Essay by EssaySwap ContributorUniversity, Master's February 2008

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Michael Dell ?I realized that the computer market war very inefficient. The mark-ups were incredibly high over the cost of materials and the service was very poor? Industry Conditions I think now about personal computer market is shirking period since recession economic and maturity of the product so that Dell must found highly competitive including price, promotion etc. Furthermore, company has to get new treat from merging between HP and Compaq which make HP to be No 1 in pc market and reduce cost since they can reduce cost by cutting duplicating cost.

Corporate Capability (SWOT analysis) Strength ? Selling directly to consumers and keeping its costs lower than those of other hardware vendors.

? Lowest inventory in PC industry since using Build to order and Just in time inventory ? Virtual integration ? No distributor which make Dell can significantly reduce cost compared competitor ? The fastest in launch new product because Dell has low inventory level that make company can change product so fast since.

Weakness ? Low market share in high-end computer such as server which is high profit product ? The direct sales approach is not compatible with inefficient transportation system country such as China, Thai etc.

Opportunity ? Dell looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase.

? Dell saw the Internet as a powerful marketing tool.

? Expand market outside US.

? Internet users continuously increasing so that make e-store of Dell sustain growth Threats ? Dell realized that competitors like IBM and Compaq Computer Corp. had stronger brand names, which put Dell in a weaker position with dealers ? Economic recession which make demand of PC radically decreasing ? Merger between HP and Compaq Mission Statement Dell?s mission...