MIDTERM’S CORRECTION : DELL

1/ DELL is :
 A for profit organization
 An american multinational
 Private company
 Large company (138 000 employees)
 It’s related to the * secondary sector (manufacturing industry)
 Tertiary sector (since it performs services)
 Quaternary sector ( related to the ICT)
( 6 required elements x 2 = 12 marks)

2/ It’s important for DELL to analyse its external environment since

 It’s an open system in interaction with its environment
 The survival and performance of the company depend on its
adaptation’s degree
 That ‘s why it’s necessary to identify
* The opportunities to exploit them
* The threats to avoid them
Since the environment is dynamic, the company must try through this
external analysis to predict future changes and elaborate strategies to
avoid surprises.
(12 marks) The key words mentioned in bold are required;
3/ PESTEL ANALYSIS ( min: 13 element required X 2 ) = 26 marks

OPPORTUNITIES THREATS
POLITICAL ENVIRONMENT
 Risk to become unwelcome
in certain markets
particularly in Russia and
China due to spying
concerns
 detrimental impact of
political factors
ECONOMIC ENVIRONMENT

 Emerging economies: fastest  Economic volatility

growing markets
 The dollar has grown
stronger
 Increase in raw material
prices
SOCIO CULTURAL ENVIRONMENT
 Increasing level of integration
of various internet applications
into increasing aspects of
professional and personal life
of consumers
 Increasing popularity of social
networking websites
(facebook, Linkedin,
Instagram….)
 Demographic changes
 Changes in consumer attitudes
and opinions towards
 consumer electronics products
and services
 Customers are more
knowledgeable about
electronics products

TECHNOLOGICAL ENVIRONMENT
 Acquisition of new Technological changes (that can
technological patents swiftly alter the market dynamics and
affect the sales and revenue of
 Development of internet and businesses.)
social networks

ECOLOGICAL ENVIRONMENT
  Environmental laws
LEGAL ENVIRONMENT
  Barriers in forms of trade
tariffs and other instruments
in emerging economies
 Constraints set by local laws
of the different countries
where Dell operates
 Legal issues
 4/

Threat of new
Medium entrants
low

Power of High barriers to entry

providers (capital required….) Power of
-Highly skilled Customers
-Intel and Microsoft
professionals required Medium
dominate the sector
-)
- A wide array of
providers for the other Rivalry -Great variety of brands
components High
-Customers were
-Acer ,,Apple, HP,-IBM,
becoming more
Lenovo, -Toshiba,
knowledgeable about
-Asus…
computers
-Customization of the
Threat of products put DELL in a
Substitutes strong position
-Tablets
Intensity of each force : 3 High
-Smartphones
marks

Explanations : 3 marks
 5/ The marketing mix ( 5 marks for each P)
Product Price Place Promotion

 Customizable -Low prices -Direct channel -Advertising in

products without TV
-Free bonus
intermediaries
 Wide range of products -Internet
products since -Internet: E-
-Free shipping -Print media
the company is commerce
offering -Match prices if -Catalogs
-Phone
different the customer
Customer
product lines: find a lower -Use of Retailers
newsletters
price for an (Best buy,
-PCs products -Pull strategy
identical Walmart,
-Servers product Carrefour…) * promotion
-Data storage devices -Price is actually - Dell is a through
a competitive worldwide retailers): -push
-Network switchers
tool company strategy
-Computer software
-flexible : -
-computer peripherals variable prices
-HD television depending on
the options
-Cameras added to the
-Printers product

-Tablets
Services
-cloud
-security
-infrastructure
-Enterprise solutions…
High consistency in
the product mix