Dell, Inc Research Paper Example | Topics and Well Written Essays - 2000 words

Dell, Inc - Research Paper Example The company has gained significant recognition in the world and is currently the number three supplier of computers in the world. This paper is going to highlight the business cycle of Dell, including risks the company faces, and the reason for their success. Dell computers face challenges in its demand. The company offers its computers at low cost. The low price makes customers buy the computers. Lower prices and high quality made dell computers become so popular all over the world. An increase in demand required an increase in supply. Dell expanded its company size and was able to manufacture many computers, making it the number one shipper of computers as by 2012. Consumer’s income always affects the supply of demand of a product(Hawken, 1988). It also depends on the commodity. A customer will not spend more than what he earns. Dell established itself in the high life areas of Texas. These are places where people are high-class earners. The demand for dell was on the rise here, and more people came to know about dell. It was the baseline for the success of Dell as more and more people came to know about it. After reaching the big markets, Dell reduced its prices to favor the low class earners. Prices of goods that relate to each other are forces that affect supply and demand. HP and Lenovo are the main competitors of Dell. Each company has different prices on their computers. HP computers are cheaper than Dell computers. This has made HP have higher demand in their products compared to Dell. If goods are of same characteristics, but from different companies, people will favor the cheap one. HP is the number one PC vendor in the world because of this. Dell is trying to improve its demand by reducing the prices of their goods. Computer companies always face competition in the markets based on the level of production. The systems in the computers are very