Examination I
I. Current Situation
A. Current Performance
Dell technologies fiscal year 2018 reflects the development and effect of the EMC exchange.
Leader in top market share.
Revenue $ 21.9 billion.
Cash flow operations $6.8
B. Strategic Posture
1. Mission
Dell mission is to be the best PC organization on the planet by conveying the best client involvement in the market they serve. Which will hell Dell company meet the expectation of the customers of high quality and flexible customization accountability
2. Objectives
Dell objectives are clearly outlined, the primary aim is to meet the customer's expectations of high-quality products, become a leading technology, offer clients competitive, individual and friends’ capacity, give best-in-class administration and support, flexible customization, predominant corporate citizenship and increase budgetary soundness.
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3. Strategies
Dell consolidates direct customer display which is our underlying objective, with pertinent advancements and arrangements, proficient assembling and coordination, and endeavor to discover new appropriation channels among organizations and people far and wide.
Dell has a marketing strategy of selling their product directly to the customers, therefore, improving the quality of services to the customers.
Advertisement of the company product is mainly through the television and internet also direct mail of marketing publications such as catalogs, promotions, and newsletter. This is geared towards increasing their sales in the market.
4. Policies.
Global environment policy this the approach guarantees an effective maintainability centered organization by giving innovation and mastery something to do where they can do the most useful for individuals and the planet.
Limiting or disposing of the utilization of substance or certain naturally delicate materials in their items.
II. Strategic Managers
A. Board of Directors
Six board members- all directors.
Noteworthy measures of trustworthiness and morals.
Management and oversight.
International experience required.
B. Top Management
Demonstration morally consistently and adherence to the organization approaches.
No waiver of any morals approach for any chief or official officer.
Should be trustworthy, respectable, honest, and a role model.
Experienced in the industry.
External Environmental
A. Natural Environment
Maintain business sustainability through recycling.
Product Energy inefficiency.
The scarcity of renewable natural fiber used for packaging Dell’s Products.
B. Societal Environment
1.Economic
Fluctuating Exchange rates but the company will begin to accept bitcoins for purchases. ( O)
The economic slowdown will reduce the sales and profits leading to poor performance and high losses. ( T )
2. Technological
Dell has ventured in cloud computing, and it is providing a range of cloud solutions. ( O )
New trends release, for example, new versions of laptops and IT related products. ( O )
High competition big brands have entered into the cloud business. ( T )
3. Political-Legal
Legal compliance in different countries local laws. Allow access to extensive market ( O)
Environmental regulations are being reflected on the pollution and energy usage (T)
Restrictive policies aimed at protecting domestic manufacturers. (T)
Establish Partnership with local companies. (O)
4. S ociocultural
Changing lifestyle: the need by the majority of households and individual to use laptops and Computers. (O)
Changing trends and preferences of the consumers. Dell should respond with the latest products.
Promotion of the brand through advertisements. (O)
Demographic awareness. (O)
Task Environment
A decline in the shipments of Personal Computers by 8.3% in the fourth quarter of 2015. The main reason behind the decline was the increased product substitute to the PCs, such as increased usage of smartphones and tablets. (T)
A high rate of growth in developing countries creates opportunities for Dell to increase revenues through significant sales in the foreign markets. (O)
Dell has developed a wide range of products to satisfy all different customer needs. (O)
Rivalry High. Facing high competition from companies like Lenovo, Samsung, Hewlett-Packard and IBM which are already established brands and resources. (T)
Buyers power high. Customers demand up to date products. (O)
Power of other stakeholders Medium-Low. High standard of quality and environment-friendly products emphasized. (T)
The threat of substitutes High. Competition is very high with new emerging technologies being utilized. (T)
Entry Barriers High. New firm entrance in the market is unlikely except large established international company. (T)
Internal Environment
A. Corporate Structure
Functional decentralized organization structure. (S)
Each division is headed by a senior manager. (S)
Decision making is decentralized based on the divisions. (W)
Different departments and divisions like sales and supports division. ( S )
B. Corporate Culture
Providing best product and services based on the standard technology. (S)
Outperforming the competition with value and superior customers experience. (S)
Committed at respecting and understanding the laws values and cultures in all markets. (S)
Provision of after-sales service supports. (S)
C. Corporate Resources
Marketing
Direct distribution of the products to the customers. Eliminating retailers. (S)
Increased promotions through advertisements. (S)
Increase sales with 5% through dell indirect distribution channel. (S)
Finance
Revenues increased by 19% in 2018 . (S)
Double digits growth in the commercial client, servers and storage. (W)
Delivered cash flow from operations of $1.2billion. (S)
R&D
Invest $1 billion in the Internet of Things R&D. (W)
Artificial intelligence and Machine learning technology utilized to deliver smarter and more predictive system. (S)
Operations
Assembling the parts can offer customers a high level of product customization.
Employees being up to date with the technology hence highly educated.this will reduce the cost of technology and assembling process.
Human Resources
Highly mobile and flexible employees. (S)
Customer service team which deliver the best customer service and support. (S)
Employee developments through leadership training and skills. (S)
Information Systems
Competent and updated management information system. ( S )
Analysis Of Strategic Factors
Situational Analysis (SWOT)
Strength
The merger between Dell and EMC company which offer data storage solutions.
Dell is the market pioneer in the field of progress upgrade.
Data security.
Excellent customer services and support.
Weakness
Their customer's associations are low compared the competitor's brands in the industry.
Dell has made a low excitement for the technological advertisement work process.
Low investments on R&D.
Too few retail locations in the country.
Weak patent portfolio and low differentiation.
The customer organizations are needy as differentiation and interchange brands.
Opportunities
Expand services and enterprise solution division will help the company get higher revenues.
It has plenteous open passages in the field of merger and acquisition.
Dell should strengthen its market presence.
The Company should grow its products for example by exploring the Smartphone and tablet industry.
Threats
Creating economies have made contention inside the affiliation.
Data assurance security is making a significant peril the brand.
A low-esteem stamp in a bad position for the company.
A slow growth rate of laptop marketing.
Increased competition from other company in the field of electronics.
In 2018 and years to come Dell company have decided to focus their investments on cloud computing, big data, security software, and mobile industries. The company is focusing on the production of more support and fewer products. There are plans to invest in artificial intelligence and machine objected programming in-order to produce smart devices. A task force has been set aside to research about the Internet of Things also investments set aside for the same.
References
America’s Largest Private Company, (2016). (Online) Retrieved from: https://www.forbes.com/companies/dell/
Company Heritage, (2016) (Online) Retrieved from https://www.dell.com/learn/sg/en/sgcorp1/about-dell-company-timeline
Schneider, G. (2014). Electronic Commerce. Cengage Learning.
Su, J. (2016). Dell To Rebrand As Dell Technologies After EMC Merger (Online) Retrieved from https://www.forbes.com/sites/jeanbaptiste/2016/05/06/dell-to-rebrand-as-dell-technologies-after-emc-merger/#763ba3de3e7f .
Technologies, D. (2018, March 8). Dell Technologies Reports Fiscal Year 2018 Fourth Quarter and Full Year Financial Results. Retrieved from https://www.prnewswire.com/news-releases/dell-technologies-reports-fiscal-year-2018-fourth-quarter-and-full-year-financial-results-300610278.html .
