Dell Company

Dell Company

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.

Dell Computer's mission statement is:

"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 expectations of:

• Highest quality

• Leading technology

• Competitive pricing

• Individual and company accountability

• Best-in-class service and support

• Flexible customization capability

• Superior corporate citizenship

• Financial stability"

Dell’s target market consists of large corporate accounts, medium and small businesses, and the consumer business. Dell has set out to satisfy each different customer segment through its Direct Model.

In order to continue being successful, Dell has to make sure that it produces the right PCs that would be satisfying to customers, and take advantage of the opportunities that are available.

Focusing on the laptop industry, if Dell wants to produce a next generation laptop platform that will carry its business in the future, it should look at today’s trends in the industry and how they could impact the next generation laptop.

Mobility is increasingly influencing the world and markets that Dell will be operating in. Therefore, the implication associated with this trend is that the laptop that Dell would produce should be lighter and smaller.

The internet is becoming a necessity in people’s everyday life. Because of this trend, and the impact of mobility at the same time, wireless internet would be a potential demand.

Moore’s Law: it has been observed that laptops and PCs in general are becoming cheaper, smaller and faster, with CPU performance doubling every 18 months. This is an affect of people’s demand for continuous improvement and innovation.

People today are using their computers for a broad range of activities (digital cameras, MP3 players, music, DVDs, etc…)

The growth in the economy has been observed on a worldwide scale. It increases demand for productivity, therefore impacti...

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...ormance, this might be a threat in the future.

- Intensity of Rivalry. As performance increases, differentiation between brand names might decrease. Dell’s rivals are finding ways to increase their market share by replicating some of dell’s advantages. For example, IBM recognize the advantages of direct distribution and launched initiatives to expand its own direct sales. Compaq saw the advantage of reducing inventory, and therefore took initiatives to do so.

- PDAs replacing laptops. Whether this is a threat or not is still unknown. If the case was that PDAs substitute laptops, it would be a threat to Dell’s laptop business, but not to the entire Company if Dell keeps improving in the production of PDAs.

To conclude, in order for Dell to compete efficiently in the laptop industry in the future, it needs to take advantage of all of the above opportunities. Consumers are becoming increasingly more demanding and price-sensitive. The next generation laptop must be consistent with the relevant trends affecting the industry today. If Dell succeeds in its attempt to make a product that fits the trends, it will probably still remain in its leading position in the future.