Dell External Environment Essay Example
Dell External Environment Essay Example

Dell External Environment Essay Example

Available Only on StudyHippo
  • Pages: 2 (315 words)
  • Published: April 27, 2017
  • Type: Article
View Entire Sample
Text preview

DELL faces a significant threat from the fourth element of the external environment, encompassing political, economic, social, and technological factors. Within the political aspect, DELL encounters challenges in China due to government favoritism towards domestic PC vendors. Obtaining government contracts involves navigating through extensive bureaucracy. Furthermore, there is a preference for local firms and companies by the Chinese government. The government's control over internet usage in China poses a substantial threat to internet growth - making it the most concerning among all other threats.

The economic environment involves the economy in which a firm competes or may compete. In China, computer companies face a major threat of software piracy. Despite numerous economic opportunities, China experiences a shortage of skilled labor. It is important for computer companies to consider that the average consumer in China may not be able to afford expensive investments


and may have limited access to banking services. DELL understands that Chinese customers tend to opt for the most affordable system. The social-cultural segment focuses on the attitudes and cultural values of a society.

DELL can capitalize on the internet growth potential in China. Yet, it should acknowledge that high computer costs make Chinese consumers hesitant to buy. To build a good image and gain public confidence, DELL should contemplate investing in door-to-door and face-to-face operations. Furthermore, the technological sector includes institutions and activities that propel advancements in new knowledge, products, processes, and materials.

Technological advancements in the computer industry are continuously improving, leading to more powerful and efficient systems. The technologies developed by institutions are highly beneficial resources for governments. It is projected that mainland China will become the third-largest PC producer worldwide, manufacturing 7.

View entire sample
Join StudyHippo to see entire essay

million units annually by 2000. This presents an opportunity for companies to increase their visibility and provide faster service to customers through the internet. However, DELL encounters a hurdle in China due to the high cost of internet access.

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds