Pest Analysis Of Dell

The external environment is structured by both general and competitive environment, however this chapter will examine and analyse the key factors that are currently affecting Dell’s performance with the use of PESTLE analysis.
The current environment of the computer hardware industry is influenced by several macro environmental factors, which their power and importance can be better understood by performing a PEST analysis (Johnson et al. 2013). Analysing the environmental factors affecting an organisation is extremely beneficial, because it provides an opportunity to assess and monitor the potential weak signals that might influence the organisational performance (Henry, 2010 p.49). One of the factors that constantly changes is the technological

Johnson et al. (2013 p.92) argue that the aim of SWOT analysis is to identify the extent to which strengths and weaknesses are relevant to, or capable of dealing with the changing factors in the business environment, however by considering all of the issues in a systematic way, strategies will be formulated for Dell to take advantage of its opportunities by building on its strengths, avoiding any threats and compensating for its

Such services were not being provided within any other major computer retailer except the main direct competitors such as HP and Toshiba, however Dell’s major competence adds tremendous value to their consumers and provides Dell with a long- term competitive advantage. Another beneficial strength of Dell’s business strategy is that 70% of their revenue is generated by large business entities and premium consumers with governmental background. For instance, Dell organise Platinum Councils in the United State that bring together global and corporate customers twice annually with the top levels of their organisation, including Dell CEO and founder Michael Dell (Dell.com ,2014).
Although, Dell targets its premium customers for their main target audience, the college student segment of the market is increasing rapidly. For example, Dell’s sales revenue from educational institutions only accounts approximately 5% of the total revenue, which is significantly demanding considering that Dell focuses on the corporate and government institutional customers affecting its ability to develop relationships with the small and medium business