...Dell SWOT Analysis Strengths Build-To-Order Dell is servicing customers on a build to order PC model through an online sale channel more then through middleman retailers, giving Dell a great advantage over its competitors. This makes Dell computers more personalized and unique by giving each customer exactly what they want instead of a generic model PC offered to everyone while at the same time saving themselves money on production costs for Dell (Baker, 2011, 254). This strength that Dell has can offer consumers a variety of product differentiation that is not offered by other competitors. Dell allows customers to choose the size of their computer screen, the processor, the software, the color, the support, the protection, different cloud software, the storage detail and much more (Dell.com, n.d). Just-In-Time Michael Dell has been able to have an edge over its competitors since its life cycle began by focusing on cost efficiency as its top priority. In order to achieve such a big core competency Dell had to focus on a few key business models. Dell offers high quality products created in short spans of time to ensure quick delivery to consumers. This is done by working on a just in time manufacturing process which keeps finished inventory low leading to low inventory costs and low excess unwanted inventory. When fixed costs are low the savings can be related back to the consumer with aggressively low pricing (Baker, 2011, 254). Weaknesses Production Process Dell...
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...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...
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...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...
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...Dell SWOT Analysis Strengths: Dell is one of the world’s best and most known brands. The company has partnered with many corporations throughout many different industries. Dell has been able to accomplish this due to their reputation for building quality products at an affordable price. Dell continues to use the latest technology in all of their products, sells directly to the customer, and was among the first computing companies to offer next day, on site product service. Dell also strives to provide their customers excellent customer service both before and after a sale has been made. This enables the customer to get the exact product for their business or individual needs, as well as provide the proper support after the sale has been made. Another strength of Dell is they make all and assemble all of components in every computer giving them total command of their supply chain. Weakness: While Dell has many strengths as previously listed, they are not without their weaknesses. One major weakness is the company holds no proprietary technology. Dell has been unsuccessful in attracting the college student segment of the market. Dell’s sales revenue from educational institutions such as colleges only accounts for a merely 5% of the total. Due to Dell’s lack of brick and mortar stores, customer cannot go to retailers because Dell does not use distribution channels. Customers just can’t buy Dell as simply as other brands because each product is custom-built according to...
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...Dell Computers SWOT Strengths * Brand name valued at $7.5 billion * Customization * Latest Technology * World's Largest PC maker * First PC maker to offer next-day, on-site product service * Dell is not a manufacturer; Components are made by the suppliers and Dell assembles the computers using relatively cheap labor. The finished goods are then dropped off with the customer by courier. Dell has total command of the supply chain. * Competency in mergers and acquisitions * Dell turns over inventory for an average of every six days, keeping inventory costs low. Weaknesses * Too few retail locations * Weak patents portfolio * Weak relations to other retailers * No proprietary technology * Quality issues with suppliers * Computer maker and not the computer manufacturer, making DELL unable to switch supply. * Not attracting the college student segment of the market. Dell’s sales revenue from educational institutions such as colleges only accounts for a merely 5% of the total. Opportunities * Expand services and enterprise solutions businesses * Strengthen their presence in emerging markets * Tablet market growth * Demand for laptops is also growing. As a matter of fact, demand for laptop has overtaken the demand for desktops. This is another opportunity for Dell to grow in other segments. * The internet also provides Dell with greater opportunities since all they have to do now is to visit Dell’s website...
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...businesses 2. Obtain more patents through acquisitions 3. Strengthen their presence in emerging markets 4. Tablet market growth | 1. Growing demand for smartphones and tablets 2. Profit margin decline on hardware products 3. Slowing growth rate of the laptops market 4. Intense competition | Strength 1. Brand name. Dell has a very strong brand reputation for quality products. Its brand is valued at $ 7.5 billion. 2. Product customization. Dell allows its customers to customize their laptops. Such services were not originally found within any other major computer retailer (and currently only Sony and Toshiba allow that), but add great value to the customers and provides Dell with a competitive advantage. 3. Environmental record. Dell is engaged in many green initiatives and has received many rewards for being an eco-friendly business. This is a benefit when working with public and government agencies. 4. Competency in mergers and acquisitions. Over the last five years Dell has spent $13 billion for successful mergers and acquisitions, which brought patents, new capabilities, assets and skills to the business. 5.Direct selling business model. Dell doesn’t sell its products through big-box retail outlets but instead sells directly to consumers and enterprises, keeping their already thin profit margin to themselves. Weaknesses 1. Commodity products. The large stream of Dell’s...
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...• They build computers, not develop them. • Their supply orders are so large that they become limited to dealing with a small few supplies that can handle the volume. • They have weak business relationships with many computer retailers. • They do not have unique technologies to offer the market. Opportunities • Maintaining the excellent lead that was taken by the founder, Michael Dell will be challenging. • The introduction of new and enticing products to the customers. • Branding their lower cost, lower priced computers that are sold anonymously throughout the world to open other avenues of branding opportunities. • Maintaining and expanding the one stop shopping abilities that are offered to their customers. • Continuing to market on the internet to gain larger market bases. • Broadening their scopes in Europe, India and China. • Expand into government and education markets. Threats • Increasingly popular brand names in the competition. • Strong relationships that are held between competition and the retailers. • Competition can basically create the same computers since Dell builds computers, not designs them. • Fluctuations in the currency markets can...
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...Group MAX Presentation. Question: What are the elements of Dell Strategy? Which one of the 5 Generic Competitive Strategies is Dell Employing? How well do the different pieces of Dell Strategies Fit together? In what ways is Dell Strategy Evolving? 1. What are the elements of Dell Strategy? (Page C121) a. Build To Order. This concept great reduced cost and risk associated with carrying large stock of parts, components and finish goods b. Selling to customer directly. By bypassing distributors and retail dealers eliminating the markup of resellers and thus passing on the discounts to end user making computer priced low and affordable c. Partnering closely with suppliers. To squeeze and bring down the cost of the entire supply chain d. Expanding into add-on products and services. To capture the a bigger share of the customer’s IT budget e. Providing good customer service and technical support. f. R&D focus on meeting the needs of the customers. g. Standardizing technologies for all product offerings. h. Web Site strategy - prospective buyers could review Dell’s entire product line in detail, configure and price customized PCs, place orders, and track orders from manufacturing through shipping i. Low cost manufacturing to grow sales & market share in both the PC and server segment and expand into other product category such as flatscreen LCD TV, MP3 player, DVD drivers, printers, scanners, modems,...
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...SWOT analysis of Dell Computers Corporation Student Name Institutional Affiliation Professor’s Name SWOT analysis of Dell Computers Corporation Dell is a privately owned American multinational computer technology which develops, sells and repairs computers and related products plus services. It was named after its great founder, Michael Dell. The company is best known for the innovations it made on the management of supply chain and electronic commerce, mostly the model for direct sales and configure to order approach which they used in management to deliver customer’s specifications of configured PCs. Dell is one of the leading computer manufacturers in the whole world and it has tremendously grown since its incorporation by Michael Dell. Dell currently dwells in an ever changing market with competitors who are challenging the company with unique and new products in the market place. Therefore SWOT analysis will provide a basis for crafting strategy that will take advantage of the company’s resources and at the same time benefiting from the opportunities and defending the company the threats to its successful operations (Michael Dell 2009). Strengths Majorly, the strength of Dell comes because of the Direct Model which is considered as one the greatest assets of the company. The Direct Model gives consumers a chance to customize their laptops since the market is becoming more educated and every individual needs a laptop that will meet their needs especially in terms of performance...
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...[pic] Dharini Giri 12050221051 FC- 3yr Dell Introduction Dell Inc. is an American privately owned multinational computer technology company based in Round Rock, Texas, United States, that develops, sells, repairs and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell sells personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players and also electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications. Dell was a pure hardware vendor for much of its existence, but a few years ago with the acquisition of Perot Systems, Dell entered the market for IT services. The company has since made additional acquisitions in storage and networking systems, with the aim of expanding their portfolio from offering computers only to delivering complete solutions for enterprise customers. History Dell traces its origins to 1984, when Michael Dell created PC's Limited while a student of the University of Texas at Austin. The dorm-room headquartered company...
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...Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Case Analysis: Dell Corporation By: Ijaz Qureshi & John Muffich For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004 © Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA 1 Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Executive Summary: Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting...
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...Dell Strategic Management Assignment/Case Study Solution Dell Strategic Management Assignment/Case Study. It reviews the organizational structure, vision, mission, SWOT, PESTEL Analysis, Strategic Group Map Competition and Product Positioning Map of Dell. This is a sample paper. If you like to order your own paper, please Click Here Introduction This report undergoes a strategic management overview of Dell, one of the leading PC vendors of the world with a unique operations model focusing on built to order and direct to consumer frameworks. The report begins with a comprehensive overview of the company’s operations, its hierarchy, location and principle of logistics. An understanding of the vision, mission and objectives allows for the strategic analysis to be put into context and perspective. Our first strategic analysis tool is the SWOT analysis followed by an internal and external factor analysis. This is accompanied by a TWOS matrix allowing the report to pin point specific strategies which may help the organization cash on its strength and opportunities to offset threats. An overview of the life cycle of the industry is followed by a PEST analysis. Understanding the political factors is critical and along with the location principles explained in the first section – allows us to pin point some strategic direction for the company. Similarly the economic, social and technological factors are discussed for the industry and the implications for Dell on a strategic level. A competitive...
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...The Acer Group is one of the world's largest PC and computer component manufacturers. Associated Acer companies include the world's third largest PC manufacturer, and Acer's mobile computers, network servers and personal computers are ranked in the world's top ten most popular brands in their respective product categories. Acer is the market leader in many countries around the world, and is ranked in more than 30 countries globally owing to the strength of its core business. On the distribution side, in 2007 it is the world's No.4 PC branded PC vendor, number one in South East Asia, Latin America and Middle East, etc... Since spinning-off its manufacturing operation, Acer has focused on globally marketing its brand-name products: mobile and desktop PCs, servers and storage, LCD monitors and high-definition TVs, and handheld/navigational devices. Acer's unique Channel Business Model is instrumental to the company's continued success. The model encourages partners and suppliers to collaborate in a winning formula of supply-chain management, allowing Acer to provide customers with fresh technologies, competitive pricing, and quality service. Established in 1976, Acer Inc. employs 5,300 people supporting dealers and distributors in more than 100 countries. Estimated revenue for 2006 is US$11.31 billion (Acer Annual Report 2005). Stan Shih, the founder and chairman of the Acer group and widely regarded as a high-tech visionary, had a long term vision to transform the Group into a...
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...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...
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...any business to observe the applicable changes that occur in the environment and devise policies to adjust to variations. For a company to succeed, a company needs to conquer the trials of the constant shifting environment. Environmental scanning is a process of analyzing, monitoring, and evaluating the information from the internal and external environments to certain people in the corporation (Wheelen & Hunger, 2010). Conducting an environmental scan for the two following companies will offer a background to increase chances and distribute the resources in expectation of the changes in the environment. The competitive advantage, measurement guidelines, and the effectiveness of the measurement guideline will be reported on for Ford and Dell. Ford The Ford Motor Company has been a force in the automotive industry since the early 1900’s. Ford has been a company that has endured trials and tribulations and has even recently been able to prevail in our economic downfall. An analysis of their standards, views, missions and values, we can understand how it is that they have remained a strong force within the automotive industry. Ford takes a unifying approach in their business stance when concerning their mission. Their mission is to work as "ONE Ford" with the focus, team work and a single global approach, aligning employee efforts towards a common definition of success" (Ford n.d., para. 3). They also incorporate a “One Plan” approach addressing Ford’s approach to their...
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