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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 ...
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