Dell Case Assessment : Dell

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Dell Case assessment Introduction Dell is among the fastest growing companies in the IT world. Dell started out as a company manufacturing PC’s and slowly developed as a big giant in IT industry. Today, Dell has an IT division which takes care of the cyber security called Dell Secure works. Dell designs, develops, manufactures, services and supports a range of computer systems including, desktops, laptops and enterprise products. Dell went public in 1988, capitalization for Dell increased to $85 Million Dollars from $1,000.00 in 1984. By 1996, Dell had become the 3rd largest hardware vendor in the world. In the late 1980’s Dell started gaining advantage with its PC business in the late 90’s. IBM was one of the big player in the industry…show more content…
Dell being a predominantly a PC manufacturer need to venture out into new technology sectors and providing users with more flexible ways of accessing shared information. Bargaining power of buyers: Low switching cost and shortened product life cycles are required for Dell to remain competitive in this industry, customers will be looking a new set of products from manufactures, as the technology changes customers would be ready to buy a product even at a higher price, if it is perceived that the product is better than other products available. Customers value price but will generally be looking at getting a better quality of service from their manufacturers. Bargaining power of suppliers: Raw material are one of the important component for manufacturing. Companies with small output volumes do not get preferred pricing on the components they buy when compared to big companies. With this consideration, it would be very difficult for a small company to start up, Dell in our case had to face this stiff challenge from suppliers of hardware goods. As IT outsourcing becomes more common the power of suppliers will also increase along with it. Industry rivalry: As we have already seen Dell faces a tough competition from HP and IBM. Customer do a lot of price comparison before buying a PC. One of the main reasons is that companies which manufacture PC offer PC’s at low cost which enables more people to replace
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