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Dell Computers Inc. (Other (Not Listed) Sample)


Identify a business in which you are interested. Describe the market conditions that the business faces using Porter's 5 forces model. Then perform a SWOT analysis on the company.

Dell Computers Inc.
Dell Inc. is an American multinational corporation dealing with computer technology. The company deals with the development of computers, technical support and repair of computers together with related services and products. Dell computers are also one of the largest technology corporations globally. Dell operates on the premise that computers and related technologies should be manufactured and sold directly to the customers.
Porters Five Forces Analysis of Dell
Bargaining Power of Suppliers
The company has managed to outdo its competitors by reining in on the needed supplier of inventory and getting the supplies at their own specification. The company never sticks with one supplier and always changes suppliers if they don’t meet their specifications. The company also goes for supplies that are most competitive in terms of cost and technology and all these make it have an upper hand over suppliers. Suppliers hence have very little bargaining power.
Threat of New Entrants
The company recognizes the fact that new entrants pose a threat and have launched a strategy of product diversification. Large firms like Dell also have the advantage of producing large quantities at low cost hence enjoying economies of scale, besides having established customers. New businesses hence find it difficult to break into the market
Bargaining Power of Customers
The company retains an in-person relationship with its customers, both corporate and institutional. They also offer personalized computer services and have a 24-hour online support. The company has invested in product diversification through inclusion of items like printers, servers, etc., and this further makes customer’s dependent on them. Hence, customers find it costly to switch to other manufacturers, and this reduces their bargaining power.
Threat of Substitutes
The greatest threat to the company is the increasing popularity of smartphones and tablets, which offer alternatives to personal computers, which is Dell’s key market (Arthur par.3). However, desktop computers and laptops part from having unique application are also compatible with many other devices as compared to tablets and laptops. They also have higher storage capacities and processing speeds.
Rivalry among Competitors
The computer industry is marked by deep rivalries among competing manufacturers. The struggle is who will come up with the most powerful, cost-effective machine. The fights and core of competition are therefore who will come up with the best product at a low price. This area is the next frontier in the fight for more customers.
SWOT Analysis of Dell Computers
Biggest personal computer manufacturer in the world and have a good branding strategy.
Deals directly with clients with clients having the ability to track their merchandise.
The cost of assembling components is fairly low
Lack of unique technologies and weak business relationship with other computer sellers.
Large supply order means at time they can’t meet the demands
Internet marketing can help bring new many new customers.
Possibilities of expanding into the government and education segments
Maintaining their market lead while continuing to introduce new and exciting products to custom...
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