Dell Computer Company is one of the largest computer manufactures in the world. The company has been growing tremendously since it was incorporated in 1984.
There rising trends in the purchase and use of personal computers worldwide more that it has happened ever before. The laptop market is even growing far much rapid than the desktop computers market. These general trends serve as one of the greatest opportunity for Dell’s laptop and personal computer business to expand to higher levels in all segments. Secondly, consumers are increasingly becoming educated on personal computers and they are therefore able to realize the efficiency of Dell’s direct Model. The rising trends in consumer’s knowledge and education provide another huge opportunity for the co-corporation.
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One of the major threats facing Dell is the ever changing price between brands that is becoming smaller gradually. Other companies have found ways to combat Dell’s low cost leading to their products becoming Dells close substitute. The slow growth rate of computer industry, fierce competition from competitors and quick pace of technological advancements are the other major threats facing Dell.
Dell engineers designs its products in such a way that they are environmentally friendly. The company conserves the natural resources by preventing pollution throughout the system’s life cycle. The company does this by considering environmental attributes such as extending product’s life span and reducing the environmentally sensitive materials. The profitability and economic growth of the Dell Company has highly been attributed to favorable economic situations in the country within which its products are marketed.
The need of computer use and the increased brand image has made a generation that will hardly live and work without a computer in the future, Dell has offered a wide range of computers and notebooks to strengthen its brand.
The major competitors facing Dell Company include; Apple, IBM, Levono, Toshiba, Aer, Gateway, Asus and Sonny. Dell has developed a well controlled relationship with its suppliers; the company has formed partnership with its major suppliers. The company request s the suppliers to strictly implement the company Ser Principals, in the areas of Ethics, Labor, Environmental, Health and Safety and Management systems. The company has a share holders’ equity of 8.34 billion. Dell operates in a large customer base where it has organized its operation around three customer segments, small and medium enterprises, public sector, and large enterprises
Dell draws most of its strengths in having the Direct Model, considered as the company’s greatest assets. The Direct Model allows consumers to fully customize their laptops by making it possible for any buyer to order for products directly from the manufacturing factory and yields a relative first delivery. Dell derives the other strengths from their well controlled relationship with suppliers and the good relationship which it has created with large companies that provide most of dells business. Dells main weakness arises from the fact that their buyers can’t see the product or physically touch what they want to purchase. Most buyers wary about a product they cannot personally examine before purchase. Dell also has a significant weakness in targeting college students segment.
A board of directors consisting of 9 people runs the company. Share holders elect the board of directors during the annual meeting. The role of the board of directors is to set the five company committees that oversee over companies in specific issues. There is the Audit Committee, Compensation Committee, the Finance Committee, the Governance and Nominating Committee, and the Antitrust Compliance Committee.
The company has developed a winning culture and diversified comprehensive initiatives aimed towards creating a business environment based on personal achievements, meritocracy and an equal and fair access to all resources available to customers. Dell has developed good work/life and management programs that will enhance the company’s ability to retain employees and demonstrate the company’s commitment to the entire Dell team. Dell has demonstrated key competence and skills by manufacturing and distributing high quality products. Cost minimization in the production process, and customer support.