Dell - Environmental Anaylsis
INTERNAL ENVIRONMENTAL ANALYSIS
An organization 's external environment has three components: the remote environment, the industry environment, and the operating environment. The Remote environment is made up of economic, political, social, technological, and ecological factors. The industry environment is made up of entry barriers, supplier power, buyer power, substitute availability, and competitive rivalry. The operating environment is made up of competitors, customers, labor, and suppliers.
Industry Environment
Entry Barriers
New entrants to a market can threaten the market share of competitors already in the market. New entrants are interested in entering the Chinese market to try to gain a large market share from existing competitors in the market. By using the direct model strategy, Dell is using a different approach to woo the Chinese consumers. Dell 's Just-In-Time (J-I-T) inventory keeps inventory costs to a minimum. Companies like China 's market leader Legend (local Chinese PC), Lenova , recently purchased IBM Hardware Business outside China , they are beginning to move to Dell 's J-I-T model, selling direct to their corporate customers.
A barrier to entry in China is dealing with the government, political forces and legal issues. Many foreign firms have to depend on Chinese resellers to make their products available to the public. Foreign companies may need to form joint venture agreements with established Chinese companies. China 's regulations state that if goods were not manufactured in China, they could not be sold directly to the mainland. Despite protectionist tariffs on foreign firms, Dell can still undermine Legend 's prices.
Buyer Power
The bargaining power of buyers is an important aspect in the computer industry. Buyers want to buy products at the lowest possible price. The buyer segment is especially powerful in China because computers are so expensive that consumers do everything they can to get the best deal for the cheapest
An organization 's external environment has three components: the remote environment, the industry environment, and the operating environment. The Remote environment is made up of economic, political, social, technological, and ecological factors. The industry environment is made up of entry barriers, supplier power, buyer power, substitute availability, and competitive rivalry. The operating environment is made up of competitors, customers, labor, and suppliers.
Industry Environment
Entry Barriers
New entrants to a market can threaten the market share of competitors already in the market. New entrants are interested in entering the Chinese market to try to gain a large market share from existing competitors in the market. By using the direct model strategy, Dell is using a different approach to woo the Chinese consumers. Dell 's Just-In-Time (J-I-T) inventory keeps inventory costs to a minimum. Companies like China 's market leader Legend (local Chinese PC), Lenova , recently purchased IBM Hardware Business outside China , they are beginning to move to Dell 's J-I-T model, selling direct to their corporate customers.
A barrier to entry in China is dealing with the government, political forces and legal issues. Many foreign firms have to depend on Chinese resellers to make their products available to the public. Foreign companies may need to form joint venture agreements with established Chinese companies. China 's regulations state that if goods were not manufactured in China, they could not be sold directly to the mainland. Despite protectionist tariffs on foreign firms, Dell can still undermine Legend 's prices.
Buyer Power
The bargaining power of buyers is an important aspect in the computer industry. Buyers want to buy products at the lowest possible price. The buyer segment is especially powerful in China because computers are so expensive that consumers do everything they can to get the best deal for the cheapest