Wednesday, November 28, 2012

Dell's Enterprise Strategy

Activities performed by Dell encompass the development, manufacturing, sale and support of personal computers and other computer related products. Since its foundation, Dell’s values are rooted not in invention, but in a flexible ideal: that it is best to build its business around already established standards, which is a Red Ocean Strategy. With increasing competition in the personal computer market, Dell is trying to expand their presence in the enterprise business needs by selling combinations of enterprise hardware, software and recurring services to big corporations. They are primarily doing this by acquiring networking companies, expanding organic growth and pivoting strategies and products with customer needs.

Dell believes that with increasing competition and choices, corporations want the best IT infrastructure that is powerful, compact, inexpensive and easily scalable.  Therefore Dell recently announced its latest step to win enterprise business with its Active System family of products. The aim of Active System is pretty straightforward: “Get all the needed parts of IT infrastructure together in one piece that’s easy to deploy and operate, and also easy to sell in one go”. 

With the Active System family, Dell has taken an end-to-end solutions approach, which brings together the performance and the agility with optimized price and operational efficiency.  Additionally, Dell has recognized that simplicity of integrating and setting up automated IT systems has become a major decision maker. They believe that customers don’t want computer hardware, software or services. What they want is computing solutions. And the easier the systems are, they more they will be used by customers and therefore, Dell can target a wider range of customers. These findings and beliefs have led Dell to increase their focus on the usability aspects of systems management. 

Dell has already started to realize a positive momentum with its decision to focus on enterprise solutions. Considering the fact that IBM, Oracle and Cisco have already or are planning to launch solutions similar to the Active System, is the new strategy going to help Dell excel this momentum?


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