University of Modern Sciences (UMS)
College of Business Administration
International Business
BUSN 407
Fall 2015/2016
Project
Submitted to
Dr. Mohammed Rizwan Alam
Submitted by
Musallam Alameri
20131334
Section 1
Table of Contents
Introduction to Dell ..........................................................................................................................3
Profile ...........................................................................................................................................3
Products and Services ...................................................................................................................4
Competitors ..................................................................................................................................4
Dells Mission, Vision and Strategy ...............................................................................................4
SOWT...............................................................................................................................................5
Challenges Facing Dell ......................................................................................................................6
Political challenges ........................................................................................................................6
Economic challenges .....................................................................................................................6
Social challenges ...........................................................................................................................7
Technological challenges ...............................................................................................................7
Conclusion ........................................................................................................................................8
References ........................................................................................................................................9
pg. 2
Introduction to Dell
Dell Inc. is an American multinational computer technology
corporation that develops, sells, repairs and supports computers and
related products and services. The company is one of the largest
technological corporations in the world and is listed as number 44 in
the Fortune 500 list. It is the third largest PC vendor in the world after
HP and Lenovo.
Profile
Type Private
Industry Computer hardware, Computer, IT services, IT consulting
Founded February 1, 1984; 31 years ago
Headquarters Round Rock, Texas, United States
Area served Worldwide
Key people Michael Dell (Founder, Chairman & CEO)
Products Personal computers
Servers
Peripherals
Smartphones
Televisions
Services IT services
Owner Michael Dell Silver Lake Partners
Number of employees 108,800 (2013)
Subsidiaries Alienware
Dell Compellent
EMC Corporation
Force10
Perot Systems
SonicWall
Dell SecureWorks
Website [Link]
pg. 3
Products and Services
Dell is globally recognized for award winning products and outstanding services. Dell's
dedication to customer satisfaction means that consumer can count on them for a responsive,
reliable, quality service. Dell pays attention and listens to their customers needs and wants.
Thereby, Dell delivers innovative technology and services they trust and value. Dell offers a
wide range of product such as desktop computers, notebook computers, network servers,
workstations, handheld computers, monitors, printers, high-end storage products, and a variety of
computer peripherals and software. Dell's systems are built to order and so that customers have
the freedom to choose what requirements they require.
Other than that, the company is now offering wide range of electronics and PC accessories
networking accessories, digital cameras and camcorders, gaming consoles and software, LCD
televisions, projectors and surround sound speakers. Moreover, Dell has designed smart, simple
services to fit the current customer's lifestyle and it has brought customers a lot of convenience.
Dell also provides 24/7 customers service and support tool that secure customers' personal data
and keep their system running in good condition. Dell technology experts can remotely access a
customer's computer to solve issues instantly.
Competitors
Apple Inc.
Samsung Electronics [Link]
Lenovo Group Limited
Hewlett-Packard Company
Sony Corporation
Fujitsu Limited
Dells Mission, Vision and Strategy
Dells Vision Statement: Its the way we do business. Its the way we interact with the
community. Its the way we interpret the world around usour customer needs, the
future of technology, and the global business climate. Whatever changes the future may
bring, our visionDell Visionwill be our guiding force.
Dells Mission Statement: Dells mission is to be the most successful computer company
in the world at delivering the best customer experience in markets we serve. In doing so,
dell will meet customer expectations of highest quality; leading technology; competitive
pricing; Individual and company accountability; superior corporate citizenship; financial
stability.
Strategies and Objectives: With the recent buyout and Silver Light partnership, Dell is
able to take the company forward in a direction that isnt hindered by stockholder
opinions and market analysts.
pg. 4
SOWT
Strengths Weaknesses
Brand name valued at $7.5 billion Commodity (computer hardware)
Product customization products
Environmental record Poor customer services
Competency in mergers and Low investments in R&D
acquisitions Weak patents portfolio
Direct selling business model Too few retail locations
Low differentiation
Opportunities Threats
Expand services and enterprise Growing demand for smartphones
solutions businesses and tablets
Obtain more patents through Profit margin decline on hardware
acquisitions products
Strengthen their presence in Slowing growth rate of the laptops
emerging markets market
Tablet market growth Intense competition
pg. 5
Challenges Facing Dell
Political challenges
Any corporation of a size of Dell is impacted by a set of political factors such as the level of
political stability in the country, home market lobbying and international pressure groups. It is
important to note that to date there is no evidence of Dell being involved in a political issue,
nevertheless, the company is not immune from detrimental impact of political factors in the
future. Specifically, there is a risk for Dell and other US-based computing and technology
companies to become unwelcome in certain markets, particularly in Russia and China due to
spying concerns sparkled mainly after the revelations of whistleblower and former CIA
employee Edward Snowden. Moreover, Dell might be impacted by activities of home market
lobbying and pressure groups in emerging economies advocating the interests of local computer
firms, thus creating barriers for Dell in forms of trade tariffs and other instruments.
Economic challenges
Dell is directly impacted by a great range of economic factors that include currency exchange
rates, interest rates, inflation rate, macroeconomic stability and costs of labor and raw materials.
Particularly, currency exchange rate represents a major economic factor that affects Dell
business performance directly and significantly because of the global scope of Dell operations. In
order to address the negative impact of currency exchange rate and to gain operational
efficiency, in February 2015 Dell became the biggest company that accepts bitcoins
internationally
Moreover, the global financial and economic crisis of 2007 2009 proved to have substantial
detrimental impact on the growth of the global PC market, thus affecting Dells revenues. As it is
illustrated in Figure 3 below, the growth in the global PC market amounted to 13% in 2007,
however in 2009 the global PC market grew only 2% as a direct result of the crisis. It can be
argued that an economic crisis is the most substantial economic factor in a way that it triggers the
whole set of other economic factors such as inflation rate, interest rate and labor cost.
pg. 6
Social challenges
Increasing level of integration of various internet applications into increasing aspects of
professional and personal lives of consumers is one of the most significant social tendencies that
affect Dells long-term growth prospects. Specifically, companys future growth prospects are
associated with its ability to address this important social change by offering advanced tablets
and smartphones that can serve as effective platforms for using various types of mobile
applications for working and recreation.
Increasing popularity of online sharing via popular social networking websites such as Facebook,
Google+, LinkedIn, Instagram, Twitter and YouTube is another noteworthy social tendency that
should not be neglected by Dell. The company is also greatly impacted by additional range of
social factors such as demographic changes, changes in consumer attitudes and opinions towards
consumer electronics products and services, media perception of the brand and health and
welfare of target customer segment.
Technological challenges
The technology today has indeed become an asset rather than a liability to human beings today.
Firms must evolve accordingly in order to stay competitive among existing rivals in the market.
Plus technology external can also be captures and used, and this again can be influenced by
government support and encouragement. New technology can be useful in both manufacturing
and services for a better and more efficient and effective output. For example, in Malaysia Dell
corporation is famous for producing affordable and good quality laptops such as the Dell
Inspiron and Dell Studio laptops to suit all range of income earners and taste.
pg. 7
Conclusion
Dell Inc. is a US-based company that is engaged in designing, developing, manufacturing,
marketing, and supporting information technology systems. The company offered product
portfolio includes laptops, desktops, workstations, storage devices and printers, among several
others. Geographically, the company has its operations in the Americas, Europe, the Middle East
and Africa, and Asia Pacific-Japan. The company is headquartered at Texas, the United States.
Dell delivers innovative technology and services where placed at number 34 on the fortune 500
list. Dell's climb to market leadership is the result of its sharp focus on delivering the best
possible customer experience by directly selling, standards-based computing products and
services. Dell's concept reads that by selling computer systems directly to customers, it
understands their needs and efficiently provides the most effective computing solutions to meet
those needs.
pg. 8
References
1. Baker, M. & Walsh, A.M. (2011). Case 26- Dell, Inc. In Strategic Managements: A
Competitive Advantage Approach. La Salle University (pp-252-261).
2. [Link] (2015) Top 10 Best Laptop Brands in 2015. In LPTPS, retrieved on October
2015 from [Link]
3. Arthur, C. (2012). Dell revenues slump as tablets and smartphones eat into market.
Available at: [Link]
pc-tablet-smartphone
4. Dell (2013). About Dell. Available at: [Link]
[Link]?c=uk&l=en&s=corp
5. Dell (2013). Dell's Fiscal Year 2012 in Review. Available at:
[Link]
6. Wikipedia (2013). Dell. Available at: [Link]
7. Interbrand (2013). Best Global Brands 2012. Available at:
[Link]
pg. 9
