By Lindsey Merrill
November 26, 2013
Student: Lindsey Merrill
Professor: Robert Robertson
Core competencies provide a framework for the company to build additional products, move forward into other markets, gain a larger market share, and explore new ideas. Dell Inc. has over 5000 patents today that started from the computer revolution and internet development. This paper will describe a brief history of the industries development and discuss Dell’s core competencies and marketing strategies, and make recommendations for increasing core competencies, improving vertical integration, possible global expansion scenarios, advertising platform, and marketing strategies.
Dell Inc. was founded in 1984 by Michael Dell. The company sold personal computers directly to customers (Dell, 2011). Since the internet was evolving from confined networks to growing multi-networking capabilities in the 80’s, Michael Dell had the perfect opportunity to enter an emerging computer market. By 1985, Internet was already well established as a technology supporting a broad community of researchers and developers, and was beginning to be used by other communities for daily computer communications (Leiner et al, 2013). Internet usage exploded in the late 80’s with over 10,000 different networks increasing to over 50,000 in the mid 90’s (Leiner et al, 2013) inevitably driving demand for personal computers and software programing. In 1981 Bill Gate’s Microsoft Co. provided IBM with a software programing, (Windows), the software that manages, or runs, the computer hardware and also serves to bridge the gap between the computer hardware and programs, such as a word processor. It’s the foundation on which computer programs can run. They name their new operating system "MS‑DOS." (2013), this new Microsoft Disk Operating System (MS-DOS) propelled Microsoft’s development of operating systems. These software programs made vast improvements and by 1994 the software applications included internet capabilities. The worldwide internet increases dramatically over the next six years from 3 million to 200 million users (Windows, 2013). Consequently, computer manufacturers such as Dell, Hewlett & Packard, IBM, Macintosh, etc. produced millions of desktop computers, along with support products and services.
Company Vision and Strategy
Michael Dell continues to expand the company’s infrastructure to develop more products and services. Dell’s build-to-order strategy was used to reduce cost and still deliver a product in 5 to 7 days from the order. Dell’s subsidiaries include “Enterprise Solutions”, “Original Equipment Manufacture” (OEM), and Dell Services, to name a few. Dell’s vision is “the power to do more” which revolves around the ability for customers to interact with the company about improving products or services. Michael Dell stated, “Technology is about enabling human potential” (Dell-Biography, 2013) According to the 2011 Annual report, “Customers may offer suggestions for current and future Dell products, services, and operations on an interactive portion of our Internet website called Dell IdeaStorm” (Dell, 2011). Dell has expanded its business model to include a broader portfolio of products and services, such as, desktop computers, laptop computers, printers, Dell EqualLogic Solutions data storage, Servers, mobile devices, mobile phones, notepads, and many more. Dell’s strategy considers customer service; enterprise solutions technology; enhance online capabilities; increasing desktop and mobility business; collaboration and acquisitions; innovation; balancing liquidity, profitability, and growth. According to the 2011 annual report, “Dell’s reputation as a leading technology provider through listening to customers and developing solutions that meet customer needs. We...