Pestle Analysis and Strategic Management of DELL

TASK 1

Strategic direction that company has followed in past and the way it is developed in past five years.

To minimise competitive advantage and to achieve targeted organisational goal Dell company is continuously developing strategic management by which their targeted future goals of the company get achieved. In the year 2013 company has made a strategic management to achieve goal up-to 2020. Their goal is to maintain social and environmental factors by which they will able to develop effective relationships with the customers.

Company has followed effective strategic directions in past five years by which they will able to maintain their effective relationships with customers as well as in business market as well. Dell strategy is to develop effective market environment under which they are being closer to customers to find their expectations which they able to carry marketing strategies.

Firstly they have applied effective internet infrastructure where they provide facilities to customer in booking products online which helps them to develop effective customer base in existing business market. Another policies they applied in reducing competition is through collaboration. By doing collaboration Dell's executives thinks that this strategic management helps them to reach market efficiency. Company has added Xerox's technology which has provided good profitability and they have also provided the best service to customer by adopting this technology.(Myrick and Kelloway, 2018,)  These strategic management of the company helps them to cut the monopoly of the other computer organisation and which also helps them to capture market in which they have provided effective goods and services to customer.

Now Dell is going again public after five years of privately held company. Using a mix of cash and equity company has announced to purchase holders of shares and the amount which they have announced to purchase that is $21.7 billion. By 2020 company's goal is to capture social and environmental market by offering best services to the customers.

TASK 2

Pestle analysis of the company to review external environmental factors.

Political factor-

dell company has to face many strategic international relationship because their business is global they have to face political legislation in performing company's operation in the  different countries. Such factors may be political instability, tax laws, trade measures, and also foreign currency rates.

Economic factor-

three major factors which affect Dell performance are fluctuations in foreign currency rates, cost of raw materials for their products and financial stability in country which they operate. When country's taxation policy increased and currency rates increased, major impact spike on cost of products and service they offered to customers.(Ocasio, Laamanen and Vaara, 2018. )

Social factor-

in the world of internet every one is using laptop and in which Dell has been able to develop their goodwill among customers, but they have tough competition from their competitors which are HP, Lenovo, Asus etc. therefore, their strategies are so effective that their name is known to everyone.

Technological factor-

they are known as technological corporation and because of that they have continuous upgrades in their technologies. To remain in business market which is full of competitions Dell has to make continuous changes in their technological factors by which their profitability increased up.

Legal factor-

this is the major issue for company's which are doing business globally. Company has to follow rules and regulations of the country in which they are doing their business operations.

Environmental factor-

this factor is now become most important for the companies. Government has taken an initiative for company's to maintain environmental factor and by which customers only get attracted to companies which have effective contribution in maintaining environmental factor.

Critical discussion on company's competitive advantage among its direct competitors

To measure this factor of Dell company Porter's Five Forces models have been applied by company.

Threat of new entrants-

to enter into computer business a company has to applied major elements in the company like huge capital investment, upgraded technological infrastructure, knowledgable and skilled employees by that only company will able to compete with other firms of the market. Therefore, threat of new entrant is low for Dell organisation.

Bargaining powers of buyers-

under this factor bargaining power remains low to moderate because in this business customer only preferred reliable brand and Dell has been providing excellent customer service by which they have strong loyalty from customers.

Bargaining power of suppliers-

this factor remains low for these types of industry and Dell has maintained strict guidelines regarding audit of quality assessment of products and services they provided to customers by which they will able to maintain their dominate position to decide price from suppliers.(Hill,  2017.)

Threat of substitute products-

for computer industries they have faced a major drop-down in their business during last five years and the reason for this is development of substitute products in market. Therefore, power of this factor remains moderate for Dell organisation.

Rivalry among existing firms-

in computer industry this level remains high. Top players of this market are HP and Lenovo and due to drop-down in this market their major focus is on the innovation of products and services by which they will able to capture business markets.

Probable industry scenario which faced by company from its existing market domains

Current scenario of Dell is to provide products with low cost distributions but there are lot competitions from existing market domains who are providing same substitute product in a low price by which has to face reduction in profitability of th

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