Computer Industry and Dell Inc. Analysis

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Computer Hardware Industry and Dell, Inc. Analysis

Abstract

This research is made to analyze computer hardware industry and focus on Dell Inc. First part will be analyzed overall industry and competitive analysis by answering 7 key questions. The second part will be evaluated company resources and competitive capabilities by answering 5 key questions. This research can help manager to understand more about computer hardware industry and learn how Dell deal with their competitors.

Computer is the aid that created to help people in doing their task. A computer is a type of machine that can process the data according to a list of commands. The word of computer itself was recorded in 1613. It was being associated to a person who does calculations, or computations, and it continued to be used in that manner until the middle of the 20th century. Starting from the end of the 19th century, the word began to describing more common connotation, which means a machine that carries out computations. Based on this connotation, the first computing device that can be found is tally stick and after that Roman Abascus also used in Babylonia as early as 2400BC. Since that, a lot of computing devices have been invented.

No devices can be identified as the first computer just because of the inconsistent meaning of the word computer itself, but the journey of the modern computer started with two separate technologies—automated calculation and programmability.

Nowadays computers are used for a variety of tasks and play a crucial role in the areas of academics and business. The market of itself is a multi-billion dollar business where people can find a perfect balance of technology and efficiency. The computer hardware industry in the United State is one of the largest in the world because of the main companies that in it such as IBM, Hewlett Packard, Dell, Compaq, Gateway and etc.

Dell Incorporation is number one Computer Provider Company in United States and number two in the worldwide. It has been the number one PC supplier in United States for 10 years in a row. It also the world’s leading provider of flat panel displays. Founded by Michael Dell as PC’s Limited with the $1,000 capital in1984, it gained its success in few years. In 1999, Dell overtook Compaq to become the largest seller of personal computers in United States with $25 billion in revenue (reported in January 2000).

There are several ways to perform industry analysis to encourage strategic decisions. In order to analyze computer industry, managers need to consider the industry itself and the competitive conditions. These considerations will help managers to understand the competitive forces in the computer hardware industry. The analysis will provide enough data to evaluate the attractiveness, growth opportunities within the industry and also able to develop effective strategies to increase profitability, productiveness, competitive advantages and market share. These factors support managers to understand overall knowledge of the industry and know where company‘s stand in the industry. This analysis also beneficial for investors to get information to decide which companies they should invest in. Companies that have good financial statement and increasing growth opportunities are better choice for investors.

There are two important factors that managers need to consider, first of all is the nature of industry and competitive analysis and secondly is the evaluation of company resources and competitive capabilities. The first analysis is a valuable tool in assessing industry traits, competition intensity, industry change drivers, market position and rival companies strategies. Managers require answering these following seven questions.

First, What are the industry’s dominate economic features? Industry’s economics features are market size, scope of competitive rivalry, market volume and...
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