This will add to costs for Dell and will further cut the profit margin. If Dell wants to diversify, it needs new technology patents and new ideas. For the last couple of years it has strongly held its position as a market leader.
This initially has meant good such as peripherals including printers and toners, but now also included LCD televisions and other non-computing goods.
Dell sources from Far Eastern nations where labour costs remain low, but there is nothing stopping competitors doing the same — even sourcing the same or similar components from the same or similar suppliers. Constant IT developments in the industry can make the present products obsolete.
Computer hardware commodity products are sold with a very low profit margin. Components are made by suppliers, never by Dell. Their products should also be energy efficient, smaller in size like for the case of ultra books as well as reduced weights for example Dell XPS ultrabook and Dell Latitude notebooks.
Some companies like HP cannot handle large orders as in the case off dell this is a weakness for such a company it the industry and a great opportunity for Dell Incorporated. Tablet market is expected to grow in double digits for the next few years and the company has a great opportunity to release new tablet models and benefit from the market growth.
It acknowledged the weakness of having no relationships with local computer dealers. It has seen dell produce new products year in year out.
This case study has been compiled from information freely available from public sources. The finished goods are then dropped off with the customer by courier.
Dell has total command of the supply chain. It was also known by its direct relation with the costumer by cutting out retailer and supplies directly to the costumers which approached to them loyal consumers.
Obstacles faced in this industry may be severe and can bring down big companies dell as Apple suffered in under the management of Steve Jobs. The military now uses them to execute major attacks on the enemies; students in schools cannot do without them.
Dell identified an opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without having Dell salespersons answer questions or develop configurations for them.
Dell has a very strong brand reputation for quality products.SWOT Analysis Dell Strengths Dell is the World's largest PC maker. Profits for the 3 months to July were in excess of $1 billion US, 4/4(1).
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Click inside to find out about Dell’s strengths, weaknesses, opportunities and threats. SWOT. Dell SWOT analysis ; Strengths Weaknesses; Brand name valued at $ billion; His interest and studies in strategic management turned into SM Insight project, the No.1 source on.
Dell Inc a Case Study industry analysis. Print Reference this. Published: 23rd March, (in this case, computer designing). They hand select the best components (or cheapest depending on the business model) for customers to choose from. After all, the quality of components defines the quality of the computer.
INTERNAL ANALYSIS: SWOT. U Student No. Page 7 of 26 SWOT Analysis [Appendix 7] Currently, Dell has one of the best SCM strategies in the industry.
Adopting a JIT methodology, Dell uses their strong SCM process to give them a competitive edge on competition, (Kimble & Bourdon, ,pg. ).
The following case study demonstrates how SWOT can be used to create a strong business strategy. Case Study In the mids, Dell Computer used a SWOT analysis to create a strong business strategy that has helped it become a very strong competitor in its industry value chain.
Presentation of the SWOT analysis: SWOT analysis is a strategic planning tool used to evaluate the Strengths. over time. Pioneering Leadership in Use or the Internet and E-Commerce Technology Dell was a leader in using the Internet and e-commerce technologies to squeeze greater efficiency out of its supply chain activities.Download