...analysis • Strength - Good Customer Services - Good Customer Relationship - Direct Model Approach • Weakness - Limitation of direct selling approach - Lack of innovation - Absence of retail stores - Internal control • Opportunity - Enter new geographic locations where consumers are price sensitive. - Concentrate on winning the college students. - Build a competitive advantage by strengthening itself with the enterprise users. • Threat - Competitors are intense especially because Dell’s competitors are more innovative their products are more differentiated. - The price is very similar to Dell’s offerings. - The competitors can easily copy Dell’s strategy if they decide to. To summarize the strengths of Dell, there are basically three strong points and that is their customer service, customer relationship and their direct model approach. However Dell has generally four weaknesses and those are, limitation of their direct-selling approach, lack of innovation, absence of retail stores and their weak internal control. We have seen that their direct model approach is both strength and a weakness of Dell and so it’s not really a strong strategy that can give them a competitive advantage. Dell’s customer...
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... * For the Fiscal year of 2012 Dell’s net revenue was $62.1 billion and their net income was $3.5 billion. The company’s cash flow in operating activities was $5.5 billion, with total assets of $29.4 billion. Dell has total number of 106,700 full time and part time employees. Products: * Dell provides a wide variety products such as computers, software, networking products, and other hardware components to complete a home or office needs. Dell’s main source of revenue comes from their selling of laptop and desktop’s and then the services offered by Dell comes in a close second. Competitors * Dell’s current competitors are Apple, Hewlett-Packard, Sony, Acer, IBM, and Asus. Each of these competitors has continued to improve their products and they provide a higher rated customer service to consumers. Dell spent $856 million on Research and Development the year of 2012, compared to the year prior of only spending $661 million. If Dell would like to keep up with established competitors and up coming competitors they must make a change in their innovative technology. Suppliers * Dell’s most recognizable suppliers are Samsung, Xerox, Toshiba, Fujitsu, Logitech, Sanyo, IBM, Texas Instruments, and Sunrise. Dell’s Business Approach * Dell market and distributes its products using the direct approach of taking orders from customers. Dell sends customers catalogs and they use direct marketing approach to sell their system. Dell customers...
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...0736364876 Tel.: 0735054312 Tutor: Leif Sanner Title: Global introduction of new products – Case Study of Dell Problem: In order to survive in the tough competition, firms face the difficult and vital challenge which is to introduce a new product into a global market efficiently. Even though a product itself has a fine features and functions, failure on the introduction and marketing operation can result an unsuccessful product. Therefore, the manager must identify an optimal introduction strategy according to the conditions the firm faces. Purpose: There are two objectives for this study. First objective of this study is to investigate Dells’ operation regarding to global introduction of new products such as segmentation approach, its influence on the choice of introduction strategy and efficiency of the strategy itself. Second is to provide empirical framework in the field of global introduction of new product (the choice of waterfall or sprinkler strategy), which lacks in the earlier research and develop a deeper understanding. Method: We have conducted a qualitative research in order to provide inductive view of the relationship between theory and research, and develop deeper understanding of our empirical data. We have gathered both primary and secondary data. Our primary data contains personal interview with the marketing manager, Ted Schönbeck from Dell Sweden, and this data was used to analyse our empirical data. Our secondary data contains books...
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...Dell Step 1- Situation Analysis (5%) Dell Swot Analysis Strengths Dell's Direct Model is one of its main strengths. A number of advantages are gained through the model. One of these would be the customization of laptops. Options in terms of performance and portability are available to customers. Dell has made it possible for each buyer to order directly from the factory, thus giving them the opportunity to fully customize their product. Fast delivery of products is another Dell’s strength. Customers can place their order, and receive their customized computer within couple of days. This is a great asset which allows targeting home-user segment. Dell is the world’s 3rd largest PC maker. It has the expertise and wide knowledge in terms of manufacturing and developing new products with newly upgraded designs and features. It is one of the most known brands in the world. This means that potential and existing customers are aware and familiar with Dells products, services and outstanding reputation. Dell Computer's award-winning customer service, industry-leading growth and consistently strong financial performance differentiate the company from competitors for the following reasons: Price– efficient procurement, manufacturing and distribution process allows Dell to offer customers powerful systems at competitive prices. Customization - each Dell system is built in order to meet each customer’s specifications. Service and Support – Dell provides excellent customer service...
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...wholeheartedly thank him for giving his valuable time & attention & for providing me a systematic way for completing our project report in time. THANK YOU. CONTENTS Index | Page No. | Introduction | 4 | Supply Chain | 8 | Channel Strategy | 10 | Market Perspective | 11 | Cycle of Order | 12 | Information | 13 | Conclusion | 14 | INTRODUCTION DELL Computers, a leading PC supplier to corporate and government customers, today is now among the first companies to provide its customers with the next level of industry-standard Pentium processor power, while many vendors are still struggling to broaden their processor-based product lines. Dell's unique ability to take a market strategy position during important technology transitions because of its build-to-order manufacturing process. This build-to-order approach allows the company to maintain low inventory levels and integrate emerging technologies into systems. Today's customers are reducing their supplier bases, providing the opportunity for the most capable suppliers to seize huge market share gains as Dell needs to redefine its strategy to make business capabilities within the core of the business model as it requires creating a new strategy and bringing the company's core activities into alignment with its business model in customer operations strategy, core operations capabilities and organization structure. In...
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...Question 1 What is your evaluation of Michael Dell’s performance in his roles as CEO and Chairman? How well has he performed each of the five tasks of crafting strategy and executing strategy? Stage 1: Strategic Vision: Michael Dell’s strategic vision for the company is that “personal computers can be built to order and sold directly to the customers”. He believed his approach had two advantages. 1) Bypassing distributors and retail dealers eliminated the mark-ups of resellers and, 2) Building to order greatly reduced the costs and risks associated with carrying large stocks of parts, components and finished goods. Michael Dell’s and company executives have come to believe that the there are four key strategies for the company in delivering superior customer value; 1. Selling direct to the customer is the most efficient way to market the company’s products cause it eliminates wholesale and retail dealers that impede Dell’s understanding of customer needs and expectations and that add unnecessary time and cost. 2. Allowing customers to purchase custom-built products and custom-tailored services is the most effective way to meet customers’ needs. 3. A highly efficient supply chain and manufacturing organization, grounded in the use of standardized technologies and selling direct, paves the way for a low-cost structure where cost savings can be passed along to customers in the form of lower prices. 4. Dell can deliver added value to customers by (1) researching...
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...1. Executive Summary Intent of this report is to gain a better understanding of the effects of the external environment to an organization. We have selected “Dell” as the organization and we wish to study the planning and implementation of Dell’s Strategies. Report starts from briefing the background of this chosen organization. Moreover, some of the external factors have been discussed by presenting a view of SWOT analysis of ‘Dell’. Further part of the report will illustrate the review of already existing business plan and strategy of that enterprise. Furthermore, listed are the factors affecting this strategic plan, in which vision & mission, objectives and other measures have been taken into account. Despite their strengths Dell has many challenges it needs to overcome right from the increase in the competitors to a dire need in breakthrough innovation which is essential. With the increase in innovation in the market the computer systems are becoming outdated, so Dell should constantly come out with new products. Also, People need the quality products at low price which was Dell’s strength due to its customized solution, but now its competitors are coming up with products in same price range. To identify these business concerns, it has been noted that the company has a sound and dynamic consideration while managing its product portfolio as well as conducting its target markets. This has helped the company to stabilize its financial status through sales generation and cost...
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...|Dell Incorporated | |Three-year Strategic Plan | |Ethical Approach | |Janell K. Alston | |10/25/2010 | Dell Inc: Three-Year Strategic Plan Janell Alston Gwynedd-Mercy College Bus 512: Strategic Planning Instructor: Kirk S. Keseric Due Date: October 25, 2010 Company Profile: Dell Inc Description: What is Dell Inc? I. History/Background II. Core Elements & Code of Conduct III. Business Ethics/Strategy IV. Products & Services V. Competition VI. Ethical Umbrella a. Corporate Social Responsibility b. Corporate Accountability c. Corporate Governance d. Environmental Responsibility VII. Financial Highlights a. Comparing 2010 to 2009 b. Comparing 2009 to 2008 VIII. S.W.O.T. Analysis IX. Conclusion X. References Dell Inc. is one of the largest computer manufactures in the world and they have grown tremendously over the years. They were founded in 1984 in...
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...Week Six Case Analysis: MRKT 5000 Online Course Dell Direct and Not-So-Direct Case Summary: Dell is the largest computer-systems company based on estimates of global market share. It is also the fastest growing of the major computer-systems companies competing in the business, education, government, and consumer markets. Dell's product line includes desktop computers, notebook computers, network servers, workstations, and storage products. Michael Dell founded the company based on the concept of bypassing retailers and selling personal computer systems directly to customers, thereby avoiding the delays and costs of an additional stage in the supply chain. Much of Dell's superior financial performance can be attributed to its successful implementation of this direct-sales model. The core elements of Dell's business model are its direct sales model, usually referred as “direct model”, and the build-to-order strategy. Key Marketing Issues • Positioning/repositioning – Dell needs its brand to appeal to its correct target audience. • Styling- presenting a new cpu that is aesthetically appealing to the focused market • Design- creating a cpu that is not only stylish but with a design that can appeal to the mass of the market • Competition- with HP, and Apple being huge rivals, Dell being able to capitalize on their direct channel could give them the competitive advantage among others • Differentiation- differentiate the limited-edition products from...
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...hence the name of the company derived from his family name but the company wasn’t known as Dell back in 1984 when it was founded. In 1984 the company was known as PC’s Limited which designs, manufactures and sells technologies that has a dedicated founder who left his university to commit his time and effort for the company. What separated Dell from other firms in the industry in 1985 is their unmatched service for their customers in their first PC, “Turbo PC” (Dell 2012). Dell provided a “risk-free returns and next-day-at-home product assistance” (Dell 2012). From that Dell continued to grow by providing what was back then the PC with the fastest performance and opening branches internationally. One of the significant time and moment in Dell’s growth is in 1988. Dell was able to do their public offering which upped their capital from 1 thousand to 85 million dollars and Dell was growing at about an 80 percent rate (Dell 2012). By this time PC’s limited officially changed their name and since then, has been known as “Dell Computer...
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...An assessment of Michael Dell’s innovations and entrepreneurial accomplishments Introduction A topical background Entrepreneurship has special significance in the business world and has become a key driver to the development of the economy. It is a huge source of employment, economic growth, and technological progress (Kuratko, 2007; Reynolds et al, 2004) and represents innovation and a progressive economy (Orhan and Scott, 2001). It’s the process of value creation using the required time and effort and assuming the various factors such as financial, physical, and social risks, for rewards of monetary and personal satisfaction (Hisrich and Brush, 1985). Michael Saul Dell is an American businessman, investor, philanthropist and author. He founded Dell Inc. which is one of the world’s leading personal computer sellers. He was ranked the 41st richest person in the world on the 2012 Forbes list of billionaires, with a net worth of US$22.4 billion as of December 2014 (Michael Saul Dell Wiki Wikipedia Bio Biography, 2014). As a pre-medical student, Michael bought left over PCs from local retailers which he upgraded and sold. His hobby was wildly successful that he decided to quit college. In his first month, Dell sold approximately $180,000 worth of PCs (Michael Dell, Wikipedia, 2015). To expand his business, Dell realized that if he bought components and assembled the entire PC himself, he could use telemarketing to sell his machines directly to customers at a 15% discount...
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...WHO IS BETWEEN YOU AND YOUR CUSTOMERS? NO ONE The Analysis of Dell Computer and its use of Information Systems in CUT THROAT PC Industry Simon T. Lau Table of Contents Analysis Paper Objective Section I : Industry Analysis : The Personal Computer Industry A. Personal Computer (PC) Industry Profile B. Porter Competitive Model for PC Industry Structure Analysis C. Business Strategy Model and Representative Business Strategies D. Globalization of the Industry E. Importance of the Information Technology to the Industry Section II : Company Perspective : Dell Computer in the PC Industry A. Business Leaders and Company Profile B. Competitive Strategy Statement C. Dell Computer Financial and Market Performance D. Significance of Information Systems at Dell Computer E. Strengths and Weaknesses of Dell Computer Section III : Structured Analysis of Information Systems at Dell Computer A. Strategic Option Generator B. Roles, Roles and Relationships C. Redefine and/or Define D. Significance of Telecommunications E. Success Factor Profile Section IV : Final Analysis – The Success of Dell Computer in the PC Industry A. Success of Business Strategy and Information Systems Use to Day B. Is Dell Computer effectively positioned themselves for the Future? Bibliography Three Outstanding Articles Analysis Paper Objective The objective of...
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...Apple’s Financial Health MGT 521 Ocotober 31, 2012 Apple Financial Health As stated before in my business analysis paper, Apple is a very rich, prosperous, and innovative company. Its innovations and creativity has enable Apple to keep growing, striving, and propelling itself to the top of the personal computer industry. Apples dominancy and growth is not just known by people around the world it is documented and can be proven by Apple’s financial statements. Financial Statements On apples income statement one can see that their net sales rises each year for the past three years. Starting in 2009 where net sales were just $42,905 million, in 2010 $65,225 million, and then now to 2011 $108,249 million (Apple INC, 2011). This data shows that Apple’s net sales nearly triple from 2009 to 2011. Their gross margin also substantially increases starting at 17,222 million to in 2011 43,818 millions (Apple INC, 2011). This margin represents the percent of total sales revenue that the company retains after the direct costs associated with producing goods sold for a company. This means for the past three years Apple is able to make more profit then the cost that it takes to make its products. Furthermore as with every growing company comes more expenses so their expenses have risen from 2009 to 5,482 million to 10,028 million in 2011 (Apple INC, 2011). Their expenses are counteracted and accounted for by their net income which triples from 2009-2011 from $8,235 to 25,922...
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...companies to change accordingly by acquiring new companies and widening their capabilities, while Dell has remained stagnant. The evolved industry requires innovation in multi-technological products and services, incorporating the Internet and mobile devices, in order to stay competitive in the market. Cliff Edwards’ article “Dell’s Extreme Makeover” points out that while Hewlett-Packard, Apple, and IBM successfully adjusted to, and even in some regards initiated, the industry’s progression, Dell has fallen back due to its lack of focus and stubborn tactics. In response, the company reinstated founder Michael Dell as its CEO in January of 2007. Dell, in light of these events, returned to his own company with the attitude of a newcomer, aspiring to completely restructure the business and drastically shift its focus towards flexibility, awareness, and innovativeness. During its flourishing stage, Dell Inc. was largely successful because of its ability to sell customizable computers directly to customers at unbeatable prices. In essence, Dell derived its competitiveness from specialization. However, with the rapidly changing technological industry, what was once Dell’s biggest strength has simply become a limitation in the newly emerged market and plunged the company from a $100 billion juggernaut to a $30 billion dinosaur. While the company is among the best at making personal computers, it is unable to rival its competitors in other emerging sectors of the industry. This caused Dell...
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...University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting three eighteen wheel trucks and operated its factories round the clock to fulfill the unexpected customers demand. The trustworthy relationship between Dell’s management and work force made it possible to change the disastrous moment in the I.T industry to a great opportunity for the organization. Dell has very user friendly web site and half of Dell’s sale, half of tech support and three quarter of order status takes place online. The supply chain and data integration with suppliers has made Dell one of the most efficient computer manufacturers. The continuous advancement in technology and innovative approach to manufacturing and assembly...
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