Dell Pursue Growth in a Challenging Environment
Dell Pursue Growth in a Challenging Environment
Problems:
- Balancing expansion to retail
- Stagnant corporate market (large enterprise, government)
- Costumer market growing but not significant (home, small business)
- Downturn economic
- New entrants higher, rivalry higher (price war)
- Bargaining power of supplier high
- Leader change -> policy, goal
- New opportunity market (tablet)
- PC market stagnant
- Still focusing in US market
- US crisis, decrese in ability to pay -> demand changes--------
- Government regulation - to go green (higher cost)
- Inventory cost higher (dead stock higher)
- R&D cost 1% revenue made to stock) mass production
- Segment changes (corporation -> home user)
External Analysis
PEST Analysis
Political: Governments forces the industry to use technology that go green.
Economical: Economic downturn, make the customer think twice to buy a PC`s for themselves. They prefer lower spec PCs in purpose to reduce the price.
Socio culture: Customer behavior in US, it shown that people who using PC`s are growth year by year. That was the opportunity that even the economic was in crisis, people are still need PC.
Technological: An additional technological trend impacting the computer industry is that customers prefer to use a single vendor for all of their computing platforms. From the customer’s perspective, this simplifies technology upgrades and one company is accountable for all of its needs.
5 Forces Analysis Understanding the external environment is key to successfully competing in the computer hardware industry. Porter’s Five Forces of Competition provide a framework for Dell to outline the bargaining power of suppliers and customers, the threat of new entrants, the threat of substitutes and the intensity of competition. In this industry, the bargaining power of suppliers is high due to the limited number of suppliers for key components. For instance, Intel sells 90%of the microprocessors used in PCs
Problems:
- Balancing expansion to retail
- Stagnant corporate market (large enterprise, government)
- Costumer market growing but not significant (home, small business)
- Downturn economic
- New entrants higher, rivalry higher (price war)
- Bargaining power of supplier high
- Leader change -> policy, goal
- New opportunity market (tablet)
- PC market stagnant
- Still focusing in US market
- US crisis, decrese in ability to pay -> demand changes--------
- Government regulation - to go green (higher cost)
- Inventory cost higher (dead stock higher)
- R&D cost 1% revenue made to stock) mass production
- Segment changes (corporation -> home user)
External Analysis
PEST Analysis
Political: Governments forces the industry to use technology that go green.
Economical: Economic downturn, make the customer think twice to buy a PC`s for themselves. They prefer lower spec PCs in purpose to reduce the price.
Socio culture: Customer behavior in US, it shown that people who using PC`s are growth year by year. That was the opportunity that even the economic was in crisis, people are still need PC.
Technological: An additional technological trend impacting the computer industry is that customers prefer to use a single vendor for all of their computing platforms. From the customer’s perspective, this simplifies technology upgrades and one company is accountable for all of its needs.
5 Forces Analysis Understanding the external environment is key to successfully competing in the computer hardware industry. Porter’s Five Forces of Competition provide a framework for Dell to outline the bargaining power of suppliers and customers, the threat of new entrants, the threat of substitutes and the intensity of competition. In this industry, the bargaining power of suppliers is high due to the limited number of suppliers for key components. For instance, Intel sells 90%of the microprocessors used in PCs