What issues and problems does Michael Dell need to address?

Answer 1

The most important issue that Dell must address is how to raising sales and market share position in very strongly competitive condition. As explained above, Hewlett-Packard currently is the main rivals of Dell and it is much competitively stronger than Dell with their retailing prowess. Hp's sales are increasing continuously even in the crisis period. Moreover, there are many emerging competitor such as Asus, Acer, etc who are compete fiercely with Dell. Beside, the lack of innovation in product developing also has negative impacts on Dell's performance. This situation puts a heavy pressure on Dell's development. Another issue is the international expansion of Dell. In order to reach international customers more effectively, Dell must incur more costs as it expands into retail distribution, a move that will further eat away at Dell's cost advantage. Moreover, Dell's two key advantages - supply chain efficiency and customized direct sales model do not have much advantage in competition as before. In addition, the economic condition and technology change rapidly also effect to Dell's development. In this situation, Dell needs to find the suitable strategy to deal with these problems.