SWOT
History: The company was founded in 1984 by Michael Dell, now the computer industry's longest-tenured chief executive officer, on a simple concept: that by selling personal computer systems directly to customers, Dell could best understand their needs, and provide 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 to its entire business. Company revenue for the last four quarters totaled $19.9 billion. Through the direct business model, Dell offers in-person relationships with corporate and institutional customers; telephone and Internet purchasing (the latter now exceeding $18 million per day); customized computer 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 extensive range of other services. The company designs and customizes products and services to the requirements of the organizations and individuals purchasing them, and sells an extensive selection of peripheral hardware an
By taking its direct business model and its associated customer 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 a whole. ; in all customer segments; and in all product categories, ranging from home PCs to enterprise products, such as network servers and workstations. For example, in February 1982, Intel introduced its 286 chip, which was capable of processing 2. Meanwhile, the Internet is becoming more integrated into daily life: businesses rely on the Internet for commerce and real-time information exchange; customers go online to shop, bank and conduct personal correspondence; and students from grade schools through college use the Internet as an educational tool. As processor transitions and expected cost reductions continue, many industry analysts foresee worldwide industry volume growth at a compound annual rate of 15 to 20 percent annually over the next three years. Development of the Direct Model Dell is continuously refining its direct approach to manufacturing, selling and servicing personal-computing systems. Today's Intel Pentium II processors are capable of considerably more than 600 MIPS at 450 megahertz, and the sharp upward development trend is expected to continue. The company is committed to extending the advantages inherent in what is already the industry's most efficient business model. Dell also serves medium and small businesses and home-PC users. SWOT Analysis: Strengths · No inventory buildup · Industry leading growth · Cost efficiency · Direct to customer business model - latest technology · Customization · Internet sales leadership - $5M worth of products everyday Weaknesses · No proprietary technology · 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 market share) · Currency fluctuation in countries outside the US · Political instability · Tariff trade barriers Marketing Strategies · Major customers: large corporations, government agencies and medical and educational institutions to small business and individuals. com Dell begins major push into network-server market Company added to Standard & Poor's 500 stock index 1997 Company sales via Internet reach $1 million per day Dell ships its 10-millionth computer system Per-share value of common stock reaches $1,000 on presplit basis Dell introduces its first workstation systems 1998 Company expands manufacturing facilities in the Americas and Europe, and opens production and customer center in Xiamen, China Dell introduces PowerVault storage products 1999 Dell opens www. Customization -- Every Dell system is built to order. From 1996 through 1998, Dell was the top-performing stock among the Standard & Poor's 500. com, an online computer-related superstore Sales via Internet exceed $18 million per day Industry Outlook While the personal-computing market has expanded dramatically since the 1970s, Dell believes that the industry's best days and its own are yet to come, for two broad reasons.
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