Essay About Competitive Analysis Of Dell And Degree Of Product Substitutability

Competitive Analysis of Dell
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COMPETITIVE STRATEGY 559
PC Industry Competitive Analysis
Dr. Daniel Fyfer
Felix Garifouline, Hannah St. John, Dimitri Noe von Nordberg Schell
3/31/2008
BUSINESS SCHOOL LAUSANNE
Table of Contents
Executive Summary
Introduction
Case Study: Dell Computers
Products Offering (Six Main Categories)
Four Major Product Lines
Technological Innovation
Environmental Innovation
Industry Overview
Key Success Factors in the PC Industry
Market Size and Growth
Growth in Sales by Regions
Industry Value Chain
Sales Performance of Major Players
Revenues
Technological Advancement and Consumer Needs
Competitive Advantage in the Industry
Changes within the PC Industry
Competitive Force Analysis (Porters 5 forces)
Potential Rate to Growth of the Industry
Ease of Entry of New Firms
Intensity of Competition among Rival Firms
Degree of Product Substitutability
Dependence on Complementary/Supporting Products and Services
Degree of Bargaining Power of Buyers and Customers
Degree of Bargaining Power of Suppliers and Vendors
Degree of Technological Sophistication in the Industry
Rate of Innovation in the Industry
General Level of Management Capability
Competitive Analysis
Apple Inc.
Using Excess Cash as a Strategic Tool
Current Strategy
Financial Goals
Sales and Distribution
Integrated Operations
Competitive Assumptions of IBM
Current Strategy
IBM Capabilities
Hewlett Packard
History Overview:
Present
Financial Summary 2008
Financial Summary 2008 Continued
Competitive Profile Matrix (CPM)
CPM Results
Market Share
Dell and Competitor Profits
Major Share Prices in the PC Industry and DOW Industrial
Conclusion
Sources
Executive Summary
Founded in 1984 by Michael Dell, Dell was based on a business plan to allow a PC company to directly serve consumers, via a “Make-to-Order” method, with computers that meet their specific demands, while completely avoiding excess costs that are associated with distribution channels going threw dealers and retailers. With this system, customers were able to customize their computers during the process of ordering, and save money due to the fact that the costs that were faced by Dell were lower in result of their business strategy. The company grossed $73 million their first year of operations. Dell began selling their product