Dell Form 10K Analysis

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* What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? Dell would be a combination of all three strategies: customer intimacy, operational excellence, and product leadership. Dell focuses on creating superior products directly to the costumers at lower prices (Dell, Rollins, Carty, Gray, Lewent, Luce, Luft & Mandl, 2005). These products can be chosen from a variety of options to make the product the costumer’s own creation. Dell is utilizes operational excellence by producing products made with precision and diligence (Dell, Rollins, Carty, Gray, Lewent, Luce, Luft & Mandl, 2005). Dell also does not expect the computer to become a stagnant technology but a constantly evolving one, giving to the costumers able to buy the most technologically savvy technology (Dell, Rollins, Carty, Gray, Lewent, Luce, Luft & Mandl, 2005). Dell’s direct customer support and standard allows for the middleman to be cut out of the equation and their superior products to be passed along directly to the customer without the additional middleman price utilizing the operational excellence strategy. * What business risks does Dell face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 7-10 of the 10-K.) There are many factors that can threaten Dell’s success. Some these would include economic downturns; parts supplies cannot meet the production needs, infrastructure failures and other uncontrollable problems (Dell, Rollins, Carty, Gray, Lewent, Luce, Luft & Mandl, 2005). Of course, uncontrollable risk cannot be reduced but others can be safeguarded against in an

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