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Essay: Globalization and Industrial Organization Model Impact on Dell

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  • Published: 1 February 2018*
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  • Words: 968 (approx)
  • Number of pages: 4 (approx)

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       Dell is an American based global public corporation that design, make, and engages in a wide range of customers in computing gadgets like notebooks, tablets, and desktop PCs. Furthermore, it offers customized goods and services in the business. Firstly, globalization and technological changes have causes the operational and strategically managements in the business domains. As a result, globalization has assisted in intense competition retention and attract customers in an effective manner hence causes the company in changing the strategies to capture the entire globe. It has also helped in the expansion of operating globally to reduce stiff competition among its competitors. Globalization has enabled Dell to operate worldwide making it faces different financial, sociocultural, political, and legal environment changes hence change business policy and structural system. Globalization has resulted in feeling Dell presence in other markets too hence retaining a large market share and opportunities everywhere. Due to globalization, Dell has developed internet based supply chain model that enable it to have direct sales to her clients. Besides, the model helps in making build-to-order, co-ordinate suppliers, and communication tactics hence one on one interaction with suppliers, customers, and employees. The use of internet has really helped in changing technological impact. The global era has also caused consumer buying behaviors changes in the industry and due to this customer have preferences for an effective and competent support system. Generally, globalization has resulted in the creation of several Dell outlets, change of strategies, and operational method in the entire company.

Industrial Organization Model

         The industry uses Industrial Organization (I/O) model and Resource-based (RB) Model whereby the I/O model of above average returns explains the strategic choices of a firm and how it influenced by external environment. It encompasses the general analysis of the industry and competitive environment, which causes the business to operate strategically efficient. The analysis of entire environment consists of investigating demographic, political, economic, socio-culture, and legal factors that would affect Dell knowledge in the creation of opportunities and threats for its operations. This analysis also would assist in creating awareness of new entrants, rivalry level, bargaining power, and other related products for consumers and suppliers. In analyzing competitors, the company will check objectives, assumptions, strategies, and capabilities of its main competitors like Nokia, Tecno, and Acer among others. The I/O model also will assist in curbing threats, boost opportunities, and achieve high returns on the business. On the other hand, RB model provides an explanation of an internal environment and making them aware of competitiveness and capabilities of the firm. Besides, it enables Dell to have information on weaknesses and strength in investigating the main competencies. The information on the model helps Dell formulates strategies to limit weaknesses, empower strength, and increase turnover of the business. This model in itself is a source of information to manage resources and capabilities dynamically and earn above-average returns within computing device industry. To generalize, the combination of both models helps the firm to determine weaknesses, strengths hence achieving a high return for less effort.

The Vision Mission Statements

         These critically provide information necessary to formulate objectives and business purposes in an organization. Dell mission and vision state: ‘Our vision is not just to provide the best customer experience in our industry, but to be counted among the best in any business.’ (Dell) ‘Our mission is to be the most successful IT systems company in the world by delivering the best customer experience in all markets we serve.’ As it reads, it helps in choosing relevant strategies. To remain the best in the industry, Dell has developed a culture to continuously improve on diversity and remain competent in workforce worldwide. Through this, Dell shows uniqueness in service provision to customers and expresses global appearance hence achieving great sales returns. Besides, the mission of the company has provided integrity and good leadership for personal accountability. The mission statement has also achieved a lot in e-commerce and getting huge market shares of the firm. The mission also assists in cost minimization and profit maximization of the business in various markets. Through supply chain management, Dell provides the highest quality at a lower price with a leading tech. The mission and vision help boosting customer relation globally and enabled the company enhances success in IT around the world. Besides, it enables the firm to acquire the culture of personal accountability in service delivery and customer support. Lastly, it enhances customer experience, increases sales, and contributes to entire business success globally.

Stakeholder Approach

          The Dell Company has three main categories of stakeholders on the provision of the business success. To start with, capital market stakeholders, these consist of major suppliers such as banks and creditors who provide the company funds for new ventures. The company makes profit hence enable these shareholders to invest more to achieve a great return. Through this, Dell has enough financial leverage in its operation and even in establishing new enterprises worldwide hence capital cost minimization and efficiency maximization of the business. Secondly, are the market stakeholders, which, consisting of primary customers, host communities, suppliers, and the unions, influencing the company performance. The customers of Dell always demand quality and reliable products and a reasonable amount. Through an integration of technology, Dell provides utmost communication to suppliers that enables it to create transparency and accountability hence limit conflict among itself and the outsiders. In addition, the company in itself is an avenue for job opportunities and revenue for the host communities that contribute to harmonizing the wellness of the existing communities around. This company also develops various cultures for the union’s satisfactions. The third most are the organizational stakeholder that constitutes of employees and managers of the company. These entirely contribute to contribute to the supply chain efficiency, cost minimizations, and increased global presence.

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