Dell Corporate Plan and Situation Analysis or Market Background.

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Overview.

It started 21 years ago, when he was ditching classes to sell homemade PCs out of his University of Texas dorm room. Michael Dell was the scrappy underdog, fighting for his company's life against the likes of IBM and Compaq Computer Corp. with a direct-sales model that people thought was plain nuts. Now, Michael Dell is worth $17 billion, while his 40,000-employee company is about to top $40 billion in sales. Yet he continues to manage Dell with the urgency and determination of a college kid with his back to the wall. "I still think of us as a challenger," he says. "I still think of us attacking."

http://www.businessweek.com/magazine/content/03_44/b3856001_mz001.htm

Dell was founded in 1984 by Michael Dell. Dell started with a
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Dell's value-chain strategy combines technologies from Intel, IBM, and Microsoft to serve customers efficiently and with state-of-the-art computer technology. Dell is able to introduce next generation products faster than its competitors can because its market-driven strategy is developed around a direct sales, built-to-order business design. This distinctive process capability is supported by effective supplier, distribution, and service partnerships with other companies. Dell's management understands its customers since company personnel are in close contact with buyers who make inquiries and place orders. Not only does Dell process some 500,000 telephone calls each week, but 65,000 corporate customers are linked to Dell through their own Dell Premier Pages on the Internet, and Dell's Internet based sales reached $50 million a day in 2000. Indeed, in 2001, Dell became leader in global market share. (market driven strategy ch 1, http://highered.mcgraw-hill.com/sites/dl/free/0072466650/46701/cra66650_ch01.pdf#search='dell%20external%20influences%20marketing%20strategy')

Social and Demographic Trends:

Technology Trends: One of the main reasons this industry, the computer hardware industry, is so successful is because the market and technology are continually

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