Case Analysis: Dell Introduction Present CEO and chairman of the board Michael Dell founded Dell in 1984, as a leading technology provider that designs, develops, manufactures, and supports PCs, software and peripherals, storage and servers, and associated services. With operations in four geographic areas and additional business centers and manufacturing sites in more than 20 locations around the world, Dell is able to reach more than 24,000 retail locations worldwide. Dell’s ability to process in-depth customer knowledge and the tailoring of solutions to the specific customer, through a direct customer sales model, catapulted the company in 2008 to the top PC provider in the United States and second worldwide in terms of sales. …show more content…
Economic: The economic segment is an important threat to Dell. Dell faces significant challenges in the midst of the current economic recession. Forrester Research analyst Andrew Bartels predicts “the brunt of the slowdown in IT spending will hit servers and PCs,” which is Dell’s primary market. The worst-case scenario for IT spending in 2009 will be no growth in the United States, and IT expenditures are expected to shrink in Europe (Hitt). Dell’s first quarter Net Revenue fell by 23 percent. In 2009, the Large Enterprise segment, the companies’ largest commercial revenue stream, dropped 31 percent to $3.4 billion and operating margins of 5.7 percent. Also, revenues for the public, SMB, and consumer segments all dropped an average of 19.2 percent in 2009. Publicly traded on the NASDAQ, Dell has been a volatile stock over the past year with a high of $26.04 and a low of $7.84 per share. Dell’s 12-month stock performance is -48.29 percent, which is due in large part to the global recession. Political/Legal: The Political/legal segment is a threat to Dell, but not as important as the economic and technological segments. Changes in U.S. monetary policy as well as economic policies around the world may lead to volatile exchange rates, exposing Dell to currency risks despite its foreign currency hedging program. Sales outside the U.S. accounted for 48 percent of
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.
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.
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.
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.
Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years.
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 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,
Dell Computer Corporation is the focus of the case. The time of the Dell case is
Michael Dell, founder of Dell Computer Corporation had his humble beginnings in the computer industry when he began selling personal computers directly out of his dorm room. This impressed upon him that this was the path to take in his professional life, he started his company in 1984, registered as Dell Computer Corporation. Krames, (2003) Unlike other computer companies at the time, Dell was heavily focused on the end user, the consumers who would actually be purchasing the computers. By placing the emphasis on the consumers instead of big box stores to sell his product he brought a new way of selling computers to the industry, which was an uncommon way of doing business at that time. This is a notable contribution to the computer
Dell Case study. In this report we are going to analyse the business environment of the computer industry in the form of a PESTE which stands for Political, Economical, Social-Cultural, Technological and Environmental. We feel that it is important to analyse the environment of a business as it will help the business to identify the Opportunities and Threats surrounding it.
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