Bus630  Managerial Accounting

Professor Gregory Goussak

Lawanda M. Bishop

09/30/2012

1. 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’s business strategy combines its direct customer model with highly efficient manufacturing and supply chain management organization and an emphasis on standard based technologies.  This type of strategy enables Dell to provide customers with superior value; high quality, relevant technology customized systems; superior service and support; and products and services that are easy to buy and sell.  Customer intimacy is saying, “You should choose Dell because they can deliver products and services faster and more conveniently at a lower price”.  The operation excellence is saying, “You should choose  Dell because they can deliver products and services at a more convenient and lower price than their competitors”. The product leadership is saying, “You should choose Dell because they offer high quality products better than their competitors”.  Having a direct relationship  with the customers is the most efficient path.  Dell is a low-cost leader, that provides single point of accountability for its customers.