Strategic Analysis of Dell
Strategic management is a combination of continual dynamic processes. These include: strategic alternatives and recommended strategies, the implementation of strategies, and continuous ongoing evaluation and control. Each phase must include: environmental analysis, implementing an organizational course of action, creating organizational strategies, applying those strategies, and evaluating and modifying them as needed. The construction of a strategic analysis includes factors which are internal and external to the company, are weighted and scored. Strategic management is a critical tool to insure the organization's continued existence. (Wheelen & Hunger, 2007) This is a strategic analysis of Dell
Strategic Analysis of Dell
Dell Company History:
Michael Dell founded the company in Austin, Texas in 1984 with an innovative sales plan. Dell implemented direct sales to customers, taking orders and delivering custom computing solutions to individuals and companies with no brick and mortar stores. 5.4 million customers interact with Dell daily via phone, in person, on the company web site and through using social networking sites. Dell now has over 96,000 employees globally, who are committed to making Dell successful. Dell has made innovative changes in both the supply side and delivery to meet customer needs. Dell ships more than 100,000 systems to customers in over 180 countries daily; "that's more than one every second" (Dell, 2010).
Strategic Analysis of Dell:
Most companies have plenty of information available, from market statistics to consumer demographics and operational reports with facts and figures. In today's market atmosphere companies must pay close attention to both external factors and internal operations, continuously seeking business opportunities, increasing profits, and networking with suppliers and outlets. By creating an excellent business strategy, all of this can be accomplished. However, competitive analysis is critical to this strategy, since it focuses upon improving the company's current market position. (Wheelen & Hunger, 2007)
A strategic analysis must be a central part of Dell's strategy. Due to the nature of their supply chain and delivery corridor, Dell must consider the capacity of the competitive market, the advantages of that particular market, and necessary capital expenditures, plus they must calculate the additional factors directly and indirectly contributing to their business and the impact of all of this upon all stakeholders. (Wheelen & Hunger, 2007)
Dell has to stay on top of its operations in order to speed the supply side. In addition, delivery corridors must be maintained and managed and proper CRM suppliied. Dell's objectives are included in their strategic planning, and assess their internal and external conditions in order to devise and revise their strategy in a constantly dynamic process and develop necessary corrections which are, or will be, central to meeting their goals. External influences can disrupt the market and interrupt the supply chain. However, these disruptions can create opportunities, or threats, depending upon the circumstances and the management team. External factors must be anticipated, watched, appraised and added to the mix via constant environmental scanning and are completely inter-reactive with socio-cultural, economic, political, technological and financial data. (Wheelen & Hunger, 2007)
Economic Factors
Globalization is a two edged sword. It drives the market and is driven by it, and branding is key to success. Customers already familiar with the brand and anticipating harmony and consistency in products and service despite their location stay loyal to the brand. The currency exchange rate and the stock market positions may influence financing and cash flow, thereby creating an atmosphere of entrepreneurial-like risk, However, corporate spending has not reacted overtly to inflation or deflation, nor the global financial troubles, even though these could affect the demand for personal computer hardware, and could negatively influence investments and profit margins. (Wheelen & Hunger, 2007) Globalization enlarges the market, but it brings with it a host of new problems: transportation, international taxation, environmental impacts and social disruption of the distribution, assembly or distributions points.
Political Factors
Political fluctuations may impact on Dell greatly, especial;ly when they are nearby a Dell owned installation, an assembly point or a distribution channel, Political instability among Asian and Middle Eastern markets are not stable. Managing governmental regulations and licensing dispersed personnel could pose to be a threat to Dell. The possibility of terrorist attacks and the political volatility of the Asian region also influences investments and profit margins; as well as seriously disrupting the global markets. (Wheelen & Hunger, 2007) Dell competes at home and abroad, combats piracy, and follows local laws and regulations concerning business practices, labor and environmental impact.
Technological Factors
Dell has transformed E-business and has eliminated geographical...
[...] transaction customers, which represent 30% of U.S. sales, are small and medium size enterprises (about 20%) and home office customers and consumers" (Kraemer, Dedrick and Yamashiro, 2000) Built-to-Order Production The built-to-order production strategy was implemented to the great success of Dell Computer Corporation as it aided it differentiate itself from competing PC manufacturers. It ensured customers of the highest levels of interest in satisfying their needs and it as such
Dell's strategic management. It uses no source except for the case. Michael Dell right from the beginning has been more of an entrepreneur then at technological guru. Although he had not taken active part in strategic decision making, he nevertheless realizes its importance. For this purpose he had brought leaders like Walker and Meyerson to aid him. As a leader he was dynamic in the sense that he easily takes
Dell Computers presents a useful company to perform a strategic management analysis upon. The personal computer industry has changed and evolved considerably in the past years and the market conditions today are also presenting new and exciting problems for this organization. The purpose of this essay is to examine Dell and its industry in terms of its current strategic outlook. The essay will present information on the personal computer industry,
Dell Corporation Dell computers Company Background Michael Dell is a global icon, especially on his college-based business of building personal computers using available parts, which he used to create a global business. The Dell Computer Company officially became a global corporation in 1984 (Dell, 2009). The priority of Dell Corporation was the build to order strategy, whereby clients ordered computers; their orders routed via credit check, and then the manufacturing followed (Qurechi and
Although the company relies on information technology it is not at the forefront so can adapt more slowly. There are limited political-legal and societal implications. The most important force -- economic -- does vary but the North American market is by far the most important. Jet fuel prices do not vary significantly from country to country. Industry competition is driven by overall demand levels, price and service. These forces do
In particular, Wyse gave Dell a better foothold in the sprawling segment of cloud computing. This area has helped companies save money through the delivery of affordable services and software over internet-based infrastructures (Ignatiuk, 2008). Dell will also benefit from the prior experience of Silver Lake expertise that has revived several tech companies such as Skype. This wrenching would typically change Silver Lake to be tricky for a public corporation
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