Dell Leadership Strategy

COST LEADERSHIP STRATEGY

Dell Computers have been the industry leader with there cost-leadership strategy. They strive to provide technology and support at a lower unit cost than their competitors. They are a direct model company. Their unique relationship with customers gives Dell the opportunity to know exactly what their customers want and offer products that their customers need. They have a strong focus on being a "market taker" rather than a "market maker". Capitalizing on their ability enter new markets and dominate them the way they have in the lower end server and work station markets has been a crucial part of Dell's success.

On-line and telephone sales and support can also be attributed to Dell's superb direct model. Through on-line custom system sales the customer can configure a system with assistance. By using this method Dell has managed to help keep internal costs low, increase value to the customer and provide increased returns to their shareholders.

Dell's cost leadership strategy has also allowed them to respond to market indicators favorably. There aggressive strategy allows them to respond to a market slowdown by decreasing