SlideShare una empresa de Scribd logo
1 de 25
Descargar para leer sin conexión
Dell, Inc. Case Study
Presented by Sophie Yanez

S
Dell Inc.

S Dell produces and markets PC’s and a broad range of

technology products for the consumer, education, enterprise
and government sectors.
S Founded by Michael Dell in 1984
S Based out of Round Rock, Texas.
S Michael Dell developed his ―direct model‖ based upon a built to

order process that allowed customization of the personal
computer.
Dell’s History
1988-1991

1984-1987

1996-1999

20002004

1992-1995

20052008

20092012



Tablets and smart phones are reducing the need for
personal computers in homes and certain businesses
Cloud Drives are changing the storage needs for the
personal computer

SUPPLIERS

SUBSTITUTE PRODUCTS











132 different key supply
chain markets that include
AMD, Intel Corp. EMC,
Microsoft, Toshiba,
Logitech. Lexmark, etc..
By working with multiple
suppliers, you are able to
get a lower price for parts.
Supplier monopolies such
as Intel
Inability to substitute
necessary hardware (hard
drives, processors, RAM)
High cost of supply chain
churn








Hewlett Packard, Lenovo, ASUS, Apple and
ACER
Large number of competitors currently in the
market- with declining sales, the market
saturation is increasing.
There is little power in the market place for
product differentiation
Price is a high determining factor











High start up cost leads to barriers to entry the market
There is almost no brand loyalty in this largely
commoditized market. This means that anyone can enter
and make a convincing marketing pitch.
Economies of scale lead to continued advantages
PC industry is a unique business model

Customers prefer
customizable PC options.
They purchase what they
need.
Customers dictate product
pricing since there is a
large selection of PC
brand alternatives for them
to choose from
There is a size of order –
single to large- preference
for large custom orders in
order to drive down costs.
(ex: Schools and
Businesses)
Customers have the ability
to change between
different types of PC
brands that use the same
software (ex: Microsoft)

S

Porter’s Five-Forces
Model
External Factor Evaluation
Dell, Inc.
Key External Factors
Opportunities
The Green Movement: The want for more environment friendly products. Such as
computer Recycling Programs and energy efficient products
The global market Internet usage is increasing which means there is more need
for computers and technology adoption
Improving Technologies such as software and applications are creating a high
demand for consumers
Younger generations are tech saavy
There is a changing standard of communicating and sharing information. Ex: Text
messages, email and Instant messages
Threats
IT advancements are taking place at a rapid pace- ex: Windows 8 release
Price Wars with competitors
Introduction of Tablets and Smart Phones
Changing Customer Needs
Cloud Computing movement is replacing how customers use PC's
Trade barriers and hurdles affect the position of the company in multiple countries
that decline growth
NSA scares- Government checking in on me through my computer?
Total

Weight Rating

Weighted
Score

0.03

1

0.03

0.12

4

0.48

0.11

4

0.44

0.11
0.09

3
2

0.33
0.18

0.09
0.07
0.11
0.1
0.08
0.04

4
3
3
4
3
2

0.36
0.21
0.33
0.4
0.24
0.08

0.05
1

1

0.05
3.13
Competitive Profile Matrix
Competitive Profile Matrix
Critical Success Factors

HP

Lenovo

Dell

Weight

Rating

Score

Rating

Score

Rating

Score

Advertising

0.11

3

0.33

3

0.33

4

0.44

Product Quality

0.17

4

0.68

3

0.51

2

0.34

Price competition

0.21

4

0.84

4

0.84

4

0.84

Management

0.09

3

0.27

3

0.27

4

0.36

Financial position

0.15

3

0.45

3

0.45

2

0.3

Market Share

0.14

3

0.42

4

0.56

2

0.28

Global Expansion

0.13

4

0.52

3

0.39

2

0.26

1.00

3.51

3.35

2.82
PC Sales
Value Chain Analysis

Supplier Costs
•Raw Materials
•Merchandise
•Transportation
•Shipping Costs
•Component parts
•Inspection
•Warehouse
Storage

Production Costs
•Inventory System
•Receiving Costs
•Plant Layout
•R&D
•Cost accounting
•Merchandise
tracking system
•Quality Control

Distribution Costs
•Loading
•Shipping
•Budgeting
•Personnel- Trucks,
Ships, Plane
•Internet System
•Fuel
•Maintenance

Sales & Marketing
Costs
•Sales reps
•Dell.com website
•Advertising and
publicity
•Transportation
•Promotions and
sponsorships

Customer Service
Costs
•Shipping
•Phone Support
•Online Email
Support
•Online Chat
Support
•Internet
Knowledge Base
•Warranty
Internal Factor Evaluation
Dell, Inc.
Key Internal Factors
Strengths
Creating a Global Recyling program
Boomi and Perot system acquisitions will diversify product portfolio
Client Reinvention Initiative launched in 2011
Re-org towards a more customer centric model
Michael Dell taking the company private in 2013
Focusing on customized products for businesses
Global Expansion to India abd China- two large technology markets

Weight Rating

Weighted
Score

0.07
0.08
0.04
0.05
0.13
0.04
0.08

3
4
3
3
4
3
4

0.21
0.32
0.12
0.15
0.52
0.12
0.32

0.14

1

0.14

0.08

1

0.08

0.07
0.09

1
2

0.07
0.18

0.13

1

0.13

Weaknesses
Followership Strategy into Market- Low investments in R&D
Dell is highly reliant on the increase of outside manufacturers producing
their hardware products
Dell's current debt to income ratio poses as a financial weakness.
Price Wars with other competitors
Dell is losing market share to new competitors such as Acer, Asus and
Lenovo
Total

1

2.36
Porter’s Five Generic
Strategies
Focus

Large
Small

Size of Market

Cost Leadership

Generic
Strategies
Differentiation
SWOT Matrix
STRENGTHS-S

WEAKNESSES-W

List Internal Strengths

List Internal weaknesses

1.
2.
3.
4.

Global Recycling Program
Boomi and Perot system acquisitions
Client Reinvention Initiative
Michael Dell taking the company
private
5. Re-org towards a more customer
centric model.
6. Customized product focus
7. Global expansion to India and China

OPPORTUNITIES-O
List External Opportunities
1.
2.
3.
4.
5.

The Green Movement
Global Market internet usage
Improving technologies
Younger generations are tech saavy.
Changing standard of communication
through technology.

THREATS-T
List External Threats

SO STRATEGIES
1. Promote the efficiency of Dell
computers in Green Datacenters. Set
the standard for powering the worlds
cloud with Dell Servers.
2. Increasing Global Internet usage
means there will be more of a need for
online customer service. Improve Chat
support and online knowledge center.

ST STRATEGIES

1.
2.
3.
4.
5.

Followership Strategy
High manufacturer dependency
Price Wars with other competitors
Dell’s current debt to income ratio
Losing Market Share

WO STRATEGIES
1. With the improving technologies in the
market place, this is Dell’s opportunity
to remove itself from the Followership
strategy and innovate something.
2. With younger generations becoming
more tech saavy, ensuring that Dell
leads in the education market, will get
these younger consumers used to
using their products.

WT STRATEGIES

1. Leverage Boomi acquisition to create a
1. Create a new tablet or smart phone
better integration of cloud apps and on
that can compete with the likes of
premise apps. Make Boomi the choice
Apple and Android systems. One that
2.
of cloud application dashboard.
is competitively priced.
3.
2. With the Cloud Computing market
2. Start manufacturing own PC parts.
4.
expanding in China and India- seek out
This will lower the cost for supply
5.
partnerships with hosting company’s
chain, improve quality production and
6.
and colocation Datacenters around the
reduce manufacturing dependency.
7.
world.
Source: Fred R. David, Strategic Management Concepts & Cases: A Competitive Advantage Approach , (2013), 14 th ed.
1.

It advancements are taking place at a
faster change
Price Wars with competitors
Introduction of smart phones and
tablets
Changing customer needs
Cloud Computing movement
Trade barriers
NSA scares
Space Matrix
FP

Financial Position (FP)
Return on investment
Leverage
Liquidity
Working Capital
Cash Flow
Competitive Position (CP)
Market Share
Product Quality
Customer Loyalty
Tech know How
Control over suppliers

CP

Stability Position (SP)
2 Rate of Inflation
2 Technological Changes
3 Price Elasticity
4 Competitive Pressure
4 Barriers to Entry
3
Industry Position (IP)
-3 Growth potential
3 Financial stability
-7 Ease of entry to market
0 Profit potential
-7 Resource Utilization
-2.8

IP

SP

-2
-7
-3
-7
-4
-4.6
3
2
-7
3
-4
-0.6
BCG Matrix
Relative Market Share Position
High 1.0

Low 0.0

Med. 5.0

Industrial Sales Growth Rate

High
20+
Stars

Question Marks

Med.
0

Cash Cows

Low
-20

-

Product Development
Diversification
Retrenchment
Diverstiture

Dogs
IE Matrix

Low

Medium

High

Strong

Average

II
Product Development
Backward, Forward and
Horizontal Integration

Weak
IFE 2.36
EFE
3.13
Recommendations

S Dell needs to remove itself from its current followership

strategy and invest more in R&D so they can innovate
new products.
S They should focus expansion efforts in the Education

sector. With younger generations becoming more.
S Dell needs to start manufacturing it’s own PC parts.
S Continue global expansion strategy into China and India.
Thank You!
Additional Information
External Opportunities &
Threats
Opportunities
S

Threats

S

S

Software Development needs
hardware

S

Low Cost Global Substitutes

S

Cloud Computing- Boomi
acquisition

Economic Recession

S

Cloud Computing- Consumer
Needs are changing

S

Market Saturation

Green Technology is improving
Strengths & Weaknesses
Strengths

Weaknesses

S

Advertising- Global Recycling
Program

S

Product Quality- Increased
outside manufacturers

S

Brand Recognition- #2 Market
Share for PC’s

S

Current debt ratio 29% higher
than industry average

S

Improving & Diversifying portfolioBoomi & Perot Systems

S

Client Reinvention Programreduce supply chain cost
Financial Condition

S Dell is valued at $9.8 billion
S Dell has $5.14 billion in debt (They hold a 39.9% long term

debt/capital ratio)
S Retained Earnings increased from $22,110 to $24,744 (in the

millions)
S In the last 5 years, Dell’s sales growth rates were 1.97% in

comparison to the industry’s growth rate of 33.38%

S Dell has reported negative average net income during the past 5

years.
While Dell has a large
amount of capital and is seen
as a profitable organization, I
would not consider them a
financially stable company
due to the recent increase in
company debt.

S
Current Strategies &
Objectives
S Company Vision: It’s the way we do business. It’s the way we

interact with the community. It’s the way we interpret the world
around us—our customer needs, the future of technology,
and the global business climate. Whatever changes the future
may bring, our vision—Dell Vision--- will be our guiding force.

S Company Mission: Dell’s mission is to be the most successful

computer company in the world at delivering the best
customer experience in markets we serve. In doing so, Dell
will meet customer expectations of highest quality; leading
technology; competitive pricing; individual and company
accountability; superior corporate citizenship; financial stability.
Current Strategies &
Objectives
S Dell’s R&D strategy is to enter the market during the

mature phase of a products’ life cycle.
S They believe in a low risk and low innovation approach.
Competitors
My Recommendations

S Slow DC Expansion
S Reduce Manufacturing Spending
S Start Innovating!

Más contenido relacionado

La actualidad más candente

Dell Inc.: Changing The Business Model
Dell Inc.: Changing The Business ModelDell Inc.: Changing The Business Model
Dell Inc.: Changing The Business ModelGiorgi Nadareishvili
 
ADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell CaseADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell CaseEdna Gacheru
 
Dell, strategic management,strategy
Dell, strategic management,strategyDell, strategic management,strategy
Dell, strategic management,strategyVikas Tyagi
 
Apple in 2010 - Harvard Case Analysis
Apple in 2010 - Harvard Case AnalysisApple in 2010 - Harvard Case Analysis
Apple in 2010 - Harvard Case AnalysisVivek Mehta
 
Dell sd ppt final
Dell sd ppt finalDell sd ppt final
Dell sd ppt finalArun Vk
 
Assessment of Apple's (sustainable?) competitive position / competitive advan...
Assessment of Apple's (sustainable?) competitive position / competitive advan...Assessment of Apple's (sustainable?) competitive position / competitive advan...
Assessment of Apple's (sustainable?) competitive position / competitive advan...Alexander Georgi
 
Dell case study (management)
Dell case study (management)Dell case study (management)
Dell case study (management)Vineeth Kamisetty
 
Dell ppt overview in all aspects
Dell ppt  overview in all aspects Dell ppt  overview in all aspects
Dell ppt overview in all aspects renu nadar
 
Crown Cork & Seal in 1989 Case study
  Crown Cork & Seal in 1989   Case study  Crown Cork & Seal in 1989   Case study
Crown Cork & Seal in 1989 Case studyAJAL A J
 
Case study on strategic management
Case study on strategic managementCase study on strategic management
Case study on strategic managementUmar Khan
 
Apple Case Questions for Marketing Strategy
Apple Case Questions for Marketing StrategyApple Case Questions for Marketing Strategy
Apple Case Questions for Marketing StrategyCory Kemp
 
Dell Company Presentation
Dell Company PresentationDell Company Presentation
Dell Company PresentationDeepankar Nath
 

La actualidad más candente (20)

Haier: Taking a Chinese Company Global
Haier: Taking a Chinese Company Global Haier: Taking a Chinese Company Global
Haier: Taking a Chinese Company Global
 
Dell Inc.: Changing The Business Model
Dell Inc.: Changing The Business ModelDell Inc.: Changing The Business Model
Dell Inc.: Changing The Business Model
 
ADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell CaseADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
ADVANCED STRATEGIC MANAGEMENT - Matching Dell Case
 
Dell Direct Case Study
Dell Direct Case StudyDell Direct Case Study
Dell Direct Case Study
 
Dell, strategic management,strategy
Dell, strategic management,strategyDell, strategic management,strategy
Dell, strategic management,strategy
 
Apple in 2010 - Harvard Case Analysis
Apple in 2010 - Harvard Case AnalysisApple in 2010 - Harvard Case Analysis
Apple in 2010 - Harvard Case Analysis
 
Dell sd ppt final
Dell sd ppt finalDell sd ppt final
Dell sd ppt final
 
Dell presentation
Dell  presentation Dell  presentation
Dell presentation
 
Assessment of Apple's (sustainable?) competitive position / competitive advan...
Assessment of Apple's (sustainable?) competitive position / competitive advan...Assessment of Apple's (sustainable?) competitive position / competitive advan...
Assessment of Apple's (sustainable?) competitive position / competitive advan...
 
DELL - GROUP.pptx
DELL - GROUP.pptxDELL - GROUP.pptx
DELL - GROUP.pptx
 
Dell case study (management)
Dell case study (management)Dell case study (management)
Dell case study (management)
 
Dell ppt overview in all aspects
Dell ppt  overview in all aspects Dell ppt  overview in all aspects
Dell ppt overview in all aspects
 
Dell case study
Dell case studyDell case study
Dell case study
 
Crown Cork & Seal in 1989 Case study
  Crown Cork & Seal in 1989   Case study  Crown Cork & Seal in 1989   Case study
Crown Cork & Seal in 1989 Case study
 
Case study on strategic management
Case study on strategic managementCase study on strategic management
Case study on strategic management
 
Poters 5 force - Dell
Poters 5 force - DellPoters 5 force - Dell
Poters 5 force - Dell
 
Swot analysis of dell
Swot analysis of dellSwot analysis of dell
Swot analysis of dell
 
Apple Case Questions for Marketing Strategy
Apple Case Questions for Marketing StrategyApple Case Questions for Marketing Strategy
Apple Case Questions for Marketing Strategy
 
Dell Case Study
Dell Case StudyDell Case Study
Dell Case Study
 
Dell Company Presentation
Dell Company PresentationDell Company Presentation
Dell Company Presentation
 

Destacado

Powerpoint on logitech
Powerpoint on logitechPowerpoint on logitech
Powerpoint on logitechmominul_Islam
 
Target Corporation Market Analysis
Target Corporation Market AnalysisTarget Corporation Market Analysis
Target Corporation Market AnalysisZain Haider
 
Etisalat expention strategy
Etisalat expention strategyEtisalat expention strategy
Etisalat expention strategyNoor Rahman
 
Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...
Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...
Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...Digital Boom
 
Coca Cola Life - Market Development Strategy in UAE
Coca Cola Life - Market Development Strategy in UAE Coca Cola Life - Market Development Strategy in UAE
Coca Cola Life - Market Development Strategy in UAE Prateek Dhariwal
 
Etihad Airways case study
Etihad Airways case studyEtihad Airways case study
Etihad Airways case studyEllie Isaac
 
Yasser Al Mimar - Etisalat and IT Outsourcing
Yasser Al Mimar - Etisalat  and IT OutsourcingYasser Al Mimar - Etisalat  and IT Outsourcing
Yasser Al Mimar - Etisalat and IT OutsourcingYasser Al Mimar
 
Emirates Airlines Draft Strategic 2013-2014
Emirates Airlines Draft Strategic 2013-2014Emirates Airlines Draft Strategic 2013-2014
Emirates Airlines Draft Strategic 2013-2014Arthur Ashidiqy
 
Strategic analysis of first bank of nigeria plc
Strategic analysis of first bank of nigeria plcStrategic analysis of first bank of nigeria plc
Strategic analysis of first bank of nigeria plcTimi Oke
 
Comparing pricing strategies Etisalat VS dU
Comparing pricing strategies Etisalat VS dUComparing pricing strategies Etisalat VS dU
Comparing pricing strategies Etisalat VS dUInam Uddin
 
Etisalat : International Market Entry Strategies
Etisalat : International Market Entry StrategiesEtisalat : International Market Entry Strategies
Etisalat : International Market Entry Strategieshsbj
 
Perfectessay essay sample_harvard_style_2
Perfectessay essay sample_harvard_style_2Perfectessay essay sample_harvard_style_2
Perfectessay essay sample_harvard_style_2David Smith
 
Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...
Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...
Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...Arshed Aydrose
 

Destacado (19)

Bcg Matrix
Bcg MatrixBcg Matrix
Bcg Matrix
 
Powerpoint on logitech
Powerpoint on logitechPowerpoint on logitech
Powerpoint on logitech
 
PPT On Dell
PPT On DellPPT On Dell
PPT On Dell
 
Target Stores Ppt
Target Stores PptTarget Stores Ppt
Target Stores Ppt
 
Target Corporation Market Analysis
Target Corporation Market AnalysisTarget Corporation Market Analysis
Target Corporation Market Analysis
 
Yahoo case analysis
Yahoo case analysisYahoo case analysis
Yahoo case analysis
 
Etisalat expention strategy
Etisalat expention strategyEtisalat expention strategy
Etisalat expention strategy
 
Etisalat
EtisalatEtisalat
Etisalat
 
Du assignment.
Du assignment.Du assignment.
Du assignment.
 
Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...
Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...
Case Study | Etisalat UAE Brand Campaign #EtisalatChallenge Fiasco on Social ...
 
Coca Cola Life - Market Development Strategy in UAE
Coca Cola Life - Market Development Strategy in UAE Coca Cola Life - Market Development Strategy in UAE
Coca Cola Life - Market Development Strategy in UAE
 
Etihad Airways case study
Etihad Airways case studyEtihad Airways case study
Etihad Airways case study
 
Yasser Al Mimar - Etisalat and IT Outsourcing
Yasser Al Mimar - Etisalat  and IT OutsourcingYasser Al Mimar - Etisalat  and IT Outsourcing
Yasser Al Mimar - Etisalat and IT Outsourcing
 
Emirates Airlines Draft Strategic 2013-2014
Emirates Airlines Draft Strategic 2013-2014Emirates Airlines Draft Strategic 2013-2014
Emirates Airlines Draft Strategic 2013-2014
 
Strategic analysis of first bank of nigeria plc
Strategic analysis of first bank of nigeria plcStrategic analysis of first bank of nigeria plc
Strategic analysis of first bank of nigeria plc
 
Comparing pricing strategies Etisalat VS dU
Comparing pricing strategies Etisalat VS dUComparing pricing strategies Etisalat VS dU
Comparing pricing strategies Etisalat VS dU
 
Etisalat : International Market Entry Strategies
Etisalat : International Market Entry StrategiesEtisalat : International Market Entry Strategies
Etisalat : International Market Entry Strategies
 
Perfectessay essay sample_harvard_style_2
Perfectessay essay sample_harvard_style_2Perfectessay essay sample_harvard_style_2
Perfectessay essay sample_harvard_style_2
 
Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...
Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...
Etihad Airway’s Product Offerings, Key Success Factors, Critical Issues, Miss...
 

Similar a Dell Strategic Management Presentation

Dell Case Presentation.pptx
Dell Case Presentation.pptxDell Case Presentation.pptx
Dell Case Presentation.pptxUtshoSaha1
 
Marketing strategy of dell
Marketing strategy of dellMarketing strategy of dell
Marketing strategy of dellNaveed Ul
 
Planning and Control Assignment related to Dell Inc
Planning and Control Assignment related to Dell IncPlanning and Control Assignment related to Dell Inc
Planning and Control Assignment related to Dell IncMaha H
 
Dell inc [compatibility mode]
Dell inc [compatibility mode]Dell inc [compatibility mode]
Dell inc [compatibility mode]Karthik Rajagopal
 
World And Business Technology Outlook In 2015
World And Business Technology Outlook In 2015World And Business Technology Outlook In 2015
World And Business Technology Outlook In 2015Chris Eaton
 
B2b Dell Presentation
B2b Dell PresentationB2b Dell Presentation
B2b Dell Presentationgueste8c779
 
Marketing report dell
Marketing report dellMarketing report dell
Marketing report dellMoeez Saleem
 
The Essay Is About The Pros And Cons Of Various Economic...
The Essay Is About The Pros And Cons Of Various Economic...The Essay Is About The Pros And Cons Of Various Economic...
The Essay Is About The Pros And Cons Of Various Economic...Susan Tullis
 
Dell Hpc Leadership
Dell Hpc LeadershipDell Hpc Leadership
Dell Hpc LeadershipChris O'Neal
 
Running Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docx
Running Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docxRunning Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docx
Running Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docxrtodd599
 
Fusion IO - Trends and Outlook (Sept 2013)
Fusion IO - Trends and Outlook (Sept 2013)Fusion IO - Trends and Outlook (Sept 2013)
Fusion IO - Trends and Outlook (Sept 2013)JonCarvinzer
 
Porter's five forces and value chain model: Lenovo
Porter's five forces and value chain model: LenovoPorter's five forces and value chain model: Lenovo
Porter's five forces and value chain model: LenovoDi Yi Wu
 

Similar a Dell Strategic Management Presentation (20)

Dell a
Dell aDell a
Dell a
 
Apple vs. dell
Apple vs. dellApple vs. dell
Apple vs. dell
 
Ism
IsmIsm
Ism
 
SWOT Analysis - Dell
SWOT Analysis - DellSWOT Analysis - Dell
SWOT Analysis - Dell
 
Dell Case Presentation.pptx
Dell Case Presentation.pptxDell Case Presentation.pptx
Dell Case Presentation.pptx
 
Marketing strategy of dell
Marketing strategy of dellMarketing strategy of dell
Marketing strategy of dell
 
Planning and Control Assignment related to Dell Inc
Planning and Control Assignment related to Dell IncPlanning and Control Assignment related to Dell Inc
Planning and Control Assignment related to Dell Inc
 
Dell inc [compatibility mode]
Dell inc [compatibility mode]Dell inc [compatibility mode]
Dell inc [compatibility mode]
 
World And Business Technology Outlook In 2015
World And Business Technology Outlook In 2015World And Business Technology Outlook In 2015
World And Business Technology Outlook In 2015
 
The dell model
The dell modelThe dell model
The dell model
 
B2b Dell Presentation
B2b Dell PresentationB2b Dell Presentation
B2b Dell Presentation
 
Marketing report dell
Marketing report dellMarketing report dell
Marketing report dell
 
The Essay Is About The Pros And Cons Of Various Economic...
The Essay Is About The Pros And Cons Of Various Economic...The Essay Is About The Pros And Cons Of Various Economic...
The Essay Is About The Pros And Cons Of Various Economic...
 
Dell Hpc Leadership
Dell Hpc LeadershipDell Hpc Leadership
Dell Hpc Leadership
 
Intel_Semi_Final_V6
Intel_Semi_Final_V6Intel_Semi_Final_V6
Intel_Semi_Final_V6
 
Running Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docx
Running Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docxRunning Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docx
Running Head WEEK 6 ASSIGNMENT 2WEEK 6 ASSIGNMENT 2.docx
 
JaswiecP_P.Paper.MBA
JaswiecP_P.Paper.MBAJaswiecP_P.Paper.MBA
JaswiecP_P.Paper.MBA
 
Fusion IO - Trends and Outlook (Sept 2013)
Fusion IO - Trends and Outlook (Sept 2013)Fusion IO - Trends and Outlook (Sept 2013)
Fusion IO - Trends and Outlook (Sept 2013)
 
Porter's five forces and value chain model: Lenovo
Porter's five forces and value chain model: LenovoPorter's five forces and value chain model: Lenovo
Porter's five forces and value chain model: Lenovo
 
Strategy Apple Case
Strategy Apple CaseStrategy Apple Case
Strategy Apple Case
 

Último

AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarPrecisely
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UbiTrack UK
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-pyJamie (Taka) Wang
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaborationbruanjhuli
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024SkyPlanner
 
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationUsing IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationIES VE
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7DianaGray10
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfJamie (Taka) Wang
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsSafe Software
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.YounusS2
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopBachir Benyammi
 
Building AI-Driven Apps Using Semantic Kernel.pptx
Building AI-Driven Apps Using Semantic Kernel.pptxBuilding AI-Driven Apps Using Semantic Kernel.pptx
Building AI-Driven Apps Using Semantic Kernel.pptxUdaiappa Ramachandran
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxMatsuo Lab
 
UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPathCommunity
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDELiveplex
 

Último (20)

AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity Webinar
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-py
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024
 
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationUsing IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 Workshop
 
Building AI-Driven Apps Using Semantic Kernel.pptx
Building AI-Driven Apps Using Semantic Kernel.pptxBuilding AI-Driven Apps Using Semantic Kernel.pptx
Building AI-Driven Apps Using Semantic Kernel.pptx
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptx
 
UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation Developers
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
 

Dell Strategic Management Presentation

  • 1. Dell, Inc. Case Study Presented by Sophie Yanez S
  • 2. Dell Inc. S Dell produces and markets PC’s and a broad range of technology products for the consumer, education, enterprise and government sectors. S Founded by Michael Dell in 1984 S Based out of Round Rock, Texas. S Michael Dell developed his ―direct model‖ based upon a built to order process that allowed customization of the personal computer.
  • 4.   Tablets and smart phones are reducing the need for personal computers in homes and certain businesses Cloud Drives are changing the storage needs for the personal computer SUPPLIERS SUBSTITUTE PRODUCTS       132 different key supply chain markets that include AMD, Intel Corp. EMC, Microsoft, Toshiba, Logitech. Lexmark, etc.. By working with multiple suppliers, you are able to get a lower price for parts. Supplier monopolies such as Intel Inability to substitute necessary hardware (hard drives, processors, RAM) High cost of supply chain churn      Hewlett Packard, Lenovo, ASUS, Apple and ACER Large number of competitors currently in the market- with declining sales, the market saturation is increasing. There is little power in the market place for product differentiation Price is a high determining factor       High start up cost leads to barriers to entry the market There is almost no brand loyalty in this largely commoditized market. This means that anyone can enter and make a convincing marketing pitch. Economies of scale lead to continued advantages PC industry is a unique business model Customers prefer customizable PC options. They purchase what they need. Customers dictate product pricing since there is a large selection of PC brand alternatives for them to choose from There is a size of order – single to large- preference for large custom orders in order to drive down costs. (ex: Schools and Businesses) Customers have the ability to change between different types of PC brands that use the same software (ex: Microsoft) S Porter’s Five-Forces Model
  • 5. External Factor Evaluation Dell, Inc. Key External Factors Opportunities The Green Movement: The want for more environment friendly products. Such as computer Recycling Programs and energy efficient products The global market Internet usage is increasing which means there is more need for computers and technology adoption Improving Technologies such as software and applications are creating a high demand for consumers Younger generations are tech saavy There is a changing standard of communicating and sharing information. Ex: Text messages, email and Instant messages Threats IT advancements are taking place at a rapid pace- ex: Windows 8 release Price Wars with competitors Introduction of Tablets and Smart Phones Changing Customer Needs Cloud Computing movement is replacing how customers use PC's Trade barriers and hurdles affect the position of the company in multiple countries that decline growth NSA scares- Government checking in on me through my computer? Total Weight Rating Weighted Score 0.03 1 0.03 0.12 4 0.48 0.11 4 0.44 0.11 0.09 3 2 0.33 0.18 0.09 0.07 0.11 0.1 0.08 0.04 4 3 3 4 3 2 0.36 0.21 0.33 0.4 0.24 0.08 0.05 1 1 0.05 3.13
  • 6. Competitive Profile Matrix Competitive Profile Matrix Critical Success Factors HP Lenovo Dell Weight Rating Score Rating Score Rating Score Advertising 0.11 3 0.33 3 0.33 4 0.44 Product Quality 0.17 4 0.68 3 0.51 2 0.34 Price competition 0.21 4 0.84 4 0.84 4 0.84 Management 0.09 3 0.27 3 0.27 4 0.36 Financial position 0.15 3 0.45 3 0.45 2 0.3 Market Share 0.14 3 0.42 4 0.56 2 0.28 Global Expansion 0.13 4 0.52 3 0.39 2 0.26 1.00 3.51 3.35 2.82
  • 8. Value Chain Analysis Supplier Costs •Raw Materials •Merchandise •Transportation •Shipping Costs •Component parts •Inspection •Warehouse Storage Production Costs •Inventory System •Receiving Costs •Plant Layout •R&D •Cost accounting •Merchandise tracking system •Quality Control Distribution Costs •Loading •Shipping •Budgeting •Personnel- Trucks, Ships, Plane •Internet System •Fuel •Maintenance Sales & Marketing Costs •Sales reps •Dell.com website •Advertising and publicity •Transportation •Promotions and sponsorships Customer Service Costs •Shipping •Phone Support •Online Email Support •Online Chat Support •Internet Knowledge Base •Warranty
  • 9. Internal Factor Evaluation Dell, Inc. Key Internal Factors Strengths Creating a Global Recyling program Boomi and Perot system acquisitions will diversify product portfolio Client Reinvention Initiative launched in 2011 Re-org towards a more customer centric model Michael Dell taking the company private in 2013 Focusing on customized products for businesses Global Expansion to India abd China- two large technology markets Weight Rating Weighted Score 0.07 0.08 0.04 0.05 0.13 0.04 0.08 3 4 3 3 4 3 4 0.21 0.32 0.12 0.15 0.52 0.12 0.32 0.14 1 0.14 0.08 1 0.08 0.07 0.09 1 2 0.07 0.18 0.13 1 0.13 Weaknesses Followership Strategy into Market- Low investments in R&D Dell is highly reliant on the increase of outside manufacturers producing their hardware products Dell's current debt to income ratio poses as a financial weakness. Price Wars with other competitors Dell is losing market share to new competitors such as Acer, Asus and Lenovo Total 1 2.36
  • 10. Porter’s Five Generic Strategies Focus Large Small Size of Market Cost Leadership Generic Strategies Differentiation
  • 11. SWOT Matrix STRENGTHS-S WEAKNESSES-W List Internal Strengths List Internal weaknesses 1. 2. 3. 4. Global Recycling Program Boomi and Perot system acquisitions Client Reinvention Initiative Michael Dell taking the company private 5. Re-org towards a more customer centric model. 6. Customized product focus 7. Global expansion to India and China OPPORTUNITIES-O List External Opportunities 1. 2. 3. 4. 5. The Green Movement Global Market internet usage Improving technologies Younger generations are tech saavy. Changing standard of communication through technology. THREATS-T List External Threats SO STRATEGIES 1. Promote the efficiency of Dell computers in Green Datacenters. Set the standard for powering the worlds cloud with Dell Servers. 2. Increasing Global Internet usage means there will be more of a need for online customer service. Improve Chat support and online knowledge center. ST STRATEGIES 1. 2. 3. 4. 5. Followership Strategy High manufacturer dependency Price Wars with other competitors Dell’s current debt to income ratio Losing Market Share WO STRATEGIES 1. With the improving technologies in the market place, this is Dell’s opportunity to remove itself from the Followership strategy and innovate something. 2. With younger generations becoming more tech saavy, ensuring that Dell leads in the education market, will get these younger consumers used to using their products. WT STRATEGIES 1. Leverage Boomi acquisition to create a 1. Create a new tablet or smart phone better integration of cloud apps and on that can compete with the likes of premise apps. Make Boomi the choice Apple and Android systems. One that 2. of cloud application dashboard. is competitively priced. 3. 2. With the Cloud Computing market 2. Start manufacturing own PC parts. 4. expanding in China and India- seek out This will lower the cost for supply 5. partnerships with hosting company’s chain, improve quality production and 6. and colocation Datacenters around the reduce manufacturing dependency. 7. world. Source: Fred R. David, Strategic Management Concepts & Cases: A Competitive Advantage Approach , (2013), 14 th ed. 1. It advancements are taking place at a faster change Price Wars with competitors Introduction of smart phones and tablets Changing customer needs Cloud Computing movement Trade barriers NSA scares
  • 12. Space Matrix FP Financial Position (FP) Return on investment Leverage Liquidity Working Capital Cash Flow Competitive Position (CP) Market Share Product Quality Customer Loyalty Tech know How Control over suppliers CP Stability Position (SP) 2 Rate of Inflation 2 Technological Changes 3 Price Elasticity 4 Competitive Pressure 4 Barriers to Entry 3 Industry Position (IP) -3 Growth potential 3 Financial stability -7 Ease of entry to market 0 Profit potential -7 Resource Utilization -2.8 IP SP -2 -7 -3 -7 -4 -4.6 3 2 -7 3 -4 -0.6
  • 13. BCG Matrix Relative Market Share Position High 1.0 Low 0.0 Med. 5.0 Industrial Sales Growth Rate High 20+ Stars Question Marks Med. 0 Cash Cows Low -20 - Product Development Diversification Retrenchment Diverstiture Dogs
  • 14. IE Matrix Low Medium High Strong Average II Product Development Backward, Forward and Horizontal Integration Weak IFE 2.36 EFE 3.13
  • 15. Recommendations S Dell needs to remove itself from its current followership strategy and invest more in R&D so they can innovate new products. S They should focus expansion efforts in the Education sector. With younger generations becoming more. S Dell needs to start manufacturing it’s own PC parts. S Continue global expansion strategy into China and India.
  • 18. External Opportunities & Threats Opportunities S Threats S S Software Development needs hardware S Low Cost Global Substitutes S Cloud Computing- Boomi acquisition Economic Recession S Cloud Computing- Consumer Needs are changing S Market Saturation Green Technology is improving
  • 19. Strengths & Weaknesses Strengths Weaknesses S Advertising- Global Recycling Program S Product Quality- Increased outside manufacturers S Brand Recognition- #2 Market Share for PC’s S Current debt ratio 29% higher than industry average S Improving & Diversifying portfolioBoomi & Perot Systems S Client Reinvention Programreduce supply chain cost
  • 20. Financial Condition S Dell is valued at $9.8 billion S Dell has $5.14 billion in debt (They hold a 39.9% long term debt/capital ratio) S Retained Earnings increased from $22,110 to $24,744 (in the millions) S In the last 5 years, Dell’s sales growth rates were 1.97% in comparison to the industry’s growth rate of 33.38% S Dell has reported negative average net income during the past 5 years.
  • 21. While Dell has a large amount of capital and is seen as a profitable organization, I would not consider them a financially stable company due to the recent increase in company debt. S
  • 22. Current Strategies & Objectives S Company Vision: It’s the way we do business. It’s the way we interact with the community. It’s the way we interpret the world around us—our customer needs, the future of technology, and the global business climate. Whatever changes the future may bring, our vision—Dell Vision--- will be our guiding force. S Company Mission: Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of highest quality; leading technology; competitive pricing; individual and company accountability; superior corporate citizenship; financial stability.
  • 23. Current Strategies & Objectives S Dell’s R&D strategy is to enter the market during the mature phase of a products’ life cycle. S They believe in a low risk and low innovation approach.
  • 25. My Recommendations S Slow DC Expansion S Reduce Manufacturing Spending S Start Innovating!

Notas del editor

  1. Dell is the sixth largest company in Texas by total revenue, according to Fortune magazine.[9]
  2. Representation of the company’s evolution from the birth of the company in 1984, to going public in 1988 where Dell completes its initial public offering, raising $30 million and increasing market capitalization from $1,000 to $85 million.In 1992 Dell debuts on the Fortune 500. Michael becomes the youngest CEO to lead a company that receives this honor.In 1996 Dell.com launches, generating $1 million in sales per day just six months after the site went live. In 2004 Dell is China's third largest provider of computer systems and services, with shipment growth near 60 percent — or four times that of the industry. In 2006 Direct to Dell launches making Dell the first company in their industry to offer free product recycling for consumers worldwide. In 2010, Dell enters the tablet arena with the Streak, a 5-inch device meant to compete directly with the Ipad and other tablets in the market.In 2013 Michael Dell and Silver Light VC win a buyout deal to privatize the company.
  3. Rivalry among competitors:Dell produces and markets PC’s and a broad range of technology products for the consumer, education, enterprise and government sectors.Substitute products: Tablets and smart phones are affecting consumers’ needs for a personal computer. Worldwide PC shipments suffered the steepest decline ever in the first quarter of 2013. Bargaining power of buyers: In terms of customer loyalty, there is almost no brand loyalty in this largely commoditized market. Bargaining power of the supplier: The suppliers in this industry are in an interesting position. There are only two major players in the processor market, Intel and AMD, and all manufacturers support both brands. Additionally, there are no major functional differences between them. Recommendation: lower number of supplier in order to keep a better quality control
  4. The Highest weights listed here are towards the global markets increased internet usage, the improving technologies such as software and applications that are in high demand from consumers and the more technical saavy generations coming in. These are all listed under Opportunities.For Threats we have The introduction of tablets and smart phones
  5. Advertising:HP: Make it MatterLenovo: For those who doDell: The power to do moreAll of the campaigns surround themselves around the individual consumer so there wasn’t much differentiation between them. Dell scored a higher rating in this category based on the creativity and diversity of their commercials as well as brand recognition. Market Share: The IDC preliminary results show that Lenovo has taken the #1 spot for personal computer market share with 16.7%, HP trails at 16.4% and Dell at 12.2%. The market share rankings used in the Competitive Profile Matrix determined the 1-4 ratings the companies received.
  6. Additional information to support and show the recent decline in PC orders worldwide
  7. The value chain analysis was standard to other companies in the PC industry. You can see a representation listed here.
  8. Bullet point 1: With the improving technologies in the market place, this is Dell’s opportunity to innovate something that its competitors haven’t thought of. This opportunity would allow Dell a temporary market share increase while its competitors work to catch up. Bullet 2: With younger generations becoming more technologically saavy, Dell has the opportunity to create brand loyalty with students and teachers that will eventually become consumers…. Consumer’s that would be used to working with their products thus making it more likely for them to stick with Dell. Bullet 3: This will lower the cost for supply chain, improve quality production and reduce manufacturing dependency. Bullet 4:I recommend that Dell continue with their plans for global expansion. Since almost 50% of Dell’s PC sales come from outside of the US so it makes sense for them to continue down this path and expand in China and India. I would however, recommend that they slow down the rate of expansion of their new data centers. They don’t want to take on more than they can handle. The current debt to capital ratio is hurting Dell from making all of the investments they need to make in order to innovate. If they balance their investments between global expansion and innovation, they have a better opportunity of meeting their goals to deliver great products and services to their PC consumers.
  9. Decrease in Sales, Saturated market and failure to innovate.