and their vision [...] to create a better world for all [...] an image of the future we seek to create, the way we interpret the world around us – our customer needs, the future of technology, and the global business climate.
3.1. Target market
Looking at Ansoff's Product-Market-Expansion-Grid DELL follows a market-penetration strategy (DELL,2014). Their strategy over the long-term is to turn Dell into an IT-services company that can compete with IBM , HP or Cisco and therefore they keep targeting corporate customers with their strategy they used to dominate the PC sales market almost 20 years ago – focussing on low prices and service (Kelleher, 2015).
According to Hussey (Hussey, 2002, p. 45) there are several mnemonics for a SWOT analysis like TOWS, SOFT or Steiner's (Steiner, 1979) WOTS UP – adding 'underlying planning'.
Therefor in the
following paragraphs a SWOT analysis in the form of OTSW will be undertaken.
Competitive rivalry is strong in DELL's core markets. Being the world's third largest PC vendor after HP and Lenovo (acquired IBM's PC business in 2005) and before Acer, DELL faces strong competition from various competitors. The following figure provides an overview of Porter's five forces.
4.2. Internal Environment
Boston-Consulting-Group-Analysis (Team FME,2013) DELL can be considered a 'cash cow'. DELL, with a high relative market share ranking third worldwide after Lenovo and HP (Statista
Inc.,2015) and competing in a low growth industry – global PC shipments in the first quarter of 2015 the first time since 2009 fell below 75 million units (Statista Inc.,2015). Examining the
matrix below and based on DELL's position, product development and/or diversification are strategies that they could adopt.
4.4. Porter's Generic Strategies
Except of Apple – their customers are considered less price sensitive – the majority of competitors on the market as HP and Lenovo follow cost leadership strategy. Differentiating is difficult on this market as PC standards have been set and determined long time.
5. DELL's Balance between Demand and Supply
The PC industry in general is in the declining stage as showed in figure 14. Applying this on DELL they had a short introduction phase with an enormous demand, to have a long growth phase reaching their maturity in the early 2000's and started declining since the mid 2000's. In 2015's first quarter global PC shipments are the lowest in the past six years (Statista Inc., 2015).
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