SMALL AND MEDIUM-SIZED ENTERPRISE

Small and Medium-sized Enterprise

Small and Medium-sized Enterprise

Introduction

The company I have chosen for the assignment is Dell Inc. Dell Computer Corporation, incorporated in October 1987, is a computer systems company and a provider of computing products and services. The Company's primary product offerings include enterprise systems, notebook computers and desktop computer systems. The Dell line of high-performance computer systems includes Power Edge servers, PowerApp server appliances, Power Vault storage products, Power Connect networking products, Dell Precision workstations, and Latitude and Inspiron notebook computers (Fredman & Dell, 2005: 97).

Discussion Analysis

Dell Direct Business Model:

Advantage

Lower cost: avoid dealer's markup and pass the saving to customers.

Customized system: customers get exactly what they wants.

Save time: takes only 36 hours to manufacture, test, and ship customized products.

Easy for customers to order: either log on www.dell.com or call 1-800-WWW-DELL.

Competitors in DELL PC industry:

Competitors of Dell are:

ACER

HP

COMPAQ

Porter's Competitive Forces Model

During this rapid change, information technology must remain steadfast to compete with their competitors. In an influential book, Trompenaars and Turner (2002) stated “Michael Dell's method of direct service helped gain an advantage in the computer industry”. The direct sales process allowed express selling to the customer without through the middleman. This study examines the computer technology field with Michael Porter's competitive forces and creating improved productivity (Porter, 2008). Michael Porter's (1980) competitive forces, a reliable strategy in the business world today. Porter states that the economic and competitive forces in an industry segment are the result of five basic forces: bargaining power of suppliers, bargaining power of buyers, Threat of entry of new competitors, threat of substitute products or services, and rivalry among existing firms in the industry. So every company should have tactical plan to identify strengths, weaknesses, opportunities and threats present within the company for survival.

Rivalry among Existing Firms in the Industry

Out of the five competitive forces that influence the computer technology world today is rivalry among existing firms in the industry is the biggest threat to Dell. Within the technology industry competition will arise in order to gain increased position. Dell challenges the other industry like Acer, and Compaq by providing direct service to customers, price cuts, and staying up to date with modern technology. To make things easier for the customer Dell established user-friendly relationships with the customers.

In 1996, Dell establishing the direct model. For the first time customers were able to buy a Dell computer from the Internet, while ACER, Compaq, Lenovo, and HP customer must buy from their shop and any shop can sell their product and be a dealer. Only Dell Company sell the Dell notebook and be a dealer to itself without third person or middleman. It is difficult to find computer shop that sell Dell brand except for which have an approval and certificate from Dell. Dell established a key advantage by creating the direct service model and only Dell Company can sell their product (Ireland, 2009: 36).

The company's direct model consists five of tenets, “beginning with the customer and ending with the ...