StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Threat of Substitutes as Applied to Dell Computers - Essay Example

Cite this document
Summary
In the paper “Threat of Substitutes as Applied to Dell Computers,” the author discusses the personal computer industry, which is likely to remain one of the most contested sectors of the marketplace for the foreseeable future. Profitability is high as the companies reach new levels of the economy of scale…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Threat of Substitutes as Applied to Dell Computers
Read Text Preview

Extract of sample "Threat of Substitutes as Applied to Dell Computers"

One of the first issues Dell should address in order to keep customers loyal, and not looking for substitute products is its customer service and product reliability records. According to ConsumerAffairs.com, Dell is the highest among domestic computer makers in customer complaints. (2005) The company has experienced double-digit growth in the past few years, and with the growth comes increasing pressures on their manufacturing as well as customer service departments.

If Dell is to remain at the forefront, they must address this issue, and bring the amount of their customer service and technical service complaints back down to reflect industry averages. Another significant threat to Dell is the rising innovation within the computer industry. The evolution of the laptop and home PC into a complete multi-media entertainment center is moving to the forefront of home electronics. HP has introduced its "Media Center PC" which comes out of the box ready to facilitate television viewing, music storage and playing, and a host of other home and family media needs.

Dell has also introduced similar products, but HP has gained the first foothold, advertising these computers to the masses via a massive television campaign. If customers gain a perception that HP or other computer manufacturers have the next generation PC's while Dell remains behind the curve, struggling with customer service and reliability issues, the company could see its position in the marketplace erode quickly. Another product that is allowing computer manufacturers to expand their position in the marketplace is the evolution of high-definition televisions.

The LCD and Plasma screens which have powered laptops for a generation have leaped the great size divide. Technology now allows this high-definition (HD) products to appear in 42" and 52" sizes, allowing for computer manufacturers to launch a foray against a marketplace that has been the sole residence of television manufacturers. Samsung, Panasonic, and Sony are leading the field in the plasma and LCD HD television market. Yet Dell has their line of HD televisions available. This evolution in media and entertainment delivery poses the most significant threat to Dell.

This product evolution has introduced a genuinely new product into the marketplace. 

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Threat of Substitutes as Applied to Dell Computers Essay Example | Topics and Well Written Essays - 750 words - StudentShare, n.d.)
Threat of Substitutes as Applied to Dell Computers Essay Example | Topics and Well Written Essays - 750 words - StudentShare. https://studentshare.org/business/1527710-porters-five-forces-threat-of-substitutes-as-applied-to-dell-computers
(Threat of Substitutes As Applied to Dell Computers Essay Example | Topics and Well Written Essays - 750 Words - StudentShare)
Threat of Substitutes As Applied to Dell Computers Essay Example | Topics and Well Written Essays - 750 Words - StudentShare. https://studentshare.org/business/1527710-porters-five-forces-threat-of-substitutes-as-applied-to-dell-computers.
“Threat of Substitutes As Applied to Dell Computers Essay Example | Topics and Well Written Essays - 750 Words - StudentShare”. https://studentshare.org/business/1527710-porters-five-forces-threat-of-substitutes-as-applied-to-dell-computers.
  • Cited: 0 times

CHECK THESE SAMPLES OF Threat of Substitutes as Applied to Dell Computers

Apple Computer

… Today the mission statement of the firm points out that “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software” (Apple Inc.... Though the competition is quite fierce, Apple refuses to compete on price, relying on reliability, design elegance, ease of use and integrated features of their computers instead.... At that time Apple became the third largest PC manufacturer in the US, coming after dell Inc....
13 Pages (3250 words) Case Study

Success of Apple Due to Porters Strategy Theory

APPORTER Part A History of Apple Apple Computer started in the early 1980s, and was widely known to be one of the first companies to offer a personal computer, along with IBM.... The Apple computer that was popularized for public use was the Apple IIE, which saw use throughout the 1980s, and expanded the use of personal computing....
18 Pages (4500 words) Essay

Five Forces Anaysis Of Dell Inc

Some of such determining factors are competitive rivalry, potential entrants, threat of substitutes, bargaining power of buyers as well as suppliers.... A company that operates in a market where there are larger numbers of substitutes, more powerful buyers and suppliers and there are chances for new entrants faces relatively more severe competition.... Within few years of its start-up, dell has been placed to be 25th in the list of computer manufacturers worldwide, all but dell have gone out of the market to become a fortune 500 company by 1992 (Holzner 2006, p....
10 Pages (2500 words) Essay

Business Strategy - case study of Apple Inc, and Dell Computers

Michael Dell, the founder of dell computers started his business in 1984 by actually peddling his custom built PCs to users who are looking for bottom price PCs.... he PC industry is very competitive, and some of its closest rivals are Microsoft Corp, dell computers and Palm Inc.... ell computers and Apple Inc.... [wikipedia] Strategies utilizedDell computers.... hellip; In 2001 it was assumed that Apple was simply a ninch player with a captive market and that dell was a mass producer that won market share by outstanding levels of cost competitiveness....
5 Pages (1250 words) Case Study

Managerial control case study

ne of the most important forces that govern the strategy adopted by a firm within any industry relates to the threat of new entrants.... Although Apple computers has been known for closely guarding the secrets of its proprietary technology so far, now with the alliance with Microsoft and availability of Windows 98 for Mac users since 1998, the switching cost for Mac users trying to switch to Wintel platforms has also been low.... Hence the most significant threat from the point of view of entry barriers figures in the form of high capital requirements, primarily for investment in research and development for coming up with innovative products in line with the dynamically changing requirements of the marketplace....
5 Pages (1250 words) Essay

Dell Inc.s Application of the Direct Sales Model

The approach enabled the organization to be a producer of personal computers using the most minimal costs and pave the way to dominate the PC industry known for falling prices, which was actually exhibited during the period from 1997 onwards and low-profit margins.... The researcher of this essay will make an earnest attempt to evaluate and present the case of dell Inc.... hellip; According to the research findings, it can, therefore, be said that dell Inc....
8 Pages (2000 words) Case Study

Apple Computer Analysis

It is targeting different segments - individual customers (both the low and the high end users, by providing two versions of both the desktop (iMac/PowerMac) and the Portable (iBook/PowerBook) computers); content creation professionals; corporates; school and educational centers (through eMac, a school desktop)....
30 Pages (7500 words) Term Paper

Issues in Competitive Advantage: The Computer Industry

With the advent of Information Technology, computers have become all-pervasive.... The computers are becoming like a commodity, with households aspiring for more than just computers.... pple is one of the leading players in the Computer and Entertainment Media Industry, though its market share has been usurped by competitors like dell.... (Business Wire, 2005) The major players in the industry are dell Inc....
10 Pages (2500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us