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Strategic Management: External Analysis

by Expert Jayjay1 | 31 Oct 2016

Being one of the most recognized brands around the world Dell Corporations enjoys many benefits and perks offered to any first class rated MNE around the world and in the Asian Pacific Region with the Regional Headquarter in Singapore operating in almost 13 countries with the manufacturing facility available in China India and Malaysia.

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Some of the major potential threats Dell Corporation is likely to face in the coming years which can hinder its progression and performance are that in the current scenario and socio-political conditions the business is getting more and more challenging and hence it's getting really tricky especially for an MNE to operate around the globe. Being an American company Dell has certain aspects which hinder its integration as a global firm the high context culture in countries like Japan, China, Taiwan and Malaysia hence a wide gap in the management style and organizational operations as followed by home country allows less integration and acceptance by local consumers that might be the reason due to which there are still mediators or dealer between the company itself and the consumers. Even certain laws and regulations in China for foreign investments may cause havoc Moreover the manufacturing plants established in China, India and Malaysia are ideal from the aspect of skilled and low-cost labor but at the same time in countries specially like India lack of clear cut Human right laws and environmental regulations frequently give rise to the socio-ethical issues like "child labor" and "environment safety problems".( Dell , n.d.)

Another concern which can be for seen for MNC s like Dell is that the rapid transfer of technology and intellectual capital and accelerated entrepreneurial activity in the countries like Japan, Taiwan and Singapore which can be translated into a vigorous completion .thinning the revenues in the coming years some of them are Acer and China's Lenovo thus making it very hard to reap the benefits of the Developing countries markets on the basis of cost advantages

Another setback which Dell is likely to face is Diversification of the Product and product lines and its size. Thus with a number of products to be furnished in a number of worldwide locations it becomes very difficult for Dell to maintain undaunted, uninterrupted and flawless supply be in terms of logistics or other company operations leading to quality negotiations.

Unlike threats Dell is availing several benefits and anticipates a number of opportunities with having one of the best logistics and supply chains it's easier to keep on adjusting costs of the products to gain the cost advantage over the rest of the competitors. Globalization itself is the single most driving force in the business worldwide so does it's for Dell opening more plants worldwide with ideal conditions in countries like Canada, Brazil, and South Africa . Even having a manufacturing plant in a country like Pakistan can be fruitful as it becomes really easy to cater to Middle Eastern block.

It is an prospect that in many regions of the world multinational brands have a higher brand equity and image which simply made them preferred over any local product thus this hold very true for Dell as it offers a compatible products as that of IBM, HP, and other major World famous brand at much low cost which can give the real advantage to Dell especially in Developing countries making it the number one choice there"( Dell , n.d.).

Other bright opportunities may include the fastest growing communication needs, educational advancement, and business operations raising the demand of Computer and IT related product dynamically over the future years. Moreover Middle Eastern region is undergoing rapid infrastructure development so does Vietnam and Mercosur countries including universities and business complexes with a higher demand for PCs and other electronic equipment

Tapping the resources and opportunities translating them into the real revenues can be possible only with the winning business operation abilities worldwide

Reference:

  1. Dell (n.d.) Products and Services. Retrieved 25 September 2008 from http://www.dell.com
  2. Hitt, Michael A., R. Duane. Ireland, and Robert E. Hoskisson. Strategic Management: Competitiveness and Globalization. Cincinnati: South-Western College Pub., 1999. Print.
  3. Saloner, Garth, Andrea Shepard, and Joel M. Podolny. Strategic Management. New York: John Wiley, 2001. Print.
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