This presentation is about Dell Inc. it includes Introduction , PEST analysis , SWOT analysis , Business level strategy and Corporate level strategy of Dell. it will help you a lot in understanding dell company strategies.
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
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.
