dell swot
SWOT analysis of Dell CURRENT STRATEGIES One of the advantages that Dell has over the competition is that they have eliminated the middleman by letting their customers buy directly from the company. ... Dell’s model seems to have worked as their average inventory turnover is four days, which is faster than any of their competitors. ... There is an emphasis on the direct sales model approach in the Dell Computer Corporation. ... In addition to lower prices, the Dell sales model allows customers to customize their computer to their own preferences. Dell is able to under price competitors because of its gross margin, which is 20. ... dell.com) INTERNAL STRENGTHS Business Model The first internal strength of Dell is how their business model caters to their customers. ... A very good description of this business model comes from an article Michael Dell wrote himself in 1994 called “Managing Service Quality”. ... Dell’s business model is comprised of many different components, which link together in an effort to better service the customer. ... Some of the main components of the business model include, the ability to generate cash, the direct-to-customer sales approach, and “At its core, Dell is organized around serving the customer.” (“Managing Service Quality”, Volume04 Number 02, 1994) Dell’s successful and unique business model contains the ability to generate funds quickly. ... Due to these three reasons “…the Dell model will generate cash – even if the company were to report no profit whatsoever. ... , 2001) The direct-to-customer sales approach will remain a competitive advantage for Dell as it has allowed the company to eliminate the middleman from the sales process. The elimination of the middleman has allowed Dell to cut their costs. This means that Dell has a greater potential to increase profit margin than their competition. At the same time, these increased profit margins will continue to affect the way their competitors business because Dell can keep prices down while maintaining a profit margin acceptable to their needs. ... Michael Dell In 1984, Michael S. Dell dropped out of the University of Texas to start his own computer company. Since then, he has helped to build Dell Computer Corporation grow to over $32. ... dell. ... The incredible achievements of the company come as a result of Michael Dell’s leadership and vision. His role as the leading figure in Dell has earned him a large number of awards. ... In addition, in 1997, 1998, and 1999, Dell was named to Business Week “The top 25 Managers of the Year. ... dell.com) Michael Dell’s vision is an incredible asset to Dell Computer Corporation that does not show up on the financial statements. ... As Michael Dell continues his plans to move forward, so to will Dell Computer Corporation. INTERNAL WEAKNESSES Inventory Turnover Dell will continue to remain sensitive to the price change of its suppliers because of their low kept inventory, and their method of replenishing their products on reserve based upon orders. The Dell Computer Corporation saves a lot of money with an inventory turnover of only four days. By doing this, Dell has no out of date products sitting on their shelves losing money. However, if an unforeseen incident occurs Dell can be left helpless. ... “Widespread reports indicating Dell Computer Corporation will be hard hit by the quake due to its lean inventory structure” (Computer Dealer News “Big Losses after quake”).