...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...
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...American Military University Abstract Porter’s Five Forces Model is a holistic approach towards competitive strategy. The model provides a framework for the strategic direction of management teams that are seeking an edge over their competitors and additional factors that may undermine profits. The model displays the dynamics between the competitive rivals, buyer’s bargaining power, suppliers, new entrant’s threat and substitutes. The implementation of Porter’s Five Forces Model is crucial on international business practice in order to establish a successful overseas operation and reduce cost of expansion. Global business expansion has become a common practice. Modern organizations are prone to take advantage of international attractive markets that are highly profitable and offer incentives for foreign companies. Implementation of the model increases the chances of success for firms that are considering branching out or simply starting a new company overseas. The Company’s management strategic vision also benefits from Porter’s Model because it points out the forces that affect the organization’s profitability. However, Porter’s modeling techniques have some limitations such as the absence of providing meaningful advice for preventive actions and profitability based solely on fighting competitors without taking in consideration opportunities of competitive strategic alliances. In conclusion, Porter’s Five Forces Model influences the profitability, product...
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...Porter's Five Forces Model Porter's five forces analysis is the structure framework for industry analysis and business strategy development. (Porter, M.E. 2008) Using Porter's five forces analysis is a way to figure out the different firms competition levels and force of said "attractiveness" of a market. "Attractiveness" being used in the context of the end all, be all of a industry's profitability. On the other hand, an unattractive industry refers to the combination of all five of the forces acting to drive down the overall profitability. (Porter, M.E. 2008) Three of the five forces of Porters refer to the competition derived from external sources, the remaining two are both internal threats. Porter looked at the forces as the micro environment, that way it would highly contrast against the more commonly known term "macro environment". These forces are close the company and greatly affect the company's ability to serves its customers and make a profit also. If a change were to occur it will normally result in a business having to re-evaluate and re-asses the marketplace to see what overall changes in the company would have to be made to keep up with the market. This however, does not go to say that every firm or company will have the same amount of profit. A company with clear objectives is more likely to achieve a profit over a company with less clear objectives. It comes down to the company's core competences and how the company comes together to work together...
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...Porter’s Competitive Forces Model Porter’s competitive forces model provides an overall view of the firm, its competitors, and the firm’s environment. In this model, the strategic position of the firm, and its strategies, are determined by competition with its traditional direct competitors. Porter’s model is about the firm’s general business environment. Five competitive forces in this model greatly affect and shape the firm. They are, traditional competitors, new market entrants, substitute products and services, customers, and suppliers. The competitive forces model describes competitive advantage as, firms doing better than the other because of access to more resources, or using commonly available resources more efficiently. With the help of a greater knowledge of information and resources, a firm’s revenue and productivity will grow. This positively effects a firm and helps to achieve more compared to competitors. Four competitive strategies that firms can pursue and how information systems support them: 1. Low-cost leadership 2. Product differentiation 3. Focus on market niche 4. Strengthen customer and supplier intimacy Information systems support the “Low-cost leadership” strategy through production. Products and services are produced at a lower price than competitors and enhances the quality and level of service. The “Product differentiation” strategy is supported by information systems by allowing the assembly of new products and services. Which...
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...THE FIVE FORCES INDUSTRY COMPETITORS. Rivalries naturally develop between companies competing in the same market. Competitors use means such as advertising, introducing new products, more attractive customer service and warranties, and price competition to enhance their standing and market share in a specific industry. To Porter, the intensity of this rivalry is the result of factors like equally balanced companies, slow growth within an industry, high fixed costs, lack of product differentiation, overcapacity and price-cutting, diverse competitors, high-stakes investment, and the high risk of industry exit. There are also market entry barriers. PRESSURE FROM SUBSTITUTE PRODUCTS. Substitute products are the natural result of industry competition, but they place a limit on profitability within the industry. A substitute product involves the search for a product that can do the same function as the product the industry already produces. Porter uses the example of security brokers, who increasingly face substitutes in the form of real estate, money-market funds, and insurance. Substitute products take on added importance as their availability increases. BARGAINING POWER OF SUPPLIERS. Suppliers have a great deal of influence over an industry as they affect price increases and product quality. A supplier group exerts even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers...
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...APPENDIX 1 - Porter’s Five Forces Model by 0726335 The analysis of Cosmetic Industry has come out with Poter’s five forves model to analyze the level of rivalry in this industry. In the Porter’s Five Forces Model the rivalry which is in the middle is most powerful of the five compentitive forces. Rivalry among competing firms (High) There are a large number of competitors in this industry, and all competitors are competing for the same customers. Thus Carlina have to compete against its direct competitors that sell similar products. The large number of direct competitors in the industry causes a high degree of rivalry. Competitors are also selling similar products, which is cosmetic product. Due to having so many options, customer is able to switch between brands easily. The industry is in its maturity stage causing the market growth to be static. Thus all companies are striving to maintain its market share in the industry against their competitors. Barriers to enter for new competitors (Moderate) The barriers to enter for new competitors are at a moderate, especially during the maturity stage of the industry’s life cycle. Majority of firms that already existed in the industry have developed economies of scale, thus providing a cost advantage to them over the new entrants. If new companies try to enter into the market, it will face problems especially to cover for the expenditures, as they have not established...
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...Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad CAN YOU SUMMARIZE YOUR COMPANY’S STRATEGY in 35 words or less? If so, would your colleagues put it the same way? It is our experience that very few executives can honestly answer these simple questions in the affirmative. And the companies that those executives work for are often the most successful in their industry. One is Edward Jones, a St. Louis–based brokerage firm with which one of us has been involved for more than 10 years. The fourth-largest brokerage in the United States, Jones has quadrupled its market share during the past two decades, has consistently outperformed its rivals in terms of ROI through bull and bear markets, and has been a fixture on Fortune’s list of the top companies to work for. It’s a safe bet that just Getty Images and IPNstock 82 Harvard Business Review | April 2008 | hbr.org It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? about every one of its 37,000 employees could express the company’s succinct strategy statement: Jones aims to “grow to 17,000 financial advisers by 2012 [from about 10,000 today] by offering trusted and convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions, through a national network of onefinancial-adviser...
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...Buyer Power: The buyer power is weak since the customers are fragmented. They do not have a big influence on the price they pay for the domestical products. It is not the same when we think about the distributors who have a big buyer power. For example, if Wal-Mart decide that a price is too high, it can have an important impact on P&G. Suppliers Power: The suppliers power is important because it is very costly to switch suppliers. The production of Procter and Gamble is very big so are the supply. If they change suppliers, the supply chain will probably change also and those changes requires a lot of time and money. On the other hand, P&G has also a important power over their suppliers because of the importance of their demand. Therefore, on both sides they are limited. Substitutes: There is possible substitutes for P&G products. Since most of their products are domestical, customers could decide to go with the homebrand that are less expensive. This is where the branding take all of its importance. Another substitutes could also be that the customers decide to create their own domestical products. An exemple would be to wash their windows with water and lemon juice or to use washable diapers. Current competition: It is really important to be aware of the competition in the market of a company. It affects the global strategy by having an effect on the demand and offer law. There is currently three main competitors to Procter and Gamble. Johnson and Johnson is...
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...Porter's Model Global Hotel Industry Global Hotel Industry I. Porter’s Five Forces analysis Threat of rivalry is high because: • The most part of the market is controlled by few companies with the same or similar strategy, size and capacity. Big companies around the world such as Hilton Hotels, Four Seasons, etc. have absorbed the little companies and few have remained. (For ex. Multibrand Strategy has been adopted by most of the companies, and this has strengthen the companies who were already strong and weakened the weak ones, at the point that some of them had to exit the market) • Customers don’t have a really defined preference, so as soon as one hotel stops satisfying their needs or another company offers them a better service or product they’ll switch. • Companies have to invest in R&D in order to satisfy customer’s needs and to create loyalty. • The high rivalry in the market has caused an overrated expansion on the capacity and strength of the leaders. Supplier Power is low because: • There are different categories of suppliers of products and services in the hotel market supply market so they are segmented and don’t have much power by themselves. • However they have a strong and good relationship with the hotels (ex. Ritz Carlton alliance with Bulgari) and this helps the Hotels to gain Competitive Advantage. But as suppliers have greater benefits with the hotels than by themselves, they stay with them and are loyal. Hotels may find the way to keep having...
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...Porter's Five Forces Model for International Strategy American Public University Global Management Perspective BUSN601 Dr. Bobby Barrett April 12, 2013 Porter's Five Forces Model for International Strategy The Ultimate American Dream is entrepreneurship. With more people desiring to be their own boss, one might be hard pressed to develop a company that has mass appeal. To achieve success in competitive markets, companies have learned that branching out into the International realm proves to be worthy. Companies who enter into the International markets need to do so only after they have developed a strategy. Porter’s Five Forces Model is a great resource for companies who want to develop a successful strategic plan. Porter’s Five Forces is a model for Industry Analysis which speaks on rivalry, power and barriers. A company seeking International gain should be aware of these three topics and incorporate them into their new strategic business plan. A new company making an International entrance should immediately expect rivalry from other companies who have already established themselves in a given market. Companies must always strive for competitive advantage. According to Porter’s Model to get advantage over its rivals a company can choose to change its prices, improve its product differentiation or use a new channel of distribution ("Porter’s Five Forces," n.d.). To determine which course of method is best, the company would need to develop a strategic plan and set...
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...LLAGAS, Ariedna ABAYON, Abegail DELOS SANTOS, Christian Mikaella MONSALE, Ma. Beatrice SOLARTE, Rollie TRIÑANES, Angelique Vinn Rose LLAGAS, Ariedna ABAYON, Abegail DELOS SANTOS, Christian Mikaella MONSALE, Ma. Beatrice SOLARTE, Rollie TRIÑANES, Angelique Vinn Rose 2016 Key Competencies and Porter’s Five Forces Model BSBA HRDM 4-1 ENMA 4113 Group 1 2016 Key Competencies and Porter’s Five Forces Model BSBA HRDM 4-1 ENMA 4113 Group 1 I. KEY COMPETENCIES COMMUNICATION * It is a pivotal role to the development of the entrepreneurial society. * Entrepreneur must have the skills in communication to compete with other entrepreneur like getting more investors. Methods of Communication 1 Face-to-Face Communication – a lot of your business communication will take place in a face-to-face format, such as meetings and conferences, so it’s important to refine your “in person” skills. 2 Email – has transformed the way that people communicate in the business world. Emailing enhances efficiency because it is quick to send and quick to respond to, and you can even include attachments that are essential to the subject being discussed in the email conversation. Email conversations can be between two or more people, and these types of discussions often replace the need for formal meetings since decisions can be made in this forum. 3 Teleconferencing – it is another method of business communication that is commonly employed in the workplace...
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...Global Hotel Industry I. Porter’s Five Forces analysis Threat of rivalry is high because: • The most part of the market is controlled by few companies with the same or similar strategy, size and capacity. Big companies around the world such as Hilton Hotels, Four Seasons, etc. have absorbed the little companies and few have remained. (For ex. Multibrand Strategy has been adopted by most of the companies, and this has strengthen the companies who were already strong and weakened the weak ones, at the point that some of them had to exit the market) • Customers don’t have a really defined preference, so as soon as one hotel stops satisfying their needs or another company offers them a better service or product they’ll switch. • Companies have to invest in R&D in order to satisfy customer’s needs and to create loyalty. • The high rivalry in the market has caused an overrated expansion on the capacity and strength of the leaders. Supplier Power is low because: • There are different categories of suppliers of products and services in the hotel market supply market so they are segmented and don’t have much power by themselves. • However they have a strong and good relationship with the hotels (ex. Ritz Carlton alliance with Bulgari) and this helps the Hotels to gain Competitive Advantage. But as suppliers have greater benefits with the hotels than by themselves, they stay with them and are loyal. Hotels may find the way to keep having CA without agreements with luxury suppliers...
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...Chapter 8 Conclusions On the basis of the findings, the following conclusions can be drawn: (on child labour in the export-oriented garment and gem polishing industry of India) 1. For both, the garment export industry in Tirupur and in Bangalore as well as the gem polishing export industry in Jaipur, it has been found that their expansion, due to an increased international demand by European countries and the US for garments and (semi-)precious gem stones, caused an increase in the number of economically exploited child and adult labourers. When children are concerned this caused more school drop outs and illiterate children. It has been found that the labour of children who work in the above mentioned industries interferes with their mental, physical and social development. Especially in the garment industry as compared with the gem polishing industry the children are physically and economically exploited. Though the children in the garment industry earn higher wages than the children in the gem polishing industry, they are forced to work more hours per day and also in the nightshift because export orders have to be completed in time. This puts a tremendous stress on the children. The majority of the children in the garment industry of Tirupur suffers from exhaustion. This is even more the case for the children who have to combine work with education in the evening in non-formal education centres. 2. Employers of both the industries have a vested interest in child labour...
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...2.3 Porter’s 5 forces Model 2.3.1 Threat of new entrants The apparel industry has very low entry barriers. Entering the market does not require huge amount of capital. The setup can be as simple as a person selling his own designed apparel online which only required relatively low skills level. In fact, the fashion retailing is a diversified market with numerous single shop retailers, local chain stores, international fashion chain stores, online shop… etc. However, if we focus on the fashion retail chain with economy of scale in production and distribution, that would create significant barrier for entry. Moreover, brand identification and production differentiation also set a barrier for entrance. 2.3.2 Threat of substitute products or services The threat of substitute products in the fashion retailing is very high. Customer can buy another piece of garment in turn satisfying the same need. The competitors can even copy the “hit of the season” easily, customer can find similar products in the market with different price positions. The switching cost on the substitute apparel is also very low. What’s more, many female considered shopping as leisure activities. Retailers also lower the switching cost by providing online platform for shopping which in turn provide price information to customer as well. To retain their customers, fashion brand has put a lot of resource on building their brand and establish the perceived value on their product (i.e. level of quality...
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...available to help to find competitive advantages, including Michael Porter’s five force model. Porter’s Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. Its purpose is to combat these competitive forces by identifying opportunities, competitive advantages, and competitive intelligence. If the forces are strong, they increase competition; if the forces are weak, they decrease competition. The five forces in Porter’s model are buyer power, supplier power, threat of substitute products or services, threat of new entrants, rivalry among existing competitors. • Buyer Power is the ability of buyers to affect the price they must pay for an item. • Supplier Power is the suppliers’ ability to influence the prices they charge for supplies, including materials, labor, and services they provide. • Threat of substitute products or services is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose. • Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. • Rivalry among existing competitors is high when competition is fierce in a market and low when competition is more complacent. Putting desktop computer business into Porter’s Five Forces Model 1 Buyer power is high because customers are having many choices...
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