Dell Corporation Essay Example | Topics and Well Written Essays - 750 words

Dell Corporation - Essay ExampleHowever the caller-out needs to take carry through closely. The main business is generated from PC sales. Most of Dells revenue stream is generated from sales of individualised computers. The global economic downturn is having the greatest effect on PC sales as companies argon reducing their spending on personal computers. Their spending may be going up in other harvest-time categories, but investments in PC are being reduced industry-wide. Because Dells main business is in PC sales, it is a strategic imperative for the community to craft a new strategic direction. The company does have diverse product offerings but the most important bulge out of its resource pocketbook is dedicated to manufacturing personal computers such as desktops and laptops. Dells main competitors are HP, Acer and Apple. Dell faces rising competitive menace from these companies because they have invested in a wide mix of products and services. For example, Apple is ge nerating profitability at the same level despite the economic downturn. This is because Apple maintains diverse product offerings based upon continuous innovation. HP is diversifying into service business. Because the western market is saturated, Dell has to focus on the fast emergence markets of China and India. However in China Dell faces a major competitive threat from Lenovo. Therefore Dell Inc. ... Therefore the company has a skill in retaining large corporate accounts which volition enable the company to face the competitive contestation from HP. Dell also has core competencies in transferring companionship across divisions in order to facilitate the highest level of quality in all the product categories. The company has shown great success in product diversification. These capabilities and resources form the core competencies of Dell Inc. The companys dominance is in the market leadership position that it holds in the industry with a loyal customer base of large commerci al and institutional investors. The company has also been successful in diversifying into additional product categories. The companys weakness may be its over-reliance upon PC sales which are being affected by the economic downturn. The opportunity is provided by the large corporate accounts which will enable the company to invest in additional product and service categories to strengthen the revenue base. The threat is the rising level of competitive rivalry in the industry. Although Dell might reduce the competitive threat to some extent by expanding to growing markets these markets also have their share of competitors, two examples being Acer and Lenovo. Dell is customizing its products by providing value-added services in the enterprise market. This market has been growing steadily because corporate customers are looking for ways to cut IT costs. Therefore, by customizing its products for the enterprise market, Dell will be able to make up for the loss of revenue from fall PC s ales. However the disadvantage is the possibility of over-diversification. In that case the company might lose cash in areas which are not its