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Revitalizing Dell – An executive summary from my strategic management class

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Executive Summary (Revitalizing Dell – Case Study)

Dell’s recent diminishing growth rate raises concern that the direction of the company is not aligned with changing consumer demand. A shift in consumers purchasing personal computers from Dell’s industry leading direct sales model to indirectly via retail outlets can justify some of the stagnant growth identified in this case. Dell was evaluated with the resources model, five-forces model, and illustrated with data from the case.

Porter’s analysis suggests with high competitive rivalry, high strength of buyers and suppliers, and low threats of new entrants and substitute, the PC market is still a very competitive market. The resources based view (RBV), analyzes Dell’s direct sales method, lean inventory, customer service, and mass customization.

A common set of criteria was used to evaluate two different alternatives. One alternative to differentiate from competitors based upon Dell’s superior customer service. Another alternative is to expand focus into the indirect sales model. By evaluating these alternatives by these criteria, it is recommended that Dell shift its focus from direct to indirect sales.

Implementation of this expansion is outlined by Kotter’s 8-step framework. Since resources will need to be allocated from the focus on direct sales to indirect sales, a resistance in change is expected. Therefore, by creating and maintaining of a sense of urgency throughout the change stakeholders will be motivated throughout the entire process.
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This was a case as of 2007 when Dell was struggling all of a sudden in its sales compared to its competitors like HP.

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May 4th, 2011 at 7:54 pm

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Brand New WordPress

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Phew. Done with upgrading my wordpress to 3.1.2.
When the automatic updates don’t work, it’s not that pretty.

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April 27th, 2011 at 6:42 pm

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I have Never ..

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This is the flip side of my earlier post “I Have ..

Been arrested
Jumped out of a moving vehicle (i have jumped out of a moving bike if that counts)

(more to follow …)

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April 25th, 2011 at 9:17 am

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I have …

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This blog post is about the things I have done (not necessarily that I am proud of but nonetheless been tried by very few)

Been to a beach
Travelled in the roof of a moving bus and truck and van
Rode a moterbike
Hiked (a lot) tall mountains
Swam in rivers, ponds, lakes and ocean
Run for more than 3 miles without a break
Been to Vegas, New Orleans & New York 

More to follow…

There is a flip version of this post. I have never 

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April 25th, 2011 at 9:10 am

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Blacksburg Sunset

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Mesmerizing Blacksburg Sunset.

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April 18th, 2011 at 6:58 pm

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She Said / He Said

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She Said
Picture no. 1: When I kiss you, its HEAVENLY! You go speechless.
Picture no. 2: Picture tells it all. Somebody save her!!

He Said:
There is a double standard here:

Picture 1: When you want to kiss, I agree so heartily. Everything is perfect. 

Picture 2: When I want to kiss you, well the picture tells it all. Somebody tell her. 

<3

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April 11th, 2011 at 8:18 pm

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More options = More difficulty in making decions?

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This is in reference to my lost past 3 and half hours to decide on and order a new windows PC laptop. 

So when you consider features – almost all the pc laptops have the same. There is not much differentiation and it hardly makes sense why they have so many different models.

Pesonally, I am not a big fan of windows laptop and I own a mac book pro. Last year when I decided to order a mac book pro for myself, it didn’t take more than 20 mins. Fact. I finally decided on a Dell Inspiron 14 inch. 

Well windows and pc supporters might argue that its good to have customization options. But when you have mac, do you?
Not me.  

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April 9th, 2011 at 11:30 am

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Information Paradox

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The fundamental paradox of information

The prospective purchaser cannot know its value until the information is revealed, at which point he has in effect acquired it without cost.

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April 6th, 2011 at 6:54 am

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Tug of war – Marketing vs Manufacturing

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And this continues. Forever. 

Business is all about margins and trade offs and there is no better example then the marketing and manufacturing interest points.
Manufacturing – Cut cost so that we have cost advantage
Marketing – Add more features so that the product is more marketable

And ofcourse there is a conflict as the resources are limited in the real world. When the marketing team wants to add more features to its product, it will make the manufacturing process more expensive. And that’s not what the manufacturing division wanted.

In this context, I have been working with Foot Levelers as a consultant to bring there customized orthotic product to the retail arena. Now we can go either way:

1. Design a product and make it really cutomized and really helpful for the customer and price it accordingly OR
2. Find a sweet price spot based on market and competition and design a product that will be profitable selling at that price.

Again the marketing vs Manufacturing. Obviously customer and the marketing division want fully customized product but that will be costly to manufacture. And everybody likes to pay as less as possible. 

Tradeoffs as always.

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March 16th, 2011 at 7:34 am

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Beautiful Rain

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Pictures: Google Image Search

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February 24th, 2011 at 1:10 pm

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