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case application

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Pippitatdai Trang

on 3 October 2014

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Transcript of case application

1. what competitive advantage(s) do Dell has? What competitive advantage(s) do you think Compaq / Hewllet - Packard has? Explain your choice.

2. As you understand the Australian, New Zealand or South East Asian markets, what strategies do the different computer manufacturers appear to be following?

3. If you were the manager of Dell in Australia, how could you use a SWOT analysis in deciding your strategy for your local market. Prepare an abbreviated SWOT analysis for one company using the information from the case and general knowledge of the Australian market.

4. What do you think of Gateway's decision to pull out of Australian and Asian markets? Use the internet to research current issue strategy plan.
1. Competitive advantages of Dell & Compaq
3. SWOT Analysis of DELL
1. (cont)
Case application
Group 4:
Nguyen Thuy Trang 77
Nguyen Le Huong Giang
Nguyen Huong Lan
Truong Thi Hong Van

1. (cont)
2. What strategies are followed?
3. Swot analysis of Compaq/HP
Speed to market : fast decision-making
"day-to-day involvement"
Ability to create a direct-selling channel that is highly responsive to customers
--> one of the leading suppliers of technology and direct computer systems
customized products
Conduct business operations worldwide
Compaq / Hewlett - Packard
The merge of 2 companies
--> leading company in providing servers, software and storage management, computer ...,
--> capacity to meet the demand terminal solution is improved
HP is setting the standard in the notebook industry with the best combination of advanced features and extremely competitive prices.
Dell has stronger competitive advantages than Compaq / HP
Dell has better customer services
Dell has better reputation
Growth Strategy
Companies seek to increase the level of organization’s operation, which means increasing in sales revenues, number of employees and market share.
- Direct to customer business model
- Great customer services : hotline 24/24, introduction team through phone, maintenance service is highly appreciated
- Industry leading growth
- Cost efficiency : Lower prices as they provide directly to customer
- Customization
- Internet sales leadership

- Low investment in R&D
- Weak patents portfolio
- Too few retail locations
- Low differentiation

- Strong potential market in Australia

Expand services and enterprise solutions businesses
- obtain more patents through acquisitions
- strengthen their presence in emerging markets
- Tablet market growth

- Growing demand for smartphones and tablets
- Profit margin decline on hardware products
- slowing growth rate of the laptops markets
- Intense competition

- Strong market position
- The company is its own supplier
- Focus on small and mid-sized market

- Market share growth is slow due to competition
- Unable to provide customize products

- The scope for supply of desktops and laptops is increasing
- Opportunity for growth in service industry

- Prices, services competitive
- Changes in customer needs, trend
- Hyper competitive environment
- Reduce in reputation as two companies has merged
- Running direct selling program, which will encounter many difficulties as Dell has succeed at that

4. Gateway's decision to pull out of Australian and Asian market
This is a right decision because:
In 2001, which is also a crisis all over the world. A huge number of companies went bankrupt, the economy goes down
--> significant impacts on IT industry.
Many failed or below expectation plans
The threaten growth of other competitors : Dell, Compaq/Hp and new services
----> save revenue before going bankrupt
4. Gateway's current strategy
- Acer has bought Gateway in 2007 with desire to consolidate the third position of Gateway in computer world, also it is a move for Acer to attack American market.

- Growth strategy: try to increase sale revenue

Australian, New Zealand and South East Asia are all young markets.
+ direct selling service, no third parties
+ customized orders

4. Gateway's current strategy

Gateway will reach out to students, wherever they are, and provide them with access to a variety of educational pathways to enhance their individual quality of life, the overall economic development of the Northern Kentucky/Greater Cincinnati region, and the global community at large.


Gateway will engage all learners as full partners in the learning process by: providing as many options for learning as possible; assisting learners to form and participate in collaborative learning activities; and defining the roles of the learning facilitators by the needs of the learners, the community, and business and industry.

Gateway will embrace individual accountability and knowledge management in the development of a sustainable culture that supports increasing organizational capacity while ensuring a consistent, quality educational experience for students, and a valuable working environment for employees.
Compaq/HP's strategy
- Customer focus through sales, services, and support
- Broaden product range from desktop to data - centers
- Continual technology innovation
- Create strong partnership and alliances with other companies
diversified products portfolio
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