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As an organization that leads the world in computer manufacturing, Dell Computer Corporation has grown tremendously since it beginning. Dell Computer began in the dorm room of Michael Dell; he bought random access memory chips and disk drives for IBM PCs at cost from IBM dealers and sold them at 10-15 percent below retail price. Sales were running about $80,000 by April 1984, which prompt his decision to drop out of college and form his first company called PCs Ltd. Selling both the components and PCs under this brand name. Eventually PCs experience the inevitable growing pains. Michael Dell made a decision that changed the way many consumers purchase their computer today. In 1987, after he restructured to company, increased production capability, management staff, and corporate infrastructure, while still maintaining low cost products to consumers. The company was then renamed Dell Computer and in that same year open their firs international offices.
SWOT ANALYSIS OF DELL COMPUTER
Strengths Michael Dell visionPersonal customization of computers and laptopsCutting out the middle man (retail sellers as a distributor)Order directly from the factoryFast deliveryComputer delivery tracking serviceLow inventory turnaroundLong-term relationship with suppliersLow price computerInexpensive laborJust-in-time inventory
Weaknesses Buying from limited manufactures suppliersHome end user has no hands on experience to see or touch the actual productConsumer have to wait on deliveryDells products are prioritizeConsumer can not purchase comparable price ink cartridge for Dell printers
Opportunity Introduction of printers and tonerIntroduction of LCD television and I podConstant growth in the market for laptops and computersConsumer are more computer knowledgeableInternet shopping for personalize computer (online store)
Threats Orders have to be placed ahead to need time due to size or valueWith international orders constant change in exchange rates could leave Dell at a potential loss of parts from it supply chainPrice differential is becoming smaller with competitive marketDell competitors are a price threats in the computer industryThe computer that is the fastest, most advance in technology, most durable, and user-friendly is increase it share of the market
Liquidity, profitability, and growth are used to measure the success of a company. When asked to review Dell and it's marketing strategy I looked closely at it weakness and threats, because once you address a company weakness it then has the possibility of becoming a strength and when you acknowledge threats to a corporation, the company can then take the appropriate action to alleviate the threat. My recommendation to Dell would be not to make any grand changes, to continue observing the computer technology market and continue to make amend changes as necessary.
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Michael Dell has consistently followed the same simple guideline for success. His core principles is: maintaining a high standard of quality in every area of the company, and monitor the standard of the companies that are business partners, stay on the leading edge, stay competitive, always be customer driven, but must of all be willing to learn. Which answers the question of whether the success of Dell be duplicated? The answer is no, it cannot be duplicated but it can be imitate. Michael Dell standard is far superior of many of his competitors and the monetary lost he is willing to take for principle sake few competitors are willing to endure.
Between 1990 93 the company realized it had made a mistake in selling computer through
distribution channels (retail arena) and removed all computers to refocus its direction toward direct sales incurring a $38 million dollar lost. Realizing his limitation he was strong enough to seek help by hiring Lee Walker, a 51-year-old venture capitalist to provide the managerial and financial experience the company needed. Later in 1990, Dell turned to Morton Meyerson for advice and guidance on how to transform from a medium-sized company to a billion-dollar enterprise. In 2004 Michael Dell transferred his title of CEO to Kevin Rollins remaining as chairman of the board. Michael Dell is willing to take well thought out chances, weighing the pro and cons and taking the risk. Most companies are not willing to take the direction Michael Dell has to ensure the success of his company, which is why I recommended to continue what he was already doing.