Dell's Laptop Business In The Future example essay topic

What attract me in the Dell Company is to see how a vision can match the future. The Company was founded in 1984 by Michael Dell, now the computer industry's longest-tenured chief executive officer, on a simple concept: that by selling personal computer systems directly to customers, Dell could best understand their needs, and provide the most effective computing solutions to meet those needs. Dell Computer's mission statement is: 'Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of: o Highest quality o Leading technology o Competitive pricing o Individual and company accountability o Best-in-class service and support Flexible customization capability o Superior corporate citizenship o Financial stability' Dell's target market consists of large corporate accounts, medium and small businesses, and the consumer business. Dell has set out to satisfy each different customer segment through its Direct Model. In order to continue being successful, Dell has to make sure that it produces the right PCs that would be satisfying to customers, and take advantage of the opportunities that are available.

Focusing on the laptop industry, if Dell wants to produce a next generation laptop platform that will carry its business in the future, it should look at today's trends in the industry and how they could impact the next generation laptop. Mobility is increasingly influencing the world and markets that Dell will be operating in. Therefore, the implication associated with this trend is that the laptop that Dell would produce should be lighter and smaller. The internet is becoming a necessity in people's everyday life. Because of this trend, and the impact of mobility at the same time, wireless internet would be a potential demand. Moore's Law: it has been observed that laptops and PCs in general are becoming cheaper, smaller and faster, with CPU performance doubling every 18 months.

This is an affect of people's demand for continuous improvement and innovation. People today are using their computers for a broad range of activities (digital cameras, MP 3 players, music, DVDs, etc... ) The growth in the economy has been observed on a worldwide scale. It increases demand for productivity, therefore impacting continuous improvements in technology.

Dell should make sure it continues to satisfy all its customers, and to that it should produce better performing laptops, that will keep up with the various business activities today. Customers are searching for cheaper laptops. PCs are becoming more of a necessity today, and differentiation within the PC industry is becoming more minimal. As a result, customers (especially first time buyers) make decisions mainly based on price. To summarize, based on the above trends in the industry, the next generation laptop platform that must carry Dell's laptop business in the future should have the following features: It should be cheaper, smaller, faster, and lighter, with a better overall performance. SWOT Analysis Strengths- Direct model.

The Dell Direct model was the "engine of Dell's success". It gave it an advantage over its competitors as it was very hard to duplicate. It is an efficient distribution system characterized by build-to-order manufacturing, and products and services targeted at specific market segments. PCs, custom made, are assembled and shipped to the customer in a relatively short amount of time- Differentiated Products. Because of its Direct model, Dell is able to be described as having a differentiated product, custom made. This is an advantage for Dell since it enable it to differentiate itself from its rival and gain relatively more supplier power.

- Customer Service. After sale customer service is another one of dell's strengths. A customer with a problem can reach a technical support staff through a hotline that is manned 24 hours a day. - Economy of scale.

Dell is the greatest producer of laptops and therefore has economy of scale in the laptop business. Weaknesses- Compared to its rivals, Dell has a low market share in the international Market. This is a weakness because international diversification is very important. Since most of Dell's revenues come from the US market, having a low market share in the international market is more risky.

- Laptop customization is limited. Although Dell had an advantage in allowing customization within its PC industry, there is a limit to how much could customize your laptop. Therefore, dell is not much differentiated compared to its rivals within the laptop industry. - In my opinion, Dell's laptops have a weakness in its quality of display. The physical aspect of Dell's laptops in general is not as great as its rival within the PC industry. (like Apple) Opportunities: - European Market. Dell has an opportunity to increase its market share in the European market.

Dell now has approximately 10% of the market share in Europe. - Internet being indispensable. This could be an opportunity for Dell to continue including wireless options on its laptops, and consider including Bluetooth technology. - Mobility. Dell could consider focusing on producing more products that allow for mobility. As demand for mobility increases, Dell could take advantage of that to satisfy the customer's demand.

- Growing economy. Increasing growth in the economy is an opportunity for Dell to increase its market share, ant production as well. Since most of Dell's revenues come from large businesses, a growth in the economy would drive demand for production. Threats- Increasing demand for innovation. The threat with performance increasing each year is that people might soon be satisfied with the level of performance not to demand anything more, and might be going to be more susceptible to other things such as prices, or quality of the product.

If Dell only focuses on performance, this might be a threat in the future. - Intensity of Rivalry. As performance increases, differentiation between brand names might decrease. Dell's rivals are finding ways to increase their market share by replicating some of dell's advantages.

For example, IBM recognize the advantages of direct distribution and launched initiatives to expand its own direct sales. Compaq saw the advantage of reducing inventory, and therefore took initiatives to do so. - PDAs replacing laptops. Whether this is a threat or not is still unknown.

If the case was that PDAs substitute laptops, it would be a threat to Dell's laptop business, but not to the entire Company if Dell keeps improving in the production of PDAs. To conclude, in order for Dell to compete efficiently in the laptop industry in the future, it needs to take advantage of all of the above opportunities. Consumers are becoming increasingly more demanding and price-sensitive. The next generation laptop must be consistent with the relevant trends affecting the industry today. If Dell succeeds in its attempt to make a product that fits the trends, it will probably still remain in its leading position in the future..