bcg matrix of microsoft company background

Bcg Matrix Of Microsoft Company Background Professional Essay Writers

In the early 1970s the Boston Consulting Group developed a model for managing a portfolio of different business units (or major product lines).

The BCG growth-share matrix displays the various business units on a graph of the market growth rate vs.

Cash cows require little investment and generate cash that can be used to invest in other business units.

Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead.

If successful, a star will become a cash cow when its industry matures.

These business units require resources to grow market share, but whether they will succeed and become stars is unknown.

A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere.

Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share.

However, the approach has received some negative criticism for the following reasons.

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Dell hasnt properly established its R D facilities to discover new technologies and patents, so the only feasible way to obtain patents and technologies is to acquire other companies.

This is Dell Inc.

SWOT analysis in 2.

For more information on how to do a SWOT analysis please refer to our article.

Company Background.

Key Facts. Name. Dell Inc.

Logo. Industries served.

Ansoffs Growth Strategy Matrix Penetration Product Development Market Development Diversification.

Geographic areas served.

Worldwide. Headquarters.

U. S. Current CEOMichael Dell.

Revenue 6. 3. 0.

Bcg Matrix Of Microsoft Company Background Professional Essay Writers

This is not an example of the work written by our professional essay writers.

You can find more information about the business in its official website or Wikipedias article.

SWOTDell SWOT analysis 2.

Strengths. Weaknesses.

Brand name valued at 7.

Direct selling business model.

Weaknesses. Commodity (computer hardware) products.

Opportunities. Threats.

Expand services and enterprise solutions businesses.

Such services were not originally found within any other major computer retailer (and currently only Sony and Toshiba allow that), but add great value to the customers and provides Dell with a competitive advantage.

Dell is engaged in many green initiatives and has received many rewards for being an eco- friendly business.

Dell doesnt sell its products through big- box retail outlets but instead sells directly to consumers and enterprises, keeping their already thin profit margin to themselves.

Weaknesses. Commodity products.

The large stream of Dells revenues comes from computer, especially laptop, sales, which is a commoditized product.

Computer hardware (commodity) products are sold with a very low profit margin.

Once praised, Dells customer services deteriorated due to outsourcing its call centers offshore.

The company spends a much lower percentage of its income on R D that its main competitors and thus, missed an opportunity to develop strong products for smartphones and tablet markets as well as to learn new skill and capabilities.

The consumer finds it hard to trust the products if it cant hold it first in his hands.

Low price was once Dells competitive advantage but the company is no longer able to provide competitive prices.

Apart from the price, Dells products are little differentiated from competitors products and are in competitive disadvantage if the price offered by competitor is lower.

Dell provides various services (cloud, security and infrastructure) and enterprise solutions (servers, networking and storage), which are the most profitable Dells business at the moment.

Dell business should focus on growing these divisions as they promise better growth opportunities and higher profit margins.

If Dell wants to diversify, it needs new technology patents and new ideas.