Dells internal and external influences

dells informal and external influencesTask 1IntroductionIn this assignment, I lead be using dell Corporation to do it furrow 1 and 2. Task 1 is about find and analyzing dingles internal and external influences. The external performers atomic number 18 the elements come from outside the organization that beyond the control of organization and internal factors are the influences within the organization. In task 2, presidential termal change, utileness and improvements of the dingle forget be discussed.Background instruction of dellMichael dingle, the founder of dell in 1984. Michael Dell started selling in-person reck unityrs out of his dorm room at the University of Texas in Austin. Dell has a simple concept that is by selling ready reckoner systems directly to their stain nodes by cutting out retailers and suppliers. Dell disc oers and understands customers needs and delivers the most efficient computing solutions to meet those needs. Dell is the number 1 PC s upplier in the United States and number 2 world widely. Dell was as well listed in Forbes magazine as the 25th largest party on the Fortune five hundred list. Dell headquarter is located at Texas, United States. In 2009, Dell has busy more than 76,500 people worldwide. Dell sells its strugglees directly to customers such(prenominal) as disposal agencies, public institutes, healthcare and educational institutions, sm all(prenominal) to large businesses through gross revenue representatives, telephone-based sales, and online through the party clear site.Internal FactorsInternal factors or influences take on statement of mission, vision and name and addresss, product and function, leadership and turn out analysis. education of Mission, raft and GoalsDells success is based on a simple premise that is to listen to customers, delivers applied science and returns they value. Dells mission is to be the most successful computing machine company in the world at delivering t he best customer have it off in markets we serve, by means of meeting customer expectations of broad(prenominal)est lineament, leading technology, company accountability and support as well as flexible customization capability, and pecuniary stability. The company vision was to produce estimators that could easily be fitted with individual components to go on a computing device system to accommodate individual requirements. Dells primary oddment is to customize, design and rein oblige products to satisfy they customers requirements so that customers dissolve get precisely what they desire. Dell has achieved their main goal by doing business directly with customers one at a time. They believed that they could better than anyone in the world. This is their primary goal because they necessity to be the best at what they do and make a profit. Dell feels that their great customer military service will keeps customer loyal.Dells another goal is to become the greenest technolog y company in the world. Dell has launched a long-term, planetary effort to become the greenest technology company in the planet. It has set an would-be(prenominal) Zero Carbon Initiative whereby it aims to maximize the energy efficiency of Dell products, and over time offset their carbon impact. Furthermore, Dell is going to hightail it its Plant a Tree for Me programme into Europe and Dell will also continue stretch forthing its consumers worldwide free recycling for employ Dell equipment and other branded equipment when new Dell hardware is purchased.Products and serveDell is globally recognized for award winning products and outstanding services. Dells committedness to customer satisfaction means that consumer can count on them for a responsive, reliable, quality service. Dell pay attention and listen to their customers needs and wants. Thereby, Dell delivers innovative technology and services they trust and value. Dell offers a wide run for of product such as desktop ca lculating machines, notebook computers, mesh servers, melt downstations, handheld computers, monitors, printers, high-end storage products, and a variety of computer peripherals and software program. Dells 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, swordplay consoles and software, liquid crystal display televisions, projectors and surround sound speakers. Moreover, Dell has designed smart, simple services to fit the trustworthy customers lifestyle and it has brought customers a lot of convenience. Dell also provides 24/7 customers service and support tool that secure customers personalised data and keep their system running in wakeless condition. Dell technology experts can remotely access a customers computer to influence issues instantly.Leadership lift analysisStren gthsOne of the best renowned computer brandsDell is the largest PC maker in the world and also long-familiar for online selling of computers. Dell offers a wide range of PC, Laptops, Monitors and LCDs, hardware and software. The companys web site received at least 25 million visits at more than 50 country-specific sites.Direct to customer business modelDell sells directly to their customers by cutting out the retailers and suppliers. Dells efficient procurement, manufacturing and statistical distribution performance allowing it to offer customers powerful systems at competitive sets. Dell provides top-notch customer service before and after the sale and also 24 hours customer service and support.CustomizationEvery Dell system is built to order. Dell built computer based on customer provided specifications. So customers get exactly what they desire.WeaknessesNo Proprietary TechnologyDell does not have proprietary technology, the current technology used by Dell are shared by the ot her major competitors.Product FailureThere is the occasional product recall that can cause Dell some embarrassment. In 2004, 4.4 million laptop adapters are recalled back because of a fear that they might overheat.OpportunitiesvariegationDell is introducing many new products to its range through diversification. This initially has meant devout such as printers, desktop and laptops, but now also includes LCD televisions and other non-computing goods.Strong market potentialDell has the opportunity for amplification in all parts of the world, especially in markets outside of the U.S. in all customer segments and in all product categories. The number of PC users is expected to hit or exceed 1 billion by 2010.ThreatsCompetitorDell attracts customers through cost saving. Since competitors are offering computers at low costs, this could threaten Dells price-conscious growing customer base. With almost similar prices, price difference is no longer an issue for customers.Technology Advance mentspeedy change in technology obsoletes the product in small cross of time. Dell has to keep up with technological advancements to be able to compete. bullion fluctuationChanges in world currencies can hit production costs. As the costs of supplies increase, the price of the computers will also increase.External FactorsThe external environments in bay windowo step of Porters 5 and PESTLE analysis. PEST is very effective for the understanding of business situation and global issues and Porters 5 analyses the companys external environment in an alert market or a new one.PEST analysis of Dell CorporationPoliticalPolitical factors include governing regulations and legal issues determining the conditions under which companies have to operate. Dell Corporation encounters problems in certain countries where political stability is not guaranteed, no matter whether companies operate production facilities or if they do business with that country through exports or imports. Many countr ies shut up have restrictive policies such as the trade quotas and certain government regulations that implies on MNC (Multinational corporations) which are maintained to protect domestic manufacturers and production. These policies are more likely to obstruct foreign companies from investing or entering into these markets. The notwithstanding possibility to do business in those countries is to establish partnerships with local companies such as joint ventures or strategic alliances, where they are additionally forced to accept minority shares and to provide resources concerning money, local culture and technological knowledge. However, the computer industry sees great potential in those countries with looser and less restricted government regulations for countries like China which has opened for many industries since its accession to the WTO in 2001. This causes the globalisation trade barriers to be less restricted and the opportunities for new market to come forward thus allo wing free trade to have a fit.EconomicEconomic conditions influences both crave/supply, capital and cost and is greatly influences by political and government policies. The computer industry expects a growth of approximately ten percent over the next years. This growth is influenced by the economic situation in a specific country, having an impact on the purchasing power of potential customers. Hence, ever-changing inflation rates and currency fluctuation also determine the favourableness of a company. I the cost of capital is low it will be an interesting market for firms to invest and expand in the market thoroughly. sure countries in Asia represent a great opportunity for firms to invest and expand in. For example, in Malaysia GDP for 2007 was estimated at 357.9 billion with a growth rate of 6.3%, while in 2008 it comes with a growth rate of 5.0%. Apparently in 2009 the growth rate has increased from 2008 of 5.0% to 2009 of 5.2%.SocialThe social cultural factor represents the demand and taste. Promotional and pricing strategies will have to change fit to the market saturation to adapt to the consumer demand. The national demand for computers is dependent on the educational level prevailing in a specific country. The higher(prenominal) the educational standard, the higher is the demand. Furthermore, computers get more and more involved in daily life. Today, children are more exposed to computers comparingd to the 1990s. Firms should be aware of demographics changes as the structure of the population by ages, affluence, regions, the employment rates can potently influences the demand and supply for a particular products and services. Therefore, threats to existing products might be increasing and this indirectly causes the opportunities for differentiation and market segmentation to increase.TechnologicalThe technology today has indeed become an asset rather than a financial obligation to human beings today. Firms must evolve accordingly in order to l odge 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.Porters five ForcesFive forces analysis help the marketer to compare and contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyze the market for Business Computers (one of Dells SBU units)Threat of New Entrants (moderate)Barriers to entry, save can restrict th e firms from entering the market, more number of entry barriers will make it difficult for the new entrants to exploit the opportunity of new market. actual firms which produces at economies of scale makes it difficult for new firms to enter the market. Certain distribution channels are control by either the government or existing firms and makes it difficult for new entrants. Furthermore, not all programs can work all computers therefore switching costs is quite high. This causes customers to stay with the alike(p) product because it can be expensive to buy new software for a new system.Bargaining Power of Buyers (high)The bargaining power of buyer increases when there is a huge amount of players in the market. Rival firms offer discounts, warranty and services to switch the consumer from one brand to another in the same industry. Consumers are highly price-sensitive and might switch to other PC company if Dell increases their price. Thus, Dell can lower this threat by differenti ating their products. Customers select mainly based on price although Dell differentiate their products because customers might not see much differences between products. Firms should maintain good relationships with customers by practicing CRM processes in the company. For example, P G has an online portal to ask the customer about their views, opinions and new ideas about the products of their desire.Rivalry among existing firmsA war between the firms competing in the same industry for gaining customer share in order to increase their revenues and profits.Dell is offering affordability computersThreat of SubstitutesOther gadgets such as mobile phones can be a threat to computers payable to enhancement of phone features that have similarities with PDAs. A firm faces intense competition from substitute product producing firms, when the customer cost of switching is lower, substitute products are better in quality and functionality. The competitive strength can be determined by m arket share, sales pattern, producers adding capacity for more production, and wage hike in profits.Bargaining power of supplierBargaining power of suppliers affect the intensity of competition especially if there are huge numbers of suppliers in the market plus less availability of raw textile and the cost of switching between suppliers or raw material is high in the market. The influences of certain huge suppliers such as Microsoft enforce computer manufacturers to load Windows in their computers and place their logo on laptops, desktops and server machines.ReferencesGwendolyn Cuizon, 2009. SWOT Analysis of Dell Computers. bring forward expose 21, 2010 from http//strategic-business-planning.suite101.com/article.cfm/swot_analysis_of_dell_computersMarivic Butod, 2009. SWOT ANALYSIS dingle COMPUTERS INC. commemorate march 24, 2010 from http//ivythesis.typepad.com/term_paper_topics/2009/11/swot-analysis.htmlAndy Merrett, 2007. Dells goal. Retrieve bunt 23, 2010 from http//www .techdigest.tv/2007/06/dells_goal_to_b.htmlMarketing Teacher, 2000. SWOT Analysis Dell. Retrieve March 25, 2010 from http//marketingteacher.com/SWOT/dell_swot.htmOppapers, 2010. Dell Pestle Analysis. Retrieve March 25, 2010 from http//www.oppapers.com/essays/Dell-Pestle-Analysis/151211Marivic Butod, 2008. Dell Computer. Retrieve March 24, 2010 from http//ivythesis.typepad.com/term_paper_topics/2008/01/dell-computers.htmlTechdirt, ND. Dell spend $ one hundred fifty Million On Customer Service Improvements. Retrieve March 27, 2010 from http//www.techdirt.com/articles/20070815/022843.shtmlMSN, 2010.Dell Inc financial Statement. Retrieve March 28, 2010 fromhttp//moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=dellND. Dell Inc Condensed Consolidated Statement of Operations. Retrieve March 28, 2010 from http//www.dell.com/downloads/global/corporate/inv_history/income_statement1.pdfNeal Dikeman, 2007. world(a) Warming Solutions Dell Style. Retrieve March 26, 2010 from h ttp//www.cleantechblog.com/2007/03/global-warming-solutions-dell-style.htmlBen Rooney, 2008. Dells earnings slip despite rising sales. Retrieve March 28, 2010 from http//money.cnn.com/2008/08/28/news/companies/earns_dell/index.htmAzcentral, 2008. Dell to save $3B, close plant, prove workers. Retrieve March 29, 2010 from http//www.azcentral.com/business/consumer/articles/0331biz-dellsavings31-ON.htmlAntony Savvas, 2008. Dell says job cutting is over but developing global recession causes uncertainty. Retrieve March 29, 2010 from http//www.computerweekly.com/Articles/2008/10/27/232919/dell-says-job-cutting-is-over-but-developing-global-recession-causes.htmNatalie Schmid, ND. The Dell Company A Strategic Analysis. Retrieve March 30, 2010 from http//www.grin.com/e-book/57007/the-dell-company-a-strategic-analysisDell Sustainability Report, 2004. Retrieve March 31, 2010 from http//www.greencanary.net/downloads/dell-cr-report-2004.pdf2008 Financial crisis and Global Recession. Retrieve M arch 24, 2010 from http//2008financialcrisis.umwblogs.org/Blogjer, 2008. Dell open it first store in Malaysia Mid valley Mega Mall. Retrieve March 25, 2010 from http//www.blogjer.com/category/corp/dell/Dell Global Giving, ND. Dell Youth Connect. Retrieve March 23, 2010 from http//www1.ap.dell.com/content/topics/global.aspx/about_dell/values/community_outreach/global_giving?ck=lnc=inl=enlnki=0s=corpCleantech Blog, 2007. Global Warming Solution- Dell Style. Retrieve March 27, 2010 from http//www.cleantechblog.com/2007/03/global-warming-solutions-dell-style.htmlAustin, 2000. New trip for Journyx. Retrieve March 25, 2010 from http//austin.bizjournals.com/austin/stories/2000/09/25/tidbits.htmlDell, 2010. Ethics and Compliance. Retrieve March 28, 2010 from http//www.dell.com/content/topics/global.aspx/about_dell/values/sustainability/corporate/ethics_compliance?c=usl=ens=corp