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 …show more content…
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 [pic] 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
The most critical shifts in Dell’s contextual factors, including industry dynamics, trends, technology changes and shift of the competitive landscape are following: The industry has changed significantly over the last 20 years. The traditional business model in the PC industry was inside-out, supplying machines based on orders from distribution, resell and retail channels, thus following the indirect selling concept. Dell’s direct model was at this time a new, challenging concept, taking orders directly from the end-consumer, and thereby, eliminating the middleman, costs and time. This was the initial crucial shift away from the traditional schema, allowing Dell’s quick
Dell. Dell’s products—computers, servers and printers—are commodities. Dell tends not to develop the technologies underlying these products. Instead, it purchases the components from firms that develop the technologies (semiconductors and computer software). Dell’s direct-to-customer marketing strategy is not unique, but the extent to which Dell performs this strategy better than anyone else in the industry gives it a competitive advantage. Its size, purchasing power, quality control, and efficiency permit it to operate as a low-cost provider.
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.”
The business model of dell which focuses on a built to order framework where the middleman is removed and PCs are sold directly to the end buyer
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.
efficiently and profitably in its niche market. By the late 1980’s – early 1990’s, Dell noticed that its
The Dell Computer Corporation was founded in 1984 by Michael Dell, who began the company by refurbishing IBM clones out of his dorm room for extra money. From the beginning and through the 1990’s, the company grew quickly and was very successful. Dell used a cost leadership strategy and focus on creating products that were already in the market place, but changed the timing of production and the method of distribution that was in place with the company’s competitors by assembling computers to order and selling directly to the customers. The company focused on creating value for customers and meeting their needs, but into the
Dell is a technology company, offering a broad range of product categories, including desktop computer systems, storage, servers and networking products, mobility products, software and peripherals and services to manage IT infrastructure for large organizations . Dell are the number one supplier of personal computer systems in the United States, and the number two supplier worldwide. This case study is based on the Dell 2007 SEC filing. Read the latest Dell SEC filings from Yahoo!. I
Product: Dell Inc. provides a wide variety of both business class and home/consumer class products and services. The company markets specific brand names to different market segments. Some examples of Dell products typically sold to corporate clients are Dell PowerEdge servers, Power Vault, Dell EMC storage systems, and PowerConnect switches. A few examples of products for individual and professional customers are Dell Precision workstations, OptiPlex desktops, Dimension desktops, and Inspiron and Latitude notebooks. In addition to these Dell also offers printers, projectors, and LCD televisions, to name a few. Dell’s obvious cash cow is its PC business. Dell has always been
Dell generates more than $50m revenue per day in sales through its worldwide websites.4 Core to Dell’s e-business success is a series of customised websites provided to its various customers. Dell.com provides a high level of service to its customers and suppliers. Ordering and production is speeded up, greater accuracy follows direct ordering by customers, and current technologies are delivered to consumers. Dell.com gives consumers the ability to purchase online and access technical advice. It is a fundamental feature of Dell.com to offer time to market technology. Dell.com offers the customer the ability to: • Upgrade the system so it can be configured to the technology the consumer wants • Style the product of their choice by selecting the colour, trim and art
Ten years back, where the majority of business transactions were conducted offline. Today, the trend of most of companies is to deal with its consumers through internet and not just using PCs, the customers are using different types of platforms such as mobile phones, tablets and other small mobile devices. Just imagine that all computer manufacturers are in along marathon has no end point, guess who is running alone in the front? Answers would be different but sure Dell is one of them. Its success came from a strategy which is missing with most of its competitors. Dell has effectively relied on its online selling strategy more than offline selling strategy. Actually, the core of Dell’s strengths is
During the early 1990s, computer industry developed rapidly. With the entrance of Dell, the dynamic structure in the industry changed. Between 1994 and 1998, Dell 's growth was twice as fast as its major rivals (IBM, Compaq, Gateway, and Hewlett-Packard). Dell provides high performance PCs at low prices. Its competitive advantage is mainly established by the innovation of the Direct Model and other firm level strategies that enable Dell to utilize its resources and build up its capabilities more efficiently.
Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in an interview with Joan Magretta[1], is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to focus on