Diversification Strategies Case Study

Dell's Diversification Strategies

OR

Abstract:
Dell set itself an ambitious financial target of achieving $60 billion in revenues by 2006. With the growth rate for its core PC business slowing down, the company began to branch into segments like handhelds and printers. But when the company entered the consumer electronics market with offerings like flat panel TVs, MP3 players etc, questions were raised about the applicability of its Direct Model to its new businesses.

Pedagogical Objectives:

• To discuss how Dell was able to dominate the PC market by leveraging on its Direct Model
• To discuss the company's diversification into other businesses like handhelds, printers and consumer electronics, and the challenges it is facing.

Keywords : Dell Inc; Direct Model; Diversification Strategies Case Study; Diversification; Handhelds; Printers; Consumer electronics; Consumer electronics products; Dell in handhelds market; Dell in printers market; Dell in consumer electronics market; Dell's new consumer electronics products in US; Competition in consumer electronics market; Dell and Hewlett-Packard; Dell and Sony; Dell and Apple