Busines stratgt Essay Example | Topics and Well Written Essays - 1250 words

Busines stratgt - Essay Example SWOT analysis is a management tool that allows managers to view the company’s at a wider picture thus enabling them to designing both short-term and long-term plan that may improve business performance. The following SWOT analysis identifies the company’s strengths, weaknesses, opportunities, and threats. In other words, the analysis tries to identify the company’s problems and recommends the best strategic moves for the company to remain competitive. Strengths One of the company’s greatest strength is its business model. The company sells its products directly to consumers. In other words, there are no intermediaries i.e. retailers and wholesalers. This has assisted the company in bringing down distribution cost significantly. Because of this, the company is able to charge lower prices than its competitors thus acquiring a competitive advantage. The time lag between the customers’ orders and delivery is less compared to competitors’ time. Th is is because of lack of wholesalers or retailers in the distribution channel. This has contributed a lot in strengthening the company’s relationship with its customers, as well as, enhancing the customer satisfaction. Additionally, the business model supports customization of the company’s products and services especially the personal computers. The direct contact between the company and the customers enables the company to tailor-make its products to meet the customers’ needs. The company is also able conduct the market research effectively thus focusing on enhancing the customer satisfaction. The company’s high stock turnover is, as well, its strength. Because of this, Dell Inc has a good relationship with its suppliers since it has a healthy liquidity that enables it to pay the suppliers as early as possible. Because of this, the company is able to obtain supplies at lower prices compared to if it would pay later, thus reducing the cost of manufacturi ng. The company’s other strength is that it does not only sell to individual consumers, but also to businesses and government organizations. Consequently, Dell is able to supply a large number of personal computes and other related products thus increasing the profitability. Another Dell’s strength s product differentiation that enables customers to simply identify the company’s products. Weaknesses One of the company’s strength, customization, is also its weakness. A customer would have to wait for more time before receiving his or her computer from a delivery than when he or she goes direct to a retailer store, buys a computer, and acquires it as soon as he or she pays. Additionally the customers are not given an opportunity to physically touch the products and test them before they purchase them. The customers should have an opportunity to go to the retail shop and compare different products before deciding the ones to purchase. For the case of Dell, t he company expects consumers to order their products direct from the company without comparing them with competitors’ products, in the market. Another weakness is that the company focuses more on businesses and government organizations as customers in expense of individual consumers. Jenster states, â€Å"every market segment is equally important for every business meaning that he focus should be on all customers (52)†. To eliminate the weaknesses the company should segment its