Dell Swot

INTRODUCTION

As an organization that leads the world in computer manufacturing, Dell Computer Corporation has grown tremendously since it beginning. Dell Computer began in the dorm room of Michael Dell; he bought random access memory chips and disk drives for IBM PCs at cost from IBM dealers and sold them at 10-15 percent below retail price. Sales were running about $80,000 by April 1984, which prompt his decision to drop out of college and form his first company called PCs Ltd. Selling both the components and PCs under this brand name. Eventually PCs experience the inevitable growing pains. Michael Dell made a decision that changed the way many consumers purchase their computer today. In 1987, after he restructured to company, increased production capability, management staff, and corporate infrastructure, while still maintaining low cost products to consumers. The company was then renamed Dell Computer and in that same year open their firs international offices.

SWOT ANALYSIS OF DELL COMPUTER

Strengths Michael Dell visionPersonal customization of computers and laptopsCutting out the middle man (retail sellers as a distributor)Order directly from the factoryFast deliveryComputer delivery tracking serviceLow inventory turnaroundLong-term relationship with suppliersLow price computerInexpensive laborJust-in-time inventory

Weaknesses Buying from limited manufactures suppliersHome end user has no hands on experience to see or touch the actual productConsumer have to wait on deliveryDells products are prioritizeConsumer can not purchase comparable price ink cartridge for Dell printers

Opportunity Introduction of printers and tonerIntroduction of LCD television and I podConstant growth in the market for laptops and computersConsumer are more computer knowledgeableInternet shopping for personalize computer (online store)

Threats Orders have to be placed ahead to need time due to size or valueWith international orders constant change in exchange rates could leave Dell at a potential loss of parts from it supply chainPrice differential is becoming smaller with competitive marketDell competitors are a price threats in the computer industryThe computer that is the fastest, most advance in technology, most durable, and user-friendly is increase it share of the market

RECOMMENDATIONS

Liquidity, profitability, and growth are used to measure the success of a company. When asked to review Dell and it's marketing strategy I looked closely at it weakness and threats, because once you address a company weakness it then has the possibility of becoming a strength and when you acknowledge threats to a corporation, the company can then take the appropriate action to alleviate the threat. My recommendation to Dell would be not to make any grand changes, to continue observing the computer technology market and continue to make amend changes as necessary.