Information technology industry is an important industry in economic environment. IT organizations have participated in various planning, and implementation strategies to realize substantial growth in the industry as well as elating the economic environment. This research focuses on analyzing Dell computer corporation Inc as one of the most developed areas on the IT industry. The analysis will focus on the background information of the Dell Corporation through understanding the market trends, and its main competitors using different methods of analysis such as SWOT analysis. The paper will also attempt to evaluate the strategic situations within the Dell Corporation, and how to handle the threats, and opportunities that are found within the organization. The business environment of Dell Corporation will also be analyzed in terms of the organizations’ strategies towards its functional business corporations at internal levels that give them aggressive benefit over other companies with alike products in the market. At the end, the paper will address challenges that face Dell business strategy, and the possible implementation strategies aimed at revitalizing the business environment.
Dell is an information technology corporation based in Texas. Dell is rated as one of the largest computer manufacturers in the world. The corporation that was founded by Michael Dell in 1984, today, serves the world with a wide range of computer products, and it continues to grow significantly in the world market. Since its inception, Dell has continued to be the most successful company in the IT industry. One of its successful business strategies in the market entry point is the use of direct sale of its products to the customers. The IT services provided by the Dell Inc are incorporated worldwide into technology solutions. Dell Corporation is involved in designing, and developing Smartphone’s, Laptops, Notebooks, and PCs as well as networking services in the market. Dell also provides security software products, and other computer accessories such as printers, notebooks, keyboards, mouse, and networking systems. Last but not least, Dell Corporation products also constitute financial services such as collection, and customer receivables related services (Holzner 20).
Dell has played part in both local and international market in order to sell its products. A number of strategies have been employed to counter the stiff competition in the market. These strategies in the marketing sector have involved use of both print and electronic media devices. Another strategy they have employed is lowering the prices of their products, provision of bonus, and shipping of their products. Dell gaming campaigns have also featured in the internet. The marketing strategy has also switched to using various advertising agencies in marketing, for example, promotion of products such as XPS lines have been promoted by the working mother media agency (Hoskisson and Hitt 62).
In the competition front, Dell continues to face competition in the market sector from the companies that produce similar products such as IBM (Jay, pg. 144). Dell has been successful in the computer industry as well as information technology industry through offering products that are valued by its customers. The core values of the Dell Corporation is to sell their products directly to the customers in order to get insights into the customers’ needs, and then provide them with the IT solution that is effective. The consumer chain of the Dell business is portioned into large enterprise, public operations, medium and small business links, and consumers. Dell Corporation is simply committed to maintaining, and managing its business around the globe. (Holzner 65)
SWOT analysis of Dell Corporation
This section of the report analyses Dell Corporation using SWOT analysis as a strategic management tool. The precinct of the SWOT analysis idea of Dell Corporation is to come up with the valuable understanding of the Dell Corporation, and the relevant implementations to be made in order to add value to the corporation. Dell Inc is analyzed by understanding various issues that are found within the organization entailing the price war in the international markets that is staged by different computer manufacturers, decrease in number of sales, structure of leadership system within the corporation, manufacturer contracting, and market share value. (Cushman and King 102).
Dell strength in the market, for example, is encouraged by the production of a strong model that is sold directly to the consumers without involving the chain of cartels. The direct model that is used by the consumers to customize laptops gives the corporation a competitive advantage over other similar products available in the market. The production of direct model into the computing market is derived through the specific needs of the consumers. The release of products such as laptops illustrates increase in market options initiated by the consumers based on performance and portability of the product. Dell Corporation has also regained its strength through cutting out the retail sellers that were initially used as distributors. This has facilitated direct ordering of the products by the consumers direct from industry. The Dell Model has also gained strength in terms of schedules for the delivery of their products to the consumers. The consumers are able to place their order with the company, and confirm the receipt of the ordered products within a short period of time. Dell business products meet the demand/needs of the consumers (Holzner 112).
Dell major weakness is experienced in terms of how it targets a specific market with some of its products. Educational institutions have been targeted with the products such as laptops. This contributes to insignificant percentage of its sale due to the weak relationship that exists between the corporation and the educational institutions. Home users of Dell products on the other hand are not able to visualize the importance of Dell products. Customization of its products is also a major weakness in Dell’s product chain.
Dell, however, has great opportunities in the external environment. The purchase of personal computers has significantly increased in the computer market. The increased awareness of quality products is also surging in the computing industry. There is also significant improvement in the level of communication and technological development. This has been seen in terms of internet as a purchasing tool as well as where the information can be assessed. The trend seen in the computing industry gives Dell Inc opportunity to grow its business in all segments.
The changing business environment poses a great threat to various businesses as well as Dell Corporation. Increased market competition compels Dell Corporation to produce high quality products with low prices. The expediency of the production of these products is also at a stake. Price difference between the products has a smaller margin.
To contain the competition and changing economic environment through maintaining competitive advantage, Dell Computer Inc must adopt various implementation strategies in their policies to keep a breast with its main competitors. The future management of Dell Corporation should focus entirely on sustaining its corporate clients. They should also concentrate on improving storage and server businesses for large companies rather than dealing with small and medium size companies.
Information technology industry is rapidly changing. Computer industry for example has changed in terms of consumer specific needs. Dell is therefore, compelled to adapt to the dynamics in the economic environment. In order for Dell Company to contain the shift in demand it must be able to take advantage of its strengths, and analyze the weakness points. It must also be able to analyze the opportunities and the threats that exist in the economic environment in order to position itself in a competitive market.