and product developments to meet their changing needs.
· Competition in the industry is based on such variables as price, quality, product design, product innovation, brand-name reputation, size and strength of retail dealer networks, and after sale service.
· Each major computer company spends millions of dollars per year on advertisements. This also creates a barrier to entry.
· Competition based on low PC pricing is expected to intensify.
· Technological advancements in computer components are being produced every three months.
· With increased technological advances, component prices are drastically falling, causing the profit on PCs to shrink. Computer companies must invest in a lot of R & D in the server segment, where the profits are high, to make up in lost revenues.
· With the increase in Internet usage, more companies will have the opportunity to sell directly to the end user.
· Advancements in electronic data interchange will give suppliers up-to-the-minute inventory information; create a stronger bond between companies and their suppliers.
· Several Asian economies are in trouble, causing international sales to fall.
· With the sharp appreciation of the U.S. dollar, PCs are more expensive to Asian buyers.
· A stronger dollar hurts the foreign earnings, and a weak one helps.
· Asian producers that build these computer components are feeling the effects of lower prices and smaller profit margins.
Dell's mission is to be the most successful computer company in the world at delivering
the best customer experience in markets we serve. In doing so, Dell will meet customer
· Individual and company accountability
· Best-in-class service and support
· Flexible customization capability
· Superior corporate citizenship
· Dell expects the sales of servers to become about 50 per...