Dell Computers Essay

Essay on Dell Analysis

1400 Words6 Pages

Dell Analysis

In spite of Dell’s Direct Model strategy, the company had lost any price advantage it had over its competitors. Dell also had an issue with channel inventory availability driven by the fact that their competitors were attempting to replicate their strategy. This was a large threat to the organization because they so heavily relied on just-in-time delivery of parts. Dell’s competitors faced many challenges to the direct distribution method, however. According to Exhibit 8 in the case (“Ratings of PC Vendors by Corporate Mangers with PC-buying Responsibility”), channel based support was rated the lowest on all scales, showing that this was Dell’s riskiest area as well.
Internal Analysis
Strengths and Weaknesses Dell’s…show more content…

Also, Dell did not have a price advantage over competitors despite their lower costs due to the Direct Model. Finally, the firm did not have a large share of the foreign market, which has the highest growth potential.
Value Chain Dell was more capable of maintaining the Direct Model strategy than most, if not all, of its competitors. The resources that supported this advantage were the close relationship Dell had with its suppliers, a solid just-in-time inventory management system, and proximity of warehouses and production facilities to assembly operations. In addition, Dell’s computers developed a reputation of reliability and the company excelled at customer service. While the Direct Model seemed to challenge competitors, many other companies were able to imitate Dell’s reliability and customer service. Dell attempted a cost leadership strategy although it’s PC’s and laptops were comparable in price to competitors. Gateway was the cost leader in the industry and once trailed only Dell as the leader of direct sales of computers to customers. Dell does offer computers that are customized to buyer specifications so their computers are more custom than competitors. Very large customers who purchased over $1 million in PC’s made up 70% of the firms revenues. The firm would take a big revenue hit if it lost these customers.

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Essay about Financial Analysis of Dell and Hp Executive Summary

5961 WordsAug 26th, 201324 Pages



This financial analysis report examines two high profile competitors, Dell and Hewlett Packard (HP), within the computer/technology industry in order to evaluate company performance and financial health. Overall company strategies were reviewed and considered along with the financial analysis to come to a conclusion for recommendation of investment. The reports introduction gives an overview to the computer/technology industry and expands on the strategies executed by Dell and HP. The financial analysis covers both companies’ common-size income statements and balance sheets, comparative income statements and balance sheets, and various financial statement ratios such as…show more content…

The computer industry has come a long way since its first inception with the invention of Electronic Numerical Integrator and Computer in 1946. This industry is comprised of many items such as computers, monitors, printers, scanners, mainframes, servers, electronic computer components, networking and workstations to name a


few. The industry started a major growth phase in the 1980’s with the production of the personal computer and has grown every since with many new products introduced. Innovations within this industry have had positive rippling effects to outside industries, from manufacturing to banking. While the United States market is fairly saturated and mature, the computer/technology industry is very much in the growth phase on a global basis. The drivers behind this growth are both innovations in technology and especially increased consumer spending in Asia and Africa. The international value of this industry is expected to grow and surpass $620 billion in 2011, roughly a 27% increase from 2006. Dell and HP possess major market share within the computer/technology industry due to brand name loyalty, advanced supply chain management techniques and producing innovating products for an affordable price.

Dell vs. HP Strategies Dell and

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