Dell Company Background

DELL is a multinational information technology corporation based in Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. Dell had 46,000 employees as of Jan. 30. About 22,200 of those, or 48.3 percent, were in the United States, while 23,800 people, or 51.7 percent, worked in other countries, according to a filing with the Securities and Exchange Commission.

[citation needed] Dell is listed on the Fortune 500 (2010). Fortune also lists Dell as the most admired company in its industry.

Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce.

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On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.

DELL SWOT Analysis

Strength
• Customer oriented marketing strategies.
• Well-Known for online selling of Computers.
• Listed in the fortune 500 companies as the 25th largest company.
• Dell Company employs more than 76000 thousand people.
• Provide quality PCs, Laptops and computer peripherals at low price.

• Low manufacturing cost.
• Dell offer computers with AMD and Dell processor.
• Dell has nine of manufacturing plants.
• Offer wide range of PC, Server, Laptops, Monitors and LCDs, Data storage devices, network switches and software.
• Dell built computer on customer provided specifications.
• Dell always keen to embed latest technology in its products.
• It has a reliable support and service.
• The company website at least receives 25 million visits.
• Efficient Inventory management.
• Dell became the first company in the information technology industry to establish a product-recycling goal.

Weaknesses

•Elimination of bonuses in 2006 to increase the company financial performance. • Closure of Dell’s biggest call center in April, 2003 terminating 1100 employees. • On January 8, 2009 Dell announced the closing of its manufacturing plant in Limerick, Ireland with the loss of 1,900 jobs and the shift of production to its plant in Poland. • Dell not able to attract the students of schools and colleges, this segment earn only 5% of total revenues. • Lot of criticism against the Dell’s claim of world’s most secured notebooks. • Dell willingly discontinued the “world’s most secure laptops” advertisement after the declaration of the NAD investigation. • Dell have no proprietary technology, the currently used technology by dell are shared by the other major competitors. • Dell is dependent on its suppliers

Opportunities

• India, Pakistan and Bangladesh are the untapped markets.
• Market penetration in education and Government markets.
• Cost reduction in latest technology.
• Partnership or acquiring of suppliers.
• Dell has opportunity to sell computer directly to retailers.

Threats

• Fluctuation in currency outside US.
• Major competitors in the market.
• Most of the countries are hit by recession which may result in the reduction of revenues.
• Government Policies.
• Bargaining of Suppliers.
• Rapid change in technology obsoletes the product in small span of time.
• Aggressive marketing by competitors.