5. Dell - SWOT ANALYSIS
Primary factors
Strengths
•Strong brand
•Customer Focused
•Lower prices
•Custom computers
•World-wide Brand Recognition
Opportunities
•Establish business relationships with
educational sector
•Create Propriety technology (something
different to set Dell apart)
•Offer new products to the mix
•Enhance the online buying experience
Weaknesses
•No retailers to carry their products
•Customization delays.
•Takes longer to receive your computer, as
oppose to purchasing a off the shelf model
•No relationships with the Educational
sector
•Buyers can’t demo the product before
purchase
•No inventory
Threats
•Major brands are competing
•Desktop computer industry is slowing down
•Price wars among competitors
•Purchasing from numerous suppliers in
other countries, can cause issues with the
exchange rate.
S W
O T
6. A D
Advantage
• The HP Brand is a well known
brand.
• HP serves more than 1 billion
customers in more than 170
countries on six continents.
Advantage
Multi-vendor seller of, personal
computers, printers, support
and maintenance
.
Advantage
Portfolio of cloud services. Just
won a major contract.
Disadvantage
Product pipeline has suffered
due to reduction in R & D
Disadvantage
•Growth of the PC Market is
slowing.
Disadvantage
•Uable to compete in the table
market, due to late entry into the
android table market.
Competitor ANALYSIS
7. A D
Advantage
• Brand name
• Fourth largest PC Manufacturer
Advantage
• Competitive strategy is to be the
low-cost provider of computers
• Will refocus its PC Brand on the
small and medium enterprise
market
Advantage
• Selling PC directly to the
consumer online
• Acer is a major OEM supplier to
larger vendors like IBM
• Cloud Storage solutions
Disadvantage
• Acer’s reputation as a cheap
computer maker
.
Disadvantage
• Acer’s brand no longer in the
traditional retail channels
Disadvantage
• Unable to compete in the
table market
Competitor ANALYSIS
8. A D
Advantage
Lenovo specializes in consumer
PCs and low-cost manufacturing.
•IBM is well known brand
worldwide and can focus on
businesses end
Advantage
•Lenovo labor costs are a rock-bottom
at $3 per desktop PC,
which is among the lowest
anywhere
Advantage
•Lenovo smartphone has a strong
pricing stragety ans sales channel in
China
Disadvantage
Cultural differences Beijing China
and USA. The merger of two
different companies will have
business decision issues
Disadvantage
. The possible buyout of Rim and
the different operating platforms-
Could take longer to see a profit
Disadvantage
The increase in the table
shrinks the demand on PC
•.
Competitor ANALYSIS
9. KP Key Partners
Component
suppliers
Software suppliers
Product Shipper
(FEDEX, UPS)
Business Model Canvas
KA Key Activities
Marketing
Computer
assembly
Web
content/design
Customer service
support
Order processing
VP Value
Proposition
Customer
Engagement
Excellent customer
support which was
24/7 and included:
(Virtual helpdesk,
User guides,
troubleshooting
guides)
Customized
computers from
the customers
requirements
CR Customer
Relationships
Self-Service
upgrades,
Customer
interaction and
education on their
products.
CS Customer
Segments
Consumers
Businesses
KR Key Resources
Computer
component
suppliers
Software
(ecommerce)
Web developer
CH Channels
Website
catalogs
Sales offices
C$ Cost Structure
Employees
Marketing
Components
Sales Representatives
R$ Revenue Streams
Sales from website
Business Sales
Extended Warranties
Extended support subscription
10. Alternative Business
Model
Retailers
Consumer/
Businesses
Academia
End User
Sales force
Wholesalers
Inventory
Direct Channel
Catalog
Website
11. References
Kraemer, K. L., Dedrick, J., & Yamashiro, S. (2000). Refining and Extending the Business
Model With Information Technology: Dell Computer Corporation. Information
Society, 16(1), 5-21. doi:10.1080/019722400128293
Refining and extending the business model: with Information technology: Dell Computer
Corporation
Dell's Competitive Advantage
http://cloisters.hubpages.com/hub/Dells-Competitive-Advantage
how-hewlett-packard-and-dell-destroyed-their-pc-advantage-piece-by-piece.
http://www.forbes.com/sites/panosmourdoukoutas/2013/04/14/how-hewlett-packard-and-
dell-destroyed-their-pc-advantage-piece-by-piece/
12. References
http://www.biography.com/people/michael-dell-9542199
http://www.businessweek.com/stories/2005-05-08/lenovo-and-ibm-east-meets-west-big-time
http://www.lenovo.com/lenovo/us/en/commitment_to_the_customer.html
http://techcrunch.com/2011/12/27/acer-does-not-get-it/
http://www.taipeitimes.com/News/biz/archives/2011/07/25/2003509045
References
James, G. (2000). Can't Get No Respect. MC: Technology Marketing Intelligence, 20(11), 38.
References
Gonela, S. K. (2009). Acer vs. Lenovo: Asian Brands' Global Ambitions. ICFAI Journal Of Brand
Management, 6(2), 54-65.
http://topics.nytimes.com/top/news/business/companies/hewlett_packard_corporation/index.html
Saran, C., & Ashford, W. (2011). HP aims to be leader of the pack but will new strategy reach the
cloud?. Computer Weekly, (12), 8.