Overview Of Dell Inc.: Core Business Activities And Market Position

Introduction to Dell Inc.

Question:

Discuss About The International Conference On Know Management?

The purpose of this task is to provide a brief overview of the company Dell Inc. which manages their operations in the computer technology industry. The company manufactures both hardware and software products and services in the market. Dell is an American multinational company which was originated in the year 1984 by Michael Dell. The task discusses the core activities and the objectives of the company and its position in the market with respect to its competitors. More details about the task are discussed below:

Dell Inc. is based in Texas and sells, repairs, manufactures and supports the personal computer, data storage devices, software, camera, printers etc. in the market. The company is famous for its innovative production in the market and the supply change management along with e-commerce activities as well. The company also focuses on the direct-sale model to initiate sales in the market. Dell operates in a computer technology industry where production of computer hardware and software activities are implemented. The computer industry or information technology industry involves in designing the hardware and providing the IT services in such a way that it brings technological upgradation in the market (Laudon, and Laudon 2015).

Further, the core business activity of the company is the manufacturing and selling of its personal computers in the market. The client solution unit of the company accounts two-third of its revenue which relies on the sale of PC. The client solution includes notebooks, laptop, tablets, thin client products, and services. Earlier, Dell was a desktop PC company, and the desktop PC itself generated revenue for the company. Thus it shall be noted that the core business activities of the company is producing personal computers and provide services related to it  (Dell 2018). Another activity initiated by the company is enterprise solution. This activity includes networking, storage, servers etc. related services in the market. Further, these activities contribute 27 per cent of the total sales of the company. The company works with a diversified network of employees working with them from all parts of the world. More than 101,800 people work with the company. Dell aims to employ people with great innovative ideas and people who can match up to the innovations related to the company. The people strategy of the company is designed to attract world’s greatest talent and deliver breakthrough performance in the external market as well (Dell EMC 2018).

Core Business Activities of Dell Inc.

The aim and objective which Dell holds in their business process are that the company constantly aims to provide technological acceptance to people all around the world. The company aims to ensure that the multi-featured products which they provide are available in the market for all the people so that they can also adopt new and efficient technology in their daily basis activities (Dell EMC 2018). Further, the company also aims to create products in the market with the optimum use of all the available resources and other macro and micro environments as well. Also, the organization aims to deliver structurally and functionally viable computers for the visually impaired people globally. The code of ethics of Dell inculcates social, environmental, economic and corporate responsibility in all the activities so as to provide greater level of satisfaction to the customers and the society on a whole. Due to feasible and practical aims and objectives, the company is able to implement them in action plan to deliver satisfaction in the market (Zimmermann, et. al., 2015).

Major competitors of Dell in the market are Lenovo and Hewlett-Packard Company as both the company provides similar services in the market. Further company also competes with Apple and IBM Corporation in the software and business hardware sector. Talking about the strengths of Hewlett-Packard Company it shall be noted that the company has its biggest presence in all parts of the world and mainly in China where technology is used in all sectors. Just like Dell, HP has also created brand reputation in the market by serving quality products. Also, the company holds diversified portfolio which gives an ease to the customers to choose between different products and purchases the best-suited product for them. Further, the weakness of the company is poor competency in acquisitions and less income acquired from the sale of personal system divisions (Xu 2014).

Further talking about strengths and weakness of Lenovo, it shall be noted that Lenovo earns the biggest revenue in the market by providing low-cost products to the customers in the market. Further, the workforce of Lenovo has adequate synergy of knowledge and diversified people acting upon the management. The weakness which Lenovo faces is the poor brand perception in the developed economies and low differentiation in the market as well (Uhl, and Gollenia 2016).

Apart from these organizations there are many other organizations slowly trying to gain the pace in the information technology market. So, summing up the analysis it shall be concluded that there is heavy competition in the market which is promoted by many associations as it reduces the cost for customers and provides them better level of satisfaction as well (Sedera, et. al., 2016).

Competitors of Dell Inc.

Dell is regarded as one of the largest computer selling firms in the market. The company is distinguished in the market due to its direct selling process initiated through its marketing strategy. Also, Dell is known for building efficient personal computers worldwide. Thus, it shall be noted that the company is positioning in the market at a place where the customers purchase the products of the company just by looking at its brand image. People do not focus on specifications, but the name of Dell is enough to sell the product in the environment. The company has become a market leader in the information technology environment (Linda, et. al., 2015).

Further Dell earned this position in the market due to the competitive advantage which they initiated in their business activities. Direct marketing policy helped the firm to reputation in the market and shows their business functions to the whole world. Apart from that, the company focuses on providing best solutions to the people in the market, not just provide the best technology to people. The company aims to provide useful technology to people which can increase their satisfaction level in the market. It shall be noted that a position in the market on the basis of reviews given by the customers present in the market (Teece, and Linden 2017). So, the customers of Dell are satisfied with their services, therefore, the company has earned the position of market leader. In the overall market of information technology, Dell is placed in the third position after HP and Lenovo and its market share is 15.7 per cent (Statista 2018).

• As discussed above, the company has earned adequate share in the total information technology market which makes the company competent to initiate its actions in the market. $7.5 billion is the brand value of the company.
• Product customization gives greater level of satisfaction as they can produce product according to their requirements.
• Lastly, direct selling model helps the company to increase the satisfaction of customer and logistic supply promote the company in global market (Dell EMC 2018).

• Computer hardware is weakness of the company as these products are not efficient as compared to products served by the competitors.
• Low investment in research and development pulls the growth of the company in the backward direction. Being present in an information technology it is very important for organization keeps themselves competent in the department of development (Valacich, and Schneider 2015).

• The company has a scope of expansion of their services and enterprise solutions. Expansion in various parts worldwide is the biggest opportunity for the company which can also help them to increase their market share as well.
• It shall be noted that the Tablet market of Dell is on slow growth, so the company shall innovate the product and then serve them in the market so as to increase sales (Dell Technologies 2018).

• There is increasing demand for smartphones and tablets in the market which can hamper the growth of the company in the global market.

Digital transformation is the most important activities which all organizations aim to initiate. Additionally being placed in a technological business, it is very important for organizations to use the digital transformation activities to succeed in the market. Digital transformation helps an organization to create products which are competent and efficient in the market.

Dell uses the digital transformation practices on regular basis promote their products and services in the market. The company uses an ongoing approach of transforming their IT sector to accelerate innovation in the external environment as well. Further company aims to empower the people so as to collaborate with different skilled people and increase efficiency as well. Lastly, Dell aims to stay secured so as to protect the company from cyber-attacks as well. Thus, in this way digital technology is important for different organizations to present in the industry like Dell (Dell Technologies 2018).

Dell's Position in the Market

Best practices which Dell Technologies implemented in accordance with digital transformation are discussed below:

• The company adequately understands the urgency to become digital leader driven by people. The people connected with the activities of the company demand a secured connection, personalization in products and on-demand services as well. With respect to which the company used the digital transformation activities to assist the people. The company used digital transformation to increase the efficiency and create a better infrastructure for the people of the company. Modernize, automate and transform are the three way model through which company used the technology and implement it to increase the satisfaction of customers (Dell Technologies 2018).
• Modernize approach helps the company to design the infrastructure which increases the efficiency of their employees and make full use of resources available to them. Further automate helps in reducing the risks and accelerating IT service delivery. Lastly, Transform helps the company initiate an IT model which indulges innovative activities in the business process. It also helps in supporting the agility and business goals as well.
• Further, the company is aiming to support the small-scale companies using digital technology to successfully implement their business operation. Through survey, the company analyzed the people facing issues due to technology. Afterwards, Dell organized digital rescue plan under which transformed the organization by making them digitally competent.
• Security transformation activity is also used by the company concerning the digital transformation activities. This process uses activities which embrace the environment and reduces the risk of interruption of outsider in the activities of the company (Dell Technologies 2018).

The digital enterprise is improving day by day with the initiation of innovation in the process. These trends and innovations are shaping the future of IT sector worldwide. The cloud computing activities are now becoming most important aspect of the organization present in this sector. Further internets of things are changing the functions of the companies on how to do businesses in the market. Artificial intelligence has become an important aspect which is used by all people, so companies focusing provide the services which are properly acquired by people. Also, the companies aim to provide artificial intelligence which produces things not destroy them (Monostori 2014).

The market is focusing on big five companies that are (Google), Amazon, Apple, Facebook, and Microsoft whereas other Next 20 organizations are facing difficulty to survive against them. Dell is a part of Next 20; further, the direction in which the market is floating is based on many variables. Company providing more efficiency problem-free technology will be given priority in the market (Kane, et al., 2015).

Conclusion

Thus, in the limelight of above-mentioned events, it shall be noted that Dell Technologies' is a famous organization which is known for providing efficient technology services through direct selling. The above-mentioned task talks about the aim and objectives of the company and its position in the target market. Further, it also talks about the strengths and weakness of the company and the qualities of their competitors as well. Lastly, it shall be noted that company is adequately positioned among market leaders in the technological market.

References

Dell EMC., 2018. Dell EMC – Creating A Digital Future & Transforming IT. Viewed on January 29, 2018, from < https://blog.dellemc.com/en-us/dell-emc-creating-digital-future-transforming/>

Dell Technologies., 2018. Digital Transformation helps a business create and grow faster. Viewed on January 29, 2018 from < https://www.delltechnologies.com/en-us/what-we-do.htm>

Dell Technologies., 2018. Digital Transformation: embracing a digital future. Viewed on January 29, 2018 from < https://www.delltechnologies.com/en-us/perspectives/digital-transformation-index.htm>

Dell Technologies., 2018. Turn IT into an innovation hub. Viewed on January 29, 2018 from < https://www.delltechnologies.com/en-us/what-we-do/it-transformation.htm>

Dell., 2018. Company Information. Viewd on January 29, 2018 from < https://www.dell.com/learn/us/en/uscorp1/about-dell>

Kane, G.C., Palmer, D., Phillips, A.N., Kiron, D. and Buckley, N., 2015. Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press, 14.

Laudon, K.C. and Laudon, J.P., 2015. Management Information Systems: Managing the Digital Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.

Linda, A., Arduin, P.E., Grundstein, M., Negre, E. and Rosenthal-Sabroux, C., 2015, April. The role of the Enterprise’s Information and Knowledge System within the Digital Enterprise. In International Conference on Knowledge Management, Information and Knowledge Systems (KMIKS) 2015 (pp. 91-86).

Monostori, L., 2014. Cyber-physical production systems: roots, expectations and R&D challenges. Procedia Cirp, 17, pp.9-13.

Sedera, D., Lokuge, S., Grover, V., Sarker, S. and Sarker, S., 2016. Innovating with enterprise systems and digital platforms: A contingent resource-based theory view. Information & Management, 53(3), pp.366-379.

Statista., 2018. Market share held by the leading personal computer vendors worldwide in 2017. Viewed on January 29, 2018 from < https://www.statista.com/statistics/267018/global-market-share-held-by-pc-vendors/>

Teece, D.J. and Linden, G., 2017. Business models, value capture, and the digital enterprise. Journal of Organization Design, 6(1), p.8.

Uhl, A. and Gollenia, L.A., 2016. Digital enterprise transformation: A business-driven approach to leveraging innovative IT. Routledge.

Valacich, J. and Schneider, C., 2015. Information Systems Today: Managing in a Digital World Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.

Xu, J., 2014. B2C Digital Enterprise: E-Tailing. In Managing Digital Enterprise (pp. 77-95). Atlantis Press, Paris.

Zimmermann, A., Schmidt, R., Sandkuhl, K., Wißotzki, M., Jugel, D. and Möhring, M., 2015, September. Digital enterprise architecture-transformation for the internet of things. In Enterprise Distributed Object Computing Workshop (EDOCW), 2015 IEEE 19th International (pp. 130-138). IEEE.