This research aims to analyze how Dell has been impacted by globalization and creative funding. Two models will be used to illustrate the company’s potential benefits: the resource-based model and the industrial organization model. Success factors will be further investigated, including the company’s vision, goal, and stakeholders.
Globalization
Hypercompetitive conditions and the concept of the present competitive landscape are two essential drivers of globalization’s effect on the technology and economic sectors, blurring the boundaries between industries (Kyove et al., 2021). Both globalization and technological advancements have had significant impacts on Dell’s corporate strategy and operations. As a result of increased competition on a worldwide scale, Dell has adjusted its business practices in order to retain and attract new customers successfully. Its worldwide expansion of operations and merchandise is an effort to lower the bar for entry held by rivals. Its global reach means it must adapt to varying economic, cultural, social, political, and legal environments, which have impacted the company’s strategy and organizational structure.
According to Kraemer et al. (2022), Dell has adapted its methods based on the state of the economy worldwide. The expansion of international trade also allowed Dell to expand into new markets. As a result, it has captured a substantial market share in fast-growing countries like China, India, and others. As a result, Dell’s business strategy and operations have been affected by the effects of globalization.
Technology
Because of the extensive use of technology across Dell’s operations, the firm can have straightforward and reduced disputes with its suppliers, which is a significant worry for the company. The business relies on this knowledgeable connection to manufacture and ship its wares at the most competitive rates and in the shortest amount of time. Dell’s presence in a country’s economy benefits the local community by creating jobs and tax revenue. To please its affiliated organizations, the corporation has fostered a culture of constant improvement (Kyove et al., 2021). Dell’s business model has been altered, and new opportunities are presented due to global technology developments, such as the rise of online commerce, online supply, and other web-based instruments. As a result, a model for an online inventory network has been developed, and coordinated sales have begun (Zheng et al., 2019). Dell has adopted and used these technical advancements to improve manufacturing delivery times and supplier coordination.
Dell’s communication methods with its suppliers, customers, and employees have also evolved as technology advances. Dell uses the Internet extensively to combat the impact of technological progress. Additionally, the global period has changed buying habits in their manufacturing line, which calls for an effective and satisfying support strategy (Khalifa et al., 2016). Dell has evolved its strategies and established several retail marketplaces throughout the globe as a direct response to this shift.
Industrial-Based Model
According to the Industrial Organization (I/O) Model of Superior Returns, an organization’s strategic choice is heavily influenced by environmental factors. The general, industry, and rivalry states that affect a company’s strategic decisions and actions are all studied in depth within the framework of the Industrial Organization model. Dell can benefit from understanding potential changes in the general state by studying statistical, monetary, political, sociocultural, and legal variables that may bear some opportunities and risks for its activities.
By analyzing the market for computing equipment, Dell will raise concerns about the bargaining power of consumers and suppliers, the emergence of new competitors, the availability of substitute products, and the intensity of existing competition (Khalifa et al., 2016). Dell will evaluate Samsung, IBM, Apple, etc., in terms of their strategies, goals, hypotheses, and capabilities as part of a competitor’s analysis. This investigation will provide crucial information regarding threats and opportunities, and prior experience helps make decisions and develop strategies in a safe environment. The outlined I/O model would provide Dell with a solid foundation for efficiently penetrating openings and restricting threats relative to competitors, thereby facilitating above-average returns.
Resource-Based Model
The RB model provides an introspective look at a company’s inner workings, raising awareness of in-house strengths and opportunities. Dell will be able to identify its areas of strength and improvement and assess its core competencies with the help of the RB process. Dell will be better able to develop their strengths and identify their weaknesses with the help of this awareness. The formulation of such a strategy will also provide a foundation based on results for identifying competitive advantage, which may help to generate above-average returns (Khalifa et al., 2016). Additionally, the model exemplifies how Dell dynamically manages capabilities and resources to achieve superior results in scaling the computing industry. Therefore, combining the RB and I/O models will help Dell identify its SWOT, allowing it to create familiar policies that may aid in earning a high return with less effort.
Vision
Scanning the environment provides information vital to developing any company’s mission and vision. Dell’s stated purpose is the following, as presented in the company’s vision statement. “Our goal is to be recognized as one of the best in any market, not just the one in which we currently operate.” Dell’s vision statement lays out an area of focus that calls for several approaches (Ragulan, 2021). To remain competitive, Dell has fostered a culture of continuous improvement, which has contributed to the global expansion of the company and the development of a highly skilled and diverse workforce. The trained staff allows the company to provide one-of-a-kind knowledge to customers, who in turn help the company expand internationally and boost sales. Dell is committed to developing leaders and fostering a culture of accountability, and the company’s vision helps to reinforce these core values.
Mission
According to the company’s mission statement: “Our goal is to be the most successful IT operations organization in the world by consistently exceeding the expectations of our customers at every one of the events we host.” The company’s goal is to desegregate its operations following consumer expectations so that it can expand its market around the world. Dell’s global expansion and commitment to customer satisfaction have helped it become the most successful IT company in the world (Ragulan, 2021). Dell can provide top-notch services because of the mission that drives the company. The goal boosts sales and profits and enhances the customer experience, contributing to global success. This has allowed Dell to take full advantage of the e-commerce sector concerning competing businesses, opening up significant opportunities for Dell to seize a larger market share (Khalifa et al., 2016). Dell is driven by its mission to provide high-quality products and services at affordable prices across various markets. Dell’s supply chain management strategy helps the company fulfill its mission by allowing it to offer cutting-edge goods at affordable prices without sacrificing quality.
Stakeholders
Dell’s global prominence can be attributed mainly to the company’s streamlined supply chain, which results from the combined efforts of management and staff. The new Dell marketing investments are funded by the company’s shareholders and other principal suppliers like creditors and banks, who all expect a return on their investment (Khalifa et al., 2016). Profitability and adequate returns are achieved, encouraging stakeholders to increase their financial commitment to the company. This allows them to make new investments that will allow them to run their business with fewer resources.
Dell can reduce its capital outlay and boost output thanks to its shareholders. Unions, suppliers, host communities, and primary customers are all examples of stakeholders that can significantly impact an organization’s results (Khalifa et al., 2016). Dell can achieve global success with the help of its stakeholders because of its well-managed supply chain. Dell customers require affordable, high-quality goods.
Conclusion
According to the findings, Dell exemplifies all three tenets of value creation concerning strategic management: the stakeholder approach, the RB model, and the I/O model. It enables it to see crucial chances and gain a strategic edge. The three warnings in strategic management aim to help the organization make better decisions.
References
Aslam, A., Eugster, J., Ho, G., Jaumotte, F., & Piazza, R. (2018, April 9). Globalization Helps Spread Knowledge and Technology Across Borders. IMF. https://www.imf.org/en/Blogs/Articles/2018/04/09/globalization-helps-spread-knowledge-and-technology-across-borders
Khalifa, N. Y., Alsaid, H. M., & George, S. (2016). A Comparative Analysis of Strategies and Business Models of Dell Inc. and Hewlett Packard (HP). International Journal of Research in Management, Economics, and Commerce, 6(6).
Kraemer, K. L Dedrick, & Jason. (2022). UC Irvine Recent Work Title Dell Computer: Organization of a Global Production Network. https://escholarship.org/content/qt5cg6g96m/qt5cg6g96m.pdf?t=krnb03
Kyove, J., Streltsova, K., Odibo, U., & Cirella, G. T. (2021). Globalization Impact on Multinational Enterprises. World, 2(2), 216–230. MDPI. https://www.mdpi.com/2673-4060/2/2/14
Raglan, B. (2021). Strategic Analysis of Dell Inc.
Zheng, M., Feng, G.-F., Feng, S., & Yuan, X. (2019). The road to innovation vs. the role of globalization: A dynamic quantile investigation. Economic Modelling, 83, 65–83. https://doi.org/10.1016/j.econmod.2019.09.019
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