Business level and Corporate level strategies: Dell Inc.



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Abstract

Strategies are the blueprint that helps in the attainment of long term objectives. This research paper focuses on the personal computers industry and provides analysis of Dell Inc., a publicly traded company of United States by comparing its business and corporate level strategies with those of the major direct competitors (IBM, HP and Apple). In the slow cycle market, Dell will be able to remain successful in long term. However, IBM will have more probability of long term success in the fast cycle market.

Table of Contents

Introduction1

Corporate level and Business level Strategies1

Overview of the industry2

Overview of the company2

Business Level strategies of Dell Company2

Business level strategy and long term success of Dell Company3

Corporate Level strategies of Dell Company4

Corporate level strategy and long term success of Dell Company5

Competitive environment for Dell6

Business level and corporate level Strategies of competitors7

Conclusion derived from the analysis of the competitors strategies8

Slow cycle and Fast cycle markets9

Conclusion9

References11

Business level and Corporate level strategies: Dell Inc.

Introduction

Strategies are designed with an aim to achieve long term objectives set by the organization. Strategy formulation is considered as one of the basic element of the strategic management process. Strategies are formulated at three different levels: corporate level strategy, business level strategy and functional level strategy. This research paper analyses the business and corporate level strategies of Dell Inc., one of the publicly traded corporation in the personal computer industry of United States.

Corporate level and Business level Strategies

A highest level of strategic decision making is occupied by the corporate level strategies. These strategies basically covers the decisions that relates to the objectives of the firm, resource allocation, acquisitions, along with the integration of various strategies that are designed for each of the Strategic Business Unit. These strategies are formulated by the top level management.

Business level strategies on the other hand, are specifically designed by those organizations that have a portfolio of different businesses and each business is considered as a strategic business unity (SBU). Strategy at this level serves as a comprehensive plan that provides helps regarding the objectives, resource allocation for each SBU and achievement of corporate level strategies. The operation of such strategies is within the overall organizational strategies.

Overview of the industry

The expansion of computers has been observed in United States and all over the globe over the last 30 years, as the availability of these computers have increased from 200 units in 1960 to over 15 million per year by 2003 (Computer Services Industry Analysis 2012 - Cost & Trends, 2012). The industry is at its boom and provides the players an opportunity to make related or unrelated diversifications in order to remain competitive in meeting the fluctuating demands of the end customers.

Overview of the company

Michael Dell is the founder of Dell Inc. The company was established in the year 1984 with an objective to sell directly to the customers. The operations of the company are expanded all over the world through the platform of various ...