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Essay / Dell Swot - 750
INTRODUCTIONAs a world-leading computer manufacturing organization, Dell Computer Corporation has experienced tremendous growth since its inception. Dell Computer started in Michael Dell's dorm room; he purchased RAM chips and disk drives for IBM PCs at cost from IBM resellers and sold them at 10 to 15 percent below the retail price. Sales were around $80,000 in April 1984, prompting him to drop out of college and start his first company called PCs Ltd. Selling both components and PCs under this brand. Eventually, PCs experience the inevitable growing pains. Michael Dell made a decision that changed the way many consumers purchase their computers today. In 1987, after restructuring the company, he increased the company's production capacity, management personnel and infrastructure, while maintaining low-cost products for consumers. The company was later renamed Dell Computer and opened its first international offices that same year. SWOT ANALYSIS OF DELL COMPUTERS Highlights Vision of Michael Dell Personal customization of computers and laptops Elimination of middlemen (retail sellers as distributor) Factory direct order Fast delivery Computer delivery tracking service Low stock turnover Long-term relationship with suppliers Low-cost computer Inexpensive labor Just-in-time inventory Weaknesses Purchasing from limited manufacturer suppliers End-user at home has no hands-on experience to see or touch the actual product Consumer must wait for delivery Dell products are priority Consumer cannot buy comparably priced ink cartridge for Dell printersOpportunity Introduction of printers and tonerIntroduction of LCD TV and I podConsistent growth of laptop and computer marketConsumers are more knowledgeable in computersInternet purchases to customize the computer (online store)Threats Orders must be placed in advance to need time due to their size or valueWith international Constant changes in exchange rates could expose Dell to a potential loss of parts from its supply chain. The price gap narrows with a competitive market. Dell's competitors pose a pricing threat in the computer industry. The fastest, most technologically advanced, most durable and longest-lasting computer. friendly is increase market shareRECOMMENDATIONSLiquidity, profitability and growth are used to measure the success of a business. When I was asked to review Dell and its marketing strategy, I took a close look at its weaknesses and threats because once you address a company's weaknesses, then it has the opportunity to become a strength and when you recognize the threats facing a business, then the business can take appropriate action. measures to mitigate the threat. My recommendation to Dell would be to not make any major changes, continue to observe the IT technology market and continue to make necessary changes..