Premium Essay

Dell Inc - Swot Analysis

In:

Submitted By wke1014
Words 1766
Pages 8
STRATEGIC MANAGEMENT BPMN6023
INDIVIDUAL TERM PAPER
“DELL INC. : CHANGING THE BUSINESS MODEL (MINI CASE)”

PREPARED BY :
MOHD NOOR SHARIFFUDDIN AL-MUHARRAM BIN MAT SHUIB @ SHARIF
MATRIX NO : 814812
MASTER OF BUSINESS ADMINISTRATION
UNIVERSITI UTARA MALAYSIA

TABLE OF CONTENTS Description | Page | 1 | Executive Summary................................................................................................. | 3 | 2 | Company Background.............................................................................................. | 3 | 3 | Industry Background................................................................................................ | 4-5 | 4 | Internal Environmental Analysis.............................................................................. | 5 | 5 | External Environmental Analysis............................................................................. | 5-6 | 6 | SWOT Analysis......................................................................................................... | 6-7 | 7 | Strategic Recommendation..................................................................................... | 8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

1. Executive Summary
The modern business environment is characterized by intense competition and this trend is particularly pronounced in the computer hardware industry. Dell Inc. had been implementing the direct marketing strategy in order to maintain its profits even when its competitors had been experiencing declining profits as a result of rising costs. However the direct model was no longer working for Dell as evident from plunging stock prices. Therefore the company could not afford to

Similar Documents

Premium Essay

Dell Swot Analysis 2013

...SWOT analysis of Dell This is a Dell SWOT analysis for 2013. The original analysis can be found at Dell SWOT analysis. For more information on how to do SWOT analysis, please refer to our article. Company background Name | Dell Inc. | Industries served | Computer hardware, Computer software, IT consulting, IT services | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Michael Dell | Revenue | $ 63.07 billion (2012) | Profit | $ 3.49 billion (2012) | Employees | 110,000 | Main Competitors | Apple Inc., Samsung Electronics Co., Ltd., Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation, Fujitsu Limited and many others. | Dell Inc. is an American multinational computer technology corporation that develops, sells, repairs and supports computers and related products and services. The company is one of the largest technological corporations in the world and is listed as number 44 in the Fortune 500 list. It is the third largest PC vendor in the world after HP and Lenovo. You can find more information about the company in its official website or Wikipedia’s article. SWOT Dell SWOT analysis 2013 | Strengths | Weaknesses | 1. Brand name valued at $7.5 billion2. Product customization3. Environmental record4. Competency in mergers and acquisitions5. Direct selling business model | 1. Commodity (computer hardware) products2. Poor customer services3. Low investments in R&D4. Weak patents portfolio5. Too few retail locations6...

Words: 1130 - Pages: 5

Free Essay

Dell

...Dell Inc: Changing the Business Model (Mini Case) Synopsis: In 1984 Dell Inc. was founded by University of Texas freshmen, Michael Dell. Dell would buy computers from the excess inventory of local retailers and revamp them to sell out of his trunk. Dell was able to sell his computers at 10%-15% below retail price. After Dell’s freshmen year he dropped out to run his business full time. By 1995 Dell had sales of nearly $3.5 billion and was one of the top five PC vendors in the world. Dell focused on customer support and service and became the master of process engineering and supply chain management. Dell has faced many challenges including distribution through US retail stores, management changes, and keeping up with its competitors. Since consumers aren’t willing to pay huge amounts of money for computers unless they were unique, Dell is at a crossroads. Which road Dell chooses to follow will determine its future. Resources: Dell Inc.’s most valuable resource has been Michael Dell and its ability to sell computers at 10-15% below market value. Another huge resource is the executive team that Dell formed for guidance. Capabilities: Dell’s capability at producing products at a lower cost to its consumers is key. By adding services such as laptops, software/peripherals, servers/networking, services, and storage Dell expanded its capabilities. With the added services Dell can keep pace with its competitors. Core Competencies: Dell’s core competencies are the ability to...

Words: 579 - Pages: 3

Premium Essay

Something

...Dell Inc. is a global computer technology company that manufactures and sells PC, tablets, workstations and displays. Dell practices “Direct Business Model” that involves selling products directly to customers without intermediaries. Developed by founder and current CEO Michel Dell, this business strategy has proved to be highly effective in terms of gaining significant cost advantage in competition. Post navigation← PreviousNext → Dell Porter’s Five Forces Analysis Posted on September 1, 2015 by John Dudovskiy Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1]represents five individual forces that shape the overall extent of competition in the industry. These forces are represented  below: Porter’s Five Forces Threat of new entrants to consumer electronics industry is not significant due to cost and financial, knowledge and technological barriers. However, it is important to note that new businesses may overcome these barriers if they are able to introduce new products to the market based on innovative concepts. Large players such as Dell, Apple, HP, Samsung and Acer derive extensive benefits from the economies of scale and this fact represents an additional entry barrier to the consumer electronics industry. Bargaining power of buyers is immense due to the abundancy of offer and little differentiation amongst products. Moreover, there are usually no additional costs for Dell customers to switch to the competition and the majority...

Words: 903 - Pages: 4

Premium Essay

Curency War Between Us and Chiina

...About | Contact | Jobs | [pic] • Lesson Store • Buy Video • Exercise Store • Powerpoint [pic][pic] Marketing Teacher: Home / The Marketing Environment The Marketing Environment [pic][pic][pic][pic][pic][pic][pic][pic] [pic][pic][pic][pic]The Marketing Environment What is the marketing environment? The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'. [pic][pic][pic][pic][pic] The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute...

Words: 10461 - Pages: 42

Premium Essay

Business Analysis

...------------------------------------------------- Apple Inc. Business Analysis Category: Business Autor: Mike 26 July 2010 Words: 3002 | Pages: 13 Business Analysis of Apple Inc. On April 1, 1976 Steve Jobs, Steve Wozniak, and Ronald Wayne joined together to form Apple Computer Incorporated. The concept behind their company was the creation of an inexpensive, simple to use personal computer kit. Working out of Jobs' garage in Cupertino, California the trio designed and manufactured their first product in three months. They named this product the Apple I and it went on sale in July 1976 for $666.66. Six months after the release of the Apple I, Ronald Wayne opted to sell his share of the company back to Jobs and Wozniak for a meager $800. Soon thereafter multimillionaire Mike Markkula joined Apple and on January 3, 1977 the company was incorporated. Apple continued to gain momentum and was one of the fastest growing companies by the end of 1978. With the introduction of the Apple II plus, the company enjoyed a 400 percent increase in sales in 1979. In December of 1980 the company went public and within minutes the 4.6 million shares sold out at a price of $22 per share. An additional 2.6 million shares was also sold out by May 1981. However, the firm suffered its first major fallback with the release of the Apple III in September of 1980. The newest version had not undergone necessary testing due to time constraints and pressure from upper management. This proved to be extremely...

Words: 3020 - Pages: 13

Free Essay

Dell Datamonitor Report

...COMPANY PROFILE Dell Inc. REFERENCE CODE: 8E2C53C7-29AC-4848-9511-9B752758E3B4 PUBLICATION DATE: 24 Sep 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Dell Inc. TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 Business Description...........................................................................................4 History...................................................................................................................6 Key Employees...................................................................................................11 Key Employee Biographies................................................................................12 Major Products and Services............................................................................20 Revenue Analysis...............................................................................................21 SWOT Analysis...................................................................................................22 Top Competitors.................................................................................................28 Company View........................................................

Words: 9917 - Pages: 40

Premium Essay

Environmental Scan Paper

...paper are Apple, Inc. (Apple) and Dell, Inc. (Dell). Both are successful technological companies. Operating in the technology field they pay a great deal of attention to technological factors and trends in the industry. Their internal and external environments can be scanned and evaluated using the PESTEL tool and Porter’s value chain. Using the PESTEL tool will help them identify opportunities and threats that they might encounter. Using the Porter value chain will help them identify and separate strengths and weaknesses each has. According to Apple they are a worldwide company that produces consumer electronics, computer software, and commercial servers. Apple’s main product lines include the iPad, iPhones, iPod music player, and the Macintosh computer. In April 1976 Apple’s founders Steve Jobs and Steve Wozniak produced the first Apple Computer with their introduction of the Apple I. They incorporated their company in January 1977 in California and have been in business for over 30 years. Apple has had an up and down track record over that time period but also several proven successful products and brands. They also have demonstrated continual innovation despite some down turns and rough times. The death of Steve Jobs in 2011 presents another down time and set back and presents Apple with a great challenge to continue its innovation and proven success under Jobs’ leadership. Dell is a worldwide information technology company that was founded by Michael Dell who is one of...

Words: 1850 - Pages: 8

Premium Essay

Life

...Project Case Analysis Of Dell Corporation A Case Analysis Project Submitted to the Faculty of the University of Perpetual Help System – Jonelta City of Biñan, Laguna In Partial Fulfilment Of the Requirements for the Degree of Bachelor of Science in Business Administration Major in Marketing Management JOHN PHILIPP M. PE March 2015 CASE TITLE: DELL INCORPORATION INTRODUCTION: In 1984, Michael Dell invested $1,000 in start-up capital to register his business as Dell Computer Corporation, which was known as PC's limited. The company becomes the first in the industry to sell directly to end-users by passing the dominant system of using computers resellers to sell mass-produced computers. Dell Computer also pioneers the industry first thirty-day money back guarantee. It became the cornerstone of Dell's commitment to expand its service offerings, superior customer satisfaction, and the industry’s first on-site service program. It also established its first international subsidiary in the United Kingdom, and raised $30 million in its initial public offering.  STATEMENT OF THE PROBLEM:The problem with Dell Inc. was the rapid growth within the company in their beginning stages.  STATEMENT OF THE OBJECTIVES: The objective of this study is to know how Dell Corporation solve the problem of rapid growth within the company in their beginning stages and how they win over their competitors. TIME FRAME: 24 Months POINT OF VIEW: Business leaders such as Dell constantly face...

Words: 696 - Pages: 3

Premium Essay

Nothing

...or programs. Today, computers help make jobs that used to be complicated much simpler. Computers lessen time consumption to the activities that would have taken someone days, or months, to do before. Of all the well-known computer companies that exist, Dell Inc by Michael Dell reached the top of the industry. II. Background Summary At the age of 19 year 1984, Michael Dell invested $1,000 in start-up capital to register his business, which was known as PC's Limited. Michael Dell began manufacturing his own computers in 1985. It launched its first catalog, and changed its name from PC’s Limited to Dell Computer Corporation. The company becomes the first in the industry to sell directly to end-users by passing the dominant system of using computers resellers to sell mass-produced computers. Dell Computer also pioneers the industry first thirty-day money back guarantee. It became the cornerstone of Dell's commitment to expand its service offerings, superior customer satisfaction, and the industries first on site service program. It also established its first international subsidiary in the United Kingdom, and raised $30 million in its initial public offering. III: Problem Identification  In every business, growth is an opportunity. But with Dell Inc., rapid growth became a problem within the company in...

Words: 513 - Pages: 3

Premium Essay

Dell Case

...provide a written report. Dell Computers was founded by Michael Dell in 1984 and has its head offices in Round Rock, Texas. (Benedetto, 2012, p. 165) Michael Dell has a very simply philosophy, selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. (Dell Inc. - Company Profile, Information, Business Description, History, Background Information on Dell Inc., 2012) Michael Dell started his company while he was still in College in 1984. The premise was to buy IBM parts wholesale and assemble computers and sell them for less money than the competitors were selling theirs for. Dell achieved sales of $6 million its first full year in business, approaching $40 million the next year. (Dell Inc. - Company Profile, Information, Business Description, History, Background Information on Dell Inc., 2012) Dell soon realized that he could not keep up with the explosive growth of the company and hired Tandy Corporations marketing executive team to run things. Tandy was a competitor at the time. Dell has experienced a very nice trajectory through the 90’s and projection over the next 5 years show a 47% increase in the number of units that will be sold in millions. Currently the three competitors of Dell that threaten the size and...

Words: 867 - Pages: 4

Premium Essay

A Financial Ratio Quarterly Trend Analysis of: Dell, Inc.

...inventory ratio of 15 might seem a bit high, although the denominator of the current liability to inventory ratio is inventory and it is really low. It’s really hard to compare the company to the industry average because there is no other company that handles its inventory like Dell does. The company’s operation ratio expense is 12.64, way below compare to their industry do to their very low inventory. Assets Utilization: Asset utilization is vital to the success of an organization, the way assets are used within the organization is their biggest and strongest strategy making Dell a leader in its industry. A reflection of this strategy is their impressive inventory turnover ratio of 45.45. Unlike the industry average low numbers on the rest of the asset utilization ratios such as fixed assets turnover, total assets ratio and asset to equity ratio, Dell’s average 50% higher than its competitors. Profitability: Dell has been successful due to its differentiated strategy compared to its competitors. The Direct Model' that Dell adopted has been highly successful in reducing its bottom line costs. By this its return on asset ratio is 9.2% and an extraordinary return on equity ratio of closed to 50%, Dell,...

Words: 1789 - Pages: 8

Premium Essay

Strategic Plan

...market, 3) conduct a SWOT analysis to determine what areas offer opportunities for change, 4) select three areas from the SWOT analysis and explain why the areas chosen are essential to the strategic plan, and 5) explain the method to measure the success of the strategic plan. The company that I chose to create a strategic plan for is going to be for Dell. With all this said let’s get started with Dell’s company overview. Dell came about in 1984, which is about 29 years ago. Their goal since they started was to make customized computers and have them delivered directly to the customer’s door. This company designs, manufactures, produces, promotes, sells, customizes, and presents amazing services to all over the world. They also offer its business making software, smart phones, peripherals, servers, mobile workstations, networking server optimizations, and data storage capabilities. Dell’s company employs more than 98,000 employees. Dell started with $1,000 in 1984 and their stock went up 13,5000% in the last 25 years (Dell, (2014). Dell reached their goal in 2011 by merging two brands to promote a better line of products which is where Alienware Systems came in. This system opened up opportunities for the gaming industry and the Perot system that assists with the medical database. Dell receives at least half of its revenue from outside the United States every year (Dell, (2014). The Just In Time method was the first method that Dell used. Dell saved millions of dollars...

Words: 2754 - Pages: 12

Premium Essay

Porter's , Model

...Case study on | Strategic Analysis | Of Dell Inc. | | mujeeb | [Pick the date] | | Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving...

Words: 2792 - Pages: 12

Premium Essay

Porter

...CASE STUDY ON Strategic Analysis Of Dell Inc. mujeeb [Pick the date]   Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving with the passage...

Words: 2792 - Pages: 12

Premium Essay

Dale Case

...Dell, Inc. A Strategic Management Case Study October 8, 2013 Sophie Yanez University of the Incarnate Word Table of Contents I. Introduction II. Dell’s Strategy a. Vision Statement b. Mission Statement c. Strategies and Objectives III. Recommended Vision and Mission Statements IV. External Assessment a. Porter’s Five Forces Model b. External Factor Evaluation c. Competitive Profile Matrix V. Internal Assessment a. Value Chain b. Internal Factor Evaluation VI. Porter’s Five Generic Strategy VII. SWOT Analysis a. SPACE Matrix b. Boston Consulting Group Matrix c. Internal-External Matrix VIII. Strategy and Objective Recommendations IX. Recommended Implementation Plan X. Strategy Review and Evaluation References Appendixes I. Introduction Dell was founded in 1985 under the name, PCs Limited by Michael Dell who at the time was a college student of the University of Texas. In 1988 the company’s name was changed to Dell Computer Corporation. The company is headquartered in Round Rock, Texas and is the world's #3 supplier of Personal Computers (PC) behind HP who ranks as #2 and Lenovo who ranks as #1 (According to IDC worldwide quarterly PC tracker). Dell provides a broad range of technology products for the consumer, education, enterprise, and government sectors. In addition to its line of desktop and notebook PCs, Dell offers network servers, data storage systems, printers, ethernet switches, and peripherals, such as displays and...

Words: 5223 - Pages: 21