In 2005, Dell Company was valued at over $ 100 billion, which was double the market value of HP and Apple (Edwards, 2009). Today, its market worth is less than 1/3 of the proportion that market rivals control with an estimated value of $ 30 billion. Dell has struggled to find its place back as a centre of technology.
Michael Dell, the founder and owner of the company has undertaken radical measures to change its now sinking company. By identifying the challenges that led to the failures and counteracting them with positive reinforcements, Dell can transform his company back to its former glory.
The company has faced stiff competition in the recent past. Their market presence has reduced drastically over the years since modern technology products engineered by their competitors have overtaken most of their merchandise. As such, it needs to improve by increasing their market presence within the global setting. This means adapting to new manufacturing processes that are client specific and addressing growth at the management level (Burrows, 2005). The company also experiences challenges pertaining to the slow purchase of its key products such as the personal computers in an already saturated market. A majority of the Personal Computers (PCs) in the United States are replaced by technological upgrade and development of new items.
The company should focus on strengthening relationships with suppliers and product customization (Ricadela, 2009). Another challenge is strengthening the declining customer service. Indeed, Dell prides itself in superior customer service but it should strengthen and maintain their customer service and relation (Ricadela, 2009).
The company should consider forming mergers with other strong companies. This will increase their capital base as well as expand their products variety. Merger of companies will offer a mutual benefit to both companies as