Dell - Environmental Anaylsis

Alibaba.com clearly dominates the Chinese e-commerce accounting billion transactions in the recent years. Through its English-language wholesale platform, the company supports the global trade by using a business-to-business model (B2B). The firm incursions into the U.S. market in a time when global e-commerce is absolutely competitive and unprecedented (Clifford,

It is very critical for organization to understand the importance of external environment, which includes remote, operating and industrial environments before developing its future objective. Each environment bases on different factors, therefore the analysis of external environment will help the company seeks for new opportunity in many areas as well as discovering challenges that might have direct impact to the organization in the future. The remote environment consists of the study of the economic trend such as the level of disposable income, inflation rate and prime rate, the study of social factors such as life style of consumers. The political factor also plays an important role in external environment. Political factor focuses

1. The decision of expansion of the company’s franchise in China is a good decision from the perspective of global business. Being the leading producer of antivirus software, firewall software and some other computer security components in United States, China may be next profitable market for MegaComp. So, CEO

External Environment: The main external elements need to be observed and established in and around the organization which will affect the organization.

In his article, Don Clark expresses concerns about the future of International Business Machines cop in the long term by showing how the company net income and revenue are decreasing because of the shift toward computing service and software. Further, Chinese buyers are suspicious with American products due to the fact that the recent strains over intelligence-gathering actions operated by the US government. Therefore, it will be tough for IBM to sale it product in China to expand its shares (Don, 2015).

A company’s external environment includes all relevant factors and influences outside the company’s boundaries. By relevant means important enough to have a bearing on the decisions the company ultimately makes about its direction, objectives, strategy and business model.

General external environment is composed of dimensions in the broader society that influence an industry and the firms within it. These dimensions can be can be grouped into the following six environmental segments: demographic, economic, political/legal, sociocultural, technological and global segments.

one are the days when companies looked at China as a monolithic land of 1 billion potential customers. Companies are now focusing on how to capture small segments of China’s giant market, and none of these segments is as attractive or as full of potential as the country’s rapidly growing—and multifaceted—middle class. As China’s economy continues to grow, more people will migrate to China’s booming metropolises to find better-paying jobs. These working consumers, once among the country’s poorest, will steadily climb

Political, Economic, Social and Technology are the factors that affect the external Environment of an industry.

The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s

5. With the changing market situations after 2004, what new location-bound FSAs should Dell develop to cater to retail buyers in China? Or, alternatively, what complementary capabilities should Dell expect from its distributors?

There are totally no more than 14 Chinese listed e-commerce companies. In order to clearly determine the research objectives, this paper has to explain that those companies, such as e-banks, are involved in the e-commerce services, while they are not classified into the e-commerce industry in the paper. This paper has totally selected these 14 listed e-commerce companies as research samples. These Chinese e-commerce companies mainly offer services in the mainland of China, but they choose to be listed on different stock exchange, such as Shanghai, Hong Kong, NASDAQ or New York

Fast forward to the end of 2013: with Chinese internet users quickly approaching 600 million, China is on pace to pass the US and become the largest e-commerce

China has the largest population and one of the fastest-growing economies in the world. If only one percent of its population participates in the New Economy, China

The component of business external environments, the general environment represents the forces that exist outside of the company that have the potential to indirectly affect it in some way. Although businesses cannot control what takes place within the general environment, evaluations of the general environment can allow businesses the opportunity to predict changes and also to identify future opportunities. The dimensions are grouped into seven environmental segments: demographics, economics, political/legal, sociocultural, technological, global, and physical (Hitt, Ireland, & Hoskisson, 2015).