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Introduction
It is worth noting that macro-trend analysis is usually the first step in making strategic analysis. The major aim of the analysis is to identify potential threats and opportunities to a business. The major question to be answered in trying to do such an analysis is “what are the probable implications that will impede the growth of a business and the likely impact of the things that affect the business growth?” (Tuthill & Smallberg, 1997).
Founded by Dell Michael back in 1984, the guiding principle for DELL was that if the company will manage to sell directly to customers, then it would be better placed to establish best strategies to meet customers’ demands and needs.
DELL is headquartered in Round Rock, Texas. The company develops, produces, sells and supports pcs servers, data storage devices, network switches, personal digital assistants (PDAs), software, televisions and computer peripherals. The paper describes the political, economic, social and technological factors that describes DELL’s macro environment.
Political factor
Ideally, doing business internationally calls for adherence of laws, rules and regulations of the host countries. Due to the fact that different governments have distinct way of doing business, DELL will be faced with both favorable and unfavourable laws that may foster or hinder marketing.
In regions where political stability has been compromised for instance Egypt, Libya, Ivory Coast and Tunisia where the company could probably expand their business to, will discourage such initiative. Where there are restrictive policies aimed at protecting domestic industries, the only option for the company is to partner with local business entities.
On the other hand, globalization has forced governments to do away with restrictions; this in the long run will work in fostering international trade from where DELL will benefit as it will reach the market areas that were initially harsh to do business (Tuthill & Smallberg, 1997).
Social
It is no doubt that the demand for computers as well as other related services largely depends on the level of education of persons in certain region. Governments have put effort in lace to foster education and knowledge acquisitions. This will in the long-term provide the company with a larger market.
Similarly, the current generation is IT compliant and have unsatiated demand for cutting edge technology, this group of persons when tapped properly by the company will ensure that their revenue grow as well as market base. The population size is also increasing and currently the world’s population is projected to clock 7 billion; this will provide a platform for the company to broaden it market base.
Economic
The fluctuating nature of currencies coupled with unpredictable financial crisis pose greatest threat to DELL. Individuals who are not able to pay cash for computers have turned to paying through instalments. Economists have predicted that the growth of the industry in the next five years will be 10.0% this will give DELL an avenue to increase their market share (Menon, et al. 1999).
Technology
According to Mullins & Walker, 2010 cutting edge technology is the way to go in the present world of doing business. With technology, the company can utilize it in marketing which in turn will tremendously reduce the cost of marketing hence increasing profits.
The internet will offer a good platform to ensure that the company’s name is always in public domain. New innovations will make it possible for the company to develop new products and services that meet their customers’ needs.
One major problem with technological innovation is the cost of installation. Additionally, the trend clearly depicts that an innovation thought to be the ultimate solution today is rendered absolutely useless tomorrow due to the pace of innovation and creativity.
Some market areas for instance China where the internet is fully controlled by the government brings another challenge. For this reason, position of computers is much less important to consumers (Mullins & Walker, 2010).
References
Menon, A. et al. (1999). “Antecedents and Consequences of Marketing Strategy Making”. Journal of Marketing (American Marketing Association) 63(2): 18–40.
Mullins, J. & Walker, O. (2010). Marketing Management: A strategic Decision Making Approach. New York: McGraw-Hill.
Tuthill, B. & Smallberg, D. (1997). Creating Worldwide Software, Second Edition. Mountain View: Sun Microsystems Press.
Do you need this or any other assignment done for you from scratch?
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