Swot Analysis of Dell Computers

dingle calculator Corporation started in 1984 by Michael dingle with this very simple premise as its basic foundation that personal computing machines could be built and sold instantly to nodes and by doing this, dingle could address their specific call for and provide the best computing solutions that fancy those needs. dells institutionalize method acting provides two distinct advantages 1. reducing marketing and sales cost by eliminating markups of distri furtherors and retailers and 2. building to order reduced inventorying be and risks of retaining inventories. dells Direct dumbfound is the main reason why it has achieved its stellar status in business today.This strategic model enables dell to interact with customers plowly providing them with fast, reasonably-priced and friendly means of produceion and distribution. bring up Analysis of dell Computer Strengths dingles Direct Model fire of enables the company to pop the question direct relationships with c ustomers much(prenominal) as incorporated and institutional customers. Their strategic method besides provides other forms of products and gains such as internet and tele cry purchasing, customized data processor systems phone and online technical support and next-day, on-site product service.This extensive range of products and services is unimp for each oneably one of dells strengths. dingle Computers award-winning customer service, industry-leading fetchth and consistently strong financial performance pick out the company from competitors for the following reasons Price for surgical process Dell boasts a very efficacious procurement, manufacturing and distribution process allowing it to offer customers correctly systems at competitive prices. Customization Each Dell system is built to order to comely each customers specifications.Reli competency, run and Support Dells direct customer allows it to provide top- nonch customer service before and after the sale. Lat est engine room Dell is able to introduce the current relevant technology compargond to companies using the substantiative distribution channels. Dell turns over inventory for an average of every six days, guardianship inventory costs low. The companys application of the net to other parts of the business including procurement, customer support and relationship management is ripening at a rate of 30 percent. The companys Web site received at least 25 million visits at more than than 50 country-specific sites.Weaknesses Dells biggest weakness is attracting the college student segment of the market. Dells sales revenue from educational institutions such as colleges only accounts for a measly 5% of the total. Dells focus on the corporate and political sympathies institutional customers somehow affected its ability to form relationships with educational institutions. Since many students bargain for their PCs through their schools, Dell is obviously not popular among the colle ge market yet. For home users, Dells direct method and customization approach posed problems.For one, customers croupenot go to retailers because Dell does not use distribution channels. Customers just cant buy Dell as simply as other brands because each product is custom-built according to their specifications and this energy take days to finish. Opportunities Personal ready reckoners atomic number 18 becoming a necessity forthwith more than ever. Customers be getting more and more educated about computers. Second-time buyers would virtually likely avail of Dells custom-built computers because as their knowledge grows, so do their need to experiment or use some additional computer features. Demand for laptops is overly growing.As a matter of fact, film for laptop has overtaken the demand for desktops. This is another opportunity for Dell to grow in other segments. The internet also provides Dell with greater opportunities since all they start to do now is to visit Dells w ebsite to place their order or to get information. Since Dell does not become retail stores, the online stores would surely make up for its absence. It is also more convenient for customers to surf online than to actually drive and do purchase at a physical store. Threats In a volatile market such as personal computers, nemesiss abound.Computers change in a constant sometime everyday basis. New software, new hardware and computer accessories are introduced at a lightning speed. It is necessary for Dell therefore to be unceasingly on the lookout for new things or introduce new computer systems. The threat to become outmoded is a pulsating reality in a computer business. non only that, companies must produce products that are high in quality but low in price. This is one scrap that Dell contends with. One of the biggest external threats to Dell is that price difference among brands is getting smaller.Dells Direct Model attracts customers because it saves cost. Since other co mpanies are able to offer computers at low costs, this could threaten Dells price-conscious growing customer base. With almost similar prices, price difference is no long-life an issue for a customer. They might adopt other brands instead of waiting for Dells customized computers. The growth rate of the computer industry is also slowing down. Today, Dell has the biggest share of the market. If the demand slows down, the competition go forth become stiffer in the process.Dell has to black market doubly hard to differentiate itself from its substitutes to be able to continue holding a significant market share. Technological increase is a double-edge sword. It is an opportunity but at the same time a threat. cheap leadership strategy is no longish an issue to computer companies therefore it is serious for computer companies to stand out from the rest. engine room dictates that the most up-to-date and fastest products are unceasingly the most popular. Dell has to always keep up with technological advancements to be able to compete.