Matching Dell

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Matching Dell

1. Perform an Industry analysis on the personal computer industry

SubstitutesBuyers
Compaq
IBM
HP
Hacer
GateWay
AppleLarge and midsize Business
Government
Small Business
Individual Customers
Educational

Most of them have a strong purchasing power and a easy way to change of supplier in commodity PC product

SuppliersBarriers to entry in this Industry
Intel
Microsoft
Others

They have a strong Power
Intel and Microsoft are leaders in the market almost as monopolysEasy assembly line and standard components •Brand well posisionated
Intensely competitive, big competitors and strong suppliers

The industry is intensely competitive, there are an important and powerful competitors, with well Brand awareness •The Suppliers have a huge power and dominance, the two key components (microproceor and operative system) are dominated by just one single competitor in each category (> 80% total sale in its category) •Also the Customers have a great power, they are large distributors, home centers, Government, etc. with a high purchasing power, besides the product (Personal computers) are consider as a commodity product, easy to replace for a different Brand

2.Overall, do you think the PC Industry was attractive?
What were the main competitive challenges?

Its is a very large market, in constantly growing which makes it very attractive.

The main Challengs were
Low margins
Intensity´s Industry-changing technological
Strong competence

3.What was Dell´s strategy as it grew to dominate the PC Industry in the 1990s and early 2000s? Write one-sentence description of Dells´s Strategy and be prepared to share with the group

To become a world leder in the personal computers industry doing business with its customers One-On-One, through the phone and the Internet providing the relevant tecnology, customized systems, superior service and support with and easy...
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