Dell Strategic Management Report

3502 Words Aug 15th, 2012 15 Pages
SM assignment 2:

“Internal elements pose more potential risks to an organisation achieving its strategic objectives than external elements.”

Dell is a multi-national information technology corporation which designs, develops, manufactures, markets, sells, and supports a range of computer systems and services that are customized to individual customer requirements. As one of global PC suppliers, Dell set 2 strategic objectives to achieve, to be the No.1 global market share PC supplier, and optimize the balance of liquidity, profitability, and growth with a focus on increasing the mix of their product portfolio to higher margin products and recurring revenue streams. (Dell annual report 2009, pg 4). Dell existed in one of the biggest
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People like ipad because of the new technology, easy to carry, better performance and similar prices as laptop. Therefore ipad is the obstacle for Dell to achieve their strategic objectives, because ipad leads to reduce the sale amounts of Dell computer, the profits of Dell computer will be a huge loss.

This force describes the intensity of competition between existing players (companies) in an industry. High competitive pressure results in high pressure on prices, margins, and hence on the profitability for every single company in the industry. We can obtain the results through the analysis of the high competition in PC markets, those are, firstly, the rivalry among competitors in global PC industry is very intense, secondly, the PC products have become homogenous for all the PC makers in worldwide, thirdly, customers can easily switch between the PC products. Dell was the global market leader in PC industry, but Dell’s leading position was gradually being replaced by others in recent years.
Figure 2,
Top 5 worldwide PC vendors
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Looking at the figure above, Hewlett-Packard leapfrogged over Dell to recapture the lead as the No. 1 PC maker worldwide for the first time since 2008, ranking third after HP and Acer, the growth of Dell is slower than HP and Acer, shipping 526 thousand PCs for a 5.2 percent market share in 08/09 period. It means Dell is facing the big challenge from HP, Acer and other competitors in global
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