Define and explain Strategic Management

Dell’s turnaround strategy was about changing the mode of selling PCs to the customers. Dell’s turnaround strategy involved the changing of direct-sales model and to offer computers in retail outlets. The aim of this strategy was to increase the revenue for the company after it had made loses in the past. The supply chain that was used in the past was different like the current way of supplying the PCs. Also the manufacturing cost was higher therefore limiting the number of customers who came to purchase their products.

The turnaround strategy that was introduced by Dell after returning back to the company as the CEO in the company had the greatest impact on the performance of the company. Some of the Dell’s turn around strategies included; cutting down the cost of PCs, moving away from computers internally and opening more manufacturing branches in other places, changing mode of sales to indirect sales and introducing more products. These strategies are important for the PCs business in that in cutting the cost of selling the products, the company is able to generate more revenue and profits since they will get more customers. For example, when the price of a commodity in the market is reduced to the level that is affordable to all, it will move faster and the company will get more revenue within a short period of time. Also, in the opening of other manufacturing places in other places, the number of customers who will purchase the products will increase since they will easily access them. This again will increase the revenue collected by the company. Indirect sales also increase the supply of products to the customers since the products will be distributed everywhere. The retailers act as agents for the Company (Shirani, 2012). For example, when the products are sold by several agents who have been given authority by the manufacturers, products will move faster and will also be available to many customers.

The introduction of new products on the other hand will attract more customers since “new products introduced into the market will be on a higher demand within the first few months” (Rao, 2009). This will therefore help in increasing the revenue earned within the company. For example, if the company manufactures new model of mouse or desktops, the company will get more revenue because the demand for the new product will go up since many people will want to get to taste the new product

From the first and second e-Activities, analyze Dell’s declining industry strategy. Next, compare the company’s strengths, relative to remaining pockets of demand, to the intensity of the competition in the declining industry. Provide one (1) example of Dell’s strength over the competition to support your response.