Thesis: Drawbacks in Dell’s Value Chain Model

Sample Thesis Paper

Discussing Dell’s value chain model and not committing at least a small part to the shortfall’s and/or demerits of Dell’s value chain model would be to exercise a biased prejudice working in favour of Dell’s value chain  (Kraemer, Dedrick, & Yamashiro, 2000). Hence a small part of the research was dedicated towards establishing the pitfalls that are generated as a result of Dell’s unique value chain.

Over time, Dell has approached the market by exercising extensive segmentation. This segmentation is based on the attributes of size of the market and that of large customers such as corporations and organizations that require large volumes of computers and equipment made according to their customized instructions. While this may appear to be a positive element for Dell, the fact of the matter remains that is puts an immense degree of pressure on Dell to carry out its own marketing, distribution, service and customer support functions  (Kraemer, Dedrick, & Yamashiro, 2000). For other companies functioning in the same competitive landscape, there is the added advantage of the marketing, distribution and customer service functions carried out by their retailers, distributors and resellers; while Dell is faced with the task of having to rely entirely on its own efforts to acquire market share.

“Only after establishing a strong brand name with larger customers and developing the online infrastructure to reach new customers at a low marginal cost has Dell seriously targeted the widely diffused small business and consumer markets” (Kraemer, Dedrick, & Yamashiro, 2000).

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