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Dell Swot Analysis

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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 has managed to be a low cost leader by enjoying a competitive advantage in the supply chain. But, due to strong global competition Dell has been forced into adapting their business model by outsourcing much more of their production. This advantage is quickly becoming a disadvantage, Dell is known for its outsourcing; it is how the company keeps their prices to consumers low to compete with

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