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Pest & swot analysis ,buiness & corporate level strategy of dell
- 2. Introduction • Dell is an American privately owned multinational company. • Engaged with PC’s related businesses. • founded by Michael Dell in 1984 by simple concept selling computers directly to customers. • the company was one of the largest technological corporations in the world, employing more than 103,300 people worldwide. • In the world pc, manufacturer industry dell is on no 2nd and in the Fortune 500 list company dell come on 38th position.
- 3. SWOT analysis of Dell Strengths • Strong brand name • Product customization • Environmental record • Direct selling business model • 75% sales revenues come from governments agencies & large businesses
- 4. SWOT analysis (cont’d) Weaknesses • Commodity (computer hardware) products • Poor customer services • Low investments in R&D • Buyer can’t touch product physically they want to purchase • Too few retail locations • Low differentiation
- 5. SWOT analysis (cont’d) Opportunities • PC’s are purchased more, ever than before. • Market of laptops are growing • Increase in communication create opportunities • Continuing to market on internet to gain large market bases. • Expend in to government & education market.
- 6. SWOT analysis (cont’d) Threats • High demand of tablets & smart phones • Facing strong competition • Price war between PC’s producers. • Facing many problems in developing countries. • Currency changeability
- 7. PEST analysis of Dell Political • Relation among the countries • Government in stability • Rules and regulations • Terrorism • Policies to protect manufacturers
- 8. PEST analysis (cont’d) Economical • Economic recession • Low interest rates • Rate of inflation(demand for Low) • Countries relationship in trading
- 9. PEST analysis (cont’d) Socio-cultural • Increase in purchasing power • High end brand of computer • Cheap laptops from government
- 10. PEST analysis (cont’d) Technological • New developments in technology • Investments in R&D
- 11. Porter’s five forces analysis Threats of new entrants • Intense competition in the industry • New innovation by a competitor • Benefits from the economies of scale
- 12. Five forces analysis (cont’d) Bargaining power of suppliers • Relation between suppliers and producer • Less availability of raw material
- 13. Five forces analysis (cont’d) Bargaining power of Buyers • Buyers are the final users of product • Rivals firms offers discounts • Level of competition increase due satisfaction level of buyers
- 14. Five forces analysis (cont’d) Threats of substitute products or services • Firms monitor the trends with in the industry • Companies offers products with similar features
- 15. Five forces analysis (cont’d) Rivalry among competitive firms • The ongoing war between firms • Price war between competitors
- 16. Business-level strategy Porter’s generic strategy Cost leadership strategy Provide quality computers at low cost than competitors and kept high percentage of market share. This strategy gives them upper hand in industry. They offer customize products to their customers at lower cost.
- 17. Corporate level strategy • Offensive strategy They not pioneering new and better technologies, they demand the latest and great from suppliers. • Related diversification • Merger/Acquisition/Internal Start-Up In 2007 and 2008, Dell began making a series of software-related acquisitions that cost nearly $2 billion. These acquisitions were made to add customer value. The acquired IT companies were Ever dream Corporation, Silverback Technologies Inc., Message One Inc., Equal Logic, ASAP Software, and The Networked Storage Company.