Strengths And Weaknesses Of Dell

1431 Words 6 Pages
Register to read the introduction… The analysis defines the key strengths and weaknesses of Dell, as well as, their threats and opportunities.

1. Strengths

▪ Inventory. Utilization of a J-I-T system. By not stock piling parts, Dell is able to greatly reduce its inventory costs. Dell, on average, has on hand four days of inventory.

▪ Responsiveness. Dell’s responsiveness is also a key factor in its success. Through Dell’s website, customers are able to build, customize, and pay for their newly designed systems. The website allows customers to create their own PCs in privacy, with little interaction from annoying salesmen. Once a customer has finished building their PC and authorizing their payment, the computer can often be shipped in as little as eight hours.

▪ Communication. Maintenance of close ties with their most profitable corporate customers. By keeping open lines of communications, installing custom software, and keeping up with its customer’s business inventories for them, Dell is increasing customer loyalty and satisfaction. Dell has also built and maintained a Premier website for corporate customers. The website can be accessed by any customer subsidy worldwide, and not just a company’s purchasing agent. Through the website customers are able to purchase computers according to the automated policy (Kotler & Lane,
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Critical Issues

Since its founding nearly 25 years ago, Dell has revolutionized the computer industry. Critical issues for Dell are:

▪ Growth. Dell must work to strengthen ties with the middleman that it tried to eliminate for so long.

▪ Innovation. Dell has never been a company known for innovative designs. However, they must give their computers that “laptop connoisseurs associate with design-conscious competitors like Apple, Sony, and Toshiba” (Fortt, 2007).

▪ Customer Service. For years, Dell’s customer service, or lack there of, has proved to be its Achilles’ heel. Dell must focus on providing one call resolution. Many customers have complained about long wait times for technical support and having to call several times to resolve the same issue.

References

Fortt, Jon (2007, December 14). How to fix Dell. Retrieved February 19, 2008, from CNNMoney.com Web site: http://bigtech.blogs.fortune.cnn.com/2007/12/06/how-to-fix-dell/?source=yahoo_quote

Hayes Weier, Mary (2007, December 14). Technology spending set to slow in 2008. InformationWeek, Retrieved February 19, 2008, from http://www.eetimes.eu/consumer/204805069

Kotler, P., & Lane, K. (2006). Marketing management. Upper Saddle River: Prentice

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