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Dell Correction

Dell is a large, private American multinational technology company with over 138,000 employees. It operates in the secondary sector through manufacturing and the tertiary sector by providing services. Dell analyzes its external environment through a PESTEL analysis to identify opportunities and threats from political, economic, sociocultural, technological, ecological, and legal factors to help the company adapt, avoid surprises, and develop effective strategies. Dell faces competition from companies like HP, Lenovo, and Apple and must consider the bargaining power of providers like Intel and Microsoft as well as customers.

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souad mhiri
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19 views

Dell Correction

Dell is a large, private American multinational technology company with over 138,000 employees. It operates in the secondary sector through manufacturing and the tertiary sector by providing services. Dell analyzes its external environment through a PESTEL analysis to identify opportunities and threats from political, economic, sociocultural, technological, ecological, and legal factors to help the company adapt, avoid surprises, and develop effective strategies. Dell faces competition from companies like HP, Lenovo, and Apple and must consider the bargaining power of providers like Intel and Microsoft as well as customers.

Uploaded by

souad mhiri
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© © All Rights Reserved
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Download as DOC, PDF, TXT or read online on Scribd
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MIDTERM’S CORRECTION : DELL

1/ DELL is :
 A for profit organization
 An american multinational
 Private company
 Large company (138 000 employees)
 It’s related to the * secondary sector (manufacturing industry)
 Tertiary sector (since it performs services)
 Quaternary sector ( related to the ICT)
( 7 required elements x 2 = 14 marks)
2/ Explain the importance for Dell to analyze its external environment
(12 marks)

(4 elements x 3 = 12 marks)

It’s important for DELL to analyse its external environment


 It is in interaction with its environment
 The survival and performance of the company depend on its
adaptation’s degree
 To catch opportunities and avoid surprises
 To predict future changes and elaborate strategies.

3/ PESTEL ANALYSIS ( min: 15 element required X 2 ) = 30 marks + 6 (if the components of


the macro environment are well mentioned)

OPPORTUNITIES THREATS
POLITICAL ENVIRONMENT
 Risk to become unwelcome
in certain markets
particularly in Russia and
China due to spying
concerns
 detrimental impact of
political factors
ECONOMIC ENVIRONMENT

 Emerging economies: fastest  Economic volatility


growing markets
 The dollar has grown
stronger
 Increase in raw material
prices
SOCIO CULTURAL ENVIRONMENT
 Increasing level of integration
of various internet applications
into increasing aspects of
professional and personal life
of consumers
 Increasing popularity of social
networking websites
(facebook, Linkedin,
Instagram….)
 Demographic changes
 Changes in consumer attitudes
and opinions towards
consumer electronics products
and services
 Customers are more
knowledgeable about
electronics products

TECHNOLOGICAL ENVIRONMENT
 Acquisition of new Technological changes (that can
technological patents swiftly alter the market dynamics and
affect the sales and revenue of
 Development of internet and businesses.)
social networks

ECOLOGICAL ENVIRONMENT
  Environmental laws
LEGAL ENVIRONMENT
  Barriers in forms of trade
tariffs and other instruments
in emerging economies
 Constraints set by local laws
of the different countries
where Dell operates
 Legal issues

-Intel and Microsoft -Great variety of brands


dominate the sector
-Customers were
- A wide array of becoming more
providers
4/ for the other knowledgeable about
components computers
-Customization of the
products put DELL in a
Threat of new
low strong position
entrants
Medium

Power of High barriers to entry


providers (capital required….) Power of
-Highly skilled Customers
professionals required Medium
-)
Rivalry
High
-Acer ,,Apple, HP,-IBM,
Lenovo, -Toshiba, -
Asus…

Threat of
Substitutes

Intensity of each force : 3 High


marks

Explanations : 3 marks -Tablets


-Smartphones
5/ The marketing mix ( 5 marks for each P)
Product Price Place Promotion

 Customizable -Low prices -Direct channel -Advertising in


products without TV
-Free bonus
intermediaries
 Wide range of products -Internet
products since -Internet: E-
-Free shipping -Print media
the company is commerce
offering -Match prices if -Catalogs
-Phone
different the customer
Customer
product lines: find a lower -Use of Retailers
newsletters
price for an (Best buy,
-PCs products -Pull strategy
identical Walmart,
-Servers product Carrefour…) * promotion
-Data storage devices -Price is actually - Dell is a through
a competitive worldwide retailers): -push
-Network switchers
tool company strategy
-Computer software
-flexible : -
-computer peripherals variable prices
-HD television depending on
the options
-Cameras added to the
-Printers product

-Tablets
Services
-cloud
-security
-infrastructure
-Enterprise solutions…
High consistency in
the product mix

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