Dell Core Competencies Analysis

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1.0 Executive Summary Dell Company was established on 4 November 1984. It is one of the largest information technology companies in the world, employing around 103,300 employees worldwide. Dell Company’s founder is Michael Dell. He was the youngest CEO to guide a company to a Fortune 500 ranking. Dell Company is using customer satisfaction as the main important concern to integrate each of their operations, to understand and try to produce as well as deliver products and services that capture their customers’ trust and satisfaction. Manufacturing and distributing their own products allows Dell to be sensitive and flexible in changes in customer demand and needs. The direct selling strategy through website that used by Dell Company is very…show more content…
Core competency fulfils three criteria, which are to provide potential access to a wide variety of markets, make a significant contribution to the perceived customer benefits of the end products and it is difficult to be imitated by the competitors (Prahalad et al, 1990). The core competencies of an organization can be innovation, human resource, technology, marketing, processes, relation with customers and partners and others. Dell Company is one of the largest corporations that sells, manufactures and supports computer products and related hardware components. As a matter of fact, Dell Company did not invent the microprocessor, hard drive and the system bus that connects all these pieces of hardware together. They did not have a core competency in manufacturing any of these or other components that are collectively called a computer and yet Dell has been doing well in the presence of strong competitors like HP, IBM, Toshiba, Sony and Apple. It is actually the unique core competencies of Dell Computer which make it strong and competitive in the IT industry (Kasi,…show more content…
Although high percentages of U.S. homes have PCs, there is a large discrepancy in computer use among ethnicities. Whites and Asians prefer to have their own computers than Blacks and Hispanics. The low ownership of computers among Blacks and Hispanics makes it easy for Dell to grow in this demographic segment. Thus, Dell needs to modify its marketing focus to strengthen its visibility with Blacks and Hispanics. Dell also needs to develop marketing campaigns to deliver messages that computer is a necessity in a person’s life (Cocoxiaoran,
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