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swot dell

swot dell

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Published by nag9arjuna
swot dell
swot dell

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Published by: nag9arjuna on Sep 03, 2009
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Swot Analysis Of Dell Computer
SWOT analysis of Dell Computers History: The company was founded in1984 by Michael Dell, now the computer industry's longest-tenured chief executive officer, on a simple concept: that by selling personal computersystems directly to customers, Dell could best understand their needs, andprovide the most effective computing solutions to meet those needs. Today,Dell is enhancing and broadening the fundamental competitive advantages of the direct model by increasingly applying the efficiencies of the Internet toits entire business. Company revenue for the last four quarters totaled $19.9billion. Through the direct business model, Dell offers in-person relationshipswith corporate and institutional customers; telephone and Internetpurchasing (the latter now exceeding $18 million per day); customizedcomputer systems; phone and online technical support; and next-day, on-site product service. Dell arranges for system installation and management,guides customers through technology transitions, and provides an extensiverange of other services. The company designs and customizes products andservices to the requirements of the organizations and individuals purchasingthem, and sells an extensive selection of peripheral hardware and computingsoftware. Nearly two-thirds of Dell's sales are to large corporations,government agencies and educational institutions. Dell also serves mediumand small businesses and home-PC users. Dell's Unique Direct Model: Dell'saward-winning customer service, industry-leading growth and consistentlystrong financial performance differentiate the company from competitors forthe following reasons: Price for Performance -- With the industry's mostefficient procurement, manufacturing and distribution process, Dell offers itscustomers powerful, richly configured systems at competitive prices.Customization -- Every Dell system is built to order. Customers get exactlywhat they want. Reliability, Service and Support -- Dell uses knowledgegained from direct customer contact before and after the sale to provideaward-winning reliability and tailored customer service. Latest Technology --Dell introduces the latest relevant technology much more quickly thancompanies with slow-moving indirect distribution channels. Dell turns overinventory every six days on average, keeping related costs low. SuperiorShareholder Value -- During the last four quarters, the value of Dell commonstock nearly doubled. From 1996 through 1998, Dell was the top-performingstock among the Standard & Poor's 500. Internet Leadership Sales via Dell’sWeb site surpassed $18 million per day during early 1999, accounting for 30percent of overall revenue. The company's application of the Internet to
other parts of the business --including procurement, customer support andrelationship management -- is approaching the same 30-percent rate. Thecompany's Web received 25 million visits at more than 50 country-specificsites last quarter. Timeline: 1984 Michael Dell founds Dell ComputerCorporation 1985 Company introduces the first PC of its own design: theTurbo, featuring Intel® 8088 processor running at eight megahertz 1987Dell is first PC company to offer next-day, on-site product serviceInternational expansion begins with opening of subsidiary in United Kingdom1988 To better meet unique customer needs, Dell begins to organizebusiness around distinct customer segments Dell conducts initial publicoffering of company stock, 3.5 million shares at $8.50 each 1990Manufacturing center in Limerick, Ireland, opened to serve European, MiddleEastern and African markets 1991 Company introduces its first notebook PC1992 Dell included for first time among Fortune 500 roster of world's largestcompanies 1993 Dell joins ranks of the top-five PC makers worldwideSubsidiaries in Australia and Japan are company's first entries into Asia-Pacific region 1995 Original $8.50 shares of Dell stock worth $100 onpresplit basis 1996 Asia-Pacific manufacturing center in Penang, Malaysia,opened Customers begin buying Dell computers via Internet atwww.dell.com Dell begins major push into network-server market Companyadded to Standard & Poor's 500 stock index 1997 Company sales viaInternet reach $1 million per day Dell ships its 10-millionth computer systemPer-share value of common stock reaches $1,000 on presplit basis Dellintroduces its first workstation systems 1998 Company expandsmanufacturing facilities in the Americas and Europe, and opens productionand customer center in Xiamen, China Dell introduces PowerVault storageproducts 1999 Dell opens www.gigabuys.com, an online computer-relatedsuperstore Sales via Internet exceed $18 million per day Industry OutlookWhile the personal-computing market has expanded dramatically since the1970s, Dell believes that the industry's best days and its own are yet tocome, for two broad reasons. First, the stream of software and hardwareinnovation from companies such as Microsoft Corp. and Intel Corp. is rapidand robust, and is sharply increasing system performance and reducing therelative cost of computing. For example, in February 1982, Intel introducedits 286 chip, which was capable of processing 2.66 million instructions persecond, or MIPS, at a clock speed of 12 million cycles per second, ormegahertz. Today's Intel Pentium II processors are capable of considerablymore than 600 MIPS at 450 megahertz, and the sharp upward developmenttrend is expected to continue. Second, while computer performance is goingup, the relative cost of computing computer prices per MIPS has steadilydeclined, encouraging new computer users and more rapid PC replacement.Customers, in turn, are using those savings to buy even more powerful,more richly configured systems. As processor transitions and expected costreductions continue, many industry analysts foresee worldwide industry
volume growth at a compound annual rate of 15 to 20 percent annually overthe next three years. Meanwhile, the Internet is becoming more integratedinto daily life: businesses rely on the Internet for commerce and real-timeinformation exchange; customers go online to shop, bank and conductpersonal correspondence; and students from grade schools through collegeuse the Internet as an educational tool. From servers that power theInternet connection, to desktops and notebooks that efficiently andeffectively provide the interface, to workstations used to develop digitalcontent, the ability to provide products and services that enable Internetaccess and enhance the online experience will be vital for companies in thecomputer systems industry. Development of the Direct Model Dell iscontinuously refining its direct approach to manufacturing, selling andservicing personal-computing systems. The company is committed toextending the advantages inherent in what is already the industry's mostefficient business model. Current Dell initiatives include moving even greatervolumes of product sales, service and support to the Internet; using theInternet to improve the efficiency of Dell's procurement, manufacturing anddistribution process; and further expanding an already broad range of value-added services. By taking its direct business model and its associatedcustomer experience to even higher levels, through the Internet and value-added services, Dell intends to continue to grow its business at a multiple of the high-growth rate anticipated for the computer-systems industry as awhole. Dell still has significant opportunity for expansion in all parts of theworld, especially in markets outside of the U.S.; in all customer segments;and in all product categories, ranging from home PCs to enterprise products,such as network servers and workstations. Mission Statement: Dell's missionis to be the most successful computer company in the world at delivering thebest customer experience in markets we serve. In doing so, Dell will meetcustomer expectations of: · Highest quality · Leading technology ·Competitive pricing · Individual and company accountability · Best-in-classservice and support · Flexible customization capability · Superior corporatecitizenship · Financial stability Objectives: · To achieve market share of 14%by year 2002 worldwide. · Continue expansion of server and storageproducts. · Continue to maintain low costs – decrease each year by 1%. ·Establish global brand recognition. SWOT Analysis: Strengths · No inventorybuildup · Industry leading growth · Cost efficiency · Direct to customerbusiness model – latest technology · Customization · Internet salesleadership - $5M worth of products everyday Weaknesses · No proprietarytechnology · High dependency on component suppliers Opportunities ·Network-internet, intranet and extranet · Strong potential market in Europe,China and India · Low costs and advanced technology · Growth in business,education and government markets Threats · Competition (price and marketshare) · Currency fluctuation in countries outside the US · Political instability· Tariff trade barriers Marketing Strategies · Major customers: large

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