Recommendations - Executive Summary: Dell

Dell
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Introduction
Dell Inc. is a multinational company in the computer industry. It is one of the most prosperous computer companies having been ranked number one for a number of years. Dell operates in a wide production line. Dell operates one of the unique marketing strategies. The company sells computer and other of its products direct to customers. Executive summary
Market and profit maintenance is not an easy thing to achieve in the so dynamic world of business. Dell has for a long period been able to overcome the so many challenges. The firm faces so many challenges the struggle to maintain its position in the market. Competition is one of the challenges. Dell does not operate in a monopoly. In this regard, it operates under conditions of high competition. With globalization, Dell has to into international markets. This involves understanding life patterns and cultures of these markets to achieve optimal results in these markets. Technological changes provide Dell with an opportunity to make better and advanced products. The paper looks into the benefits as well as the cost constraints presented to Dell by the vast changing technology. Human resource plays a very significant role in the stability of a company. There role in the company is outlined in the paper. There is an overview of SWOT analysis for Dell. SWOT analysis shows the position of the company in the industry. Financial position is also analyzed to determine the performance of the company. Part 4 of the paper details the recommendations that Dell could adopt in trying to overcome the challenges it faces in its operations.
Overview of Organization
Dell Inc. is a multinational computer technology corporation. It is based in Round Rock, Texas, in America. Dell develops, sells, repairs, and supports computers and other related products and services. Dell is one among the largest technological corporations in the world. It is ranked among the three largest PC vendors in the world, together with HP and Lenovo. The corporation has greatly grown by increasing its customers and through acquisitions. As per the year 2009, the company sold servers, data storage devices, personal computers, software, network switches, and computer peripherals. Dell also deals in MP3 players, cameras, and printers CITATION Ste061 \l 2057 (Holzner, 2006).
Dell in its operations faces so many challenges. There are several other corporations dealing in the same line of products. For this reason, Dell has to fight for market share among the many other competing corporations. Competition is one of the major challenges faced by Dell. Competition is in form of similar products from other corporations as well as substitute products such as from the mobile industry.
The world has become global. This has made the world a better place to live. However, globalization is a challenge to Dell, just like it is, to many corporations. Understanding foreign cultures is very vital to Dell in its efforts to penetrate foreign markets. There is need to understand foreign cultures and markets which can be achieved through information gathering and market analysis. This involves huge costs. The benefits to be drawn from this have to exceed the cost.
Technology is changing at a fast rate. Dell also has to expand its technological base in order to maintain the market share. Technological advancements is a major challenge to Dell. The corporation has to keep up with the ever changing technology CITATION Del99 \l 2057 (Dell & Catherine , 1999).Competition will determine the future position of Dell. If the company is unable to keep up with competition, then it would mean it will be mismatched by other competing companies. This will in return reduce the market share, reduce sales, reduce profitability, and at the end inability to sustain operations.
To increase sales and expand profitability, every firm has to strive to invest beyond the local market. Study and understanding of foreign cultures becomes important to achieve this. If Dell is unable to invest in understanding of foreign cultures, it will be hard to penetrate foreign markets in future. Cultures are changing very rapidly and this affects the operations of the corporation every day. Understanding of foreign cultures has to be followed by improvements in technology. As culture changes, there is inclination and need for better technology. Inability to keep up with this changing world cycle will lead to the products of Dell being outdone in the market.
People in any organization carry out the most important activities. The human resource personnel have to organize these people well so that they can effectively perform these roles. Human resources management team advices management on how to organize and manage people. This involves hiring and recruiting employees, coordinating employee benefits, and coordinating employee benefits CITATION Gar00 \l 2057 (Dessler, 2000).
Human resources management team helps the corporation develop a competitive advantage. This involves building the capacity of the company to enable it offer unique goods and services to its esteemed customers. Provision of unique products helps the company maintain its market share and raises the competitive advantage.
Environment Analysis (SWOT Analysis)
Dell Corporation was built on the foundation that personal computers could be built and sold directly to customers. Dell operates a direct model where it sells its accessories and provides services directly to their customers CITATION Ste061 \l 2057 (Holzner, 2006). The direct model is responsible for the great success of the company. The model provides a cost-efficient and cost friendly means of production and distribution for its products and services. In the recent past, competitors have come up with new and unique products in a bid to fight the Dell direct sales model.
Market for laptops computers has proved to be one of the fastest growing and promising sections of the computer industry. This market has significantly changed over the last few years. The market change has majorly been brought about by changes in customer demands. Dell looks into market trends in its development of new products such as the laptop. The laptop market is growing at a very fast rate, far much beyond the desktop computers market. Customers prefer more portable accessories and demanding durability. As a result of this mobile lifestyle, customers now want products that are easy to move and hard to damage.
Strengths
Many of Dell`s strengths emanate from the use of the Direct Model. The model allows the company to offer a direct relationship with customers. The company is able to interact directly with customers and thus able to note the customer`s needs. Dell`s strategic method also provides other forms of services and products; telephone and internet purchasing, online technical support, customized computer systems, and next-day, onsite product service which is a major boost in its operations. The extensive range of products and services forms part of Dell`s strengths.
Dell has one of the most efficient manufacturing, procurement and distribution processes. This allows the company to offer powerful accessories and systems at competitive prices. Customization makes Dell`s systems customers` favorites. The systems are built according to customers specifications. Dell has proved to be highly reliable. The direct model enables Dell to provide customers before and after sales services. Dell has a more competitive advantage over companies using the indirect channel off distribution. For an average of about every six days, Dell is able to turn over its inventory thereby keeping inventory costs at a minimum CITATION Ste061 \l 2057 (Holzner, 2006).
Weaknesses
Dell handles huge supplies from many different parts of the world. This may be a great setback in case products are recalled. The company does not manufacture computers but builds them in a factory that has made Dell unable to switch supply chains due to existence of few suppliers in the world. The direct model and customization approach has also proved to be problematic. Customers cannot purchase Dell products from any retailer. Customers are also unable to buy Dell like any other brand because every product is made according to the customers` orders and specifications CITATION Del99 \l 2057 (Dell & Catherine , 1999).
Opportunities