Dell Business Analysis

Dell Business Analysis

Where are we going?

Dell is currently migrating to new technology. They have opened new facilities in Europe and North America to help customers and independent software providers with next generation Internet technologies. They also are gaining rapid experience and know-how into applying the rules of business. Dell has created valuechain.dell.com, which provides suppliers with secure access into Dell’s operations. They have also secured deals with BellSouth DSL and Samsung which will be made public later.

Financially speaking, Dell is expecting revenue to total 8.5-8.6 billion dollars, which is a 26 percent increase from one year ago. Net income is also expected to rise 10 to 20 percent. Per share earnings will likely reach 18 to 19 cents.

How will we get there?

In order for Dell to achieve its goals, they must just continue to provide the service that they are. They are trendsetters in the industry because of their specialized service, and I think that more customers will attract to them because of that. However, an obstacle that Dell will have to overcome is the fact that memory cards can be purchased from any retail store (i.e. Staples, Office Max). This eliminates the need for customers to upgrade their systems. Perhaps, a specialized chip can be created and sold specially by Dell that will prove to be more advantageous to Dell customers.

How will we know?

Dell Computer Corporation will know that they are there if their success is continual. They are already dominant in the market, so true success will be proven if it is continued. Short term, quarterly, realistic goals need to be set, and if/when achieved, Dell will know that they have “gotten there.