Dell Has Been the Longtime Leader in the Custom Built

question 83

Multiple Choice

Dell has been the longtime leader in the custom built, direct to consumer segment of the PC business. HP recently surpassed Dell as market share leader. In response, Dell has begun experimenting with opening retail stores to counter HP's presence in consumer electronics stores such as Best Buy. Which statement accurately reflects this situation?

• A) Because Dell is a $56 billion company, opening a few retail stores is a tactical action.
• B) HP's decision to focus its attention in markets where Dell was absent means HP was a late mover.
• C) While Dell offers built-to-order computers and HP focuses on sales of pre-built machines through retail distribution, the firms are direct competitors.
• D) Because Dell has not previously operated its own stores, it is a first mover in retail PC sales.

---

Definitions:

Corporate Strategy

The overarching strategy of an organization, outlining its overall direction and objectives, and determining how to allocate its resources across the entire corporation.

Business Strategy

A plan of action designed to achieve a long-term or overall aim within a business.

Strategy Formulation

Strategy formulation is the process of creating strategies to achieve organizational goals, involving the analysis of the competitive environment and the organization's internal capabilities.

Benefits

Benefits are the indirect and non-cash compensation paid to employees in addition to their normal wages or salaries, such as health insurance, retirement plans, or allowances.