This paper takes a look at the current and future market conditions of Dell Computers and uses that analysis to develop a model for operations of the company. The paper examines the competitive position Dell Computers holds in the personal computer market. The paper contends that it has built a solid base in the PC industry from which expansion into other markets becomes possible. The paper suggests that careful consideration should be given to these forays, as they can have a large financial impact on the company in a short time. With a focus on maintaining a strong position in the core market and strategic involvement in related sectors, Dell can not only maintain its dominant position, but can extend it.
Outline
Introduction
Industry Overview
Current Market Conditions
Future Market Conditions
Outlook and Analysis
Market Structure
Impact of New Competitors
Pricing
Productivity
Cost Structure
Price Elasticity of Demand
Future Competitors
Strengths and Weaknesses of Competitors
Government Regulations
Supply and Demand
Recommendations
Conclusion
From the Paper:
"In 1984 Michael Dell was a college student pursuing a degree in medicine. He also happened to have a hobby of building computers. He decided to sell the product of his hobby, and began the business in his dorm room (Entrepreneurship, 2005). Business quickly took off, and he soon abandoned his dreams of practicing medicine to develop Dell Computers. From these humble beginnings the company rapidly grew to be a major competitor in the personal computer market. Dell's focus on efficiency of manufacturing, and a direct marketing approach, allowed him to continue gaining ground on the competition. In 1992, his company joined the Fortune 500 list as one of the largest companies in the world. In 1993 their growth placed them in the top five computer system manufacturers."