According to Porter’s generic strategies Dell can be conveniently placed on cost leadership since it believes in cutting costs compared to competitors and also providing to broad market thus acquiring a large market share. But Dell has not entirely focused on cost leadership since they have also created value for their customers in this process by providing customized products and selling directly to customers on a more personal level. Their strategy has given them loyal customers that stick to the end.
Their strategy has given them access to the capital required and the strategies to produce efficiently but on a lower cost, the company has skills in manufacturing this product and also an expertise in creating value and making profits. The company has also managed to come with a low cost and efficient distribution channel. Their strategy has been a success since customers get to customize products and deal directly and that in turn helps to develop a relationship with the customers and also to invoke huge profits. Their strategy has been a success in terms of market share as well since the company forced its competitors to incur losses and gained a majority market share. Dell’s strategy has been so successful that there was no match for the company’s speed and duration of revenue growth and this was entered in the Guinness book of world records.
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