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Dell’s Diversification Strategy Essay

Dell’s Diversification Strategy Essay

“Dell’s Diversification Strategy: a Day Late and a Dollar Short” is an article that gives a detailed overview of the latest effort of Dell company to perform diversification of its products and to broaden its influence by entering new markets in addition to already familiarized sector of low-cost computers. The above-mentioned article has four parts which logically intertwine with each other and are smoothly connected:

  • Introduction
  • The introductory part is focused on describing the ineffective attempts of Dell Company to diversify its production.

  • Second Section
  • The second part of the article analyzes the new vector of Dell’s development which is cloud computing.

  • Third Section
  • This part is especially interesting because the author gives a very appealing idea of servicization of certain companies which specialize in hardware production and start to move in the direction of quality computer service because of the active competition in the hardware industry, which has been increasing lately.

  • Fourth Section
  • The final section of this article demonstrates the vagueness of Dell’s strategic objectives. The author of the article says that Dell Company’s attempts to reach the high level of diversification may be in vain because of high competition in the industry.

Some of the important business concepts illustrated in this article are low-cost strategy, focus strategy, and differentiation strategy. Using the analytical data, the author of this article shows that Dell Company was very successful in utilizing low-cost strategy, which became possible thanks to the process of internal optimization. The author of the article also takes into consideration Dell’s efforts aimed at introducing product diversity into its current business model. These efforts were also compared with the innovation activities of the Apple Company, which is especially successful in this direction. Another interesting topic that this article touches on is performing in a highly competitive environment as well as ways to get a competitive advantage and become an important player on the market of hardware producers.

After performing the SWOT analysis method, it became evident that some of the opportunities and weaknesses of Dell Company were not taken into consideration in the article. Their consideration would be very useful in further analysis of the given situation and making this article more substantial and grounded. No evident bias or specific recommendations or call-to-action can be found in this article. However, in general terms, this article is very useful and informative because it sheds light on many interesting facts and aspects of Dell Company’s business activity. Although these facts are offered in a somewhat chaotic manner and this article is missing some key points, it provides an insight into Dell’s actual economic position and its problems connected to current growth strategies.

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