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Environmental analysis of Dell Computer Corporation

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  1. Introduction
  2. External analysis
    1. Pest: Analysis of the general environment
    2. Economic factors
    3. Socio-cultural factors
    4. Technological factors
  3. Porter's five forces
    1. Rivalry between firms
    2. Barriers to new entrants
    3. Power customers
    4. Power suppliers
    5. Substitutes
  4. Threats and opportunities
  5. The key success factors
  6. Internal analysis
  7. Functional analysis
    1. Marketing
    2. Marketing mix: Product, Distribution, Communication and Price
    3. Strengths and weaknesses
    4. Distinctive competencies
  8. Conclusion

Established in the year 1984 by Michael Dell, Dell Computer Corporation created an innovative concept by placing the customer at the center of the business organization. In 1998, the company set up a direct sales model, which was implemented quickly and successfully in the computer industry. Indeed, the company designs and customizes products according to the specific needs of its customers. Dell Computer Corporation is able to put in place a strategy of differentiation in the dynamic computer market despite the strong competition, which has made Dell what it is today, a successful business enterprise.

In this world of constant change, where competition is ruthless, one may wonder how Dell Computer Corporation has maintained its market position.

[...] In fact, only Dell Computer Corporation provides customized products. The so-called individual customers are sensitive to prices and brands, while others (companies and organizations) are sensitive to the reliability, performance, customer support, after sales service, brand and sales channel. Power suppliers The market is dominated by powerful groups of suppliers. Indeed, they are few. For micro-processors: Intel AMD and Cyrix. For softwares: Microsoft. Instead, at the component level, the market is highly competitive. Substitutes The development of a single product can threaten computers, for example the invention of lap-top has become a threat for Personal Desktops Threats and Opportunities Opportunities Threats Economic Opportunities Economic threats Demand for computer equipment has increased Strong market competition since the 1980s European and Asian households less equipped than the Americans. [...]


[...] Internal analysis The internal analysis of the business and its resources, will enable us to identify the internal strengths and weaknesses of Dell Computer Corporation Functional analysis The external analysis is a simple tool to analyze the main resources of the company: marketing, finance, research and development, operations, human resources information system. Marketing Dell Computer Corporation, which arrived late into the market, chose to differentiate itself in its marketing strategy by creating a network distribution share. Its customers are mainly businesses and government bodies representing of sales, followed by individual customers and educational insitutions With the control system via the Internet and telephone, Dell caters to the global needs which differentiates it from the competition. [...]

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