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By Kristyna Opletal Industry Computer hardware Financial


									                                        By: Kristyna Opletal

Industry:                       Computer hardware

Financial information:          Share price: 26.26 USD
                                Rank: Second (behind Hewlett Packard)

Employees:                      Approximately 78,000

Product offering:               Desktops, laptops, servers, storage solutions, and accessories

Complementary firms:            AMD, Intel (processors)
                                Microsoft (operating systems and suites)
                                ATI Radeon (video cards)
                                NEC, Philips (monitors)

Global presence:                175 global areas (countries, colonies, etc.)

Target markets:                 Home and Home Office; Small Business; Medium and Large
                                Business; and Government, Education, and Healthcare

Portals of sale:                1. Internet (most widely used)
                                2. Telephone
                                3. Small kiosks (rare)

Marketing:                      Product: computer systems and service
                                Price: average
                                Promotion: advertisements pushing
                                Place: virtual

Theory connections:               Products support the client / server interactions
                                  Very highly dependent on systems competition
                                  Dell hardware is compatible with other manufacturers
                                  Lock-in: customers become accustomed to Dell’s service
                                  Switching costs exist because of customer loyalty
                                  Positive feedback exists (with evolution)

Personal opinion:               Very good strategy for building competitive advantage
                                Personal positive experience with Dell computers

Dell in the news:

May 16, 2007: A New York state Attorney General has sued Dell due to customer criticisms that
Dell had misleading financial systems.

February 2007: Several Oregon Dell employees sued the computer giant. Apparently, call
centre employees were forced to work overtime, without compensation and breaks.

January 2007: Investors filed a lawsuit against Dell for plotting with Intel in increasing profits
and changing accounting results.

Sources: – keyword: Dell, – symbol: Dell,, – keyword: Dell, Mag. Roland Görlich

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