DELL CompanyAs the name suggests, Dell international company is a multinational corporation that deals with information technology products. The corporation has its head office in Round Rock, Texas, and USA. Named after its founder Michael Dell, the company is among the largest technological companies worldwide and has an employee base of 96000 people located in various places in the world. Since its foundation in 1984, Dell international company has grown through both organic and inorganic means. Examples of the firms it has acquired are Alien ware (2006) and Perot Systems (2009).
In fact, the corporation has been listed as the fifth most popular company in its industry worldwide. The company is ranked as the fifth largest company in Texas as far as revenue is concerned and is also the 2nd biggest non-oil producing company in Texas. The company deals with computers and related products and services. The company also sells cameras, printers, MP3 players, HDTVs and many other electronics manufactured by other companies. Dell is known for its innovativeness in electronic commerce and supply chain management (Ferrell, Michael, 2008) SWOT analysisAn Environmental scan of Dell international company can be effectively analyzed through its SWOT analysis.
SWOT analysis describes the strengths, weaknesses, opportunities and threats that the company faces and how best to respond to them so as to gain a competitive advantage over its competitors. When carrying out the analysis, we consider the customers’ trends, profile and the kind of market segmentation adopted by the company. It is a very crucial element of a company’s strategic planning process (Hitt, 2008). This is because it helps the management understand and be able to respond to environmental factors that affect the company both internally and externally.
As such, the organization is able to match its resources and capabilities to the competitive environment in which the company operates. Therefore, SWOT analysis is a very important tool in strategy formulation and selection. Internal environmentThe internal environment of Dell international company comprises of its strengths and weaknesses. These are analyzed as follows; StrengthsDirect salesDell’s success is largely attributed to its direct model whereby the company sells its products directly to its customers according to their specifications.
The model its self is considered as being one of the best assets that the company has. This is because the model allows the customers to buy products that are fully customized (tailor made) according to their specifications. As the market becomes more educated, customers more than ever prefer products which target their specific needs. Customers are therefore offered more options as far as performance and portability is concerned. The method cuts out the retail seller from the distribution chain and therefore enables customers to purchase directly from Dell factory and hence offer them a chance to fully customize their products (Allan, 2009).
Furthermore, the direct sales method results in faster delivery of customer orders. Through this method, customers are able to receive their customized orders within days of placing an order. It is for these reasons that the direct model method has become a very important asset in targeting both the home-user and the business executive-user segments.