Dell Inc, established as a kind of small lucrative business by Michael Dell in early 1984 has grown to become one of the largest and highly successful multinational companies of all times in the world.
Within few years of its start-up, Dell has been placed to be 25th in the list of computer manufacturers worldwide, all but Dell have gone out of the market to become a fortune 500 company by 1992 (Holzner 2006, p. 5).
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. ...