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Dell began as the vision of Michael Dell The company began in 1984 with a simple business concept to build computers to order and to sell directly to customers Thompson and Gamble C-132 Dell has a history of achieving double-digit increases in annual sales To maintain this growth Dell is faced with many challenges due to the constant changes in the general environment in the industry in maintaining its competitive advantage and lastly using objective analysis to ascertain its strengths weaknesses opportunities and threats General Environment Social The computer industry has benefited from the explosion of home computer usage According to the US Census Bureau computer usage has increased from 82 in 1984 to a current level of 51 as of August 2000 appendix A and B Internet usage is at an all time high of 41 appendix A In the business sector small and large businesses are constantly upgrading their systems in response to an increasingly suave customer Technological Rapid technology and the computer industry complement each other As the demand for faster efficient and lower cost computers in the home market increase this partnership will steadily increase This phenomenon is echoed in the business sector where the server is king and Dell has responded with an entry into the server storage and networking equipment market Pletz Economical Prior to 911 the healthy economy provided an outlook of unbounded growth potential however since that time the US economy has mirrored the uncertainty of the nation In addition the US and European computer industry has entered into a maturity stage and Dell has responded by offering lower priced computers and increasing its advertising budget Thompson and Gamble C-159 Cultural In the US the overall trend towards increased homebusiness computer and Internet usage has directly contributed to success the direct sales strategy at Dell However this strategy faces several obstacles in the foreign market Industry Factors Market conditions in the PC industry
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