business market. Another policies they applied in reducing competition is through
collaboration. By doing collaboration Dell's executives thinks that this strategic management
helps them to reach market efficiency. Company has added Xerox's technology which has
provided good profitability and they have also provided the best service to customer by adopting
this technology.(Myrick and Kelloway, 2018,) These strategic management of the company
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helps them to cut the monopoly of the other computer organisation and which also helps them to
capture market in which they have provided effective goods and services to customer.
Now Dell is going again public after five years of privately held company. Using a mix
of cash and equity company has announced to purchase holders of shares and the amount which
they have announced to purchase that is $21.7 billion. By 2020 company's goal is to capture
social and environmental market by offering best services to the customers.
TASK 2
Pestle analysis of the company to review external environmental factors.
Political factor- dell company has to face many strategic international relationship because their
business is global they have to face political legislation in performing company's operation in the
different countries. Such factors may be political instability, tax laws, trade measures, and also
foreign currency rates.
Economic factor- three major factors which affect Dell performance are fluctuations in foreign
currency rates, cost of raw materials for their products and financial stability in country which
they operate. When country's taxation policy increased and currency rates increased, major
impact spike on cost of products and service they offered to customers.(Ocasio, Laamanen and
Vaara, 2018. )
Social factor- in the world of internet every one is using laptop and in which Dell has been able
to develop their goodwill among customers, but they have tough competition from their
competitors which are HP, Lenovo, Asus etc. therefore, their strategies are so effective that their
name is known to everyone.
Technological factor- they are known as technological corporation and because of that they
have continuous upgrades in their technologies. To remain in business market which is full of
competitions Dell has to make continuous changes in their technological factors by which their
profitability increased up.
Legal factor- this is the major issue for company's which are doing business globally. Company
has to follow rules and regulations of the country in which they are doing their business
operations.
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Environmental factor- this factor is now become most important for the companies.
Government has taken an initiative for company's to maintain environmental factor and by which
customers only get attracted to companies which have effective contribution in maintaining
environmental factor.
Critical discussion on company's competitive advantage among its direct competitors
To measure this factor of Dell company Porter's Five Forces models have been applied
by company.
Threat of new entrants- to enter into computer business a company has to applied major
elements in the company like huge capital investment, upgraded technological infrastructure,
knowledgable and skilled employees by that only company will able to compete with other firms
of the market. Therefore, threat of new entrant is low for Dell organisation.
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Illustration 1: porter's five forces
source:(Dell porter's five forces analysis,2015)

Bargaining powers of buyers- under this factor bargaining power remains low to moderate
because in this business customer only preferred reliable brand and Dell has been providing
excellent customer service by which they have strong loyalty from customers.
Bargaining power of suppliers- this factor remains low for these types of industry and Dell has
maintained strict guidelines regarding audit of quality assessment of products and services they
provided to customers by which they will able to maintain their dominate position to decide price
from suppliers.(Hill, 2017.)
Threat of substitute products- for computer industries they have faced a major drop-down in
their business during last five years and the reason for this is development of substitute products
in market. Therefore, power of this factor remains moderate for Dell organisation.
Rivalry among existing firms- in computer industry this level remains high. Top players of this
market are HP and Lenovo and due to drop-down in this market their major focus is on the
innovation of products and services by which they will able to capture business markets.
Probable industry scenario which faced by company from its existing market domains
Current scenario of Dell is to provide products with low cost distributions but there are
lot competitions from existing market domains who are providing same substitute product in a
low price by which has to face reduction in profitability of the company.
First industry scenario of Dell is that they are building a big security divisions under
which to purchase their products detail paper work is to filled by customer's because of that they
have to face competitions from other domains in which customers are attracted in doing less
paper work.
Second industry scenario for Dell company is to build big security division in which to
offer products among customers company has to do serious offering among them which takes
more time, commitment and also incurred more money to invest for the company.
Final industry scenario of Dell is to build degree of potentiality products among customer
s but this involves little risk where company has to purchase raw material in different parts of the
products and sometimes that parts will not easily available for company which affect company's
sales and other market domains will able to develop their good will by providing good supply of
products.(Doz, 2017.)
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TASK 3
Extent in which company face strategic draft
Company has to face strategic drift when sudden changes arise from their market
competitors. Under phase one of the strategic drift that is Incremental changes company have to
face many significant changes with their external environmental factors. Under this phase of Dell
other market competitors have introduced products which have more upgraded technologies and
customers of the market has shifted to other firms of the business market.
Under phase second company has to face strategic drift when other competitors like HP,
Lenovo has almost covers business markets of computer industry by providing innovative
products and company's policies are no so effective to develop that external environmental
changes in the company by which strategic drift has to face by company.
An analysis of company's vision and mission statements which align to demand of the market
place or not
Dells' vision is to develop opportunities and innovation by which their business get
growth in all over worldwide. They develop effective communications with community and also
interpret with world to achieve overall success and also to bring changes needs to develop in the
future. To align with market of demand Dell has developed many strategic management policies
by which they will able to cope up with demand of the markets.(Hill and et.al., 2014.) Factors
which help them to achieve demand of the markets are- they invest in research and development
activities and also to venture funds by which they will able to expand solution offerings.
Mission of Dell company is to become most successful computer company across the
world. To complement with these mission statements company has simplified customer
experience by providing innovating tablets, personal computers and also virtual computer
services. They also expand channels of sales volumes by which they will bale to serve better to
customers of the business market and also will able to develop demands of the market place of
the organisation.
Company's strategic capabilities
Dell has many strategic capabilities by which they are generating effective profit in the
organisation. Factors which shows company's strategic capabilities are as follows-
 Brand Image
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Company has strong brand image because its operations are worldwide which develop
their strong brand positions among customers of the business market. Company's major focus is
to provide product with effective quality and with upgraded technologies which helps them to
maintain strong customer base in organisation. Another factor by which they develop strong
brand image is by their pricing strategy, they provide fair range of products in market. Product portfolio
Dell has large portfolio which provides effective growth of the company. Their business
is majorly divided into segments that is infrastructure solution group, client solution group and
other businesses by which company offers products with low range which helps them to capture
business market. Innovative products
For the continuous growth of company Dell maintains effective innovative procedure by
which they able to provide products with upgraded technology and also in-accordance with
customer expectation. This innovation process helps them to achieve overall profitability of
organisation.
These are some of the strategic capabilities of the Dell company by which they able to develop
effective performance of the organisation. Company maintains continuous expansion of strategic
management by which they will able to achieve company's growth.(Niesten and Jolink, 2015.)
Business Canvas Model of the company
Key partners-
 suppliers
 manufactu
rers
 technolog
y alliance
 developers
 Authorize
d service
Key activities-
 marketing
 research
and
developm
ent build
 new
production
 quality
Value
proposition-
 the best
hardware
and
equipment
company
 best
consumer
Customer
relationship-
 shop
online
 support
and
troublesho
oting
 check
Customer
segments-
 individual
s
 governme
nt
 online
retail
 large
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provider.
 retailers
manageme
nt
product
company
 well-
respected
brand and
employer.
 Best
performer
repair
status
 newsroom
 frequently
asked
service
companies
Key resources-
 technology
 stores
 patent for DELL
 large channel partners
Channels-
 to shop online
 store locator
 telephone service
 find reseller
 enterprise store
Cost structure-
 infrastruct
ure
 people
 production
 investmen
t
 taxes
 procureme
nt
 manageme
nt
Revenue streams-
 third party project
 consulting
 licensing
 media products and services
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TASK 4
Possible strategies that company could follow to defend its core business
To defend core business, possible strategies that Dell could follow is by applying The
Ansoff Matrix under which company would able to differentiate between existing products and
develop new products.
To develop growth opportunities in business there are two approaches according to these
model and that would be product growth and market growth. In today's world Dell is the number
one company which deals in providing best services in desktops, notebooks, server etc. therefore,
to grow business other than from core business company analysed products with the Ansoff
Matrix.
Market penetration- it means to do business with existing market and with existing products.
This market penetration occurs when company enter into business market with their existing
product or with current product.( Dobbs, 2014.) And to achieve customers in this type of
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Illustration 2: Ansoff matrix
source:(using the Ansoff Matrix to develop marketing strategy,2018)

business company have to attract their competitors customers in their own organisation by
providing substitute of that product of the company. Another method to attract customer by this
method is to do effective advertising activity. Dell has an effective advertising activity so by
which they will able to attract more customers in the organisation.
Under this method company have to develop effective communication with existing
customer and to peruse them to increase the usage of product will help company to increase sales
of the company. Second option with the company is to charge low price of product as compared
to their competitors by which customers automatically attracted to organisation. To expand their
market company will able to encourage new customers to try their goods and services.
Product development- under this company will do business in existing market but with the new
products of the company. To stay competitive in the business market company have to introduce
new products among customers so that they will encourage trying company's products. To
introduce new products in existing market company have applied some marketing mix strategy
by which they will able to compare factors needed for products growth in the organisation.
Company has to make changes in the existing market to introduce new product among the
customers.(Dawes, 2018.)
Market development- under this company will do business in new market but with existing
products of the company. Company will do this market strategy just increase their revenue with
the existing products of the company. Dell has strong goodwill of the company therefore to get
growth in new market with existing product they will able to achieve that by which they will also
get new customers in the organisation. Under this company have to find effective new markets
such as online market, or to direct sales if trading with sales etc.
Diversification- under this factor company will do business in new market with new products.
Therefore, company needs to develop strong strategic management by which they will able to
capture new market with new products of the company. To do diversification of the products
company needs more and more research of the new market where they have to think upon
success of the new product. Under this process company have to effective advertising activities
by which they will bale to educate customer about new product which company trying to
introduce among them. Company also have to peruse existing customers to try their new
products from new market by which company able develop effective sales from new market.
Diversification may do in four ways that is horizontal diversification, vertical diversification,
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concentric diversification and conglomerate diversification. This diversification process of the
company is risky and there are fewer chances for the success of new products with compare to
existing products of the company. (Grünig and Kühn,2018.)
By analysis Ansoff matrix Dell has to find in what factor they have to do their business to
defend its core business. If they will able to apply these all factor then they will able to make
alternatives for the business by which their business may earn higher amount of revnue and
profitability. Product diversification is the one factor which needs more attention as compared to
other factor of Ansoff Matrix. After applying these model company's executives have to make
effective decision regarding their products and service to get growth in developing new products.
Effective promotion or advertisement of the products is to be developed by company so that they
will able to educate and introduce customers regarding new product and will also able to
encourage them to try new products of the company.
Recently Dell has introduced new product which Xerox machine and it gets successful
among customer because it has new varieties, elements and also have upgraded technology
which attract customer to try that products and company get successful in introducing that in
front of customers and this also helps company to develop their product in different business
markets and also to stand competitive in front of their competitors of business markets.(Bocken,
Boons and Baldassarre, 2018. )
TASK 5
Recommendations for the resource implications in company
Dell is one of the leading brand of computer industry in the business of providing
computers and laptop. Therefore, to survive effectively in business market there are some
recommendations for company to enhance their growth in business market. Company have
expanded their business in countries in which they do not operate by which they will to maintain
their goodwill in other countries too. Mission statement of company is not that much powerful by
which they able to attract customers in their organisation in compared to their competitors in the
market. Therefore, company have to establish effective statements which provide strong impact
on customer purchasing decision.
In their recent changes to become public company this decision will lead to company's
positive culture by which they will able to increase their market share in market. According to
survey of 2016 company's market share is 26.2% which will get increased when company shift
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