Using the same industry from Assignment 2, and one of your chosen publicly traded corporations within that industry from Assignment 1, research the company on its own website, the public filings on the Securities and Exchange Commission EDGAR database (ht

Running Head: EXTERNAL AND INTERNAL ENVIRONMENT AT DELL 1

EXTERNAL AND INTERNAL ENVIRONMENT AT DELL 2

External and Internal Environments at Dell

Concheta Askew

Strayer University

BUS 499 Business Administration Capstone

Dr. Keller

August 10, 2018

External and Internal Environments at Dell

Introduction

Dell is a company which has undergone significant changes in its growth. The company remains a critical player in the world of technology due to its rapid responses to changes in the industry. This strength has made it maintain a strong structure and exhibit a continuous growth. It is important to note that this growth has been attributed to various factors. One of the significant factors is the internal and external environment of the business. For that reason, this paper seeks to give a glimpse into the general environment of the company, and certain forces have helped in maintaining its competitiveness in the industry.

General environment

The Dell Inc. can create a nerve end competition in the personal computer industry. This they can go through various ways which they are known of like innovation and the creation of path towards getting their paths in the market. Dell is at the top of the competition in the industry. The company has considerably concerned with quality as a way of differentiating their products from the ones of their competitors in the market. Over the last decade, the company has concentrated much of their energy in producing elegance and top end quality into the market.

The two segments of the general environment that the corporation has settled on and got the biggest influence are the demographic and technological segments. Honestly, the two segments also constitute the success angle of the cooperation as it hugely impacts its influence on the market. I steeled on the demographic segment because the demographic stands to play an important role in almost all the big corporations (Dell Inc., 2015). Marketers are most often prone to use the variables that affect the marketing sector in developing the demographic profiles. The demographic profiles hold the information of the consumers and help the company to be major only on what the consumers need as a way of incising into the electronic market. Many times, the companies have utilized the demographic profile of their consumers to create a mental picture of what their consumers need. Concerning the technological aspect, the company has strived to involve innovations in the subsequent products that they unleash into the market to increase their market base; As such technology has been on the core pillars of the company and the top segment that they concentrate on.

Five (5) forces of competition

The five faces of competition as outlined by Porter include the suppliers, buyers, competitive rivalry, and potential entrants to the industry and product substitutes. Pout of the five-factor I feel that two are of many interests while talking about the Dell Inc. and these are a rivalry between the competing sellers and potential new entrants. Concerning the rivalry between the potential sellers, the rivalries of dell overtime have become more than just PC manufacturers. These companies complete the manufacture of the mobility products, desktop PCs, software and other peripherals like the printers, projectors, Ink, tonners amongst others. Among the principal competitor include Lenovo, Apple, cannon, Epson among others. The rivalry is very fierce, and any slight falter by any of the companies could result in devastating results. This is because when such happens, the other companies will capitalize on the gap to change the market dynamics. However, concerning this, Dell has manned o come out of this challenge successfully since they have maintained in providing the market with highly differentiated products with high quality at better prices (Dell Inc., 2015).

Evaluation

There is the minimal threat of new entrants enough this is one of the lee ways of creating a monopoly with one of the companies and hence there should be a good balance among the current market operators. The reasons why new entrants are o a big expense minimized is due to huge economies of scale that is involved in the industry. When starting the business, there is strong marketing required coupled with good marketing channels. Locating a company in the industry in the United States of America can issue no profitability when big industries like Dell are in the market. Partly Dell has worked to minimize the risk coming from this angle of competition by diversifying and marketing adequately and current the company can adequately be classified as a market leader when it comes to minimizing the inventory.

Future Improvements

As much as the company can take pride in the production of quality products they need to do much when it comes to the issues involving the warranty package. In the recent past, the technology companies have lost most of their loyal customers due to skewed warranty provisions. There is a need for the company to look closely at what other companies are doing in their warranty and other customer-related services that are no provided by the company recently. This would not be difficult for the company since over time they have been superior when it comes to expressing are direct to customer manner of operation (Dell Inc., 2015).

Concerning the prevention of new entrants into the industry becoming a major threat the company only needs to strengthen their slogan of "learn by doing.” The company has followed this simple model in most of their operation, and to a big extent, it has proved effective. For the past eighteen and half years, the company has been improving his model of operation. In his model, they need to concentrate more on strengthening the customer loyalty and effectively studying the market keenly. This does not mean that the company has boot been keen in the customer satisfaction, but it is because bit must be looked into closely to make their market and brand preference at the top of the bar.

Threats and Opportunities

The competitive rivalry is no longer just rumors in this industry and these calls for the industry upping their game. As a matter of extension, the competition can be experienced globally and not only in the United States of America. There is a need for the company to major on the provisions of the low prices on a diversified line to solve the personal computing problems that people face. The competition in this industry results from the fact that all the companies in the industry compete for the same market niche (Dell Inc., 2015). Currently, however, Dell holds the largest share of the market, but in case of any shift, it could be devastating ad this calls for the need of the company to be deeply enrooted in the market. Additionally there need for the company to improves on their supply chain system. By maintaining the supply chain high, they will be able to keep the leadership in the market giving them the ability to sell premium quality products at prices that their customers can still afford. This is important because improving the quality of the products to go with an increase in the prices will make the company lose most of their loyal consumer who cannot upgrade the price for the quality that they give.

Strengths and weaknesses

Dell Company is known as one of the largest PC makers globally; it formulates the whole process of developing, manufacturing, selling and servicing of the personal computer. According to Cushman & King (2016), Dell Corporation is placed at position five as the most admired organization in the computer industry. The company over the past years of success has acquired acquisitions as well as mergers. Due to the leadership and experience of the management, Dell brand has become one of the most famous computer brands in the market. The company strives to bestow various innovations on account of having a robust E-commerce and supply chain management systems at their disposal.

The most significant strength that the companies possess is the use of the Direct Model in offering their products and services. This Model has led to more success in that this strategy constitutes other forms of services like internet. This provides online Technical support to the consumers using the product. By using the direct model strategy, the company has an opportunity to pursue multiple interactions with their direct customers. This model builds relationships which are meaningful and memorable, and as a result, Dell Company has bettered the business industry through understanding the needs of their clients thus furthering a sense of commitment to the brand.

Another Critical strength factor is the level of Technology that the company has adopted. It brags about efficient and effective procurements services, manufacturing as well as distribution processes which offer consumers quality and powerful products at fair prices. Technology has accelerated the number of products provided by the company in the market. Dell Company does not manufacture its products but instead does the assembling of the computers. Technology has made it possible to segregate the process of making the final product because the components are built by the suppliers thereby reducing the costs of the product as a whole. The company gains a lot from using this criterion as it can turn over stock for the required period hence lowering the cost of keeping inventory.

The most substantial weakness of the company is that, due to it not being a manufacturer, vast amounts of products supplied may not be all effective. The substandard products in the market are recalled prompting frustrations from consumers. This will lead to a lower customer base which will eventually lead to a reduction in revenue. It is also possible for the Company to make losses due to reliance on producers who may not produce the products required at such a period. The Company has concentrated more on marketing and logistics, but it is not able to switch supplier (Snuikas, Lee, & Morasky, 2016).

Strategy

In every growing PC industry, it is material for any firm that wishes to compete in the market meets the fundamental success factors. Dell offers competitive product prices in the market and also possesses a superior cost structure. This automatically leads to an increase in revenue as the profits outweigh the cost by a significant margin. On account of having excellent relationships with their suppliers, there is a sense of loyalty towards each party thereby ensuring products are received at the required time frame. The use of Just In Time delivery systems also contributes to consumer loyalty thus heightening the company’s customer base. The growth of the company is increasing as time goes because of integrating these components into their business model (Koontz & Weihrich, 2007).

Resources, capabilities, and core competencies

Consumers’ wants are scarce, and it’s a trend that certain products wear out with time. Due to this, the company has put so much focus on the consumer needs; Dell has employed a custom build model which can adapt to the ever-changing needs of the customers. The efficiency of this model is seen where the Company can offer modern –tech products on the market at affordable prices and promptly. Another key competent approach used by the company is the manufacturing process; this is aided faster by the use of the internet. The company benefits a lot from direct selling model which is assisted by a strong supply chain management. Dell has employed direct selling model integrated with an i2 modern-tech system which totals orders, does an analysis of material requirements as well as put comparisons between the firm’s stock at hand with the producers inventory in just 20 seconds (Cushman & King, 2016)

Value chain

Dell Company boasts of organized and robust inventory management. The company carries out its business through its website exscinding out intermediaries. This enables direct payments to the company, and once the orders are placed and paid for the firm can henceforth acquire more inventories once a business transaction is completed. This system benefits the company since they can clear stocks before they can re-order again. The fact that the dell deals with few operations in product formation; it undertakes the most vital one which is the final configuration of the consumer goods.

Dell’s direct business model which is dissimilar to their competitors has cut out intermediaries who may want to get a commission for their services. On account of this, the Company can gain an excellent understanding of the consumers’ needs and wants. Furthermore, the model is giving a platform for customers to customize their products. This technique enables consumers to have what they desire instead of the standard product in the market. Lastly, the company has saved on cost in developing its technology compared to its main competitor that is HP. Research has proven that Dell Company spent around $400 million compared to HP’s $4 billion in improving its technology (Koontz & Weihrich, 2007). Despite the huge difference in costs, Dell has a nearly complete assembly chain in line with very effective assembly operations. The company can be able to identify if an employee is at fault for a product or service by using their unique improved technology development.

References

Christopher, M. (2016). Logistics & supply chain management. Pearson UK.

Cushman, D. P., King, S. S., & Project Muse. (2003). Communication best practices at Dell, General Electric, Microsoft, and Monsanto. Albany: State University of New York Press.

Koontz, H., Weihrich, H., & Weihrich, H. (2007). Essentials of management: An international perspective. New Delhi: Tata McGraw-Hill.

Sniukas, M., Lee, P., & Morasky, M. (2016). The Art of Opportunity: How to build growth and ventures through strategic innovation and visual thinking.

Hoboken, N.J: Wiley. Dell Inc, 2015. Bitcoin Marketing. [Online] Available at: http://www.dell.com/learn/us/en/uscorp1/campaigns/bitcoin-marketing?c=us&l=en&s=corp) [Accessed 30 January 2016].