The Financial Analysis of Dell Inc Essay Example | Topics and Well Written Essays - 500 words

The financial Analysis of dell Inc - Essay ExampleBecause of the aforementioned strengths, the companionship has made a name in the data processor application and secured a significant portion of the global market sh ar. The company also enjoys inexpugnable brand equity. scholarship of financing is relatively easier as the companys stock has a higher(prenominal) market value. With its commitment to excellence and quick industry prospects, I believe that the company will be able to sustain these strengths in the further. wiz of the major weaknesses of Dell is its lack of proprietary technology in its labor activities. Some experts refer to Dell as a computer maker and not a computer manufacturer. As Dell purchases, semi-assembled inputs in its production, bargaining power is tilted to suppliers. Dells heavy colony on suppliers also exposes it to risk faced by them. Dells high utilization of long debt in financing its assets may make its investors reluctant in purchasing its stocks. The company can get the hang these weaknesses by investing more in research and development. Strategic partnerships should also be strengthened and company should be able to manage its constitute more efficiently. I am very much approving about the future of Dell, Inc. The rapid technological advancement and growing importance of computing devices assure the trading organization with a sure market. It should also be noted that the online business form exclusively apply by Dell will surely be patronized as the level of internet keenness in the world increases sharply.... Strengths and WeaknessesThe major strength of Dell, Inc. is its utilization of a business model which enables it to reap miscellaneous benefits which are not enjoyed by its competitors. The direct business cut a significant amount of cost in the companys supply chain by eliminating the less value adding activities. Inventories were kept low and technological breakthroughs are delivered to the customer within a week opposed to industrys average of two months. The direct business model also enabled the company to market directly to the buyers, thereby offering more customized products. Another is Dells cost leaders strategy. As the company is able to produce computers with the least possible cost, the company is also able to load up lower prices to customers relative to its competitors. Because of the aforementioned strengths, the company has made a name in the computer industry and secured a significant portion of the global market share. The company also enjoys strong brand equity. Acquisition of financing is relatively easier as the companys stock has a higher market value. With its commitment for excellence and bright industry prospects, I believe that the company will be able to sustain these strengths in the further.One of the major weaknesses of Dell is its lack of proprietary technology in its production activities. Some experts refer to Dell as a computer maker and not a computer manufacturer. Another is Dells high habituation on its suppliers. As Dell purchases semi-assembled inputs in its production, bargaining power is tilted to suppliers. Dells heavy dependency on suppliers also exposes it to risk faced by them. Dells high utilization of long term dent in financing its assets may make its investors reluctant in purchasing its stocks. The