business strategy
has succeeded in cutting the cost and has increased its revenue over the period of time.
Q #7
What are Dell’s chances for becoming the global market leader in PCs? Is its strategy potent enough to overtake Compaq Computer?
The Dell’s chances for becoming the global market leader in PCs market are very bright. It is already grabbed the second spot and its market share is increasing with passing years as compared to Compaq, which is the market leader now.
Compaq’s market share in 1998 was 14.5% and in 1999 14%. Its market share has decreased by 0.5%. Whereas Dell’s market share in the same years has increased by 2% i.e. from 8.5% to 10.5%. But Dell's strategy seems better than Compaq's strategy in the PC segment. So in the near long term it seems that Dell will takeover as the market leader in PCs from Compaq. From above data it seems quite appropriate to believe that Dell will overtake Compaq in the PC industry.
Q # 8
Would you buy stock in this company?
As it is a growing and will be market leader so if we get a chance to buy its share, we will love to buy it. The point here, however, is that our analysis of Dell and its future prospects indicates this is a company where stock ought to yield attractive long-term returns to shareholders.
i dont have one