Strategic Analysis Dell Computer Corporation

Question: Discuss about the Strategic Analysis for Dell Computer Corporation. Answer: Introduction Dell Inc. being one of the major contenders in the computer manufacturing industry is an American multinational company that develops computer technology, sells, supports and repairs products and services related to computers. As per Bettis et al, Dell Inc. is ranked in the 44th position in the Fortune 500 list of worlds largest technological corporations. It ranks 3rd in venturing personal computers after Lenovo and HP (Bettis et al., 2016). The target markets of Dell are college students, corporate executives and home usage as dell manufactures home desktops which are customized. This report further gives details about the SWOT Analysis of Dell Computer Corporation. Internal Environment Analysis It is the largest personal computer manufacturer in the world. Dell has a wide variety of services and products which makes it one of the worlds most popular brands. It is the first company to offer on-site service, next day service in the world of computer manufacturing. Dell is renowned to use latest technology and align with model based on customer business (Bettis et al., 2014). Dell follows a model of Direct Model which facilitates the company to have relationship with institutional and corporate customers that are direct in nature. As Dell directly reaches out and supplies to the customers, thus, its operative cost is very low in comparison to its revenue. It also provides high class service to its customers both after and before sales. It is capable of adapting latest technologies in comparison to other companies which use distribution channels that are indirect in nature. Service, reliability and support being the business mantra, Dell systems are successful in fulfilling every customers specifications with its system. Dell has fine acquirement, production and distribution procedures which allow customers to avail powerful systems that too at cutthroat prices. Dell basically assembles the components which are manufactured by the supplier. This usually costs cheap labor. The finished product is then supplied delivered by courier to the customer directly (Eden Ackermann, 2013). Dell completely controls over the supply chain and keeps the cost of inventory low by turning the inventory for six days. By applying internet efficiencies more and more Dell is increasing its competitive advantages and broadening its business. There are many companies from different countries which supply a wide range of components and products to Dell which makes it depend on the suppliers exclusively. Dell is unable to alter supply as it is a computer assembler or maker and not manufacturer. The differentiation of products of dell is very limited. There are no adequate patents for improvement and innovation in Dell as innovation can only occur by the manufacturers of the components. Dell is unable to attract the market segment of college students which generate only 5% of the total revenue (Hill, Jones Schilling, 2014). Dell has been unable to form better deals with educational institutions as it has been concentrating more on governmental and corporate institutes. The direct method of not dealing with distribution channels and opting for customization is not suitable for home-users (Hitt, Ireland Hoskisson, 2012). Buying Dell products takes longer as the products are customized in accordance to the specifications which makes it burdensome for the customers. The dealer and retailer association is absent in Dell, as a result there is no constant supply of personal computers, therefore, its market is unpredictable. Dell introduces various ranges of new products which enhances its diversification strategy. The customized products of Dell open up opportunities for the customers who are buying for the second time to avail computers with additional or new features as people are broadening their knowledge about technology, thus, enhancing research and development (Hitt, Ireland Hoskisson, 2012). The Internet opens up opportunities for Dell to further grow as customers can directly visit the website of Dell and get information or place orders. As Dell has its website, it is convenient for the customers to get their product by buying online rather than taking out extra time and giving extra effort to shop at physical stores. Dell is strengthening its presence in smartphone and tablet markets. Engaging itself in acquisitions and mergers shall provide more patents to Dell. Dell is concentrating and strengthening in markets that are emerging. Expansion of enterprise solutions and service businesses shall prove to be beneficial to Dell. Dell takes advantages by creating products that are environment friendly and of reduced price. The products are also smaller in size with reduced weight and are energy efficient. Proper utilization of companys knowledge and strengths is crucial in the venture and exploration in to new segments of the market and execute its strategies. The strengths and the threats faced by a company figures out to what extent the company can import and export products (Rothaermel, 2015). Resources and Competencies of Dell Dell uses internet based distribution channel. This has helped it to operate independently without retailers and dealers. Dell pioneers in selling its products to its customers directly. While selling products to institutes and corporate, there is a contract and it sends its sales team for direct selling. The small businesses and home customers directly buy the product from the internet, email or telephone. Dell has a clear understanding of the consumers needs and provides service accordingly. As per Swayne, Duncan Ginter, the business model that Dell follows is custom based which is very flexible and efficient at times when the market is high and the customers demand is to get latest technologies at competitive prices (Swayne, Duncan Ginter, 2012). The business model of Dell was exclusive in the technology industry which got enhanced by the advancement of internet. Thus, Dell had to constantly develop its supply chain along with improving manufacturing and assembling processes. Ac cording to Ward Peppard, Dell recruits, provides training and retains skilled and capable workforce, maintains a healthy working environment in order to improve efficiency (Ward Peppard, 2016). These resources and competencies have enhanced profitability. Issues and Recommendations The issues in Dell mainly revolve around the components supplied from different companies. If a single component is faulty while operating, the whole personal computer becomes faulty. The quality blame then goes to Dell being the final product delivering company. In spite of efficient quality checking, the overall performance of the product is recognized under Dell. Therefore, Dell should think of starting its own lines of manufacturing rather than depending entirely on other suppliers so as to ensure high quality performance. Conclusion Dell has developed a lot right from upgrading systems for domestic businesses to providing products such as personal computers, peripherals, televisions, notebooks, printers, scanners and servers. Through the analysis of Dells internal environment and strategies it could be concluded that careful and intricate management of capabilities and resources have been the backbone of Dells success. References Bettis, R. A., Ethiraj, S., Gambardella, A., Helfat, C., Mitchell, W. (2016). 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