Dell Case Study
Analyze Dell case study using Porter’s Five Forces model.
Contents 1.Abstract 2 2.Introduction 3 3.Brief summary of case study 4 4.Porter’s Five Forces and their application to case study 5 5.Threat of substitutes 5 6.Bargaining power of buyers 6 7.Competitive rivalry 6 8.Barriers to new entrants 7 9Bargaining power of suppliers 8 10.Conclusion 9 11.References............................................. ..10
* Abstract
Dell Company is a global leader in the development and sale of computers and peripherals. The company uses a direct sales strategy to attract consumers. This form of personalized service which develops products according to client specifications and configurations. It is sales and marketing strategy which involves a strong online presence where clients are able to process products, configure them and access technical support. It’s a supply strategy involving a strong Internet network of suppliers who offer support and distribution services for Dell products. This paper has analyzed Porter’s Five Forces and their application to a case study involving the Dell Company.
Porter’s Five Forces are the popular strategies used to evaluate the competitiveness of a market and it is attractiveness to the new entrants. In terms of threat of substitutes, Dell is in the computer industry where there are numerous competitors such as IBM, Apple, Compaq and HP who develop products which are similar to those developed by Dell and offer substitutes to consumers. In bargaining power of buyers, buyers have a relatively high bargaining power. This is due to the wide availability of a variety of computer products as well as the dynamic nature of the technology industry.
Companies such as IBM, Apple Compaq and HP are the global competitors for Dell; they are on high position in computer industry where the competitive rivalry is a
Contents 1.Abstract 2 2.Introduction 3 3.Brief summary of case study 4 4.Porter’s Five Forces and their application to case study 5 5.Threat of substitutes 5 6.Bargaining power of buyers 6 7.Competitive rivalry 6 8.Barriers to new entrants 7 9Bargaining power of suppliers 8 10.Conclusion 9 11.References............................................. ..10
* Abstract
Dell Company is a global leader in the development and sale of computers and peripherals. The company uses a direct sales strategy to attract consumers. This form of personalized service which develops products according to client specifications and configurations. It is sales and marketing strategy which involves a strong online presence where clients are able to process products, configure them and access technical support. It’s a supply strategy involving a strong Internet network of suppliers who offer support and distribution services for Dell products. This paper has analyzed Porter’s Five Forces and their application to a case study involving the Dell Company.
Porter’s Five Forces are the popular strategies used to evaluate the competitiveness of a market and it is attractiveness to the new entrants. In terms of threat of substitutes, Dell is in the computer industry where there are numerous competitors such as IBM, Apple, Compaq and HP who develop products which are similar to those developed by Dell and offer substitutes to consumers. In bargaining power of buyers, buyers have a relatively high bargaining power. This is due to the wide availability of a variety of computer products as well as the dynamic nature of the technology industry.
Companies such as IBM, Apple Compaq and HP are the global competitors for Dell; they are on high position in computer industry where the competitive rivalry is a
References: 1. Bateman, T. 2010, Management: Leading & Collaborating in the Competitive World (9th ed), Canada, Irwin professional Pub. 3. Dell Website 2011, About us, Retrieved on October 21, 2011 from www.dell.com 4