Today computer industry has become one of the most attractive industries both in terms of growth and viability. It is also considered as one of those industries where it is so hard to survive for the companies in it. The prevalence of the likes of HP, Dell Inc. and IBM has resulted in the fierce competition in this industry. These abovementioned companies struggle to win more market share or to be the best player in the industry. These report analysis situation analysis, SWOT analysis of Dell Inc. along with the environmental factors which could be potential influence on its current and future business operations. . It also illustrates the company’s future objectives and also marketing strategies set to achieve those objectives and to ensure that the company is one of the industry leaders. 2. Background
It was initially named as “PCs Limited”, and then converted into the Dell Company which was named after the Michael Dell, who founded the company in 1984, when he was a student at the University of Texas at Austin. That’s Michael Dell who came up first with the idea or belief that selling personal computer systems directly to customers enables them to better understand customers’ needs and helps them to offer the best solutions to meet those needs. It was in 1985 when M.Dell’s company first manufactured their initial computer which was sold for US $795.Dell’s “PCs Limited” company would assemble computer units based each individual’s needs, orders or selections. That would give customers pretty much affordable price and more convenience than having to assemble those components on their own. Despite the fact that it wasn’t the first company to apply this method, it was almost the first to accomplish it. Even in its first year of trading, the company managed to reach pretty much admirable sales, approximately amounted to $73 million. In 1988, the company was given the name of the Dell, founder of the company. Following 2 years, they decided to phase out their direct selling method, and start using warehouse clubs or computer stores to sell their computers. Realizing that it didn’t bring any success, they got back to their more effective direct-to-consumer model. In 1996, the customers were offered another convenience, which is a website through which consumers could buy the company’s products virtually. In 2002, the company expanded through entering the other markets such as television, audio players and printers. Since 2003, the company has been operating under the name of Dell Inc.(Michael Dell, 2012)
3. Current situation and business performance
Since its emergence in 1984, the company has not just struggled to survive in competitive computer market but also been able to dominate the market to some extent. Now it’s not just a company with $ 1000 capital as it used to be initially, but has turned into a huge multinational computer technology corporation which is currently producing top-quality lap-tops, netbooks, PCs, printers, scanners and other computer-related products. Dell Inc. has been growing remarkably in terms of both customerbase and acquisitions. Atpresent it employs approximately 105000 people around the world. The CAO of the company is Michael Dell, American businessman. Dell Company is famous mainly for its ability to apply direct-sales model and its “configure to order” approach. Specifically, it can configure individual PCs based on customer specifications or order. (Michael Dell, 2012) 4. Marketing Environmental Analysis of Dell
Marketing environment refers to the outside factors that can be influence on the company’s ability to develop and maintain successful customer relationships with their target market. Those forces include competitors, demographics, economic, political/legal, sociocultural, technological and global ones. 4.1
Prevalence of tough competitors such as HP Company, IBM Corporation, and Apple Inc.have always struggled with Dell Inc. for capturing customers...
Please join StudyMode to read the full document