Swot Analysis of Dell Computers

dell Computer Corporation started in 1984 by Michael dell with this very simple premise as its basic creation that personal computing machines could be construct and sold directly to clients and by doing this, dell could address their specific needs and provide the best computing solutions that decent those needs. dingles Direct Method provides two distinct advantages 1. trim marketing and sales cost by eliminating markups of distributors and retailers and 2. building to order bring down fund costs and risks of retaining inventories. dingles Direct Model is the master(prenominal) reason why it has achieved its stellar status in business today.This st sum upgic model enables dingle to interact with customers directly providing them with fast, reasonably- footingd and friendly means of output and distribution. SWOT Analysis of dingle Computer Strengths Dells Direct Model forward motion of enables the company to mountain pass direct relationships with customers such as co rporate and institutional customers. Their strategic method also provides early(a) forms of products and expediencys such as internet and telephone purchasing, customized ready reckoner systems phone and online technical support and next-day, on-the-spot(prenominal) product service.This extensive range of products and services is definitely one of Dells strengths. Dell Computers award-winning customer service, industry-leading growth and consistently grueling financial performance differentiate the company from competitors for the following reasons Price for exploit Dell boasts a very efficient procurement, manufacturing and distribution process allowing it to offer customers powerful systems at competitive prices. Customization Each Dell system is built to order to meet each customers specifications.Reliability, Service and allow Dells direct customer allows it to provide top-notch customer service before and after the sale. Latest Technology Dell is able to lay out the latest relevant technology comp bed to companies using the indirect distribution channels. Dell turns over inventory for an average of every six days, keeping inventory costs low. The companys application of the Internet to some otherwise parts of the business including procurement, customer support and relationship management is growing at a rate of 30 percent. The companys Web site received at least 25 million visits at more than 50 country-specific sites.Weaknesses Dells biggest flunk is attracting the college student segment of the market. Dells sales revenue from educational institutions such as colleges only accounts for a measly 5% of the total. Dells focus on the corporate and government institutional customers in some way affected its ability to form relationships with educational institutions. Since many students purchase their PCs through and through their schools, Dell is obviously not popular among the college market yet. For home users, Dells direct method and cu stomization approach posed problems.For one, customers cannot go to retailers because Dell does not use distribution channels. Customers just cant steal Dell as simply as other brands because each product is custom-built according to their specifications and this might take days to finish. Opportunities Personal computers are becoming a necessity now more than ever. Customers are getting more and more educated about computers. Second-time buyers would most likely emolument of Dells custom-built computers because as their knowledge grows, so do their need to experiment or use some additional computer features. Demand for laptops is also growing.As a matter of fact, demand for laptop has overtaken the demand for desktops. This is another opportunity for Dell to grow in other segments. The internet also provides Dell with greater opportunities since all they have to do now is to visit Dells website to place their order or to get information. Since Dell does not have retail stores, t he online stores would surely tug up for its absence. It is also more convenient for customers to shop online than to actually drive and do purchase at a physical store. Threats In a volatile market such as personal computers, threats abound.Computers change in a constant sometime daily basis. New software, new ambitiousware and computer accessories are familiarized at a lightning speed. It is essential for Dell wherefore to be continuously on the lookout for new things or introduce new computer systems. The threat to become outmoded is a pulsating naive realism in a computer business. Not only that, companies must pull in products that are high in quality but low in price. This is one challenge that Dell contends with. One of the biggest external threats to Dell is that price conflict among brands is getting smaller.Dells Direct Model attracts customers because it saves cost. Since other companies are able to offer computers at low costs, this could threaten Dells price-c onscious growing customer base. With almost identical prices, price difference is no longer an issue for a customer. They might choose other brands instead of waiting for Dells customized computers. The growth rate of the computer industry is also slowing down. Today, Dell has the biggest share of the market. If the demand slows down, the argument will become stiffer in the process.Dell has to work doubly hard to differentiate itself from its substitutes to be able to continue holding a world-shattering market share. Technological advancement is a double-edge sword. It is an opportunity but at the same time a threat. Low-cost leadership strategy is no longer an issue to computer companies therefore it is important for computer companies to support out from the rest. Technology dictates that the most up-to-date and fastest products are always the most popular. Dell has to always keep up with technological advancements to be able to compete.