Dell Case Analysis

I. Environmental Factors I. Social Factors Three of the most influential factors in home PC ownership were education, income, and children in the household. Consumers are becoming more computer and component literate. Companies are investing large amounts of money into network developments. The low unemployment rate allows more people the opportunity to purchase novelty items. II. Economical Factors Top five computer companies in 1999 ranking according to market share: Compaq (19.1%), Dell (10.3%), Packard Bell NEC (8.2%), IBM (8.0%), Hewlett-Packard (7.1%). Compaq 1) Compaq sells almost exclusively through retailers. 2) Their greatest market strength is among Fortune 1000 companies. 3) They acquired Digital Equipment Company (DEC) in order to become a global supplier of computer hardware and network services. 4) Compaq offers a wide range of servers. 5) The DEC acquisition gives Compaq an advantage in the computer-networking segment, which will look very appealing to large corporations. IBM 1) IBM is the market leader in both entry and midrange servers. Hewlett-Packard 1) H-P is the global leader in printers. 2) Their strong global reputation has helped them grow within the PC market almost as fast as Dell. 3) H-P has teamed-up with Intel and are expected to use cutting edge technology that will boost the H-P name. 4) They are the market leader in revenue, units, and growth in the NT-based workstation market. 5) H-P markets over 25,000 products. Large drops in the prices of computer components allowed PC makers to lower their prices. These lower prices lowered the profit margin on PCs. The sales of servers are the fastest growing segment in the PC industry. Dells competition is shifting their strategy to a build-to-order manufacturing style, in order to lower inventory costs and to speed up the delivery of new model…

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