Premium Essay

Swot Analysis of Dell Computers

In:

Submitted By moffatharoun
Words 966
Pages 4
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 and portability. Direct Model gives a fast delivery of services to the customers as it allows customers to place their order and receive customised computers within a short period of time therefore making it possible for a customer to directly buy an item from the factory.
Dell achieves a great advantage in their well-developed relationship with suppliers and in their inventory

Similar Documents

Premium Essay

Dell's

...1.0 Executive Summary Dell is considered an industry leader due to their large range of high quality products. Dell PowerEdge servers, Power Vault and Dell/EMC storage systems and PowerConnect switches are superior buildings blocks for enterprise computing. Dell also offers printers, projectors, tablets and phone, HDTVs and home theatre, Axim handhelds and other complementary products. Dell’s support all this products with a broad range of services designed to help customers simplify complex computing. In short, Dell is focused on delivering maximum performance with standards-based solutions while ensuring the right mix of cost effective solutions with value at every level. In that case, Dell’s is not just interested in low prices, but also in high-performance and solid reliability. Today, Dell lost its market position to HP and hopefully realizing that efficiencies are not the means to an end; competition is global and fierce; customers are constantly evolving and business can’t stay still. In this case analysis I will highlights Dell’s SWOTs analysis. This analysis is to identify firm’s strengths and weaknesses and diagnose organization’s threats and opportunities. Moreover I will underline the Dell’ unique and strong competencies as well as others marketing strategy. 2.0 Introduction Dell Corporation is a 27 year-old entrepreneur founded by Michael Dell, the computer industry’s longest-serving chief executive. Dell’s sales philosophy is very simple, that...

Words: 2548 - Pages: 11

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

Premium Essay

Dell Swot

...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...

Words: 322 - Pages: 2

Premium Essay

Strategic Managment Dell

...PROCESS OF DELL. EXECUTIVE SUMMARY Every organisation has different processes it uses to be successful and there are some that are quite essential for a business to identify what it is doing right and what it is not doing. Through this process clearly analysed in Dell Corporation in this report it is able to help a business grow, and thus by identifying all this factors a business is able to make starategic decisions on what is best for the business and develop goals that will help move the company forward. So by looking at Dell we will be able to identify all this important processes and thus run a successful business. INTRODUCTION. Dell which was formed by Michael Dell in his university dorm room as shown in http://www.bizface.co.uk/bizfaceforum/blogs-leading-articles/43905-famous-dell-case-study-finance-case-study-dell-s-dilemma-brazil-del.html in 1984 when he was only 19years and is now one of the biggest computer seller worldwide. It has over 100,000 employees in the world and sells 110,000 systems daily to over 180 countries. In its’ second quarter of the fiscal year ended 30th June 2010, dell generated a net income of $545 million. All this huge figures just show how big a corporation dell is and many may ask what were the factors that attributed to this dells’ success. There are a number of factors that attribute to dells success and according to http://ivythesis.typepad.com/term_paper_topics/2008/02/dell-strategic.html the main ones being; • Dells direct model...

Words: 2776 - Pages: 12

Premium Essay

Essay

...Dell Computers relies on its Direct Method to sell its products. This model is not perfect.. Addressing its flaws is key to maintaining Dell's competitive edge. Dell Computer Corporation started in 1984 by Michael Dell with this very simple premise as its basic foundation: that personal computers could be built and sold directly to customers and by doing this, Dell could address their specific needs and provide the best computing solutions that meet those needs. Dell’s Direct Method provides two distinct advantages: 1. reducing marketing and sales cost by eliminating markups of distributors and retailers and 2. building to order reduced inventory costs and risks of retaining inventories. Dell’s Direct Model is the main reason why it has achieved its stellar status in business today. This strategic model enables Dell to interact with customers directly providing them with fast, reasonably-priced and friendly means of production and distribution. Read more at Suite101: SWOT Analysis of Dell Computers: Strengths, Weaknesses, Opportunities and Threats Analysis | Suite101.com http://www.suite101.com/content/swot-analysis-of-dell-computers-a92597#ixzz1T1H2sM6x The current environment for the computer hardware industry is shaped by several macro forces. Primarily, Dell and its competitors are influenced by economic, demographic, technological and national forces. Government, social, physical and national forces peripherally affect the computer hardware industry to varying degrees...

Words: 324 - Pages: 2

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

Dell Corporation

...Dell Computer Corporation The Dell Computer Corporation was founded in 1984 by Michael Dell from his dorm room at the University of Texas at the age of 19 with $1000. The original name of the company was PC’s Unlimited. The corporation was started with a simple premise as its basic foundation: that personal computers could be built and sold directly to customers and by doing this, Dell could address their specific needs and provide the best computing solutions that meet those needs (Cuizon, 2009). Dell Computer Corporation relies on its Direct Method to manufacture and sell its products to the consumers. This strategic model enables Dell to directly interact with customers providing them with fast production and distribution. The Direct Method provides two distinct advantages (Cuizon, 2009): 1. Reducing marketing and sales cost by eliminating markups of distributors and retailers. 2. Building to order reduced inventory costs and risks of retaining inventories. Dell has employed as many as 96,000 people worldwide. As of January 2011, Dell employed 39,500 people in the Americas region, with manufacturing facilities in Austin, TX; Nashville, TN; Winston-Salem, NC; and Eldorado do Sul, Brazil. Dell employed 32,100 people in the Asia-pacific region with manufacturing facilities in Malaysia, India, and China. Dell also has manufacturing facilities in Europe. Recently, the company closed facilities in Ireland and moved all manufacturing in Europe to Poland (Farfan, 2008)...

Words: 1142 - Pages: 5

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

Dell-Strategic Mgmt

...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...

Words: 1930 - Pages: 8

Premium Essay

Dell Inc

...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...

Words: 1903 - Pages: 8

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

Dell Inc - Swot Analysis

...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...

Words: 1766 - Pages: 8

Premium Essay

Effective Strategy Formulation

...environment to an organization. We have selected “Dell” as the organization and we wish to study the planning and implementation of Dell’s Strategies. Report starts from briefing the background of this chosen organization. Moreover, some of the external factors have been discussed by presenting a view of SWOT analysis of ‘Dell’. Further part of the report will illustrate the review of already existing business plan and strategy of that enterprise. Furthermore, listed are the factors affecting this strategic plan, in which vision & mission, objectives and other measures have been taken into account. Despite their strengths Dell has many challenges it needs to overcome right from the increase in the competitors to a dire need in breakthrough innovation which is essential. With the increase in innovation in the market the computer systems are becoming outdated, so Dell should constantly come out with new products. Also, People need the quality products at low price which was Dell’s strength due to its customized solution, but now its competitors are coming up with products in same price range. To identify these business concerns, it has been noted that the company has a sound and dynamic consideration while managing its product portfolio as well as conducting its target markets. This has helped the company to stabilize its financial status through sales generation and cost reduction. 2. Introduction Dell is a US based Computer Technology company which deals in hardware...

Words: 4284 - Pages: 18

Premium Essay

Environmental Scan Paper

...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 the University...

Words: 1850 - Pages: 8

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