Abstract

Dell Inc. is a major US-based computer and peripheral manufacturer. The case describes Dell's foray into consumer electronics, and the company's limited success in the new venture. It also describes the company's fluctuating fortunes in its computer business, and raises the question whether the direct sales model followed by the company can continue to be a powerful source of competitive advantage for the company. The case ends with a brief discussion on recent developments concerning Dell, and the future prospects for the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the factors that a company considers while entering a new product category
• Understand the possible causes for the company's limited success in a new product category
• Gain insights into the US market for PCs and consumer electronics.

Keywords

Dell Inc, Consumer electronics, Market entry strategy , New product category, Brand extension, Direct sales, Computer and peripheral manufacturer, US PC market