Computer Industry and Dell Inc. Analysis

Competitive environments are defined by the identity, track record, financial strength and market share of key competitors. Harvard Professor Michael Porter 's Five Forces model can be used to evaluate a company 's competitive position. These five forces are barriers to entry (the ability of new players to enter the market), buyer power (the ability of customers to influence price),

The task instruction is: Analyze Company G’s competitive environment utilizing Porter’s Five Forces Model of competitive forces. While headings below may provide some guidance for how to organize the paper, please refer to the recommended text (index topic: “Porter’s 5 forces model”), the learning community, and recommended web sites. As you will see from the reading, Porter’s 5-forces is a way to examine threats to a company’s success – which was competition imposes.

This analysis is conducted on the Porters Five Forces theory that is crucial for effective strategic decision-making, the five forces that shape industry competition are:

According to Porter’s competitive forces model, exist five major forces, which managers should analyze, and strategies developed for the company to increase their competitive edge. They are the threat of entry of new competitors and of substitute products or services, the bargaining power of suppliers and customers (buyers), and the rivalry among existing firms in the industry.

As we begin to strategically plan for our business, it is important for us to take a deep dive into our competitive environment to understand where we are strong competitively and where we are weak competitively. An analysis of the forces driving industry competition using M.E. Porter’s Five Forces Model will assist us in determining where the power lies in a business situation as we begin to plan. We must understand how they work in our industry and how they affect our particular situation. Whatever the collective strength of these forces is, our job as the strategists of the organization is to

In the article, “The Five Competitive Forces that Shape Strategy,” Michael Porter argues that the five forces are an important element for managers and investors in the business industry. Porter stated that it is important to “understand the competitive forces, and their underlying causes” which many companies will use to determine if they will gain profit or not (Porter 80). Companies determine their profitability of the industry through the level of the force that they face. For instance, when the forces are favorable, most companies will be profitable. Porter gives a detail description of the five forces and explains the importance of each force. The five forces are the threats of new entrants, the power of the buyers, the power of the suppliers, the threats of substitute for products or services, and the rivalry among existing competitors. Porter believes that “a company strategist who understands the competition extends well beyond existing rivals will detect wider competitive threats and be better equipped to address them” (Porter 93). In other words, when strategists understand the different forces it will benefit them to make better decisions and to be ready to face the different challenges between competitors. In the article, Porter’s main goal is to present the importance of the five forces to the audience.

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

MICROSOFT (windows server) 2. INTEL ( cutting-edge technology) 3. SAP ( IT infrastructure) 4. VMWaRE ( virtual infrastructure solutions) 5. ORACLE ( database solutions) 6. BMC (data centre automation.) 7. BROCADE ( networking solutions) Cost structure36 1. Cost of Revenue $48260m 2. Sales & Admin expense $7664m 3. R&D Expense $856m 4. Capital Expenditure $675m 5. Total Acquisition $2562m 6. Total Operating expense $57640m 7. Software&network 33 %&39% increase Revenue streams21 Key resources35 1. Acquisition 2. Brand equity 3. Long ability (as high per company) 4. Intellectual property 5. R&D and revenue stream 6. Human resource 7. Core competence Key activity37 1. Support & deployment Services 2. Cloud & security services 3. Software & peripherals ( Printer, TV, networking, wear less product, anti-virus) 4. Client product (PC, Monitor, note book, work station, tablet, Smart phone) 5. Developing technologies ( in 2011 its open the dell silicon valley research and development centre ) Value proposition 1. Dell customization 2. Direct sell approach 3. Product configuration 4. Pre & post sell customer

     To perform the Industry Analysis it is better to follow Michael Porter's five forces model. This analysis framework was created so that it helps managers in their task to analyze competitive forces to the company. (Hill & Jones 80) This model is only one of the models that can be used for this task but it is one of the more popular models. The five forces that we will have to look at for this model are (1) the risk of new and potential competitors; (2) the bargaining power of suppliers; (3) the threat of substitute products; (4) the bargaining power of buyers; and (5) the degree of rivalry among established companies within an industry. (Hill & Jones 80)

Dell is a global company that delivers products and services in more than 190 countries and over 40000 employees who live and work on six continents. The company deals in enterprise computing products, desktops, monitors, printers, notebooks, handhelds, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and down from its inception in 1984 and has to face many challenges and competitions to stay ahead in the market (Kolter and Lee, 2008). This paper strategically discusses the fall and rise of Dell Inc from 2007 to 2008 and to compare Dells

A computer is an electronic device that stores, retrieves, and processes data, and can be programmed with instructions. A computer is composed of hardware and software, and can exist in a variety of sizes and configurations. Hardware is the physical equipment of a computer system, including the central processing unit (CPU), data-storage devices, terminals, printer, etc. Software is a program or set of instructions or rules that control the operation of a computer.

Today’s businesses find themselves operating in environment that is changing faster than ever before. The process of analysing the implications of these changes and modifying the way that the businesses reacts to them is known as business strategy. In order to compete in businesses environment, large or small companies must have a good understanding of appropriate business strategy. One of the business strategies that company can use is Porter’s Five Force strategy (Porter, 2008). Porter’s five forces model is a framework that aims to analyse the level of competition within an industry and business strategy development. The main principle of the model is that either one or a combination of five competitive forces within the organization determines an organization’s benefit potential. The Porter’s Five Forces include bargaining power of buyers, bargaining power of supplier, threat of new entry, threat of substitute, and rivalry among competitors (Elfren, 2000). In addition, The Porter’s Five Forces tool is a powerful tool for understanding where power lies in a business situation. Using this analysis tool, business can measure the level of rivalry inside their organization’s industry and thus can assess the current and potential lines of the business. In short, this tool can help businesses define their profitability expectation, because profitability declined as the level of competition increases (Newstex, 2015). Thus, this essay is going to critically discuss the use of

Strengths: Dell's dynamic organizational structure allows it to achieve diversified targets. By allowing the components to directly become integrated in the manufacturing process of Dell, it has been able to reduce middle channel costs. These components, such as OEMs, CMs, logistics, system integrators, repair and support companies, component suppliers, third party HW and SW suppliers and distributors have become each of the company's manufacturing processes so that ease of provision to the customers is possible. This reverse organizational process structure differ from other industry leaders.(Kraemer and Dedrick 2004)

Dell Inc. is an American exclusive multinational PC innovation organization situated in Round Rock, Texas, United States, that creates, offers, repairs, and backings PCs and related items and administrations. Eponymously named after its originator, Michael Dell, the organization is one of the biggest mechanical companies on the planet, utilizing more than 103,300 individuals around the world. Dell offers (PCs), servers, information stockpiling gadgets, system switches, programming, PC peripherals, HDTVs cameras printers MP3 players and hardware worked by different makers. The organization is understood for its advancements in store network administration and electronic trade, especially its immediate deals model and its work to-request design to request way to deal with assembling—conveying singular PCs arranged to client details. Dell was an immaculate equipment seller for quite a bit of its presence, however with the obtaining in 2009 of Perot Systems, Dell entered the business sector for IT administrations. The organization has subsequent to made extra acquisitions away and organizing frameworks, with the point of extending their portfolio from offering PCs just to conveying complete answers for big business clients.

What is Computer. Computer is an electronic machine, which accepts instructions, commands and information, based on the information process the given information at Ultra High Speed and produce the result on the screen and printer.