1.
FEBRUARY 13, 2013
DELL: EXTERNAL FACTOR
EVALUATION MATRIX
ASSIGNMENT #3
DAVE NINOBLA
BUSINESS STRATEGY AND POLICY

2.
1
DELL:External Factor Evaluation Matrix
External Strategic Factor Weighted
Weight Rating Comments
Score
OPPORTUNITIES
The company is working on Michael Dell is working in a deal with private investment
0.14 4 0.55
going private firms in buying the company back from the public
Company has gotten this strong by offering
The company's award-winning
customization, reliability, excellent service and support;
customer service, growth and 0.08 4 0.32
while developing and manufacturing the latest
strong financial performance
technology
Dell Services’ flexibility Subservices like ProSupport have been created to
enables the organization to accommodate new business. These are brands under
0.05 3 0.12
adapt to changing customer DELL.
requirements.
The company's application of the Internet to other parts
Internet Support 0.12 2 0.46 of the business --including procurement, customer
support and relationship management.
DELL's Direct Model approach of enables the company
Direct Model Approach 0.08 1 0.12 to offer direct relationships with customers such as
corporate and institutional customers.
THREATS
New / Younger customers 0.09 4 0.16 Attracting the college student segment has been quite
difficult.
iPad /MSFT Tablet Market 0.15 4 0.34 The tablet market has caused quite a stir in the PC /
Laptop industry almost killing the market for these easy
to carry products.
The rapid increase in the advanced technology is the
issue which is the opportunity for the company it
Advancements in technology 0.07 2 0.28 improves but on the same hand it is the threat for the
company because Dell have to keep its position close to
its competitors.
There is an issue that the Dell is the PC maker not a PC
Labor costs 0.08 1 0.24 manufacturer due to which labor costs remains low and
disadvantageous for their growth.
Trade barriers and hurdles Trade barriers and hurdles affect the position of the
0.14 1 0.42
affect company in multiple countries that decline the growth.
Total Weighted Score 1 3.01

3.
2
DELL has been going on quite some scrutiny in the past few months
since their CEO’s decision to take the company private. To many this
may seem as if it were a sign of weakness and downturn. But in
actuality, this is one of their strongest, most logical plans to give
the company a fighting chance. Taking a company private may definitely
hurt the firm in out of pocket expenses, but in the long run, a leader
can take the firm off of the grid, take control of the processes and
management, and mold it to become that major competitor it once was.
DELL can attribute much of their success to their customer
service, growth and strong financial performance. The company has
achieved this high level by offering customization, product
reliability, and excellent customer service and support. Ascustomers
struggle to do more with restricted budgets, DELL services continues
to set the industry standard. The growing requirement for efficiently
managing support related costs among medium and large businesses
increasingly overshadows all other concerns and is the only concern
steadily increasing in relevance in today’s IT environments.DELL
managed to find a way to achieve both objectives by developing a
globally consistent, simplified and proactive delivery infrastructure
tied to flexible and configurable ProSupport offerings that meet the
needs of its customers. ProSupport is a brand of service that DELL
also offers. DELL believes that flexibility is important to its
success, allowing the company to manage costs, while at the same time
quickly adapting to changing customer needs.I have also added Internet

4.
3
Support and the DELL's Direct Model approach of enables the company to
offer direct relationships with customers such as corporate and
institutional customers. Their strategic method also provides other
forms of products and services such as internet and telephone
purchasing, customized computer systems; phone and online technical
support and next-day, on-site product service. This extensive range of
products and services is definitely one of DELL’s strengths.
In contrast DELL has had quite a bumpy ride the past year. Their
stock price has dropped significantly, and earnings have been at a
loss. All this due to stiff competition, technology advancements, as
well as new products from rivals which have controlled the market.
From a consumer standpoint, newer and younger customers are not
looking for a PC to be built for them, they are looking for something
easier to use. That is where DELL does not fare so well. These
consumers want something that works right out of the box. Another
aspect that is hurting the company is that these newer customers are
looking as to what their friends are buying. They all want something
that is recommended or is similar. Younger consumers also want a bit
of flash and style, which DELL is not competing against. Now to add to
the falling in market share, iPad and Tablets have become somewhat of
a laptop replacement. They do not do everything that laptops do, but
for simple activities such as email and web browsing, they are
suffice. This has definitely put a dent in DELL’s hold in technology.
They have not produced a tablet or technology to rival these gadgets.

5.
4
DELL still does not manufacture their own parts. They are in the
PC business where they make computers, but not the parts to make them.
In order for them to keep labor costs low, they must adjust their
business plan and start to manufacture major or common parts. With
this said, trade with other countries has brought some hurdles to the
firm. In order for a company to get a good footing in the Global
Market, they must take on the emerging markets. China and India are
going to be two of the world’s biggest economies. In order for DELL to
make a serious mark, DELL needs to make a presence in both of these
countries. They have been doing so in India, but China has not been on
the upside. Trouble with laws and labor have caused DELL to back out,
at least for the mean time.
In a nutshell, these are some points I have gathered about DELL.
This is definitely a company to watch within the year to see what
their fate will be. I am quite optimistic on their outcome, DELL will
succeed.