1. Introduction
This project is one of two reports I will complete as part of the strategic analysis of Dell. This first report focuses on the Strategic formulation analysis and includes the following sections. First, the major concepts related to the Strategic Formulation analysis will be defined. Second, those concepts will be applied to the specific case of Dell. Then, the evidence from Dell will be evaluated to identify the major problem the company is facing and propose a solution that Dell can adopt to restore its lost competitive advantage.
2. Concepts
The Strategic Formulation analysis is the examination of a company’s generic and corporate strategies along with their international strategies as well. This section will define key concepts involved in the strategic formulation analysis.
2.1. Generic Strategies
The purpose of the generic strategies is to identify opportunities and threats in a firm so that they are able to take a defendable position in the industry. There are 5 basic generic strategies cost leadership, differentiation, integrated, niche and. Cost leadership focuses on providing the lowest per unit cost in the industry. Differentiation takes the opportunity to create a perceived uniqueness in the industry set them apart from rivals. While niche focuses on one particular group and caters to their buying power. All are can be used and as a basis point to start for companies to be a force in the industry.
2.2. Corporate Strategies
The purpose of the corporate strategy is to identify a position in the industry that the firm wants to take. Vertical integration, related diversification, and unrelated diversification are strategies that enhance a company’s ability to achieve its objectives. Vertical integration The process in which several steps in the production and/or distribution of a product or service are controlled by a single company or entity, in order to increase that company's or entity's power in the marketplace....