Dell Computers and the Computer Industry Essay by Peter Pen

Dell Computers and the Computer Industry
Examines the success of this company within the computer segment.
# 64246 | 2,489 words | 7 sources | MLA | 2005
Published on Mar 02, 2006 in Business (Companies) , Business (Industries) , Computer and Technology (Technology)

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Dell Computers is one of the great success stories of the microcomputer revolution. Starting with only $1000 in capital, Michael Dell built a computer manufacturer which is one of the most successful, and which changed the way that computer manufacturers provide products to consumers. The paper shows that the company's success illustrates the effect that a strong and charismatic leader can have on an organization, and Dell Computers bears the unforgettable imprint of its founder. This research examines the factors which have made Dell successful, considers the state of the computer industry today, and offers recommendations for Dell's strategy in the future.

Paper Outline:
Background of Dell Computers
Analysis of Computer Industry
Threat of New Entrants
Rivalry Among Existing Firms
Threat of Substitute Products
Bargaining Power of Buyers
Bargaining Power of Suppliers
STEP Analysis
Technological Factors
Economic Factors
Political Factors
Recommended Strategy for Dell Computer

From the Paper:

"The threat of new entrants into the microcomputer market is relatively low. This is because of the high cost of marketing microcomputers when there is little or no brand identification already established, and because the market share for existing firms is being consolidated. The industry itself has changed considerably from when Gateway 2000 entered the market (the most recent entrant of significance), and the price pressures that exist in the market are likely to discourage companies which do not have a solid financial basis on which to base their entrance (Feibus, 1998, p. 69)."

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