Michael Dell guided his company through many phases and obstacles, making it one of the first computer manufacturers in the world. By basing the company on a direct sales model, with Dell being the only company to do so at first, he significantly expanded the business while simultaneously keeping costs and inventory levels to a minimum (6 Days of Inventory days, the lowest among competitors). This formula worked well for the company until the market dynamics were more or less the same. Dell believed in selling computers as products and relied on branding based on the ability to sell computers effectively. Meanwhile, other companies like HP and Apple were turning the art of selling computers into a branding exercise. Thanks to such efforts, both companies experienced massive growth during the 2000s, while Dell was struggling as a company. Therefore, the company's current form, in which it has lost 60% of its share value, reflects new market demands. There is little that Dell is doing wrong in terms of its supply chain and value chain. The only problem lies in the front end, where it is not doing a good job of branding its computers and making them more in tune with public demands. By using the same techniques to attract its retail customers as it does with institutional customers, the company must reconsider how it markets to and caters to its retail customers, as they hold the key to the company's future growth. External Analysis Porters Fiver Forces Bargaining Power of Suppliers Bargaining power of suppliers is low overall as most of the components included in the final product have many suppliers. This applies to most peripherals and components included in your computer. ...... middle of paper ...... requires that you become stronger at marketing and treat customers like customers rather than being snobbish and expecting customers to be polite right from the start. That said, the first alternative, growing the retail segment, represents a better opportunity to solve the identified problem. This is because an increased focus on the retail segment will lead to efforts to make the brand more relevant to them, make it more attractive to the customer, and allow the company to pursue various distribution channels. The change is expected to produce results over a five-year period. The first 2-3 years will be dedicated to creating product lines and value chains to support the new efforts. The next two years will result in a comprehensive marketing plan that will develop the company's new customer focus and make the brand more relevant to various target markets.