Dell economics analysis

ISSUES AND CHALLENGES FACING THE PC AND HANDHELD INDUSTRY There are many issues and challenges facing the PC and Handheld computer industry. PC and Handheld sales are a test of research and product positioning to capture the largest possible global market share for Dell, IBM and Hewlett-Packard. Globalization is possibly the ultimate issue--which markets should our competitors aggressively enter--should they try every possible market or focus on building on areas of core competency? Also the …

…avoid competition for shelf space in the retail markets. Dell's direct distribution strategy can be credited for the company's lean cost structure. The company is heavily exposed to the slow growing PC market however, Dell's market share continues to accelerate compared to the rest of the industry. As the industry continues to move towards standardized technology, cost structure will become a key issue and Dell already has an advantage over the rest in this area.