Dell is a manufacturer of laptops and IT solutions. In a developing country, there may be laws regarding copyrights and patents, but the implementation of such laws is lax and often government action is not taken against cheap local copies carrying the brand name.
In the Computer industry, technology continues to be smaller and faster than ever. The company produced, sold, repaired, and supported computers and other products related to it.
This growth is influenced by the economic situation in a specific country, having an impact on the purchasing power of potential customers. It involves in direct conversation with the investment groups that are responsible socially, shareholder activists, and different nongovernmental groups that look for reveal a global way out for the public and environmental concerns.
For example, Pakistan is on good terms with China and there are many economic initiatives and trade agreements to facilitate trade between the two countries. It could affect the US brands like Dell operating in China. Social Environment The social dimension or environment of a nation determines the value system of the society which, in turn affects the functioning of the business.
DELL would also have to look at government stability in the country in question. The main political factors are as follows: The national demand for DELL computers is dependent on the educational level prevailing in a specific country.
Environmental issues have become increasingly important for businesses in the 21st century. It will also mean that in order to remain competitive DELL will have to look into producing laptops and other handheld equipment with longer battery life so that they will run for longer periods of time.
In the recent years, EU has been targeting US businesses in several areas. Due to increasing purchasing power in many countries, especially in third-world countries, more customers would be willing to purchase and spend more money on computer and hardware-related products not only from Dell but also from competitors such as Apple, HP, Toshiba, Acer, Sony etc.
The economic environment includes factors and trends related to income levels and the production of goods and services. Policies related to foreign businesses, tax regulations and varying political environment all have a direct impact on these businesses and their revenue. A large number of companies were forced globally to reduce their number of employees because of the global recession.
Another factor is consistent power outages especially in developing countries.
Brands have to accordingly respond with latest products. Their effect can be both direct and indirect. DELL would be in a precarious situation in a country which regularly experiences terrorist attacks, or in a country with strong anti-American sentiment.
Another economic factor that can adversely affect the computer industry is the exchange rate of the home currencyall branded products are imported, and their prices vary with changes in the relative exchange rates. Global players have to deal with significant political pressures.
Economic conditions affect several things including operational costs which can grow high in such conditions. The reason is both increased competition and the proliferation of mobile technology.
Political Environment The political environment of a country is influenced by the political organisations such as philosophy of political parties, ideology of government or party in power, nature and extent of bureaucracy influence of primary groups etc.
Dell has also released several new versions of laptops and other IT related products that can cater to the customers of the new era whether individuals or businesses. The potential for internet growth is huge in Asian countries like India and China, giving foreign computer companies, the opportunities to expand into a new market.
Additionally, changing inflation rates and currency fluctuation also determine the profitability of a company. Economic Environment Economic environment refers to the aggregate of the nature of the economic system of the country, the structural anatomy of the economy to economic policies of the governmentthe organization of the capital marketthe nature of factor endowmentbusiness cyclesthe socioeconomic infrastructure etc.
Furthermore, Dell computers get more and more involved in daily life. Trends in the social environment might increase the size of some markets, decrease the size of others, or even help to create new markets. Out of these, Asia-Pacific, more specifically India and China, represent rapidly growing markets with an increasingly affluent middle class that has more money to spend than before.
Economic Factors The economic condition is the natural and financial direction in which a company takes part or may take part in. Political instability is always bad for business.
Dell is a technological company and therefore will be influenced by technological changes undoubtedly. Problems can arise in countries where political stability is not guaranteed, no matter whether companies operate production facilities or if they do business with that country through exports.
Companies such as Microsoft have come under the anti-trust radar several times for allegedly predatory marketing tactics and for buying out smaller competitors.
Now, detachables and tablets are being preferred against the common laptops.PESTLE Analysis of DELL. by Haseeb | Feb 5, | PESTLE Analysis | DELL is a multinational computer technology company privately owned by an American. The company produced, sold, repaired, and supported computers and other products related to it.
It is one of the largest technological corporations in the world and employs more.
PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing principles. Moreover, this concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project/product/service killarney10mile.com is a mnemonic which in its expanded form denotes P for Political, E for.
This is the detailed PESTEL Analysis of Dell which covers the external factors analysis; Political, Economical, Social, Technological, Environmental and Legal. Political Factors Many political factors in the country in which DELL is considering doing business, or in which it is already doing business, can affect the.
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