Dell's Foray into Consumer Electronics

Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR253
Case Length : 21 Pages
Period : 2003-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Dell
Themes: Business Strategy
Industry : Information Technology and Related Services
Countries : US

To download Dell's Foray into Consumer Electronics case study (Case Code: BSTR253) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


Buy With PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Exchange Rates: Click Here
Delivery Details: Click Here


For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Introduction Contd...

However, many analysts were skeptical about Dell's chances of succeeding in the CE market, which had several strong players.

They reasoned that CE, which required a combination of factors like design, technology, and branding, to succeed, was different from computers, where productivity and service counted for more.

By the end of 2004, Dell revealed that it was not doing well in its CE business and that its revenues from the business remained insignificant. Later, in November 2005, Dell made the CE division, which till then was a stand-alone unit, a part of the Software and Peripherals business.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

However, Dell confirmed that it did not intend to abandon its CE business. In fact, it even introduced new products. Even so, it seemed that the company had failed to successfully replicate its highly cost-efficient business model in the CE market.

Analysts felt that Dell's failure to make headway in the CE market was a victory for other CE companies (Sony, Panasonic, etc) and CE retailers (Best Buy, Circuit City, etc). Toward the end of 2006, it looked as though Dell's computer business was also under threat with the company reporting falling sales, even as most of its competitors were seeing good growth rates.

Background Note

Dell Computer Corporation (Dell Corp.) was set up in 1984 by Michael Dell (Michael) with a capital of US$ 1,000. The firm sold computers based on the direct marketing business model, eliminating retailers. It offered customers, mainly large corporations, systems that were built to order, were powerful and richly-configured, and were priced competitively. In 1985, Dell Corp. introduced the Turbo, its first computer system designed in-house. By 1987, Dell Corp. had become the only computer company that offered next-day on-site product service.

In this period, the company opened a subsidiary in the UK. In 1988, Dell Corp. went public with an IPO of 3.5 million shares at US$ 8.50 each. In 1990, in order to serve the European, Middle Eastern, and African markets, Dell Corp. opened a manufacturing center at Limerick, Ireland. In 1991, it introduced the Latitude, a notebook computer...

 Excerpts >>

Custom Search

Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.