Dell essay

Dell essay

Introduction

Dell was founded in 1984 by Michael Dell. The company is based in Round Rock, Texas. Dell is one of the largest companies and employs a considerable number of people from all over the globe. In 1985, the company produced an indigenous design named the Turbo PC. Dell was amongst the first entrepreneurs who believed that selling the PCs directly to the customers would enable a better understanding of their computing needs. Dell was among the pioneers of internet sales, making close to $1million each day (Campbell-Kelly, 2018). In 2000, the sales rose to $50 million per day. Dell has suffered a lot, and in 2005, it had to recall 35000 batteries upon catching fire of its laptops (Campbell-Kelly, 2018). Globalization refers to the process in which a company takes the step to pursue expansion and compete at the global level. Growth strategy refers to the action plan utilized by a company to capture a significant market share. This work will precisely discuss the advantage and disadvantages of two growth strategies in the Dell company and how they affect Dell stakeholders.

The advantage of using SWOT analysis in Dell is the identification of the company’s strengths and opportunities. Dell is shown as the leading computer company and the largest PC maker (Todorov & Akbar, 2018). The company’s brand is among the well-known brand in the world. It is known to supply its products directly to the seller without the use of intermediaries (Nguyen, 2017). Dell uses customer relationship management techniques in addition to information technology methods to reach its customers. Besides, by the use of technology, Dell can collect data about its loyal customers. Either Dell pcs are made according to the customers’ choice and specification. The disadvantage of SWOT analysis is the lack of weighting factors. Upon utilizing strengths, weaknesses, threats, and opportunities, the tool does not provide a means for ranking a factor against the other in the list. Thus it is not easy to determine the real impact of any of the elements in the list.

Ansoff’s matrix advantage to Dell is the identification of ways to be ahead of competitors. The matrix allows for analysis of the current market and current products, thus allowing the company to look beyond the current trends (Schawel & Billing, 2018). For instance, most of Dell’s revenue comes from sales of hardware, which is fast growing to e-business centers. Thus the matrix has enabled the company to realize that it does not make most of its benefits from sales of services. The disadvantage of the Ansoff method in Dell is the call to market penetration. The strategy utilized by Ansoff has converted Dell into IT Services Company in the future, despite that it makes most of its revenue from hardware sales. Thus Dell will be expected to shift from a market it has been for the longest time, move to a new platform and face new competition from companies such as HP, Cisco, and IBM. However, the company should choose to focus on increasing its sales and gaining a more significant market within the hardware platform.

The four main stakeholders in Dell Corporation include employees, suppliers, customers, and investors. The first role played by an organization is the provision of the job to employees. The company also has to keep the people employed as well as allowing them time to enjoy the fruits of their labor. SWOT and Ansoff matrix through business analysis in Dell offers employees job security (Mannan et al. 2017). Through an evaluation of strengths and possible opportunities, employees are offered new employment opportunities as well as assurity of business continuity in the future. The second stakeholders are the customers in which the company has to satisfy their needs. Dell has to deliver quality products through its corporation with suppliers. SWOT and Ansoff help in the identification of new markets and products to help fulfill the customers’ needs. Besides, through the study of the company’s opportunities and strengths, the customers’ needs are better fulfilled. The third stakeholder is the investors. Investors expect social responsibility from the company in addition to making profits (Swab & Gentry, 2018). The two strategies enable Dell Corporation to fulfill these needs better. They help in the identification of opportunities and new markets needed for increased profits.  The final stakeholder is the suppliers. These stakeholders expect the company to offer favorable terms while they deliver quality products. Suppliers are expected to provide their products at good times acceptable in the market. Through the utilization of the SWOT and Ansoff matrix, suppliers’ needs are better fulfilled.

Conclusion

In conclusion, Dell Corporation has utilized both a SWOT analysis and Ansoff matrix as the key growth strategies. SWOT analysis advantage to Dell Corporation is the identification of the company’s strengths and opportunities, while its disadvantage is the lack of weighting factor in this method. The advantage of using the Ansoff matrix is the identification of ways of being ahead of the competitors while the problem is called for penetration into the services market. The main stakeholders in Dell Corporation include suppliers, customers, employees, and investors.

References

Nguyen, Q. N. C. (2017). DELL Technologies: 2-in-1 Convertible notebooks (Bachelor’s thesis).

Todorov, K., & Akbar, Y. H. (2018). Strategic Management in Emerging Markets: Aligning Business and Corporate Strategy. Emerald Publishing Limited.

Campbell-Kelly, M. (2018). Computer, Student Economy Edition: A History of the Information Machine. Routledge.

Schawel, C., & Billing, F. (2018). Ansoff-Matrix. In Top 100 Management Tools (pp. 31-33). Springer Gabler, Wiesbaden.

Mannan, M., Orig, R. P., & van Woensel, C. (2017). Business, Society, and stakeholders. CSR for Young Business Lawyers., 59-84.

Swab, R. G., & Gentry, R. J. (2018). Vision. Drive. Stamina: How dell became the company with the power to do more. SAGE Publications: SAGE Business Cases Originals.