The Dell Case

The Dell Case

  • Submitted By: yasemin
  • Date Submitted: 11/30/2009 7:10 AM
  • Category: Business
  • Words: 624
  • Page: 3
  • Views: 507

Executive Summary Presentation 1

This case represents the issue of dell in 2002. At this time HP was having trouble with its computer sales, but was very strong in the sales of its printers, it was the market leader. DELL was doing very well with its sales of its core product which were its computers and netbooks. The issue it faced was whether or not to enter the market for printers. The underlying motives were the very high margins on printers and ink cartridges. if dell would enter the printer market, this could be considered a direct attack on HP, because if it would succeed to steal enough market share from the printer market of HP, it would become very strong in both markets, as HP at that time was only very strong in the printer business. The proposed option is to enter the printer market and reap profits from the high margins and weaken HPs position.

Executive Summary Presentation 2

In 2002, DELL had a strong position in the computers market. It was assessing the opportunity to enter the printing business. Its main competitor would be HP, which recently merged with COMPAQ. Other competitors in the printing business would be LEXMARK, EPSON, XEROX and CANON. Their industry was considered to be an R&D intensive market. The current technologies for the printer business were inkjet versus laser. The cartridges had high profit margins and thus were also appealing to enter. The question to be analyzed is whether or not DELL should enter the printer business. Two approaches were suggested, which were the Judo approach. This would have been an aggressive attack. This option would entail bringing down ink prices and rebuilding the market. The other option would be to choose pricing accordingly by benchmarking.

Structured Assessment of both presentations

Both groups had very well prepared for the presentation. The slides looked very well and the presenters were well prepared. Team 1 very well assessed the core competencies of DELL (razor blade...

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