Dell Business Analysis - Research Paper Example

Its foreign market entry has been easy owing to an enlargement in its customer base and via acquisitions from the time of its inception. Apart from desktops and PCs (personal computers), Dell also offers devices for data storage, network switches, servers and computer peripherals. It also sells cameras, MP3 players, HDTVs, printers and other electronics. It also offers software and hardware from third-party. This has given it recognition in the foreign market (Kyle 17).

Dell opened the United Kingdom as its first international subsidiary. It used a trade show in Spring Comdex to unveil its fastest performing PC (Personal Computer), with a 12 Megahertz, 286-based system. The industry opened other subsidiaries in Japan and Australia as their first entries into the region of Asia Pacific. The corporation continued to grow and even opened a manufacturing centre in Ireland (at Limerick), in order to offer better services to clients in the Middle East, the African continent and the European continent. It launched the Dell.com website, opened the first customer in Asia-Pacific (in Penang, Malaysia), and launched premier pages for its corporate customers. It also opened manufacturing centres in China, Xiamen, and a second in Texas. It broadcasted its manufacturing sites in the United States, Brazil and Ireland. Dell has also partnered with other industries based on the Code of Conduct by the Electronics Industry (Kyle 23).

Dell's potential competitors include Acer, Samsung, Sony, Toshiba, Apple, Asus, IBM, Lenovo, Gateway, Sun Microsystems, MSI and HP (Hewlett-Packard). Dell seems to show no interest in an alliance with any of its competitors. It has tried to remain in stiff competition by improving on its marketing strategies and expanding its product line. Dell and Alienware (Dell's subsidiary) compete against VoodooPC (HP s subsidiary) Falcon Northwest, AVADirect, and other manufacturers (Kirk 11).

Dell is experiencing an advantage from the acquisition of various manufacturers and companies. It has acquired and owned many of them such as Alienware, EqualLogic, Perot Systems, KACE Networks, Software-as-a-Service, Compellent company, Backup and Disaster Recovery software (AppAssure) and Clarity Solutions. It has also agreed to buy Sonic Wall and still wants to purchase Wyse (Antone 49). That makes it a company rich with facilities hence expanded business. The challenges that Dell is facing are related to the stiff competition in the market. Its server market’s share dropped from 9.5 per cent to 8.1 per cent. Some of its products have been doubted by its customers. They are said to be faulty, especially their batteries. This has reduced their number of customers (Ashlee 33). The company has taken some measures to reduce these drawbacks. These include reducing the prices of their products, making free shipping and offering free bonuses on their products (Kirk 44).