Table of Contents 2
Step One – Financial Analysis 4
Step Two – External Business Environment Analysis 8
Concluding Identification of Current External Business Competitive Issues 11
The Matching Dell Business case by (Rivkin.J & Porter, M) defines the personal computer industry and outlines its history and development, with focus on Dell Computers.
This paper will analyze the case study by means of the Strategic Situation Analysis and Planning Method (SSAP), by portraying and comparing Dell with its main competitors, namely: IBM, Compaq, Hewllet-Packard and Gateway.
Approaching the strategic situation from SSAP method’s step number one, Financial Analysis, step number two, External Business …show more content…
Using the calculation (This Year)/Base Year x 100 and data from 1991, to 1998 Dell sales increased 20.5% and net income increased 28.63%. This shows that profits increased more than sales in the same time period. This means that Dell became more efficient in production which yielded greater profits. Net income increasing more than sales shows Dell's efficiency in production and distribution. It cut costs of making and selling its computers to have a greater profit. In the appendix, Table 1 shows the year on year percent changes for Dell's sales. This table shows that Dell's sales continue to grow each year.
Exhibit 9 in the Matching Dell Case shows Ratings of High-end Desktop PCs by Consumer Reports(1998). It is shown on the table that Dell's product sells for $2400, HP's product sells for $2200, Gateway's product sells for $2647, and Compaq's product sells for $2950. Data on the same table rates these computers on price, speed, quality, and other things customers value in computers with a scale of 1 being excellent and 5 being poor. When the customer ratings are averaged Gateway has a rating of 1.9, Dell and HP have a rating of 2.4, and Compaq has a rating of 2.7. Dell is the lowest in price and second highest in rating. This shows that customers are satisfied with the dell computer, more so than some of the more expensive brands.
Exhibit 11 from the case compares Major PC