PC Industry, DELL
: Strategic Analysis and Suggestions
INDEX
1. Introduction
2. Dell`s Success Formula
1) Characteristics of PC Industry : General Environment
2) Dell`s Core Competency
3. Dell`s Internal Analyses
1) Dell`s Value Chain Analysis
2) Strength & Weakness
4. Dell`s External Analyses
1) Porter`s Five Forces Model and Current Issues
2) Opportunity & Threat
5. SWOT Analysis
1) 4 Possible Scenarios
2) Business - level Strategy
1. Introduction
`Relationships with customers and suppliers allow us to know what we must be able to supply in real time and then very quickly and precisely meet that demand while maintaining low inventory.`
(Dave Schneider, engineering manager of Dell)
As of July 2002, Dell Computer Corporation (Dell) was the world¡¯s largest direct selling computer company, with 34,800 employees in more than 30 countries and customers in more than 170 countries. Headquartered in Austin, Texas, Dell had gained a reputation as one of the world¡¯s m¡¦(»ý·«)
|
tory an average of every four days. In less than two decades, Dell became the number-one retailer of personal computers, outselling IBM, Hewlett-Packard, and Compaq (2002).
However, current change in the PC industry has been urging Dell to take different strategic approach. The advent of substitutes - tablet PC, smart phone, Galaxy note, etc. has taken away significant market share and managing the cost of compartments, which are turning into commodities, has been a challenging task. Furthermore, customers` preference is changing due to the emergence of smart devices and cloud computing service. And low price competitor such as Lenovo and Acer is triggering a price war. These two factors are incurred due to the fact that PC market has entered mature phase in product life cycle.
Michael Dell currently announced Dell`s strategic change that Dell will stop selling hardware and shift to software. And according to Gartner`s statement in a conference `PC industry is faced with risk`. Is De