Dell vs Hewlett Packard - Essay Example

Download file to see previous pages Michael Dell, the founder of Dell Inc. who owns 10% of the common stocks, customers, suppliers and the stockholders are the major stakeholders.
The global recession brought tough conditions on loans in 2008 as banks became more cautious about lending. Investors are also hard to find as the people do not have liquid cash in hand. Therefore it is hard to find investments for expansion in such conditions. The dollar has sunk in comparison to Euro to a new low and oil prices have risen to above 100$ per barrel. A depreciated exchange rate means that the imports cost higher to the US.
Consumers are shopping conservatively and are trying to avoid shopping because of shortfalls in income and higher unemployment. The unemployment rate has plunged to 10% which means that every 1 in 10 American in unemployed. The consumer expenditure was down by 4.3% in 2008 since the last year. Youngsters, who are the main target market of Dell, are facing difficulties in finding jobs. This is because the companies are hiring more experienced and trained personnel instead of youngsters. This means that the target market of Dell has reduced income.
The instability of government policies could affect the business environment in the US. Policy changes such as corporate tax rate and interest rates changes by the Fed could affect all the firms present in the US.
The demand of data storage was on high as the use of computers increased. The demand was huge from the industrial side as there was a trend of recording and storing data in data drives. The consumers wanted high-speed data storages which ensure data protection and recovery features.
Almost all the nations were going through a financial crisis in 2008 which forces the businesses in the global arena to cut down their costs in order to survive. This was forcing the companies to shift to cheaper options in the market such ...Download file to see next pagesRead More