DELL SWOT ANALYSIS
Dell is one of the largest PC hardware, software and computer peripherals manufacturer based in Round Rock, Texas United States founded by Michael Dell at the age of 19 in 1984. Since then Dell Company has revolutionized the fast pace computer technology that continues to developed and distributed around the world, they have joined the league of the top fortune 500 companies in 1992 Michael Dell being the youngest Chief Executive Officer receiving international recognition and worldwide penetration and distribution recognized as one of the leader in the industry.
During 1995 they have expanded around the world with its worldwide distribution partners in Asia, Australia, Europe and America that generates millions of dollars in sales every single day in their operation that makes this company even more prestigious and dominating. Since then they always belong to the top 10 PC manufacturer around the world because of the continuous demand of the people, Dell has promised its continuous effort to meet its demand. For 27 years of their operation customers has always been satisfied with their products and services.
During the year 1996 onward they continue to expand their manufacturing sites from various countries including China, Brazil and the United States. By the year 2000 they have an average sale of $4million US dollars every day that makes them the number 1 in worldwide sales and production in the year 2001. They have continued to develop various products including giant industry servers, fast laptop, printers, including cell phone and other featured products that correspond to the needs of their customers.
To summarize here is the present Dell SWOT Analysis:
STRENGTH – Being one of the largest distributors and manufacturer, the strength of DELL is their market leadership and distribution control that they have penetrated strategic points and locations that raises the confidence of the people to buy their brand because of its name. The Dell Company’s strength and advantage is that they have strong manufacturing partners, the PC components are made by their suppliers this means that most parts purchased by customers are also included in their gross revenues. If a certain customers would like to assemble a PC rather than buying a new one, Dell can still control the sales and this is their advantage. They have a total control of the specification and parts that also comes from their company manufactured by their suppliers using a generic brand name which is lower than the usual brand.
WEAKNESS – Somehow their strength can also be their weaknesses if certain manufacturing partner has not completed their demand or has not followed certain production specification in certain country there might have been delayed in operation. This happens in 2004 that they have the need to recall about 4.4 million laptop adapters because of the manufacturing problems that it may overheat and may cause fire and shock hazards. This will result in getting a new parts imported from other countries that may add the cost or shipment, although delay in supplies never usually happens only in the occurrence of environmental condition such as typhoon, earthquake, tsunami etc.
OPPORTUNITIES – As long as there is a demand Dell Company will continue to develop the products that the customers want they may even lavish in their production that they can set trends to new standard in various PC products. Also during the year 2004 to 2007 Kevin Rollins being the president of the company has temporarily replaced Michael as the new Chief Executive Officer and Michael Dell remained as the Chairman of the company. Rollins also did a great job employing approximately 50,000 workers worldwide during his term. This change in position makes the company even more powerful since the unification of their great marketing minds will surely lead the company to more success in their future operations. Another opportunity that they can see is the consideration of distribution and expansion of manufacturing sites that they may think about the third world countries that also has a strong demand and has realized the needs for technology.
THREATS – One of the most alarming threats they may have faced is the competition from other giant manufacturers and distributors including IBM and Hewlett Packard who have established outsourcing from other countries that can also create a powerful appeal to customers in terms of services. The entry of the new players is also booming like ASUS, Logitech, A4tech and other small manufacturers are paving its ways to success. There are also various companies that are locally manufacturing various peripherals that have a very competitive price advantage over leading brands that slowly increasing demand from various costumers who prefer low priced products. The constant change in price has also becoming a threat and this is due to inflation and world currency rate from various countries is also one of their disadvantages and threats over the small player.
References: http://content.dell.com/us/en/corp/our-story-company-timeline.aspx
http://www.ehow.com/facts_5273511_dell-swot-analysis.html
http://en.wikipedia.org/wiki/Dell
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