After a long period of victory with it’s hyped "Direct Model" for computer production, promotion, and supply, Dell Computer Corp. is challenged with competitor activities to match its plan of action. The case ‘Matching Dell’ demonstrates the progress of the personal computer business, Dell’s plans and tactics, and attempts by rivals such as Compaq, IBM, HP, and Gateway 2000 to grab the advantages of Dell’s strategy. Students are required to design strategies for Dell and its competition.
How attractive is the personal computer industry as an arena in which to do business in the late 1990's?
What strategy and which tactics did Dell employ to make the industry more attractive for itself?
What are the key assumptions underlying Dell’s business model?
Why have Dell’s competitors not imitated Dell and removed its advantage?
How did the PC industry come to have the level of attractiveness it had in the late 1990’s? To whom would you assign responsibility for the state of the industry?
How would you go about calculating Dell’s advantage over Compaq in serving a corporate customer in 1996? What do you need to know?
What strategies did Intel and Microsoft follow with respect to the PC industry?