Threats-Increasingly popular brand names in the competition.-Strong relationships that are held between competition and the retailers.Competition can basically create the same computers since Dell builds computers, not designs them.Weaknesses- Dealing with a large amount of supplies from many different countries can cause a large issue when products are recalled.-They build computers, not develop them.
Dell has emerged as one of the biggest sellers in the PC market. From humble beginnings in 1983, when Michael Dell worked out of his campus dorm room, to 1996 when we reached $7.8 billion in sales, the source of our amazing success has been our unwavering focus on the customer, termed the “Dell Direct Model.”
Dell’s target market consists of personal computer users and corporate users. Dell is known for their ability to build computers suited to their customers needs. Because their largest customer base is marketed online, their geographic area is unlimited. Since technology is rapidly progressing and moving away from traditional PC’s, Dell has to diversify their products.
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.
The proposal presented herein gives the background information of Dell Computers Corporation highlighting the current operation for the manufacture of computers. The proposal highlights the potential of the company to increase its market share and profitability through change of its culture from order based to inventory base.
Founded in 1984 by Michael Dell with the aim of building relationships directly with customers. Dell is a premier provider of PC products and services sought by customers worldwide to build their information technology and internet infrastructures. Through its direct business model it designs, manufactures and customises products and services to customer requirements and offers an extensive selection of software and peripherals.
When you look at these figures, it’s clear that Dell’s financial situation is not dire. The issue has been that investors see little upside in the company’s still-massive PC business and seem to have zero faith that Michael Dell has another big idea in him. Over the past 10 years, investors have pushed Dell shares ever downward and have done so even more aggressively since Michael Dell returned as chief executive officer in 2007.Dell’s transformation is well under way, but we recognize it will still take more time, investment and patience, Mr. Dell wrote in a memo to employees on Tuesday. I believe that we are better served with partners who will provide long-term support to help Dell innovate and accelerate the company’s transformation strategy.
From the Financial performance of Dell Computer Corporation we find that Net Sales has been consistently increasing at $6 Billion. However employees of Dell towards the end of case are not confident of continuing to achieve 30% growth rates of the past. To continue the growth in similar pattern calls for new measures & initiatives at organization level.
One of the biggest external threats to Dell is that price difference among brands is getting smaller. Dell’s Direct Model attracts customers because it saves cost. Since other companies are able to offer computers at low costs, this could threaten.
REF OF GROUP MEMBERS’: TABLE 1 : 5 C’s SITUATION ANALYSIS Factors Dell Company: Resources 1.4 Licensing, Distribution channel, Supply • Intellectual property, Human resources, Patent, Competences Brand acuity1 chain management 24 25 Techno structure • Just-in-Time; CRM; Engineer R&D, Acquisition
Dell runs much of its business internationally. In 1987, the company opened its first subsidiary in the United Kingdom. Several years later in 1993, Dell opened subsidiaries in both Australia and Japan. By 1999, Dell had manufactures in Ireland, China, Brazil, and the United States. The company also created customer support and
Dell has always been one of the largest PC makers in the United States. Recently, though its share of the PC industry has been declining. It went from the number one low cost provider of PCs in the world to number 3. Its inability to adapt to the new markets that have emerged has caused the company to fall behind other hi-tech companies such as IBM, Apple, and even HP. I feel this is an important topic because it is an example of a large company that has lost touch with what consumers want and is currently trying to restructure itself in order to gain back the dominance they once had. Consequently, Michael Dell has announced his decision to attempt a leverage buyout in order to retain control of his company. Furthermore,
In this report, I will review the internal and external environment of Dell Computer which enabled them to compete with other PC competitor. A case study from the instructor about Dell was provided to help with the internal and external analysis of the company in relation with the non price attributes with their PC product. This report will also look on how Dell should implement their strategy to retain their market share and to out position other competitor in the future.
The company has come a long way in the last 32 year from Michael Dell 's Texas dorm room. From that time on Dell has been a dedicated player producing quality personal computers for homes and businesses, as well as government and private organizations. Dell currently manufactures, designs, and sells an extensive range of computing products globally. Dell also support several office applications include security software, antivirus, laptop accessories, and televisions, networking entertainment software, keyboards, mice, printers, and power adapters, digital cameras etc. Dell’s mission doesn’t stop there. They also provide technical support in the company wide with excellent financial services, infrastructure technology services, and Information Technology consulting services. Dell’s serves several different groups which include Government, education and health care
Dell is one of the leading Computer hardware and software providing company. It offers a broad range of products and services. Products include desktop PCs, servers, networking products, storage, mobility products, software, peripherals and services include technical IT support, IT infrastructure development and consultation. Dell has been a pioneer of e- commerce as it was one of the first leading companies who extensively used internet to interact with its customer, suppliers and partners to build a strong e-commerce