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Abhijeet S
Pest Analysis On DELL : Dell Inc: (NASDAQ: Dell, HKEX: 4331) is a American multinational information technology corporation based in Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. Dell had 46,000 employees as of Jan. 30. About 22,200 of those, or 48.3 percent, were in the United States, while 23,800 people, or 51.7 percent, worked in other countries, according to a filing with the Securities and Exchange Commission.[citation needed] Dell is listed at #38 on the Fortune 500 (2010). Fortune also lists Dell as the #5 most admired company in its industry.
Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce.
On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.[
PEST Analysis
Political
One of DELL’s biggest threats is involving the fourth element of the external environment, the political/legal environment. The Chinese government prefers to promote national PC vendors to foreign companies. There is a lot of red tape involved in securing government contracts. The Chinese government not only favors local firms but also local companies. Government control of internet usage in China is another threat to the growth of the internet.
Economic
The economic environment refers to the nature and direction of the economy in which a firm competes or may compete. A primary threat that computer companies encounter in China is the problem of software piracy. China has a shortage of skilled labor, even though the country has many economic opportunities. Computer companies have to acknowledge that the average consumer could not afford the investment and very few had a bank account. DELL is aware that Chinese customers go for the cheapest System.
Social
The socio-cultural segment is concerned with a society’s attitudes and cultural values. The potential for Internet growth is huge in China, giving foreign computer companies, DELL the opportunities to expand into a new market. Computer companies have to acknowledge that in the Chinese culture, people are still unsure about card sales because of the huge expense of computers in China. DELL have to invest in door-to-door or face-to-face operations to gain consumers’ faith and consumers’ trust in the company and product.
Technological
The technological segment includes the institutions and activities involved with creating new knowledge into products, processes and materials. In the computer industry, technology continues to be smaller and faster than ever. Providing access to technologies developed by institutions has proven a key government resource. It was observed that by the year 2000, mainland China’s annual PC production would reach 7.6 million making it the third largest in the world. The internet is a great opportunity for companies to get their name into the public domain as well as a fast way to tailor services to its customer segments. A threat in the technological segment to DELL’s business in China is that access to the Internet is costly.
Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce.
On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.[
PEST Analysis
Political
One of DELL’s biggest threats is involving the fourth element of the external environment, the political/legal environment. The Chinese government prefers to promote national PC vendors to foreign companies. There is a lot of red tape involved in securing government contracts. The Chinese government not only favors local firms but also local companies. Government control of internet usage in China is another threat to the growth of the internet.
Economic
The economic environment refers to the nature and direction of the economy in which a firm competes or may compete. A primary threat that computer companies encounter in China is the problem of software piracy. China has a shortage of skilled labor, even though the country has many economic opportunities. Computer companies have to acknowledge that the average consumer could not afford the investment and very few had a bank account. DELL is aware that Chinese customers go for the cheapest System.
Social
The socio-cultural segment is concerned with a society’s attitudes and cultural values. The potential for Internet growth is huge in China, giving foreign computer companies, DELL the opportunities to expand into a new market. Computer companies have to acknowledge that in the Chinese culture, people are still unsure about card sales because of the huge expense of computers in China. DELL have to invest in door-to-door or face-to-face operations to gain consumers’ faith and consumers’ trust in the company and product.
Technological
The technological segment includes the institutions and activities involved with creating new knowledge into products, processes and materials. In the computer industry, technology continues to be smaller and faster than ever. Providing access to technologies developed by institutions has proven a key government resource. It was observed that by the year 2000, mainland China’s annual PC production would reach 7.6 million making it the third largest in the world. The internet is a great opportunity for companies to get their name into the public domain as well as a fast way to tailor services to its customer segments. A threat in the technological segment to DELL’s business in China is that access to the Internet is costly.
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