Busines stratgt Essay Example | Topics and Well Written Essays - 1250 words

Busines stratgt - Essay ExampleSWOT analysis is a management tool that allows managers to view the caller-outs at a wider picture thus enabling them to designing both short-term and long-term plan that may improve business performance. The sideline SWOT analysis identifies the gilds strengths, weaknesses, opportunities, and threats. In other words, the analysis tries to identify the companys problems and recommends the best strategic moves for the company to remain competitive. Strengths unmatch fitting of the companys greatest strength is its business model. The company sells its products directly to consumers. In other words, there are no intermediaries i.e. retailers and wholesalers. This has assisted the company in bringing down distribution cost significantly. Because of this, the company is able to charge lower prices than its competitors thus acquiring a competitive advantage. The time lag between the customers orders and delivery is less compared to competitors time. This is because of lack of wholesalers or retailers in the distribution channel. This has contributed a lot in strengthening the companys relationship with its customers, as tumefy as, enhancing the customer satisfaction. Additionally, the business model supports customization of the companys products and services especially the personal computers. The direct contact between the company and the customers enables the company to tailor-make its products to gibe the customers needs. The company is also able conduct the market research effectively thus focusing on enhancing the customer satisfaction. The companys high farm animal turnover is, as well, its strength. Because of this, Dell Inc has a good relationship with its suppliers since it has a healthy liquidity that enables it to pay the suppliers as early as possible. Because of this, the company is able to obtain supplies at lower prices compared to if it would pay later, thus reducing the cost of manufacturing. The companys other strength is that it does not only sell to individualist consumers, but also to businesses and government organizations. Consequently, Dell is able to supply a large number of personal computes and other related products thus increasing the profitability. some other Dells strength s product differentiation that enables customers to simply identify the companys products. Weaknesses One of the companys strength, customization, is also its weakness. A customer would have to wait for more time earlier receiving his or her computer from a delivery than when he or she goes direct to a retailer store, buys a computer, and acquires it as soon as he or she pays. Additionally the customers are not given an opportunity to physically touch the products and test them before they purchase them. The customers should have an opportunity to go to the retail shop and compare different products before deciding the ones to purchase. For the case of Dell, the company expects consumers to order their p roducts direct from the company without comparing them with competitors products, in the market. Another weakness is that the company focuses more on businesses and government organizations as customers in expense of individual consumers. Jenster states, every market portion is equally important for every business meaning that he focus should be on all customers (52). To eliminate the weaknesses the company should segment its