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Developing Alternative Strategies – Dell

Developing Alternative Strategies – Dell

There are various forms of strategies that can help a business to enhance its performance in a competitive market. The following is an evaluation of strategies favorable for Dell Technologies to improve its performance in the technology products’ market. These strategies have been developed based on the identified strengths, weaknesses, opportunities, and threats of the company. Ten main strategies were developed for Dell. The following is a list of the strategies in order of priority.

  1. Develop a research and development department.
  2. Diversify computer products.
  3. Develop retailer partnerships
  4. Diversify into Internet products
  5. Develop an international marketing plan
  6. Develop a flagship product
  7. Invest in digital marketing
  8. Target the developing economies
  9. Mergers and acquisitions
  10. Rebrand

The first strategy recommended is to develop a research and development department. One of the weaknesses of this company was its rigidity in changing. It has relatively older versions of tech products because of low innovativeness. A research and development investment is needed to make the company more innovative. This department will help the company to achieve competitiveness through differentiation. Differentiation is one of the four generic sources of competitive advantage by Porter (David & David, 2017). This form of competitive advantage involves the development of products that help a business to stand out from its competitors.

The second recommended strategy was to diversify the company’s products. This strategy was developed with the same aim as the fourth and sixth strategies of diversifying into internet products and creating a flagship product. The internal analysis of this company demonstrated a decline in its growth. There is a need for strategies that will boost the revenue earned by the company. Horizontal diversification is one of the 12 key strategic options that businesses have to achieve a competitive advantage or growth (David & David, 2017). Therefore, Dell’s decision to diversify would help the business attract new markets and increase income.

Another recommended strategy was developing retailer partnerships. This is a strategy of forward integration where a business develops its capabilities in the retail and distribution sectors. This strategy is created to help a business’s products to reach more customers (Teece, 2010). In the analysis of Dell’s business environment, it was found that Dell’s direct sales strategy limits the number of products it is able to sell. Therefore, it is important to increase the locations from where the customers can access the products of the company.

Two other strategies recommended are developing an international marketing plan and a digital marketing plan. One of the sources of competitive advantage is market penetration. A business with a bigger market share tends to have an advantage over its competitors. The marketing strategies above will help the business to reach more people beyond geographical backgrounds. While the Dell brand is recognized, an analysis of its external environment showed that the company is receiving stiff competition from newer companies such as Apple. A more comprehensive marketing plan on local and international markets is needed to keep the Dell brand known and respected in the technology market.

It has also been recommended that the company targets developing economies. The middle-income bracket has been increasing at a high rate in developing economies. Market development is a strategy of geographical diversification. A business can gain a competitive advantage by creating a strong presence in a wide geographical market (David & David, 2017). Dell has the chance to beat the high competition, which affects its performance by extending its geographical presence. Taking advantage of the increasing demand in developing countries is the way to go.

Dell can also improve its competitive advantage by trying out mergers and acquisitions. Most of the recommended strategies involve diversification. One of the best ways to diversify is to join strategies with another firm with shared goals. This is a strategy that the business can use to expand to international markets or introduce new products. This is a good way for the company to enhance its competitive position and reduce the pressure it gets from other businesses in the technology industry.

Lastly, it has been recommended that this company rebrands by creating a new product that meets the contemporary market standards but sold under a different name. While Dell is a household name, it is associated with old generation computers. This strategy will differentiate the company in the market, making it seem like a fresh product that many new customers might want.

References

David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts, and cases. Pearson.

Teece, D. J. (2010). Business models, business strategy, and innovation. Long range planning, 43(2-3), 172-194.

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Question 


This exercise gives you experience recommending strategies to increase the effectiveness of your selected organization.

Developing Alternative Strategies - Dell

Developing Alternative Strategies – Dell

Gather representatives from different functions to discuss alternative strategies. Notice the learning and understanding that occurs as people express differences of opinion. Keep the focus on the process, which is more important than the document.

Using the opportunity/threat and strength/weakness factors you have identified, create a flipchart (whiteboard, PowerPoint, or another tool of your choice) with alternative strategies that could benefit your organization. List 10 possible strategies. Your list should include a description and possible outcomes of the strategy if implemented. Ask your gathered group to rate each of the strategies on a scale of 1 to 3, where 1 equals no support, 2 is neutral, and 3 equals support for implementation of the strategy. Sum the scores and prioritize the strategies.

Discuss how this process could help organizations achieve understanding and commitment from employees. Share the results with an organization leader. Ask for comments about the process and the top strategies.

When you have completed your assignment, summarize your findings in a 2- to 3-page memo. Attach the list of the 10 possible strategies with ratings to your memo. Submit your assignment as an attachment in the assignment area.

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