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...
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now