This research paper presents five forces analysis of Dell Inc to analyze major factors and competitive elements and to assess how successful and effective is the company. The five force analysis, introduced by Michael Porter, can be used as a tool to measure the competitive rivalry and to assess whether the company has achieved sustainable competitive advantages or not.
The five force Model
The modern economy and international business environments have recently been largely influenced by various critical factors including globalization, fierce competition and advanced technology etc and therefore, as Michael Porter argued, business strategy equates to how a firm competes with other firms in the industry. According to his findings, strategy is not just a series of models and methods at corporate level, but rather it includes analyzing potential entrants, suppliers, buyers, substitutes and competitors (Stahl and Grigsby, 1997, p. 145). The five forces model has widely been applied as an important functional area of management and business academics. Almost all managers and large companies depend on porter’s five force analysis to find their marketing strengths and competitive advantages.
Harvard professor Michael E. Porter has developed Five Force model in 1980s to help companies identify what specific forces determine the profits in an industry. Any particular firm in an industry faces various forces within the industry affecting the profitability significantly. ...