Dell Swot

Dell Computer Corporation:
Market Trends and SWOT Analysis
Professor Pinegar
BUS 341 A
March 13, 2002

Dell Computer Corporation:
Market Trends and SWOT Analysis
Introduction
As one of the largest computer manufacturers in the world, Dell Computer Corporation
has grown tremendously since its incorporation in 1984. Dell's Direct Model, which is largely
responsible for the success ofthe company, provides a fast, cost-efficient, and customer friendly
means of production and distribution. Now, in a market that is ever changing, competitors are
challenging Dell with new and unique products in an effort to overcome the superiority of the
Direct Model. The growth and development of laptop computers is a primary area in which Dell
can work for continued success, despite thethreats posed by its competitors.

Market Trends
The market for laptop computers has distinguished itself as one of the fastest growing
segments of the computer industry. Throughout its growth and development, this market, like
many others, has changed a great deal as a result of customer demands. In an effort to cater to
these demands, companies like Dell look to market trends to aid in thedevelopment of new
products. In its most recent stages, the laptop market has been specifically influenced by a
number trends.
Generally, the overall market for PC's is being influenced by many of these trends. One
in particular, however, is affecting the market more than any other. Simply, customers are
becoming more educated about their purchases. Computers are being sold less to first-timebuyers, and much more to consumers who have purchased personal computers at least once

before (Matching Dell, page 4). As an increasing number of customers become more
knowledgeable about computers, other trends are beginning to take shape.
As a result of this consumer education, buyers want increased customization of personal
computers. The growing amount of knowledge among consumers iscreating the ability for
buyers to distinguish their own personal needs in a computer from a standardized product. This,
in turn, affects trends that are specific to the laptop market.
The laptop market is growing at a faster rate than desktop computers. This trend is being
driven by global integration and advances in communication technology. Customers are living
more mobile, communicativelives, and their computers must have similar characteristics that
make such activity not only possible, but also efficient and easy.
When it comes specifically to the product, customers are demanding increased portability
and durability from laptop computers. Driven by this new mobile lifestyle, customers want a
product that will be easy to move and difficult to harm or damage. This may includemaking it
smaller, lighter, and perhaps sturdier than previous models.
In addition to demanding more from the physical features of laptop computers, customers
need greater performance capabilities. Consumers need their computers to operate at higher
speeds, work with more memory, and to be easier to navigate than ever before. Computer users
depend more and more on their laptops to organize theirlives and to hold vital information, and
as a result companies must work to provide them with the best technology available.

Creating a New Laptop
In developing a new laptop computer, Dell would like to target three specific market
segments. The first, business executives, generally receive their computers from their employer

through a direct relationship with a manufacturer orsupplier. The second, college students,
generally buy their computers through the school they attend. This is very much like the way in
which business executives receive their computers, in that the individual is limited to the options
chosen by the institution. Finally, Dell would like to explore the option of creating a laptop as a
replacement for home desktop computers. Each of these market...