Introduction
Dell began quickly and strongly. The initial business was established in 1984 when the creator was a 19-year-old university student in Texas. Michael Dell was named Entrepreneur of the Year four years after the start-up of the business. Eight years from the comfort of his dorm, Dell was selected by PC Magazine as Man of the Year. Nine years after he set up Dell Computer Corporation, Financial World was elected CEO of the Year. One year prior to the prize, his business was featured in the coveted Fortune 500 list. A decade after the company’s inception, Dell’s corporate empire had generated revenues of $3.5 billion. The business has been recognized as the top direct seller of personal computers worldwide. Dell was also regarded as one of the world’s top five PC suppliers.
In 2005, the business was regarded as one of the world’s most popular companies. More than two decades after its start, Dell generated net income of $55.8 billion, and investors generated net income of at least $3 billion. However, the voyage of the business came up against a significant obstacle along the way. The business continues to suffer decreasing revenues even after its recovery from an economic crisis in 2010.
Dell Technologies Strengths Inc.
Distribution and delivery: Dell Technologies Inc have a significant number of outlets in nearly all states backed by a robust distribution network ensuring the timely availability of their goods to many consumers.
Cost structure: the low-cost structure of Dell Technologies Inc. enables it manufacture and sell its goods at a cheap price, making it affordable to its consumers.
Dealer Community: Dell Technologies Inc maintains excellent connections with its dealers, not only providing supplies, but also pushing goods and training of the business. Dell Technologies Inc. has a solid financial position in the last five years with continuous earnings and built profit-reserves for the financing of future capital expenditures.
Dell Technologies Inc. has a substantial asset base that improves solvency.
Return on capital expenditure: Dell Technologies Inc was successful in generating good returns on capital expenditure in several previous initiatives.
Automation: the effective utilization of resources and lowering costs at different manufacturing stages. Automation: It also enables the quality of its product to be consistent and offers the flexibility to scale production up and down according to the demand on the market.
Skilled Labor Force: Dell Technologies Inc. has spent significantly in educating its workers to hire many qualified and motivated people.
Dell Technologies Inc. has a varied work force with employees from a wide range of geographical, ethnic, cultural, and educational backgrounds that enable the business to develop different ideas and methods.
Dell Technologies Inc. has skilled and certified experts in its workforce.
Entering new markets: the creative teams of Dell Technologies Inc have enabled it to develop new products and enter new markets. In the past, it has been successful in most efforts in new markets.
Social media: Dell Technologies Inc has a strong social media presence with over millions of followers on the top three social media platforms: Facebook, Twitter, and Instagram. It has a high degree of consumer interaction with minimal reaction time on various platforms.
Web site: Dell Technologies Inc. offers an engaging and well-functioning website which attracts a wide range of web and sales.
Product Portfolio: Dell Technologies Inc has a wide variety of products offering a wide range of goods. It has a variety of unique products not offered by rivals.
Dell Technologies Inc.’s region and position provide it a cost edge in servicing its customers compared to the competitors.
Dell Technologies Inc. has a highly developed IT system to guarantee the efficiency of its operations both internally and outside.
Dell Technologies Inc. has a series of IPRs, including trademarks and patents. It is exclusive of its goods and rivals are unable to duplicate or reverse engineer them.
Dell Technologies Inc. is, and people are aware of, a brand that has been on the market for years. This increases your brand recognition.
Over the years, its goods have been of high quality and are still appreciated by consumers who see the money that they pay as a good value.
Relationships: Dell Technologies Inc is establishing strategic partnerships with its suppliers, distributors, retailers, and other stakeholders. This enables them to leverage, if necessary, in the future.
Dell Technologies Weaknesses Inc.
Research and development: Although Dell Technologies Inc. spend more than the average expenditure on research and development in the industry, it spends far less than a select industry companies that have substantial benefit from their unique products. | Research and development:
High Day Sales Inventory: The time it takes to buy and sell goods is more than the typical industry, which means Dell Technologies Inc. develops its inventory, adding needless expenses to the company (Nguyen, 2017).
Leased property: A large percentage of the property owned by Dell Technologies Inc. is rented instead than bought. It is responsible for paying high rental amounts to increase its expenses.
Small current ratio: The current ratio showing the capacity of a business to fulfill its short-term financial commitments is less than the norm in the industry. This may lead to liquidity difficulties for the business in the future.
Compared to current liabilities, the business has low current asset levels that may cause liquidity difficulties in its operations.
Cash flow problems: Dell Technologies Inc. lacks adequate financial planning for cash flows, leading to certain situations when there is not enough cash flow to lead to unnecessarily unexpected borrowing.
Vertical Integration: The present structure and culture of Dell Technologies Inc. has led to the failure of many fusions to achieve vertical integration.
Workforce diversification: Dell Technologies Inc. employees focus on mostly local workers and modest volumes of people from other races. Lack of diversity makes adjusting in the workplace difficult for workers from various races, leading to loss of potential.
Market Research: during the last two years, Dell Technologies Inc. has not done market research in the market. Therefore, choices are made based on data aged 2 years, but consumer requirements have changed over time.
High turnover rates for employees: Dell Technologies Inc.’s turnover is greater compared to rivals. This implies that they have more individuals leaving work, and it means that they spend more on training and development when their workers go and join.
Quality Control: Dell Technologies Inc’s quality control department budget is lower than its rivals. This results in a lack of consistency and harm to quality throughout its many channels.
Some goods have a large market share, whereas most have a low market share. Dell Technologies Inc. is susceptible to external threats if these few goods suffer for any reason because of this dependence on a few items.
The burden is high per worker because fewer employees are needed than the actual labor. This puts employees under psychological stress and is probably less productive.
The morale of workers is poor because of the corporate culture and politics that have increased in recent years.
In recent years competition and talented workers have left the organization, which may result in a lack of the company’s excellent talents in the next several years.
Highly centralized decision-making and team decisions have to be authorized by specific authorities. This lowers operating efficiency by making it longer. It also reduces inventiveness.
The performance assessment is not systematic. People are not frequently assessed on their performance. This leads to weaker moral standards and lack of advancement for workers.
Recommendations
Dell computers require a fresh strategy to help the business recover its position in the industry. The business has experienced numerous difficulties over the last seven years, from declining sales to litigation and SEC concerns. All these variables led to an inventory price drop and a decrease in investor confidence. The Balanced Scorecard used this report to evaluate Dell’s current strategic position (Larsen, A2017).
Dell has spent relatively little on research in the past. This was counter to the investments made by Apple in the development of new technologies. HP and apple have taken use of improved research and development in the recent past. Both created niches and succeeded in pushing Dell out of market supremacy. Dell was also prosecuted for deliberately selling defective laptops from the customer’s viewpoint. Faithfulness has been shattered and market shares have decreased.
The financial perspectives were directly impacted by these issues along with the financial crisis. The yearly revenues of Dell have decreased. The income per share has also decreased. This led investors to lose trust in Dell. The methods suggested are designed to enhance the perspectives of learning and development, the internal company view, the customer’s perspective, and the financial perspectives. The plan suggested includes the entrance of Dell into the tablet PC market. This study showed that this market is ripe for newcomers. It also has development potential in the future years. Dell’s strengths and core skills can allow this market to thrive.
Market penetration and product development strategies are appropriate for Dell since they comply with its existing business strategy. Research also showed that there is a ready market and that customers are prepared to wait to be pleased. Dell should apply the methods listed above carefully, considering the constraints of the Balanced Scorecard.
References
Larsen, A. I. (2017). DELL Technologies (Bachelor’s thesis, BI Norwegian Business School).
Nguyen, Q. N. C. (2017). DELL Technologies: 2-in-1 Convertible notebooks (Bachelor’s thesis).
PENQUE, M. B. (2019). Flexible workspace in corporate real estate. A swot analysis for investment professionals.
Závadská, Z., & Závadský, J. (2020). Quality managers and their future technological expectations related to Industry 4.0. Total quality management & business excellence, 31(7-8), 717-741.
