Dell Inc. in 2008: Can it overtake Hewlett-Packard as the Worldwide Leader in Personal Computers? Dell is a global company that delivers products and services in more than 190 countries and over 40000 employees who live and work on six continents. The company deals in enterprise computing products, desktops, monitors, printers, notebooks, handhelds, software and peripherals with a focus on fully integrated improved environmental performance into business…
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onal costs of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risks associated with carrying large stocks of parts, components and finished goods (Thompson and Gamble, 2006). The company later became a public limited company and raised $34.2 million in its first offering of common stock and achieved sales of $388 million in 1990. During 1986 to 1993, Dell refined strategy, build an adequate infrastructure and established market credibility against better known rivals like IBM and Hewlett Packard. Dells computer strategy clicked into full gear in the late 1990s and the sell direct strategy provided the company with most efficient procurement, manufacturing and distribution capabilities in the global PC industry and gave a substantial profit margin advantage over rival PC vendors. It is further stated that Dell’s operating cost ran about 10 percent of revenues in 2002 as compared to 21 percent of revenues at Hewlett Packard, 25 percent at Gateway, and 46 percent at Cisco Systems (Thompson and Gamble, 2008). Dell Inc was the undisputed leader in the United States for sales in personal computer dominating the market. In 1998, the market share of Dell was 13.2% as compared to Hewlett Packard’s 7.8%. However it should be noted that Compaq was ahead of Dell during 1998 with 16.7%. This was the only period when any other vendors were ahead of Dell as the company occupied top position in 2000 with 19.7% as compared to Compaq’s 15.9% and HP’s 11.5%. The table below shows that Dell Inc has been ranked first since 2003 showing its dominance in the market for personal computer since 2000 in comparison to other companies. But, according to table 2, Hewlett Packard dominates the world market with 18.8% in the year 2007 as compared to 14.9% of Dell Inc. Though Dell Inc was dominated the market in United States and all over the world throughout 2000s, Dell Inc’s market share fell down from 16.6% in 2006 to 14.9% in 2007 whereas Hewlett Packard’s market share increased from 16.5% in 2006 to 18.8% in 2007 thus becoming the market leader in the industry. Table 1: U.S. Market Share of the Leading PC Vendors, 1998-2007 2003 Rank Vendor 2007 2006 2005 2004 2002 2000 1998 Shipments (in 000s) Market Share Shipments (in 000s) Market Share Shipments (in 000s) Market Share Shipments (in 000s) Market Share Shipments (in 000s) Market Share Shipments (in 000s) Market Share Shipments (in 000s) Market Share 1 Dell 19645 28% 20472 31.2% 21466 33.6% 19296 33.7% 13324 27.9% 9645 19.7% 4799 13.2% 2 HP 16759 23.9 11600 21.5 12456 19.5 11600 20.3 8052 16.8 5630 11.5 2832 7.8 3 Compaq - - - - - - - - - - 7761 15.9 6052 16.7 Source: Thompson and Gamble (2008) Table 2: Worldwide Market Shares of the Leading PCs, 1998-2007 2003
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“Dell Computers Inc Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/environmental-studies/1415853-dell-computers-inc.
B2B Marketing - Derived Demand
This report has been prepared to specifically meet three aims. The primary aim is to analyse how Dell estimates its derived demand and how this demand impacts the company’s production. The second purpose is to evaluate the company’s current market segmentation strategies and identify further business segmentation opportunities.
Dell Incorporation (Dell Inc.) is regarded as one of the global leading IT (Information Technology) organisations which offer broad assortment of computing solutions as well as services to its potential global customers. The organisation directly provides its different effective services through its own distribution channels throughout the globe.
Dell Inc, established as a kind of small lucrative business by Michael Dell in early 1984 has grown to become one of the largest and highly successful multinational companies of all times in the world. Michael Dell has realized the wide marketing opportunities that can be brought with the strategy of marketing directly to the end users and this has helped the company create a market of its own.
In 2001 it was assumed that Apple was simply a ninch player with a captive market and that Dell was a mass producer that won market share by outstanding levels of cost competitiveness. How true is this in 2009' Your answer should show an understanding of the recent history of the firms, strategy utilized and the conditions of the market today.
The main idea is to find out why the computers of Dell Inc. are so popular among the people of UK. Customer contentment is always related to the quality of the product and the affordability. In case of consumer electronic goods, especially in computer and related products, support and after-sales service is of huge importance.
This is what Dell, Inc. can give you as an investor. Let me show you why.
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For Dell, this process is becoming imperative if the company wants to re-secure its position of dominance which it held during the early 21st century.
As the company considers porter's five forces, the Force of Buyers exerts less pressure on the company than the other four.
As an international player, the company is also very aggressive in pursuing strategies to capture rapidly developing economies in Europe and Asia.
This success of Dell, Inc. can be directly traced to the efficient strategies it employed. The IT firm is also regarded as a world class manufacturing system which employs the most modern and state-of-the-art value chain.
e, who with his/hers leadership traits will be able to ‘sprinkle’ success on the organization, including on the lives of the workers, and Michael Dell, the founder of Dell Inc, the computer major, is one such successful leader. One of the main leadership traits is trying new
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