This website uses cookies to ensure you have the best experience. Learn more

Michael Dell And His Computer Manufacturing Company

1515 words - 7 pages

Michael Dell had steered his company through many phases and obstacles, making it one of the first computer manufacturers in the world. Basing the company on a direct sales model, with Dell being the only company in the beginning to do so, he grew the business many fold and simultaneously kept cost and inventory levels at a minimum (Days of inventory at 6 days, the lowest amongst peers). This formula worked well for the company till the market dynamics were more or less the same. Dell believed in selling computers as products and relied on branding based on the ability to sell computers effectively. While doing that, other companies such as HP and Apple were turning the art of selling ...view middle of the document...

For microprocessors there is either Intel or AMD and for the operating system there is mostly Windows or Linux. However, these two constitute less than 5% of the overall number of components in a final finished product on an absolute basis leading to low bargaining power of suppliers.
Bargaining Power of Buyers
Buyers have immense power in the industry. They dictate the segmentation and price points which will be accepted in the industry. This is true for both institutional and retail buyers. The fact that all companies cater their offering to the changing trends in the market mean that buyers hold power in the industry, making the bargaining power of buyers high in this industry.
Threat of New Entrants
This force is medium for the industry. Given the amount of vendors available in third world countries, who can assemble computers based on any specification, a company wanting to enter the market faces low barriers of entry in terms of unveiling the product itself. However, the mitigating factor in this case is that to challenge established companies and get market share from them, millions of dollars need to be spent to get a fraction of the share. Due to this the barriers of entry becomes higher, making the force medium overall for the industry.
Threat of Substitute Products
Threat of substitute products is low. This is because the functionality of a computer cannot be replaced with other existing technology at the moment. Even though phablets and tablets do pose some challenge to the computer overall, their processing power and lack of functions make them a weak substitute for computers.
Rivalry amongst existing competitors
This force is extremely high for the industry. The ebb and flow of the market, the fact that mergers are taking place and new companies are being formed and taking over the old companies, makes competition extremely strong in the industry. Also, the fact that the market is split between at least 5-6 competitors makes rivalry high in the industry.
Customers
Customers for all industries in the firms are broken up into two segments, mainly the institutional customers representing corporate clients and non-institutional customers represented by SME companies and retail buyers. Even though Dell has more than 19 segmentations present right now, these segmentations are mostly based on segments within these two large categories and represent needs such as gaming, heavy animation work and reliability of the systems being produced.
Opportunities
Main opportunities lay in enhancing the market share in the overseas market. Today most companies are focused on exploiting the US market with lesser amount of market share coming from overseas (international average 10%). They need to expand this number to achieve greater sales figures. This holds true for Dell also. Additionally, Dell needs to enhance its retail distribution network and reduce reliance on direct selling. Even though they are doing so currently, they need to strengthen it...

Find Another Essay On Michael Dell and his Computer Manufacturing Company

Caterpillar Tractor Co. and The Holt Manufacturing Company

764 words - 4 pages Company Overview – Caterpillar Tractor Co. was founded in 1925 and was the product of a merger between The Holt Manufacturing Company, owned by Benjamin Holt, and C.L Best Tractor Co., owned by Daniel Best. The company had a great demand in WWI and this lead to the first foreign operation of many to come in the future. The current Caterpillar Inc. has four divisions in the company. They have Resource Industries, Power systems

Analysis on William Wordsworth And His Poem "Michael"

1550 words - 6 pages By: Lee A. ZitoWilliam Wordsworth was a revolutionary man who sought to create poetry that was personal, imaginative, and spiritual in nature. Through the popularity of his works he contributed to the Romantic Period tremendously, ushering out the age of Neo-Classic concepts. The poem "Michael", demonstrates Wordsworth's talent in blending together all of his poetic ideas and ultimately creating a beautiful Lyrical Ballad with the ability to

Michael Jordan and his legacy in the NBA

1211 words - 5 pages met each other at none other than a high school basketball game. On February 17,1963, Deloris gave birth to Michael Jordan. He grew up with three siblings, James Ronald, Larry, and Deloris.While their children were young, Mike's parents taught them the lessons of life and the philosophy of hard work and determination. They all grew up in a poor, sharecropping community in North Carolina. Mike and his brother Larry had a great love for all sports

The essay is entitled 'Dell's Supply Chain'. It's a descriptive business case about the uniqueness and strength in Dell Computer Corporation Supply Chain

1409 words - 6 pages manufacturing. And amazingly, Dell's prices are very competitive, in fact, cheaper than most of its competitiors' off-the shelf models!Not surprisingly in 2001, Dell emerged as the number 1 computer systems company in the world and earned the number 7 spot on the Fortune magazine list of the world's most admired companies (ZDNet India,2002). So, what can the secret be for this infant computer company to be able to offer such 'ideals' to customers? To

Analysis of Michael Moore’s Treatment of His Subject Matter within the Documentaries Bowling for Columbine and Fahrenheit 911

3556 words - 14 pages Analysis of Michael Moore’s Treatment of His Subject Matter within the Documentaries Bowling for Columbine and Fahrenheit 911 “A documentary may be as a film or television or radio programme that provides factual information about a subject. Typically, a documentary is a journalistic record of events presented on screen.” The main conventions of documentaries tend to be that the documentary has voice-over commentary

THE COMPUTER CRIMINAL - Computer crimes and a brief story of Kevin David Mitnick. Include details of his parole and intermediate punishment sentence. Fully cited. Includes references

4223 words - 17 pages Kevin was well on the road to rehabilitation.Shortly after his release from Karl Holton in October of 1984, family friend Donald Wilson approached Mitnick with a job proposal. Wilson was the owner of Great American Merchandising, a merchandising company with a product line of gourmet desserts and foods, and agreed to help Mitnick through the rehabilitation process by giving him the opportunity to use his computer skills productively. The company

Project Proposal for a new computer system at a bank...Customer Assist and how the company will improve

1190 words - 5 pages divulge key points of clientele banking history to the customer service staff. By identifying customer satisfaction and longevity for the company, Customer Assist will empower the staff with effective information to advise clientele to develop financial solutions on an individual need basis.The Computer Assist program was created by Computer Banking Programs of America (CBPA), with some collaboration from Malone Savings and Loans management and

To visit a manufacturing company in India and study the organizational research tools used.and A multi-objective genetic algorithm for robust flight scheduling using simulation

3819 words - 15 pages : ......................................................................................................................................... 20REFERENCES: .......................................................................................................................................... 22GROUP 5 PROJECT - DECISION MAKING MODELSINDUSTRY VISIT:OBJECTIVE:To visit a manufacturing company and study the organizational research tools used therein.INTRODUCTION:We visited Godrej & Boyce Manufacturing Co. Ltd., Interio Divison at Vikhroli. Establishedin 1897, Godrej & Boyce Mfg

A Study of the Operations Management at HOLLY FARM- an icecream manufacturing company. We were required to find the feasibility of expanding teh facilities and production processes

3659 words - 15 pages level still remain, the solution for these items will be discussed in section4.3.1.4.2 Capacity Constraints4.2.1 Production LineThe process line of ice cream in Holly Farm consists of batch processes, an industrial manufacturing method in which several separate serial and, or parallel operations are carried out to produce a product, in contrast to continuous process (Williams et al, 2001). Hence, the capacity of the line is limited by the one of

Reflected Banking Concept In Michael Austin’s “ Reading the World”, Paulo Freire explains his concept of “Banking Education” as education becoming “lifeless and petrified”.

842 words - 3 pages 2Carmen Hernandez HernandezProfessor Anne ShepherdEnglish 1310.0319/21/20121Carmen Hernandez HernandezProfessor Anne ShepherdEnglish 1310.0319/21/2012Reflected Banking ConceptIn Michael Austin's " Reading the World", Paulo Freire explains his concept of "Banking Education" as education becoming "lifeless and petrified". Freire explains how this society is becoming like a bank, where knowledge is deposited into the minds of the students, which

Turnaround of Apple Company. Steve Jobs and his new products. Are they really revolutionary and the best ?

2483 words - 10 pages really sufficient system.MacBooks cost from 1099 dollars . Has many details which will seduce - the pilot of the remote control, the built-in camera, the smart magnetic joint of the power supply and the excellent appearance. It can work with Mac OS or Windows (not very well, but it can).For this amount of money you can customize a lot better computer from Dell. "Computer specially for You" system of Dell company is much more effective in practice

Similar Essays

Dorm Room To Board Room: The Success Of Michael Dell & Dell Computer Corporation

557 words - 2 pages graced Fortune Magazine's Top Ten Most Powerful People. Not bad for a college dropout, eh?A former medical student aspiring to be a doctor, he built computers in his dorm room as a hobby. In 1984, with $1,000 and an extraordinary desire to succeed, Michael Dell founded the Dell Computer Corporation. Twenty years later his company boasts revenues of over $43 billion dollars and is considered the largest online commercial computer seller in the

Evaluation Of Michael Dell, Dell Strategy, Expansion And Swot

1866 words - 8 pages 1. What is your evaluation of Michael Dell as CEO? How well has he performed the task of strategic management discussed in Chapter 1?Strategic Management Tasks- Analyzing External Environment- Analyzing Company resources and Position- Knowing Which strategy to Apply- Identify Opportunities- Select Right Business ModelM. Dell started his business when the market for the computers was still growing very fast thou it already was dominated by big

Compare And Contrast Between Michael Dell And Andy Grove

817 words - 4 pages Computers have become a major part of our personal and business life. There are several professionals who made an impact on the computer industry, however in this paper I will only be comparing and contrasting two professional CEO’s: Michael Dell the founder of Dell Computers Inc., and Andy Grove the co-founder of Intel Inc. The information will be from chapters 2 and 5from a book by Jeffery A. Krames (2003), What the Best CEOS Know: 7

Riordan Manufacturing Overview: Computer And Information Processing Cis/319

1274 words - 5 pages Riordan Manufacturing tasked Learning Team A to review the current inventory management and manufacturing procedures and make recommendations for improvements. Our emphasis will be placed on company requirements, current systems, and costs related to upgrades. The summary will focus primarily on the inventory management system, improvements, and the stakeholders of Riordan Manufacturing.The greatest task facing Learning Team A is developing a