Different companies are applying varied strategic perspectives to enhance their business efficiency, competitiveness, and overall survival, especially in the current global settings. Industry conditions are volatile, dynamic, and governed by complex variables requiring companies in the communication and computer technology ventures to develop the appropriate approaches to achieving their intended objectives. Dell is the chosen company for strategic analysis by being a multinational company venturing in computer technologies, design, development, and support services for company products. Since it is among the largest technology companies in the world, Dell has justified analysis in order to comprehend its functional perspectives.
Technological advancements and globalization have had major effects on the culture, operations, and business functions of Dell over the years depending on the defined objectives. To begin with, the drivers of globalization have improved international working models, system management, and other variables that define dynamics of international commerce. In the book by Dell & Fredman (2006), globalization has impacted the corporation in terms of improving competitiveness and productivity. This can be attributed to the fact that globalization has provided optimal information flow channels where data can be processed and subsequently integrated into core economic activities such as management, production, and distribution.
Globalization has also eliminated constraints emanating from face-to-face communication, market access, and customer management. This concept has made companies and countries open their operations to other entities improving commodity flow, information sharing, and provision of resources with minimal geographical, regulatory, and international limitations. This means that Dell can access a larger market share, more consumers, diversified labor, and production resources which could not have happened without globalization. In fact, the company can set production facilities in strategic locations and service the target markets more efficiently due to improved global provisions that allow the company to operate in selected regions with minimal constraining factors (Meerhaeghe, 2011).
Technology has not only allowed the company to venture into the world business but also allowed the global economy to work from a single point of operation benefiting Dell in the process. Information technology has revolutionized how companies share information and ideas, as in the case of Dell, enhancing its capability to handle business requirements. In fact, technological changes have impacted the featured company in terms of strategy development, implementation, and propagation of applicable ideas related to improved products and services. Therefore, it can be noted that technological changes are key factors in strategy development hence their impacts on the company.
On the other hand, technology has created structures characterized by higher efficiency, productivity, and application of skills to develop provisions that suffice market, customer and stakeholder needs appropriately. It has increased the ability to run activities effectively and tap into new opportunities optimally. Advancements have been used to redesign factories, design processes, and optimize logistical networks so as to maximize profitability. By adopting technological changes, Dell has been able to streamline cost structures with an outcome of added profitability that is being used to invest in other projects that promise business progression as per industry dynamics.
The industrial organization and resource based model can also be used in addition to technological changes and globalization in order to earn above average returns. Using the organizational model, the most basic construct is the application of mechanisms that ensure that optimal outputs are quantities where marginal revenues are equivalent to marginal costs. From this basic tenet, firms can produce more products and generate additional revenue as compared to the competition. This means that Dell can create products while benefiting from economies of scale, as well as developing optimal pricing models that surpass the expected value from customers.
Additional application of the resource-based model improves value and generation of more than average returns by viewing resources as superior to firm performance. This means that Dell is required to leverage on tangible and intangible resources to exploit opportunities that are unique and contributory to competitiveness. Resource optimization is therefore essential for developing high-quality products that attract more customers to generate sufficient income to sustain basic business functions. Using the model, resources play a major role in facilitating higher organizational performance, competitive advantage, and sustainable value. It is up to the firm to decide on the accurate combination of resources in the prevailing organizational model to maximize organizational growth and development.
The mission and vision statements of the company have also defined its overall success in the technology and computing industry despite its intricate dynamics. The mission statement outlines that the company intends to be one of the most successful information technology firms in the world through the delivery of exceptional products and experiences. This has contributed to the company success in terms of the development of high-quality products and services, investing in technological advancements, flexibility in customizing capacities, and implementation of effective corporate citizenship. A combination of the mentioned factors is the key factors contributing to Dell’s success levels hence its position in the constituent industry.
On the other hand, Dell & Fredman (2006) outline that the company vision is aimed at the way business is done, how customer interactions are made, and application of technologies to provide superior service and support. These visions are the ones that are driving every activity being done, including delivery of technology solutions that enable people to thrive, grow, and suffice their needs. This has formed the basis for investing in production technologies, management structures, and research undertakings that have constantly resulted in higher successes in terms of competitiveness, differentiation, and provision of superior products.
Being a multinational corporation, Dell has different classifications of stakeholders with varied impacts on the success factors. The first classification of stakeholders are the employees involved in management and running of day to day corporate business functions. These are crucial for corporate success since their expertise, efforts, and contributions result in the innovation of products, services, and customer management programs that enhance market domination. In addition, they provide knowledge resources and represent the company where their involvements enhance its image, brand, and overall perceptions from the targeted market segments.
The other stakeholders are customers and investors who are involved in purchase, consumption, and provision of capital resources for investment. Customers are the ones providing the required amounts of revenue through their purchases, hence their vital contribution to organizational success. This is the reason for developing marketing and customer management programs that ensure a sustainable flow of income. On the other hand, investors contribute to the success of the company by providing working capital, strategic partnerships, and other forms of support meant to ensure that the company achieves its overall goals. Without the investors, the company cannot succeed since it loses benefits of expertise, financial support, and resource provisions.
In summary, Dell has become a successful multinational company due to the application of multifaceted strategies depending on industry dynamics. The company has used technological advancements and changes on globalization to improve productivity, performance, manufacturing efficiency, and logistical optimizations with an end result of higher competitiveness. Further, mission and vision statements have been used as guiding factors on the appropriate business models to use in order to gain high success levels. Finally, the contribution from stakeholders has been used to improve the overall success of the corporation through the provision of know-how, expertise, finance, and other forms of support relevant to business development.
- Dell, M., & Fredman, C. (2006). Direct from Dell: Strategies that Revolutionized an Industry. Boston, MA: HarperBusiness.
- Meerhaeghe, V. (2011). Globalisation: concept, outcome, future—a continental. European Journal of Law and Economics, 241-250.
