Analysis Dell Company

Analysis Dell Company

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Europe, China and India • Low costs and advanced technology • Growth in business, education and government markets Threats • Competition (price and market share) • Currency fluctuation in countries outside the US • Political instability • Tariff trade barriers Marketing Strategies • Major customers: large corporations, government agencies and medical and educational institutions to small business and individuals. • Strategy: Multinational corporate powerful, more richly configured systems. As processor transitions and expected cost reductions continue, many industry analysts foresee worldwide industry volume growth at a compound annual rate of 15 to 20 percent annually over the next three years. Meanwhile, the Internet is becoming more integrated into daily life: businesses rely on the Internet for commerce and real-time information exchange; customers go online to shop, bank and conduct personal correspondence; and students from grade schools through college use the Internet as an educational tool. From servers that power the Internet connection, to desktops and notebooks that efficiently and effectively provide the interface, to workstations used to develop digital content, the ability to provide products and services that enable Internet access and enhance the online experience will be vital for companies in the computer systems industry. Development of the Direct Model Dell is continuously refining its direct approach to manufacturing, selling and servicing personal-computing systems. The company is committed to extending the advantages inherent in what is already the industry's most efficient business model. Current Dell initiatives include moving even greater volumes of product sales, service and support to the Internet; using the Internet to improve the efficiency of Dell's procurement, manufacturing and distribution process; and further expanding an already broad range of value-added services. By taking its direct business model and its associated customer experience to even higher levels, through the Internet and value-added services, Dell intends to continue to grow its business at a multiple of the high-growth rate anticipated for the computer-systems industry as a whole. Dell still has significant opportunity for expansion in all