Dells internal and external influences

dingles internal and out-of-door influencesTask 1IntroductionIn this assignment, I will be using dingle fellowship to complete task 1 and 2. Task 1 is about determining and analyzing dells internal and external influences. The external factors argon the elements come from outside the organization that beyond the control of organization and internal factors are the influences within the organization. In task 2, political change, effectiveness and improvements of the dingle will be discussed.Background Information of DellMichael Dell, the founder of Dell in 1984. Michael Dell started selling personal figurers out of his dorm room at the University of Texas in Austin. Dell has a simple concept that is by selling computer systems today to their target clients by cutting out retailers and suppliers. Dell pick ups and understands customers unavoidably and delivers the most effective computing solutions to meet those needs. Dell is the number 1 PC provider in the United States and number 2 creation roomy. Dell was in like manner listed in Forbes magazine as the 25th largest connection on the Fortune 500 list. Dell headquarter is located at Texas, United States. In 2009, Dell has occupied much than 76,500 people worldwide. Dell sells its reapings directly to customers such as government agencies, public institutes, healthcare and educational institutions, small to large dividing linees done sales representatives, telephone-establish sales, and online through the company web site.Internal FactorsInternal factors or influences include statement of mission, vision and goals, product and services, leadership and SWOT summary.Statement of Mission, Vision and GoalsDells success is based on a simple premise that is to listen to customers, delivers engineering and services they value. Dells mission is to be the most successful computer company in the world at delivering the best customer experience in grocery stores we serve, by means of meeting customer e xpectations of highest quality, leading technology, company accountability and support as nearly as flexible customization capability, and financial stability. The company vision was to produce computers that could easily be moldted with individualistic components to build a computer system to accommodate individual requirements. Dells primary goal is to customize, design and built products to satisfy they customers requirements so that customers provoke get exactly what they desire. Dell has achieved their main goal by doing business directly with customers one at a meter. They believed that they could better than anyone in the world. This is their primary goal because they want to be the best at what they do and make a profit. Dell feels that their great customer service will gives customer loyal.Dells another goal is to become the greenest technology company in the world. Dell has launched a long-term, global apparent movement to become the greenest technology company in the planet. It has set an ambitious Zero Carbon Initiative whereby it aims to maximize the energy efficiency of Dell products, and over time offset their carbon impact. Further much, Dell is going to extend its Plant a Tree for Me programme into Europe and Dell will in like manner continue offer its consumers worldwide free recycling for used Dell equipment and other branded equipment when impudently Dell hardware is purchased.Products and ServicesDell is globally recognized for honour winning products and outstanding services. Dells dedication to customer satisfaction means that consumer mint count on them for a responsive, reliable, quality service. Dell pay attention and listen to their customers needs and wants. Thereby, Dell delivers innovative technology and services they trust and value. Dell offers a wide range of product such as desktop computers, notebook computer computers, network servers, workstations, handheld computers, monitors, printers, high-end storage produ cts, and a variety of computer peripherals and software program. Dells systems are built to order and so that customers have the freedom to choose what requirements they require. Other than that, the company is now offering wide range of electronics and PC accessories networking accessories, digital cameras and camcorders, gaming consoles and software, LCD televisions, projectors and surround sound speakers. Moreover, Dell has designed smart, simple services to fit the current customers lifestyle and it has brought customers a lot of convenience. Dell also provides 24/7 customers service and support tool that secure customers personal data and keep their system running in good condition. Dell technology experts can remotely access a customers computer to solve issues instantly.LeadershipSWOT analysisStrengthsOne of the best renowned computer brandsDell is the largest PC maker in the world and also well-known for online selling of computers. Dell offers a wide range of PC, Laptops, Monitors and LCDs, hardware and software. The companys web site received at least 25 million visits at more than 50 country-specific sites.Direct to customer business modelDell sells directly to their customers by cutting out the retailers and suppliers. Dells efficient procurement, manufacturing and distri bution process allowing it to offer customers powerful systems at competitive prices. Dell provides top-notch customer service before and after the sale and also 24 hours customer service and support.CustomizationEvery Dell system is built to order. Dell built computer based on customer provided specifications. So customers get exactly what they desire.WeaknessesNo Proprietary TechnologyDell does not have proprietary technology, the current technology used by Dell are shared by the other major competitors.Product FailureThere is the occasional product recall that can cause Dell some embarrassment. In 2004, 4.4 million laptop adapters are recalled back because of a fear that they might overheat.OpportunitiesDiversificationDell is introducing many new products to its range through diversification. This initially has meant good such as printers, desktop and laptops, but now also includes LCD televisions and other non-computing goods.Strong market potential dropDell has the opportunity for expansion in all parts of the world, especially in markets outside of the U.S. in all customer segments and in all product categories. The number of PC users is expected to hit or exceed 1 billion by 2010. panicsCompetitorDell attracts customers through cost saving. Since competitors are offering computers at low costs, this could threaten Dells price-conscious growing customer base. With almost similar prices, price difference is no longer an issue for customers.Technology Advancementspeedy change in technology obsoletes the product in small span of time. Dell has to keep up with technological advancements to be able to compete.Currency magnetic declinationChanges in world currencies can affect production costs. As the costs of supplies increase, the price of the computers will also increase.External FactorsThe external environments consist of Porters 5 and crunch analysis. PEST is very effective for the understanding of business situation and global issues and Porters 5 analyses the companys external environment in an existing market or a new one.PEST analysis of Dell CorporationPoliticalPolitical factors include government regulations and legal issues determining the conditions under which companies have to ope aim. Dell Corporation encounters problems in certain countries where political stability is not guaranteed, no matter whether companies operate production facilities or if they do business with that country through exports or imports. Many countries still have restrictive policies such as the trade quotas and certain government regulations that implies on MNC (Multinational potorations) which are maintained to protect domestic manufacturer s and production. These policies are more likely to obstruct foreign companies from investing or assenting into these markets. The only possibility to do business in those countries is to establish partnerships with local companies such as joint ventures or strategic alliances, where they are additionally forced to accept minority shares and to provide resources concerning money, local culture and technological knowledge. However, the computer diligence sees great potential in those countries with looser and less restricted government regulations for countries like China which has opened for many industries since its accession to the WTO in 2001. This causes the globalisation trade barriers to be less restricted and the opportunities for new market to emerge thus allowing free trade to expand.EconomicEconomic conditions influences both pick up/supply, capital and cost and is greatly influences by political and government policies. The computer industry expects a growth of approxi mately ten percent over the next years. This growth is influenced by the stinting situation in a specific country, having an impact on the purchasing power of potential customers. Hence, changing inflation rates and currency fluctuation also determine the profitability of a company. I the cost of capital is low it will be an interesting market for firms to invest and expand in the market thoroughly. Certain countries in Asia represent a great opportunity for firms to invest and expand in. For example, in Malaysia GDP for 2007 was estimated at 357.9 billion with a growth rate of 6.3%, while in 2008 it comes with a growth rate of 5.0%. Apparently in 2009 the growth rate has increased from 2008 of 5.0% to 2009 of 5.2%.SocialThe social cultural factor represents the demand and taste. Promotional and pricing strategies will have to change according to the market saturation to adapt to the consumer demand. The national demand for computers is dependent on the educational level prevailing in a specific country. The higher the educational standard, the higher is the demand. Furthermore, computers get more and more involved in daily life. Today, children are more exposed to computers compared to the 1990s. Firms should be aware of demographics changes as the structure of the population by ages, affluence, regions, the employment rates can strongly influences the demand and supply for a finicky products and services. Therefore, threats to existing products might be increasing and this indirectly causes the opportunities for differentiation and market segmentation to increase.TechnologicalThe technology today has indeed become an asset earlier than a liability to human beings today. Firms must evolve accordingly in order to stay competitive among existing rivals in the market. Plus technology external can also be captures and used, and this again can be influenced by government support and encouragement. New technology can be useful in both manufacturing and services f or a better and more efficient and effective output. For example, in Malaysia Dell corporation is famous for producing affordable and good quality laptops such as the Dell Inspiron and Dell Studio laptops to suit all range of income earners and taste.Porters five ForcesFive forces analysis help the marketer to compare and contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyze the market for Business Computers (one of Dells SBU units)Threat of New Entrants (moderate)Barriers to entry, however can restrict the firms from entering the market, more number of entry barriers will make it difficult for the new entrants to exploit the opportunity of new market. Existing firms which produces at economies of scale makes it difficult for new firms to enter the market. Certain distribution channels are control by either the government or existing firms and makes it difficult for new entrants. Furthermore, not all programs can work all computers therefore transformation costs is quite high. This causes customers to stay with the same product because it can be expensive to buy new software for a new system.Bargaining Power of Buyers (high)The bargaining power of buyer increases when there is a huge amount of players in the market. Rival firms offer discounts, warrantee and services to switch the consumer from one brand to another in the same industry. Consumers are highly price-sensitive and might switch to other PC company if Dell increases their price. Thus, Dell can lower this threat by differentiating their products. Customers select mainly based on price although Dell differentiate their products because customers might not see much differences between products. Firms should maintain good relationships with customers by practicing CR M processes in the company. For example, P G has an online portal to ask the customer about their views, opinions and new ideas about the products of their desire. argument among existing firmsA war between the firms competing in the same industry for gaining customer share in order to increase their revenues and profits.Dell is offering affordability computersThreat of SubstitutesOther gadgets such as mobile phones can be a threat to computers due to enhancement of phone features that have similarities with PDAs. A firm faces impatient competition from substitute product producing firms, when the customer cost of switching is lower, substitute products are better in quality and functionality. The competitive strength can be determined by market share, sales pattern, producers adding capacity for more production, and rise in profits.Bargaining power of supplierBargaining power of suppliers affect the military capability of competition especially if there are huge numbers of suppl iers in the market plus less availability of raw material and the cost of switching between suppliers or raw material is high in the market. The influences of certain huge suppliers such as Microsoft enforce computer manufacturers to load Windows in their computers and backside their logo on laptops, desktops and server machines.ReferencesGwendolyn Cuizon, 2009. SWOT Analysis of Dell Computers. observe March 21, 2010 from http//strategic-business-planning.suite101.com/article.cfm/swot_analysis_of_dell_computersMarivic Butod, 2009. SWOT ANALYSIS DELL COMPUTERS INC. observe March 24, 2010 from http//ivythesis.typepad.com/term_paper_topics/2009/11/swot-analysis.htmlAndy Merrett, 2007. 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Global Warming Solutions Dell Style. Retrieve March 26, 2010 from http//www.cleantechblog.com/2007/03/global-warming-solutions-dell-style.htmlBen Rooney, 2008. Dells earnings slip despite rising sales. Retrieve March 28, 2010 from http//money.cnn.com/2008/08/28/news/companies/earns_dell/index.htmAzcentral, 2008. Dell to save $3B, close plant, fire workers. Retrieve March 29, 2010 from http//www.azcentral.com/business/consumer/articles/0331biz-dellsavings31-ON.htmlAntony Savvas, 2008. Dell says job cutting is over but developing global recession causes uncertainty. Retrieve March 29, 2010 from http//www.computerweekly.com/Articles/2008/10/27/232919/dell-says-job-cutting-is-over-but-developing-global-recession-causes.htmNatalie Schmid, ND. The Dell Company A Strategic Analysis. Retrieve March 30, 2010 from http//www.grin.com/e-book/57007/the-dell-company-a-strategic-analysisDell Sustainability Report, 2004. 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