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Porter Essay

2792 words - 12 pages

CASE STUDY ON

Strategic Analysis

Of Dell Inc.

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Introduction:
The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order ...view middle of the document...

In the words of Kotler and Armstrong “marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers” (Kotler & Armstrong, 2003). These influences create both opportunities and threats for a manager. We will use the PESTLE analysis for determining the DELL macro environment analysis.
1.1.1. Political Factors:
The political environment of the business has pivotal effects on the performance of the business in the quest of achieving its strategic goals. The political instability started after the 9/11 has affected the market conditions all over the world. Most of the computer manufacturers belong to US and the country government is taking huge efforts to facilitate the business. This offers exciting opportunities across the world to manufacturer like Dell, HP, Acer, Toshiba, and IBM etc. In order to capitalize the growing needs of the market the government of US has strengthen its ties with China in order to exploit the comparative advantage of the country in the form of low labor and technological cost.
1.1.2. Economic Factors:
The economic environment has gone through tremendous changes after the advent of 9/11. In fact the event has completely changed the economic conditions of the world. Companies that were considered as giant in the market are now myths of the history. The condition stabilize relative in year 2006 and 2007 but after insolvency of Lehman Brothers and other giants of the US the economic condition all the world suffered. The interest rates are not stable due to huge fluctuation that arises from the instability in the financial situations. Inflation all over the world has surged to all time high. Due to huge expenditure on war terror fought in Iraq, Afghanistan and other parts of the world the GDP of various countries have shown a very low growth that have resulted in almost stagnant per capita income.
1.1.3. Socio-cultural Factors:
The values across the continents are changing with the passage of time, and now a global culture is arising meaning the presence of universal segment having the same values, likes and dislikes and other norms across the world. This offers exciting opportunities to various organizations including computer manufacturer in the form of standardized product development offers across the world with no adaptation. This translates into various economies, and low fixed costs, meaning change in attitude towards foreign brand.
1.1.4. Technological Factors:
Due to advent of the information technology the world has condensed to global village. The computing technology is leading the change from the front by offering exciting opportunities for advancement in technology. Technology has enabled the various manufacturers to enjoy low cost advantage and better quality. Manufacturer across the industry are trying their level best to offer innovative products at competitive prices....

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