Swot Analysis Of Dell Computer
SWOT analysis of Dell Computers History: The company was founded in 1984 by
Michael Dell, now the computer industry's longest-tenured chief executive
officer, on a simple concept: that by selling personal computer systems directly
to customers, Dell could best understand their needs, and provide the most
effective computing solutions to meet those needs. Today, Dell is enhancing and
broadening the fundamental competitive advantages of the direct model by
increasingly applying the efficiencies of the Internet to its entire business.
Company revenue for the last four quarters totaled $19.9 billion. Through the
direct business model, Dell offers in-person relationships with corporate and
institutional customers; telephone and Internet purchasing (the latter now
exceeding $18 million per day); customized computer systems; phone and online
technical support; and next-day, on-site product service. Dell arranges for
system installation and management, guides customers through technology
transitions, and provides an extensive range of other services. The company
designs and customizes products and services to the requirements of the
organizations and individuals purchasing them, and sells an extensive selection
of peripheral hardware and computing software. Nearly two-thirds of Dell's sales
are to large corporations, government agencies and educational institutions.
Dell also serves medium and small businesses and home-PC users. Dell's Unique
Direct Model: Dell's award-winning customer service, industry-leading growth and
consistently strong financial performance differentiate the company from
competitors for the following reasons: Price for Performance -- With the
industry's most efficient procurement, manufacturing and distribution process,
Dell offers its customers powerful, richly configured systems at competitive
prices. Customization -- Every Dell system is built to order. Customers get
exactly what they want. Reliability, Service and Support -- Dell uses knowledge
gained from direct customer contact before and after the sale to provide
award-winning reliability and tailored customer service. Latest Technology --
Dell introduces the latest relevant technology much more quickly than companies
with slow-moving indirect distribution channels. Dell turns over inventory every
six days on average, keeping related costs low. Superior Shareholder Value --
During the last four quarters, the value of Dell common stock nearly doubled.
From 1996 through 1998, Dell was the top-performing stock among the Standard &
Poor's 500. Internet Leadership Sales via Dell’s Web site surpassed $18 million
per day during early 1999, accounting for 30 percent of overall revenue. The
company's application of the Internet to other parts of the business --including
procurement, customer support and relationship management -- is approaching the
same 30-percent rate.
