Dell Incorporation is one of the world’s most well known and reputed computer hardware manufacturers and computer distributors in the world operating successfully since the year 1984, when it was founded by Michael Dell. It is the world’s #1 giant computer vendor organization which deals in the direct sale of the wide variety of computer related products to the customer end as well as the huge business enterprises. Dell not only provides single ended consumer products such as peripherals and third-party software and laptops; but also provides IT systems such as storage devices, Ethernet switches, storage and network servers, desktops, laptops, workstations, printers and projectors (Holstein 2003).
The major competitors of Dell can be viewed as under:
- Hewlett-Packard (HP)
- Sun Microsystems
All of the competitors of Dell shares one single mission. To leap ahead of Dell, leave it behind in the competition from them and to take the title of becoming #1 in the world in respect of IT Company, direct computer sales, networking and other fields which are related to computers, storage and IT.
Dell has been very successful in all aspects but its competitors are also very strong and trying to beat the company with their full potential. For that, the competitors have designed strategies to beat Dell in every way possible. A competitive strategy is basically an action plan to demolish the competitor’s actions instead of creating newly designed procedures. (Sawka 2007) these multinationals have designed a set of procedures to beat Dell in competition. For this, they have drawn a list of competitive advantages and set strategies accordingly. For example; previously, HP was trying to beat Dell in the fields in which Dell is strong enough to compete, but now, they have a new strategy plan in which HP will retain its force to focus on the areas in which Dell has no presence and will focus on the strength and retail store production sales. This helped HP a lot in surpassing and taking lead from Dell since 2003 in direct sales.
The competitors of Dell compete in different capabilities. The word “capabilities” is a very strong word which consists of the moves made by the company, people working, technology and processes made and implemented, technology used, organization, and services offered. Capabilities of a company can be improved through new launch of products and little innovation carried out. For example, as competitor’s response to Dell’s share gain devices and cost-reduction; HP and Compaq merged their pc system, while IBM sold its pc system to Chinese Lenovo.
The major competencies set by Dell are many. It assembles computer in moderation coupled with constant pressure of work to find out new ways to know the customer values which could enhance market growth and meet customer demands. Apart from that, it focuses on customer dedication, building trust among customers, innovating new technology and making strong sales ratio.
The competitor response Dell has faced along with its competencies is huge. Competitive response is all about winning game. The competitors usually set high goals to compete eachother in which area and so has the Dell’s competitors. For instance, HP has introduced many cost effective technology models, IBM has come up with new innovative reforms, Compaq has merged with HP, and Apple has planned to make higher sales graph.
All of these efforts made by the competitors of Dell are of great and significant importance and related gradually to the competitive profile of the company. it is because of the factor that Dell has also to compete with these organizations and has to give a competitive edge to them with its unique set of technology and advancements. The company does subtle research and carries out the actions according to the advancements needed to be made which could give it an outstanding position in the marketplace and the whole world among its competitors.
Holstein, William J.; Dell: One Computer, Two CEOs, CEO Magazine, 2003, pp32.
Sawka,Kenneth A.; 2007, Why Is My Competitor Doing THAT? – When sizing up competitors, worry less about what they do well and look harder at what they do poorly. That’s your target, Outward Insights.