Matching Dell
Matching Dell
1. Perform an Industry analysis on the personal computer industry
Substitutes Buyers
• Compaq
• IBM
• HP
• Hacer
• GateWay
• Apple • Large and midsize Business
• Government
• Small Business
• Individual Customers
• Educational
• Most of them have a strong purchasing power and a easy way to change of supplier in commodity PC product
Suppliers Barriers to entry in this Industry
• Intel
• Microsoft
• Others
• They have a strong Power
• Intel and Microsoft are leaders in the market almost as monopolys • Easy assembly line and standard components
• Brand well posisionated
• Intensely competitive, big competitors and strong suppliers
• The industry is intensely competitive, there are an important and powerful competitors, with well Brand awareness
• The Suppliers have a huge power and dominance, the two key components (microproceor and operative system) are dominated by just one single competitor in each category (> 80% total sale in its category)
• Also the Customers have a great power, they are large distributors, home centers, Government, etc. with a high purchasing power, besides the product (Personal computers) are consider as a commodity product, easy to replace for a different Brand
2. Overall, do you think the PC Industry was attractive? What were the main competitive challenges?
Its is a very large market, in constantly growing which makes it very attractive.
The main Challengs were
• Low margins
• Intensity´s Industry-changing technological
• Strong competence
3. What was Dell´s strategy as it grew to dominate the PC Industry in the 1990s and early 2000s? Write one-sentence description of
Dells´s Strategy and be prepared to share with the group
To become a world leder in the personal computers industry doing business with its customers One-On-One, through the phone and the Internet providing the relevant tecnology, customized systems, superior service and support with and easy
1. Perform an Industry analysis on the personal computer industry
Substitutes Buyers
• Compaq
• IBM
• HP
• Hacer
• GateWay
• Apple • Large and midsize Business
• Government
• Small Business
• Individual Customers
• Educational
• Most of them have a strong purchasing power and a easy way to change of supplier in commodity PC product
Suppliers Barriers to entry in this Industry
• Intel
• Microsoft
• Others
• They have a strong Power
• Intel and Microsoft are leaders in the market almost as monopolys • Easy assembly line and standard components
• Brand well posisionated
• Intensely competitive, big competitors and strong suppliers
• The industry is intensely competitive, there are an important and powerful competitors, with well Brand awareness
• The Suppliers have a huge power and dominance, the two key components (microproceor and operative system) are dominated by just one single competitor in each category (> 80% total sale in its category)
• Also the Customers have a great power, they are large distributors, home centers, Government, etc. with a high purchasing power, besides the product (Personal computers) are consider as a commodity product, easy to replace for a different Brand
2. Overall, do you think the PC Industry was attractive? What were the main competitive challenges?
Its is a very large market, in constantly growing which makes it very attractive.
The main Challengs were
• Low margins
• Intensity´s Industry-changing technological
• Strong competence
3. What was Dell´s strategy as it grew to dominate the PC Industry in the 1990s and early 2000s? Write one-sentence description of
Dells´s Strategy and be prepared to share with the group
To become a world leder in the personal computers industry doing business with its customers One-On-One, through the phone and the Internet providing the relevant tecnology, customized systems, superior service and support with and easy