Dell Computers Case Study

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Analysis of the current situation:

The Environment:

Economy State:
Over the decade of 1980 till 1990; the personal computer industry in the United States has grown to a $40 billion dollar industry fueled by remarkable advancements in the technologies of both storage and data processing. However, these breakthroughs have caused this rapid growth to come to an end. As the vast spread of these technologies made personal computers become a commodity, where customers are looking for the best bargains in terms of price from mass dealers; rather than looking for professional advice on what’s best for them from a certified computer dealer.

Cultural and Social Values:
Dell believes that maintaining direct and trusty relationships with customers is essential for the company’s success. The company also conducts business with diverse partners, which helps Dell in serving customers with different cultures.

Key Attributes of Our Culture
At Dell we reward for a job well done—it’s that simple. Every professional here functions as an essential part of the team and succeeds by meeting measurable objectives. Direct Relationships
We’ve cultivated an environment founded on candid, two-way communication. Global team member surveys, such as Tell Dell, help extend our business philosophy into all we do. Empowerment
Acting with conviction. Pursuing your own success. Building your future —and ours. Our commitment to meritocracy means that your contributions are valued. The Soul of Dell
We’ve built our success on this powerful statement of our values, beliefs, and aspirations. At its core are our people who, every day, all over the world, demonstrate our commitment to customers, the Dell team, direct relationships, global citizenship, and winning. Tell Dell

At Dell, our employee survey program functions as a critical analytic and diagnostic tool. Through Tell Dell, we keep our finger on the pulse of the company. Our findings enable us to make smarter decisions and further enhance our environment to ensure our continued success.


Political values:
There are no political values affecting the personal computer industry

Legal Environment:
Some countries where dell operates might have some limitations on the transfer of data via information technology (for example internet)

There is an increasing demand on laptops. So Dell can focus some more on making more laptop model available for customers. Advancements in internet technology that allows customers to go online and buy Dell computers from

Rapid advancements in computer software and hardware.
Price difference between Dell and other brands is getting smaller Growth rate of the computer industry is starting to slow down; which will result in more intense competition for the survival of the companies

The industry:

Rivalry among competitors:

A leader in technology since 1977 by offering the first operating system that enabled applications to be driven by a simple point & click. Apple reined supreme in the home and education markets until Microsoft launched windows in 1990 which was a breakthrough in user friendly interfaces. Although the vast use on Microsoft windows; apple still holds a substantial share of 24% of the branded desktops used by the fortune 1000 companies, in addition to 25% of the retail personal computers.

Entered the market with a share of 5%; this share increase to be 42% over the period of 1981 to 1984 and it’s one of the biggest competitors to Dell computers. IBM decreased its costs by completely outsourcing their supply of hardware and software components. In addition to adopting an ‘’open architecture’’ computer system in which all the specifications used are made public so other more specialized companies can develop system extensions and peripherals. This resulted in developing much higher performance software...
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