One of the main reasons this industry, the computer hardware industry, is so successful is because the market and technology are continually hanging. There is always a new breakthrough or technology advancement making computers more effective and efficient. More and more businesses are becoming dependent on Internet systems and e-commerce, therefore making this a very powerful industry. Profit outlook is still very high, despite the recent recession and failure of several internet companies.
Dell continues to grow, especially in their line of personal computers. Dell’s Direction in technology- Standardization is the key to the data center evolution and the basis for this approach. It enables multiple suppliers for a data center unction and provides opportunities to evolve features in a way that benefits the entire industry. Standardization also encourages rapid price reductions in data center solutions as multiple suppliers compete for business. By participating broadly in the promotion of standardization, Dell is in an excellent position to assess the practical effectiveness and relevance of each area.
As a result, Dell can provide simple, pragmatic steps toward the future data center as they become practicable. http://www. dell. coHttpwnloads/DellalComctors/2005_scalable_enterprise. pdf Market Analysis.PDFrket size and growth: The industry market size is large and new companies are emerging. Dell has continued to grow since its founding, massing $32. 1 billion as of the past four quarters. The scope of the industry is worldwide and the market continues to expand and grow throughout the years. The pace of technology change and innovation continues to be fast and product innovation is improving among computer companies.
Dell also saw the prospect for international growth. Many firms moved into Europe by exporting. But Dell set up its own operations there. Dell knew it would be tough to win over skeptical European buyers. They had never bought big- ticket items such as PCs on the phone. YePC’sn less than five years, sales in Europe grew to 40 percent of Dell’s total revenue and Dell pushed into Asian markets for more growth. That also posed challenges, so Dell’s advertising manager invited major ad agencies to make presentations on how Dell could be more effective with its $80 million global advertising campaign.
But there’s one number he cares about most: do both to maximize long-term profitability. That means products need to be priced low enough to induce shoppers to buy, but not so low that they cut unnecessarily into rofits. (http://www.refitsessweek. com/maBusinesslikentCom_44/ b3856001 _mzool . htb3856001namezzoketHTMLportance and Trends: Emerging workforce trends motivated Dell to undertake the research and to convene a recent Global Women’s Summit, which was attended by diversity and human resources executives from several dozen Fortune 500 companies.
According to the Harvard Business Review in March 2005, figures released by the U. S. Department of Education indicate that in the next decade the number of women with graduate and professional degrees is projected to grow by 16 percent. By contrast, the number of men with these degrees is projected to grow by only 1. 3 percentl . http:// .percentl. HttpcontenUstoDell/gComal. aspx/corp/pressofficAsps/corp.kpersonifies Analysis: Dell is able to successfully connect with all kinds of computer customers and build mutually satisfying, mutually profitable relationships that last.