Social Responsibility And Ethic Commerce Essay Example

services to cater to customer needs. However, establishing an online presence in the Chinese market presents Dell with a challenge due to comparatively higher costs than other countries.

Swot: Dell's key advantage lies in its ability to provide customers with reasonably priced high-performance products.

Dell is renowned for its exceptional customer service and innovative approach, offering technologically advanced products that rival those of other companies. Through the direct sales model, Dell can swiftly address customer preferences ahead of its competitors. Nevertheless, a drawback of Dell is the absence of physical stores, leading to delayed customer satisfaction and limited capability to compare computer models and prices.

Furthermore, Dell is involved in a price competition that has resulted in reduced prices. In order to expand their customer base, Dell is working on diversifying their distribution channels. They have also introduced products specifically designed for the BRIC countries to meet their requirements. Moreover, industry experts anticipate that the highest growth opportunities are within small and medium businesses, projecting a growth rate of 4 to 7 percent.

The main threat to Dell is competition from Japanese rivals who offer affordable, high-performance products. Moreover, the economic downturn has led to reduced demand for Dell's products among both suppliers and customers.
Porter 5 Forces
Dell faces a high threat of new entrants into the computer manufacturing market, as many competitors from Japan and Taiwan continue to enter the industry. The bargaining power of buyers is low due to the abundance of competitors in the computer sector.

Currently, customers have a preference for technologically advanced products, allowing them to compare Dell products with competitors'. Dell has significant bargaining power as a provider, with Intel and Microsoft being the main

suppliers of microprocessors and operating systems.

The main components of computing machines are provided by Intel and Microsoft. There is a significant risk of substitution for Dell as their products are similar to those of competitors like HP, Acer, and Toshiba. Therefore, Dell can be easily replaced by these rivals. The competition among rivals is fierce.

There are several direct competitors to Dell. Moreover, Dell competes with other companies that provide affordable and high-performing products for the same target market.

Value Chain Analysis

Inbound Logistics: Dell adopts a just-in-time manufacturing process, where inventory is not kept and goods are not stored in a warehouse.

Operation: Dell focuses on computer customization and utilizes a direct sales model.

Dell's outbound logistics involve a system of self-delivery, which removes the need for intermediaries. When it comes to marketing and sales, Dell sells its products directly to both competitors and a mail-order company. Additionally, Dell offers various services such as warranties, user support, a 30-day money-back guarantee, on-site assistance, maintenance, and repair services. Manufacturing facilities owned by Dell can be found in Malaysia, China, the United States, Europe, the Middle East, Africa, and other places.

Dell focuses primarily on technology development, specifically through research and development (R&D), to create more products. In terms of procurement, when Dell receives an order, the provider supplies necessary materials from companies like Eagle Global Logistics, Cerqa Copyright, Intel, Microsoft, Linux and others for producing goods.
Generic and Grand Strategy
This example illustrates that Dell falls under the cost leadership category. According to IDC's report for Q1 2009, Dell's standardized desktops and laptops were preferred by North American and European enterprises over HP and Lenovo. Small and medium-sized businesses often lack sufficient IT

resources.

Small and medium-sized businesses will be cautious about their IT spending and be more price-sensitive. For the public sector, they simply need standardized and simplified solutions to meet their IT needs. Dell was also focused on providing distinguished products. Large enterprises require customized corporate servers, for which Dell offered technologically advanced products with a higher price point to enhance their profit margins.

Furthermore, Dell focuses on consumers who have an understanding of engineering and are willing to pay a higher price for the latest and top-quality technological products. To facilitate the creation of unique items, Dell has allocated more funds towards research and development. Their direct sales approach has been a significant strategic advantage. Dell aims to identify shifts in consumer preferences before their competitors, reducing the time required for new product development.

It enhances Dell's ability to set prices and gain a competitive edge. Dell has employed market expansion as its overall strategy, with a previous focus on the regional market but now aiming for global targeting. A manufacturing plant in Malaysia has bolstered Dell's position in the market. Additionally, Dell has diversified its sales channels by introducing its products in major computer retail stores. To remain competitive, Dell has also expanded its distribution channel beyond direct sales, recognizing that consumers prefer to compare models and make purchases in physical retail stores.

In Year 2009, Dell expanded its retail stores globally, using concentrated growth as their strategy. The company's focus is on providing region-specific products to meet the demands of emerging markets, such as Brazil, Russia, India, and China. These markets require affordable computers with basic features. To cater to the needs of price-sensitive customers in these

markets, Dell introduced the Vostro-A line of desktop and laptop computers.

Dell has achieved 20% sales growth in the BRIC market through their efforts. They have also used concentric diversification to maintain their strong competitive position. Dell has expanded their product portfolio to include peripherals such as printers, projectors, and displays. They have also implemented an innovative strategy. Dell is considered a pioneer in hardware and software products that enable Net 2.0 companies like Microsoft, Amazon.com, and Google to deliver hosted servers over the internet.

These companies require a monolithic computer network to support their businesses. It is important for Dell to provide technologically advanced solutions in order to maintain its leadership in this market. Additionally, Dell integrated cameras and microphones into external monitors and utilized horizontal integration as a strategy. In 2006, Dell acquired Alienware, a computer hardware manufacturer, and also implemented vertical integration.

In 2008, Dell acquired ASAP Software Express Inc and EqualLogic, which executives believe will allow them to offer a greater variety of storage products targeted towards this market.

Short-term Objective (Balance Scorecard)

The balanced scorecard consists of four steps directly connected to Dell's Strategy. The first step is the financial performance objective, which aims to increase revenue opportunities by achieving 25% growth in sales for each segment.

Secondly, the objective of Dell Inc. is to maintain customer loyalty by using a partner with the customer to provide customized solutions and building a long-term relationship with the customer. Thirdly, the company evaluates its internal business processes.

Dell Inc. aims to innovate and improve the quality and performance evaluation of its merchandise. To achieve this, Dell plans to expand its product line in every category through strategic initiatives

such as increasing research and development expenditure by 39.1% and utilizing technological innovation. Dell also focuses on customer needs and offers fully customizable desktops, laptops, servers, and support services. Additionally, Dell continuously innovates to introduce new products to the market.

Functional Tactics: According to Pearce and Robinson (2011), functional tactics involve identifying customer needs in each segment for Dell's sales department. Additionally, Dell should offer highly differentiated products and services in their marketing plan, and provide different pricing for each target segment.
Finance: Dell's finance department should focus on expanding revenue opportunities and maintaining financial stability. They should aim to achieve a 25% sales growth in each target segment.

R ; A ; D should focus on innovation and diversify their product line. For example, they should expand their market to meet customer demands and stay ahead in technology. The Dell production line should maintain high-quality products and adapt to market trends, such as the increasing use of laptops. Therefore, Dell should decrease desktop production and increase laptop production. The policies mentioned in the case study include changes in U.S. monetary policy and economic policies worldwide, which result in unstable exchange rates.

Despite its foreign currency hedging plan, Dell is currently facing risks. The company's organizational structure, leadership, and culture also play a significant role in its operations. With a functional structure, Dell divides tasks, people, and technologies into different groups with formal procedures to coordinate and integrate their activities in order to offer their products and services. For instance, Steven Schuckenbrock serves as the CIO at Dell and is responsible for support services. Ronald G. Garriques is the president of the Global Consumer Group, which handles consumer

desktops. Alan Lafley leads Dell's marketing group.

In addition to being a practical organization, Dell also relies heavily on information technology to connect providers, clients, and subcontractors. This reliance on technology helps improve skills, access to markets, and reduces costs. For example, Dell directly serves clients through the web and uses information technology to contract with providers for materials. Additionally, Dell contributes to the skill development of other manufacturing works in different countries such as Malaysia, Taiwan, London, Canada, etc. Michael Dell, the founder of Dell Company in 1984, recognized that having direct interaction with clients is the best way to establish and maintain global leadership. He implemented a direct client sales business model that includes deeply understanding clients' needs to successfully adapt solutions.

Apart from that, Michael Dell possesses determination, principles, and enthusiasm to build an organization. Determination is evident as in 1984, with just $1,000 to his name, he refused to give up and instead created the first Turbo computer. Principles represent his honesty, ethical conduct, and commitment to customers who purchase Dell computers, as he consistently provides exceptional customer service to maintain relationships. Consequently, Michael Dell's passion is evident through his relentless pursuit of success for Dell, constantly striving to improve the organization and implementing strategies to enhance sales profits. For instance, recognizing that the company had a weakness in its distribution channel, Dell expanded its distribution channels.

Michael Dell possesses referent influence, which is a personal influence that many people aspire to have. People admire him, gain reputation or purpose through association with him, and believe in his ethical motives. An example of this can be seen in 2007 when Michael Dell was reinstated

as CEO despite poor performance and controversy surrounding Kevin Rollins' accounting practices. Additionally, Dell's organizational culture centers on addressing customer concerns directly, employing a low-cost leadership style, and prioritizing staying updated with changing consumer attitudes and market conditions. By being proactive and responsive to customer demands, Dell has established a strong position in the market—this serves as the foundation of the company's success.

Strategic Control

Strategic control involves monitoring strategy implementation, identifying changes or problems with assumptions, and making necessary adjustments. It includes questions like "are we moving in the right direction?" and "how are we performing?". The four types of strategic control are premise control, strategic surveillance, particular qui vive control, and execution control.

Premise Control

Dell's primary goal is to become the leading global computer company by providing an exceptional customer experience in its markets. Therefore, premise control ensures that the company's mission remains relevant for implemented strategies. Additionally, it assesses changing environments to determine if the assumptions underlying strategy planning are still valid.

For example, the engineering factor has a significant impact on Dell as they sell IT related products. Thus, the management evaluates the engineering factor to determine if it is suitable for Dell to develop strategies.

Strategic surveillance refers to the proactive monitoring of industry trends and developments to identify opportunities for Dell. In this case, Dell can capitalize on the growing trend towards mobile computing in the technology sector, which presents an opportunity to capture a larger market share.

Dell introduced the Dell Inspiron Mini series in the netbook market. Particularly, it focused on quality control.
During an economic downturn, changes in US monetary policy caused volatile exchange rates, putting Dell at risk due to its global

presence. To mitigate this currency risk, Dell had to develop strategies. Additionally, in response to government and environmental group demands for more environmentally friendly practices, Dell, as an industry leader, quickly announced its achievement of becoming "carbon neutral" and improving energy efficiency. However, Dell faced challenges when its suppliers Microsoft and Intel were fined for anti-competitive practices, impacting Dell's pricing agreements with them. Consequently, Dell had to find solutions to stabilize material prices.

Execution control is a concept that Dell primarily operates on a direct client sales business model, which has been highly successful in gaining market share and increasing revenue. However, during times of economic downturn and when Dell's market is affected, the company has reorganized its business units into four globally operated divisions: large enterprise, public sector, small and medium-sized businesses, and global consumer. This realignment aims to better cater to customer needs. Dell should not solely focus on low-cost leadership; instead, it needs to invest in advanced technologies with premium prices that meet the demands of its customers. Customers tend to compare computer models in retail stores, so Dell should increase its research and development efforts to develop new technologies. Additionally, Dell should differentiate its products from those of its competitors.

For example, Alienware offers high-quality gaming eyeglasses for avid gamers. Additionally, we have identified unprofitable stores.

Conclusion

In summary, we have analyzed both the external and internal environmental factors, identified key issues, and provided strategic recommendations for Dell. We would like to thank our reader and tutorial for giving us the chance to understand Dell's situation.