Dell's Foray into Consumer Electronics


Dell's Foray into Consumer Electronics
Case Code: BSTR253
Case Length: 21 Pages
Period: 2003-2007
Pub Date: 2007
Teaching Note: Not Available
 Price: Rs.400
Organization: Dell
Industry: Information Technology and Related Services
Countries: US
Themes: Business Strategy
Dell's Foray into Consumer Electronics
Abstract Case Intro 1 Case Intro 2 Excerpts

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.

Issues

The case is structured to achieve the following teaching objectives

  • To analyze the factors that a company considers while entering a new product category
  • To understand the possible causes for the company's limited success in a new product category
  • To gain insights into the US market for PCs and consumer electronics

Contents

Keywords

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

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