Dell's Foray into Consumer Electronics


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR253 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Business Strategy
Case Length : 21 Pages
Period : 2003-2007
Pub Date : 2007
Teaching Note : Not Available
Organization : Dell
Industry : Information Technology and Related Services
Countries : US

Abstract:

Dell Inc. is a major US-based computer and peripheral manufacturer. The case describes Dell's foray into consumer electronics, and the company's limited success in the new venture.

It also describes the company's fluctuating fortunes in its computer business, and raises the question whether the direct sales model followed by the company can continue to be a powerful source of competitive advantage for the company.

The case ends with a brief discussion on recent developments concerning Dell, and the future prospects for the company.

Issues:

To analyze the factors that a company considers while entering a new product category

To understand the possible causes for the company's limited success in a new product category

To gain insights into the US market for PCs and consumer electronics

Contents:

  Page No.
Introduction 1
Background Note 2
Dell Enters the Consumer Electronics Space 3
Dell Proposes, Market Disposes? 8
Dell's PC Business Faltering 10
Outlook 10
Exhibits 13

Keywords:

Dell Inc, Consumer electronics, Market entry strategy , New product category, Brand extension, Direct sales, Computer and peripheral manufacturer, US PC market

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