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SWOT Analysis: Case Study of Dell

Paper Type: Free Essay Subject: Business
Wordcount: 2164 words Published: 5th Dec 2017

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Dell is one of the largest manufacturer and distributor in the world. Dell was found in 1984 by Michael Dell, while he was a student of the University of Texas. In the beginning the Michael dell used to purchase the computer part of wholesale and collected in his house before they sell it to the customer in the cheaper price than the other retailer shops. In the beginning that he used to order them directly from the Internet and delivered to the customer. At that time, Dell has direct sales strategy favourable to the customer and Dell. This strategy helps to get information from the customer and create and maintain a good relationship between company and customer.

Dell had become a biggest seller of the computer in the period 1980-to1990. In 2009, Dell has the third position in the world. Dell is known for selling good quality in cheaper price. This cost leadership strategy has been very successful and it really competitive advantage to compete with other PC companies such as IBM, Toshiba, Sony and Compaq.

Dell is not limited with only one product the range of product as a data storage device, television, notebooks, etc.. The species also sells product is manufactured by others. Dell is today well known company in the world.

SWOT analysis


Dell is world’s largest manufacturer of PC. Profit for the 3 months up to and including July 2005 were of more than $ 1 billion, a growth of around 28%. For the last few years has its position as the market leader (it took it is Hewlett-Packard’s rivals). The Dell brand is one of the most well known and reputable computer brands in the world.

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Dell cuts the retailer and delivers directly to the customers. It makes use of information technology and customer relationship Management (CRM) approaches to data-capture capabilities on its loyal users. So a customer a generic PC model, setting, and then items added and upgrades until the PC is kitted out from the specifications relating to the customer. Parts of suppliers, never through Dell. PCS are assembled with the help of relatively cheap labour. You can even keep track of your order by contact with the customer service team, based in India. The finished product than with the customer by courier. Dell offers full control of the supply chain


The company has such a huge range of products and components of many suppliers from a large number of countries, there is the occasional product recall that lead to some embarrassment to Dell. In 2004, Dell had to remember 4.4 million laptop adapters because of a fear that they could overheat, electric shock, or cause a fire.

Dell is the author of a computer, not a computer manufacturer. The purchase of a number of manufacturers of concentrated high-tech components. This is a huge advantage in terms of business activities, as a result of which Dell to focus on marketing and logistics, the company depends on a number of major suppliers and, to a certain extent, is locked in for a period of time (i.e. not in a position to switch from the delivery costs, the lack of major suppliers in the world).


Dell performs a diversification strategy by the introduction of many new products to its range. This has primarily aimed at good as peripherals such as printers and toner, but now also included LCD televisions and other non-computing goods. So Dell compete iPod and other consumer electronics brands.

Dell is making and selling cheap cheap PC computers to retailers in the United States. The PCs are generic and not to be recognized as being from Dell when the consumer make a purchase. Rebranding and rebadging for the retail trade, although a departure for Dell, the company offers new market segments and attack with the marketing costs.


The biggest problem for Dell is the competitive rivalry, which in the PC market worldwide. As with all brands of cost effective, retaliation of competitors and new entrants to the market potential threats. Dell resources from the far East countries where labour costs are low, but there is nothing stopping competitors do the same thing-even sourcing the same or similar components of the same or similar suppliers. Please bear in mind that Dell a maker of PC, is not the manufacturer of the PC.

Dell, global marketing and operations, is exposed to fluctuations in the currency markets of the world. Although it is a very lean organization, place orders some time ahead thanks to their size or the value. Changes in exchange rates could leave the company exposed to potentially lose in parts of the supply chain.

Target group

Dell the target group consists of major corporate accounts, medium and small businesses and consumers company. In order to comply with any other customer segment by the direct model adopted Dell.

To be successful, Dell has to ensure that it produces the correct computers that meet the customers, and take advantage of the possibilities that are available.

Accent has been placed on the industry-laptop, Dell wants to produce the next generation notebook platform that will continue its activities in the future, it should look on the current trends in the industry and how they could the next generation of laptop.

Mobility is becoming more and more influence on the world and the markets that Dell will function. Therefore, the implication of this trend is associated with the laptop that Dell would produce to be lighter and smaller.

The Internet is becoming a necessity in the daily lives of people. Due to this trend, and the impact of mobility at the same time would be Wi-Fi Internet access is a potential demand.

Dell marketing objectives

  • Accomplished by global marketing strategy
  • Measurable and quantifiable
  • Within a time limit
  • The target group can be
  • Realistic and achievable
  • Sales, profit, market share

Marketing strategy of dell

Dell’s strategy collapse profit margins in the PC market, a serious development for the competitors who are not keeping pace. Dell is the pricing of the machines rather than as high-tech products, but more on airline tickets, and low-margin raw materials. DELL has a tight competence with other major computer vendors such as Compaq and HP. social factors also affect the business environment from Dell. Computer companies have to recognise that in the Chinese culture, people are still not sure about credit card sales because of the huge cost of computers in China. Companies, need to invest in activities from door to door or face to face to get consumer confidence and consumer confidence in the company and the product. Dell has also the ISO 14001 Environmental Management System (EMS). DELL is focused on product design, transport, and so on. As part of DELL of ISO 14001 EMS, the organisation objectives where the goal is to improve the performance of the internal business environment in a continuous improvement processes that are used to successes in the entire company. Dell has its brand name than ordinary computer products expand by making use of its reputation as an e-commerce leader positioned. In the year 2000 Dell began to redefine itself if the company that you are familiar with the operation of e-business. It has the online sales expertise shared with a number of large customers as they have their own e-commerce capabilities.

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Dell is certain forces of competition in terms of information technology as the EDI tool provides a very effective possibilities in reducing the costs and the close link between Dell and Dell with its subcontractors with its customers. DELL started selling its own brand of portable computers, called the Axim, at discount price which may be regarded as a promising and CEO, Mr Michael Dell highlights how the Dell success lay in making it as easy as possible for someone to buy a computer. There are a number of applications that are currently being used by Dell and they are crucial for the core activities of business Dell and the DELL direct that its operational factors for success. Some applications that are currently being used by DELL that are valuable, but not for some critical success factors.

Business scored card from Dell

It is a strategic planning and management system that is used extensively in Business and industry, Government and non-profit organizations around the world to bring activities to the vision and strategy of the Organization, improve internal and external communication and monitoring the performance of the organisation of the strategic objectives. It is caused by Drs. Robert Kaplan (Harvard Business School) and David Norton performance measurement framework that strategic performance of non-financial measures added to the traditional financial metrics give managers and executives a more balanced ‘ view of organizational performance. While the company scorecard phrase was coined in the early 1990s, the roots of this approach are deep and the pioneering work of General Electric performance measurement reporting in the 1950s and the work of the French process engineers (which the Tableau de Bord – literally, a “dashboard” of the performance counters) are included in the beginning of the 20th century.

Business scorecard evolved from the early use as a simple performance measurement framework a complete strategic planning and management system. The “new” business scorecard transforms an organization’s strategic plan of an attractive, but passive document is in “marching orders” for the Organization on a daily basis. It provides a framework that offers performance measurements, but helps planners identify what needs to be done and measured. It enables executives to really to carry out their strategies

Role of Business Scorecard

The scorecard is a system where the imposition of measures on the basis of the priorities of the strategic plan. Offers the most important business drivers and criteria to motivate managers to develop and implement processes that will contribute to success in the future – instead of dwelling on historical performance. By requiring that the four perspectives, it offers a richer, more holistic vision of the organisation

The benefits of the approach of the balanced scorecard measurement performance are:

  • Gives the full picture of the employee if the organizational performance .
  • It helps users to determine the critical success factors and performance indicators.
  • Strategic review or analysis of the organizational capabilities and performance.
  • On the other hand, refer to the entire organization on the some of the key things are needed to make the breakthrough performance.
  • Integration and the performance and the efforts at the lowest level in the Organization to achieve outstanding performance.

Implementation plan for dell

The new business model includes the creation of three units worldwide: large enterprises, the public sector and small and medium-sized enterprises. Each group will apparently be entrusted with important “leading global responsibility” and “industry”.

“Function in the past two years, we have significantly improved our competitiveness, our supply chain, our expanded and Dell introduced to more people in more places than ever before,” stated CEO Michael Dell. “We have laid the foundations for the transition from a global company that regional level in order for companies are organized that is truly global.”

Dell also noted that the above amendments were influenced by customers who faster innovation and worldwide standardised products.

“Requirements of the customer are increasingly defined by the use of technology rather than where they use. That is why we are allowing ourselves to be limited by geographic boundaries to solve their needs, “Dell added.

Dell the so-called restructuring plan has led to large-scale redundancies in a number of locations, including Ireland, who expect to losses of more than 2,000 jobs in Limerick. The pending job losses will be prompted to enter the local Tánaiste and Minister of Defense “communicate with Mr Michael Dell the significant benefits that the operation of the company, the Limerick City and the region brings”.

While Dell is likely to continue with the cuts, the company continued “internal treatment of exactly what its new strategy to its operations in Limerick means” and promised to “share the details on staff and to the Government, as soon as it is in a position to do so


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