Dell Computers Research Paper

Download this Research Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Research Paper:

Dell Corporation

Dell computers

Company Background

Michael Dell is a global icon, especially on his college-based business of building personal computers using available parts, which he used to create a global business. The Dell Computer Company officially became a global corporation in 1984 (Dell, 2009). The priority of Dell Corporation was the build to order strategy, whereby clients ordered computers; their orders routed via credit check, and then the manufacturing followed (Qurechi and Muffech, n.d). Afterwards, the company built the order, tested, and shipped to the client who later received the computer within 5-7 days from the date of placing the order. This approach resulted to beneficial outcomes. First, the company eliminated the use of intermediaries.

In so doing, Dell passed customer's savings in the form of affordable prices, understood the customer's needs and embraced market changes in a quick manner than competitors (Dell, 2009). Another significant benefit is that the company built computers for clients and not for inventory. Therefore, the company did not waste resources in building computers that may not reach a client, employ staff to transport inventory all over the globe, or use lots of time tracking inventory (Qurechi and Muffech, n.d). The company is best recognized for its prioritization of direct marketing for selling and distributing computers. During the ordering process, the customer has a chance to select the features one wanted for their computer. Therefore, the company manufactured systems only after the customer ordered.

The company has a very user-friendly website, whereby most of the sales, technical support and orders take place online. The supply chain and data integration in collaboration with their suppliers has contributed in making Dell one of the most successful computer producers. In addition, the unending advancements in technology and creative approach to manufacturing and assembly have assisted in maintaining the Dell Company the affordable leader in the Computer sector (Qurechi and Muffech, n.d). Additionally, the company has the highest Return on Assets, highest inventory turnover, and highest Return on Invested capital in the Personal Computer industry.

Company History

Michael Dell's vision and business approach guided the upcoming computer company to change with times and cater directly to the exceptional, wants and desires of the customers. One of the creative approaches undertaken by the entrepreneur in the company history was the establishment of a national computer support center that provided technical support, trouble shooting, maintenance and restoration for most of the Dell products. During the time, there was no other computer company, which offered such responsive, customized and customer-based product services (Dell, 2009). The company, which was originally named PC's Limited, changed its brand name in 1988 to Dell Computer Corporation. In the same year, the company went public and sold stock shares for $8.50 each.

In the year 1992, the company made to Fortune Magazine's ranking of the top 500 companies. In the same year, Michael Dell was 27 years of age. Presently, the company has a net worth of around 14 billion dollars and gained a status of among the wealthiest corporations in the globe (Dell, 1999). In the year 2007, some of the products from the Dell Computer Corporation's history were celebrated as national treasures, when the company gave out a collection of original computers to the Smithsonian National Museum. Currently, the company provides a variety of products including notebook PCs, printers, network servers, televisions and many other electronic devices. In addition, the company offers employment to over 77, 000 people in the globe.

Dell Computers: SWOT Analysis

Dell inc., directs its business activities through four worldwide sections, that is, large enterprise, public small and medium business, and consumer. The large enterprise section focuses on providing solutions and services using data centers, cloud-computing solutions to national customers (Kreamer, Dedrick and Yamashiro, 2000). The public section focuses on the wide range of information technology. The small and medium business sections aim at assisting small and medium sized companies work for their technology by providing products, services and solutions (Pinegar, 2002).

Strengths

Weaknesses

Dell is the largest PC manufacturer and brand in the globe

Dell Inc. is a computer assembler, not a computer manufacture; they purchase the parts from manufacturing suppliers globally

The company uses the current technologies and direct marketing to customers

Due to the many suppliers, the company may end up assembling low quality products

The company meets retailers, suppliers directly to the customers

The products assembled are not attractive for college students because it gets a revenue of 5% in the total revenue

The company has a total command over its supply chain. In addition, the company specifies and adds features and items according to the customer's preferences

Another potential weakness is that customers do not get to touch or see the products physically

The company's strategy of direct access allows the company to meet the corporation's to provide direct relationship. Additionally, this allows the company to keep in touch with customers after the sale too.

The customers cannot purchase dell products like other brands because a customer needs to specify a product

The company brags an efficient acquisition, manufacturing and distribution channels

The company poses a challenge to new users owing to its direct method and customization because, for a single system, customers cannot go to purchase products from retailers

The company offers consumers powerful machines at affordable prices

The company assembles PCs using cheap labor whereas the suppliers manufacture the computers. Then the company drops the products to the customers using courier. Dell has total command over its supply chain

Opportunities

Threats

Michael became CEO of Dell and remained as the leader for a long time. The company can allow the new generation to lead the company into new modern changes with their talent and smartness

The competition in the PC industry is the only potential threat for the company. All profit making companies, new entrants, and other competitors pose as threats

Dell is using various strategies by introducing new products. this includes printers, toners and included LCDS and other non-computing products

Dell being a computer assembler is a significant threat because it cannot make computers

The company is still producing low-cost computers.

There is a threat of becoming outmoded, which is a reality in the PC business

There is increased demand for laptops compared to PCs. The growth in demand for laptops is another opportunity for Dell to develop in other segments

The direct model used by the company is only used because it is attractive. Owing to the possibility of other companies offering PCs at an affordable cost is a potential threat

Personal computers are gradually becoming a necessity because customers have knowledge about the computers. Additionally, this is an opportunity for the company to grow in various segments

The price difference is not an issue for the customer because they might choose other PC brands instead of waiting for Dell's computers

The company has a new experience owing to the internet, and customers only have to visit the company's website to get information and place orders online. The trend towards proficient buyers is an opportunity

The growth rate in the PC sector is declining. Dell has the largest market share and in case of demands slowing down, competition will grow, and this means that the company will have to work extra harder in order to maintain its large market share

The increase in communication and technological merging are also an important opportunity for the company

Personal computers represent a volatile market where there are many threats. For instance, there are changes in software, hardware daily, and it is significant for the company to always check for the new things in the market or develop new systems

There is a threat of other companies producing high quality computers at a low price

Technology suggests that the current products are the most popular; therefore, the company will need to keep up with technological advancements

Five Forces Analysis

The Porter's Five Forces approach is a powerful evaluation tool that helps managers to recognize the focal point of control in an organization. In addition, it plays an important role in understanding the strengths of the organization in the sector against competitors, suppliers and consumer's. This part will examine the five aspects that comprise the Porter's Five Forces independently and evaluate their impact on Dell Corporation and the personal computer sector as a whole (David, 2005).

Rivalry amongst Existing Competitors

The computer industry, specifically the personal computer from the start it is directed towards consolidation as the market type is one that fits oligopoly. Additionally, the personal computer industry constitutes of competitors such as IBM, Compaq, Hp, Gateway, Toshiba and many others. Therefore, owing to such powerful companies as competitors, Dell Corporation will require to develop strategies to maintain an affordable price while producing high quality products to acquire a competitive advantage against these competitors.

Threat of New Entrants

Some of the factors that lead to emerging companies in the same sector are the advanced technology. Therefore, every company will try its best to outperform competitors…[continue]

Cite This Research Paper:

"Dell Computers" (2013, September 27) Retrieved December 7, 2016, from http://www.paperdue.com/essay/dell-computers-123089

"Dell Computers" 27 September 2013. Web.7 December. 2016. <http://www.paperdue.com/essay/dell-computers-123089>

"Dell Computers", 27 September 2013, Accessed.7 December. 2016, http://www.paperdue.com/essay/dell-computers-123089

Other Documents Pertaining To This Topic

  • Dell Computer

    Dell Computer Corporation was founded by Michael Dell, a savvy entrepreneur whose ambition was evident from the early days of his life. When Dell was a high school senior, he sold so many newspapers that he paid for a BMW in cash. Since then, Dell, now in his 30's, has sold so many computers, he could probably buy the entire BMW corporation. Dell is now a multibillionaire and has earned a

  • Dell Computers Dell Computer s Turnaround Can it

    Dell Computers Dell Dell Computer's turnaround: Can it work? At one point in its history, Dell Computers was considered to be a paragon of mold-breaking business innovation because of the radical way in which it challenged the accepted model of the computer industry. Rather than focusing on product innovation, Dell chose instead to primarily focus upon direct-to-consumer sales (both B2B and B2C). Dell "rose to fame in the 1990s and early 2000s by

  • Dell Computers Presents a Useful Company to

    Dell Computers presents a useful company to perform a strategic management analysis upon. The personal computer industry has changed and evolved considerably in the past years and the market conditions today are also presenting new and exciting problems for this organization. The purpose of this essay is to examine Dell and its industry in terms of its current strategic outlook. The essay will present information on the personal computer industry,

  • Dell Computer Dell Operations Management Dell Computer

    Dell Computer Dell Operations management: Dell Computer This seems fitting, given that it was Dell who conceived of the unique business model that catapulted Dell to the forefront of the PC market for nearly a decade. What is so extraordinary about the Dell success story (and some would say, the Dell fall from grace) is that Dell achieved its success through its operations management rather than creating a new product like Apple or

  • Dell Computers in 2003 Driving

    (Microsoft Solutions) Constraints to Success Achievement As mentioned earlier, Dell Computers was just another second-tire personal computer maker in the early months of the year 1994, and like all other PC makers, it had to order all the components in advance, and therefore had a large inventory of components. Then Michael Dell decide to implement his brand new business model, wherein the initial process by which he would use a build

  • Dell Computer Corporation Expansion Overseas in the

    Dell Computer Corporation Expansion Overseas In the past ten years, foreign expansion has become a major part of the business community. Many companies are seeking to expand globally in an attempt to maximize profits. This research paper will explore the foreign expansion of the Dell Computer Corporation. We will explore the ways in which this relatively young company has expanded overseas. We will examine the history of the company, the industry

  • Dell Computer Corp Singapore Establish Explain Ansoff s

    DELL Computer Corp. Singapore Establish explain Ansoff's Growth Matrix DELL Computer Corp. Singapore market propose specific strategic actions DELL -establish position a global market leader PCs Industry Singapore (based Ansoff's Growth Matrix) choose focus Market penetration, Market developement, Product development Diversification propose strategy Thank . Dell Computer Co: Market penetration in Singapore The Dell Computer Company While Apple and Microsoft are famous for the unique forms of technology they have created, Dell Computer


Read Full Research Paper
Copyright 2016 . All Rights Reserved