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Essay summary of SWOT analysis
Dell inc case study analysis 2011
Essay summary of SWOT analysis
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Dell Company has a clear understanding of its own company strengths such as selling their products directly to customers without a middle man and in designing its computers and other products to the customer's specifications. For example, Dell Company had designed its products to be more functional, lighter and more easier to use. This helps reducing the manufacturing costs that was needed. Dell Company also not forgetting its own weakness such as having no relationships with local computer dealers, which will be hard for getting supplies and support from the other companies. Besides, Dell Company is a company with a smaller capital, and at that time what they need the most will be financial support and sponsorship. Thus, with no relationship with local computer dealers disadvantages the company. Besides, they do not have unique technologies to offer the market compared to its competitors. Dell Company faced threats from other competitors such as Compaq and IBM, both of which had much stronger brand names and reputations for quality at that time. Moreover, it is hard for the Dell Company to compete in a market that the need for computers and laptops are getting lower, which these products are getting replaced by smart phones and tablets. Dell Company identified opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without the help from the sales person of the company. Dell Company should release new technology and new ideas that can attract and fulfill the customers. Related to that, Dell Company has to establish its Research and Development department in order to produce new products to the market. In the mean time, Dell Company provides various enterp...
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...level management. The heads of the various departmental heads receive orders and instruction from the top level management or managers and pass it to the low level management. These managers supervise, direct and control the activities of foremen, inspectors and supervisors. They study and examine the received reports of actual performance from their low level managers. Middle level managers act as the middle man, they help in removing misunderstanding and create cordial relationship among the levels of management. Low level management is the line between middle level management and workers. These manages are directly involved with the workers. They are also help building image of the enterprise before workers and creating the sense of belongingness among them towards the enterprise. Managers of this level are directly related with the routine functions of the firm.
They are considered to be top level, middle level and first level each one of these managerial levels are considered to be known as a hierarchy which is ranked in order of importance. In accordance to these different levels of management they are put in place to give emphasis on the roles and responsibilities that they must accomplish on the job to hold their positions. Even though these changes are occurring managerial hierarchy seems to be and increasing using teams to outsource and spread out the use of structure in
Michael Dell founded Dell Computer in 1984 and grew it into one of the largest computer manufacturers in the world. Dell Computer’s success resulted in Michael Dell being the highlighted as “youngest CEO of a Fortune 500 company” (Krames, 2003, p.58). Michael Dell’s guiding principle is to focus on the customer. This principle routinely guided his leadership decisions including computer design and development decisions, the organizational structure of the company and in how Dell Computer used the Internet.
This concept created the big change that causes the competitive advantage. Dell eliminated reseller 's markup and the expenses and the risks associated with conveying huge amount of inventories. This could not have happened without many other action that Dell has taken into consideration. So, other companies had to had to create all the components themselves. Indeed, all the various pieces of the industry had to be vertically integrated within one firm. These companies needed to manufacture enormous structures to create everything a PC required. They had no real option except to end up being expert in a wide array of components, some of which had nothing to do with creating value for the client. On the other hand, Dell has a different approach that they establish a partnership with different companies to help them produce their products. So, they have fewer things to manage, fewer things to go wrong, which enabled them to manage their inventories. As a result, this model the direct model has allowed Dell to leverage their relationships with both suppliers and customers, which helped them to build a much larger firm in no
Michael Dell is the founder and CEO of Dell Computers Inc. one of the largest sellers of personal computers in the world. His contribution to the computer industry is the “one-to-one relationship between the company and the customer— there are no intermediaries, no middlemen” (Krames, 2003, p.59). Not only did he relinquish the middleman, he also perfected combination of the bottoms up strategy and the just-in-time (JIT) by waiting till he received orders from the customer to build computers. In doing this, Dell increased its return on investment (ROI) while reducing its inventory overhead cost.
Management is the basis of how any given organization operates and how each activity preformed is organized that makes each day possible and profitable for the overall good of the company. Power and responsibility levels are ranked amongst each individuals own skill set, education, and experience level in an organization. Management has many levels depending on each individual company and its size. This can consist of several people answering to one main head of operations, or thousands upon thousands answering to several different tiers of management (Bauer & Erdogan, 2012).
Whole Foods Market was founded in 1978 by John Mackey and his girlfriend at the time, Rene Lawson. The store, at that time, was called SaferWay and they lived above the store (Smith, 2005). In 1980, the company merged with Clarksville Natural Grocery creating the first Whole Foods Market. Unfortunately, in that first year the company was hit with the worst flood Austin had seen in 70 years destroying inventory and equipment, essentially wiping the company out. Luckily, the community helped rebuild the store and creditors along with vendors helped the company get back on their feet which allowed them to strive and grow to what they are today (Whole Foods, n.d.). Whole Foods quickly gained the support of the community, which allowed them to grow in the Texas market and push into new territories over the next few years.
Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired. First, they are left without internet access. Second, the time it reaches Austin, Texas, have it repaired, and shipped back can take days. The company opportunities were the Dell U.K. that open business in 1987 and in that country it was a lot of companies selling cheap computers. Dell Inc. strides on loyalty among customers and employees, and that could only be derived from having the highest level of service and performing products. Segmentation within the company enables them to measure the efficiency of the business in terms of assets use. Dell Inc. evaluates their return on invested capital in each segment, compare it with other segments, and target what the performance of each should be.
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It is known that manufacturing process and cost reductions, which are pillar of the Dell business model, high profit margin will break the mightier growth for the company, through which, the best practices come in all forms. Hence, to conclude, when it comes time to decide the selection of the strategies, Dell should accept both strategies to a greater extent. It will be popular course of action for Dell to refute the claims of experts about the future of Dell. However, in this uncertain age of market, where globalization can play a key and integral role for business progress, Dell has to contemplate all the factors now to enhance its brand via products and marketing together with wide-ranging business models. Nonetheless, the management has to put its shoulder to the wheel to make the things
Dell Inc. is a privately owned multinational technological company, which develops, sells repairs and supports computers and relates products and services. Dell Computer has a fully Internet-enabled supply chains, which is constructed by the extranet to automate interactions with suppliers, service partners and customers .
Dell Computers Strategy Global companies play an important role in the business environment, because they connect their businesses together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
Dell Inc had very effectively used the direct marketing channel for the sales of computers to the end consumer. When all the other pc makers were selling through retailers and distributors, Dell had started efficient use of the direct channels.
Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.