Dell Inc. Situation Analysis and Swot

1216 words 5 pages
Dell Situation Analysis and SWOT
By: Nicole Saathoff

History
Dell was started in 1984 by a college student, Michael Dell. Dell started the company off out of his college dorm room. He bought IBM compatible computer parts at wholesale prices and built computers that resembled IBM models. He sold them to people looking for a PC but not wanting to pay the retailer prices. After making $80,000/mo, he dropped out of college and started Dell Computer Corp.(Free Encyclopedia of Ecommerce) He started advertising and selling computers through telephone orders, and because he used no middleman, he was allowed to sell machines lower than competition. It took no time for him to become the leader in mail order PC sales.
Because of this
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It has a 5-inch touch screen, can make calls and fits into your pocket. Dell plans on putting out a 7 and 10 inch model in the next year.(Boulton & Kolakowski 2011) Samsung’s Galaxy Tab is also an Android based device that has a 7 inch display and costs &599. (Olenick 2011) What’s more, these Android devices support Flash content, storage expansion via SD cards and user-removable batteries—three conveniences users are unlikely to see from Apple any time soon.(Boulton & Kolakowski 2011) By 2015, ABI Research estimates, 57 million tablets will be sold annually. (Allen & Spring 2010)
Apple Stores made $7.4 billion in sales last year a 30.7 increase in sales over the year before, whereas, Dell saw its consumer sales dip 12.2 percent to just over $3.9 billion as reported by Olenick (2011). Olenick (2011) also reports that HP’s sales increased 4.8 percent to $861 million. All of these companies can give a great deal of the credit for their increase in sales to their tablet computers.
SWOT Analysis Location of Factor | Favorable | Unfavorable | Internal | StrengthsLow InventoryDoes Business Directly with Customer Leader in Internet SalesNo Stores (Cost Advantage)Low PricesCustomization of products | WeaknessesVery dependent on suppliersNo Stores for

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