Dell's Service Business: Duplicating the Low-Cost PC Model


Code :BSM0025

Year :

Industry : Engineering, Electrical and Electronics

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: By following its Dell Direct or Low-Cost PC Model, Dell became the number one seller of personal computers. For its services business, Dell went on to duplicate the model and the business posted a profit of $3.7 billion with a 30% growth rate in 2005. The company was confident that the model was successful for its services business and analysts expected this business to double in size by 2010. However, critics were sceptical about the future of Dell's services business and the applicability of the model.

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Pedagogical Objectives:

  • To enable understanding the intricacies of the Dell Direct Model and the way Dell was duplicating it in the services business
  • To highlight the challenges that lay ahead for Dell's services business
  • To discuss whether Dellís services business would be as successful as its hardware business and the appropriate of its business mode

    Keywords : Dell's service business; Dell Direct; Dell's low-cost PC model; Dell effect; Dell's build-to-order system; Corporate Strategies Case Study; Michael Dell; Managed services; Support services; Professional services; Deployment services; Financial services; Training and certification services

    Contents :
    Ľ Dell's Low-Cost PC Model
    Ľ Duplicating the Low-Cost PC Model for Dell's Services Business
    Ľ Dell's Service Business: The Way Ahead

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