Dell Inc. is a global computer hardware, software, and services company headquartered in the U.S. with over 115,000 employees worldwide and annual revenue of $56.94 billion in 2013. The document analyzes Dell using Porter's Five Forces model, noting that while suppliers have power due to Dell's brand, Dell maintains strong relationships with suppliers located near its manufacturing. New entrants pose a threat as Dell diversifies its product lines. Dell gains an advantage over customers through personalized websites and support. Rivalry in the computer industry is high and substitutes like Apple computers are a threat if Dell fails to innovate.

1. FIVE FORCES MODEL FOR DELL
BY:
BACHU VINAY CHAITHANYA

2. Dell Inc.
Name Dell Inc.
Industries served Computer Hardware, Software, IT
Services, IT Consulting
Geographic Served Worldwide
Headquarters U.S.
Current CEO Michael Dell
Revenue $ 56.94 billion (2013)
Profit $ 3.12 billion (2013)
Employees 115,000 (2013)
Main Competitors Apple Inc., Samsung Electronics,
Lenovo, HP, Sony, Asus and Many
others

4. The bargaining power of suppliers
 Power is high where the brand is powerful.
 Dell Company never sticks to one supplier forever.
 Indication of Dell to be in better position than its suppliers is
that Dell got most of its suppliers locate their businesses and
manufacturing units close to Dell’s manufacturing and
assembly units.
 Moreover, suppliers can regularly supply their inventories to Dell
within hours of assembling the computers which indicates a
strong corporate understanding of both Dell and its suppliers.

5. Threat of new Entrants
 Dell is worried about his business empire is the possibility of
new entrants to the market who could adversely affect his
business. And moreover, Dell’s new strategy is the product
diversification, therefore, almost all electronic companies are
potential entrants to this new market.

6. Bargaining Power of Customers
 One of the competitive advantages Dell has gained has been
through offering in-person relationships with corporate and
institutional customers.
 Corporate clients can go to Dell’s special website called
Premier Dell.com and configure computer systems in regard to
the price and specifications.
 Post sales online supports which are online and in some cases
the company engineers can even visit the customer sites.

7. COMPETITOR RIVALRY

8. THREAT OF SUBSTITUTES
 Apple Mac because of lack of innovation in Windows
 Windows being the alone supplier of operating system, Dell are
dependent on Windows.
 More differentiation among the products offered by competitors
(Sony- Stylish, Lenovo- Low Range Market etc.)
 Acer offers warranty more than Dell and offers international
warranty.
 Not offering Windows 7 on new laptops.