Financial Analysis of Dell Computer

Financial Analysis of Dell Computer

1. Summary:

Dell, established in 1984, is among the worldЎ¦s leading computer manufacturers that has transformed and diversified into variety of business segments over the years. Also, the company is the computer industry leader in keeping costs down and wringing efficiency out of its direct sales and build-to-order business model. The strength of the company is DellЎ¦s alternative organizational structure. DellЎ¦s dynamic organizational structure allows it to achieve diversified targets. By allowing the components to be directly integrated into the manufacturing process, it has been able to reduce middle channel costs. These components, such as original equipment manufactures (OEMs), logistics, system integrators, repair and support companies, component suppliers, third party hardware and software suppliers and distributors have become each of the company's manufacturing processes so that ease of provision to the customers is possible. This reverse organizational process structure differs from other industry leaders.

However, within the strengths lies their weakness. Much of its strategies have to rely on the capacity and capability of these manufacturing components. Continuous updates and process improvement is required, so that they can keep up with Dell's pace of development. In addition, the company has high dependency on component suppliers.

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