Environmental Analysis

1613 words, 7 pages

Intro Sample...


Operating Environment

Dell has a good reputation as a quality brand at a good price. Dell ranks high with customers because the company offers free technical support if needed. The purchasing process has changed for the consumers with Dell because all the ordering is done online which offers convenience to its customers and minimize inventory. The flow of materials from suppliers into Dell starts by the company putting in orders to factories that are based on two categories. These two categories are product type and geography. When putting in orders for product type Dell wants to select the right factory that specializes or deals with a certain product. Geographic orders mainly focus on the where the order is coming from to minimize the transportation expense. Michael Dell and his team have superb relationships with their suppliers; they maintain those superb relationships, by ensuring that the suppliers win every time Dell wins. (Rizzo) As a consequence, Dells suppliers are perfectly willing to keep a truck load of inventory at Dells loading dock. (Rizzo)

Remote Environment
The internet market has been expanding and exploding across the globe. It has varied by market segment and already has been a big hit in the U.S. Dell knows that the way to globalize the company successfully is through e-business. Analysts agree that e-business is the most significant trigger to the achievement of economic globalization. (Reynolds) For Dell to penetrate into this market it must oust the Lenovo brand PC which is already a big hit in China and therefore Dell has already built a factory in Xiamen, which is on the southeastern coast of China.
Dell is starting to take on new projects like focusing on markets globally. Dells objective is to take over 20% of the Asia market. Dell knows that the way to globalize the company successfully is through e-business.
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