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Dell Case Study - Evaluation of Michael Dell's Performance in His Roles as Dell's Ceo and Chairman

Essay by   •  June 26, 2011  •  Case Study  •  790 Words (4 Pages)  •  4,025 Views

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What is your evaluation of Michael Dell's performance in his roles as Dell's CEO and Chairman? How well has he performed the five tasks of crafting and executing strategy that were discussed in Chapter 2? Michael Dell's role as CEO and Chairman was a very successful one. As a young leader he was very shy and not a great speaker. With coaching and leadership from Lee Walker, Michael became a well seasoned executive that would lead his company to greatness. Michael's strategy and vision was to produce quality computers that his company could sell directly to the customer. Customers had the option to pick and chose the type of system that fit their own needs. By making built to order system, he knew it would reduce production cost which allowed him to spend money in other more demanding areas. He achieved this by delegating responsibilities to low level management that had good ideas for cutting cost, thus saving the consumer more money. Michael's attention to the changing methods of shipping and third party logistics developed into a partnership with suppliers.

What are the elements of Dell's strategy? There are several elements to Dell's strategy. They include direct product sales to the consumer without a middleman. The second element allowed the consumer has the flexibility to add or delete components to get an exact product model for their needs. The efficient supply chain allowed the direct sales to be successful. The added value that consumers receive is the last element of Dell's strategy.

Which one of the five generic competitive strategies is Dell employing? Dell is employing several competitive strategies. The company tailors it's products according to customer requirements and partnership with it's suppliers to provide lower costs by eliminating the middleman. Selling their products directly to consumers Dell was able to increase their market share through product expansion. They competitively standardized their technology to provide a consistent product line and focused solely on how to meet their consumer needs. These strategies have worked very well for Dell. All of them integrate to make Dell a more successful company. In the end each of the strategies are better together than apart. Dell's strategy is constantly evolving. They have consistently sought ways to improve their product and service offerings.

Dell's expansion into other IT products and services makes good strategic sense. Technological advancements has advanced consumer IT needs. The organization has created a fan base that would remain loyal to their product and would like matching components for Dell computers. Consumers would feel more confident knowing that the same consistent, reliable product they have as PC would equate to that same level of satisfaction with Dell accessories.

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