...INTRODUCTION The computer industry encompasses computer software, computer hardware, as well as the production of computer components, assembly, logistics distribution, sales, marketing, and the provision of information technology services. Dell is in the business of manufacturing computers and servers. Its competitors are Hewlett Packard/Compaq, IBM, Apple and Gateway. The new trend in the computer industry is to become a virtual corporation and Dell is leading the way. According to Dedrick and Kraemer (2006), “Dell is aiming to combine the cost advantages of horizontal specialization with close coordination of vertical integration.” In the early 1990’s, Dell shifted gears and tried to distribute its products through retail outlets, later realizing how unprofitable this approach was. It decided to focus on improving customer service and support by allowing customers to place and custom configure orders directly. This resulted in a unique strategy, synonymous with Dell, customization. Nearly one out of five standards-based computer systems sold in the world today is a Dell. Dell has one simple concept: to sell computer systems directly to customers. Dell’s customers are global wide and range from individuals, small businesses, large businesses, and institutional organizations, such as schools and hospitals. The mission statement for Dell is “to be the most successful computer company in the world at delivering the best customer experience.” Since Dell is a global wide...
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...Crafting And Executive Strategy Assignment 1 Case Study # 6 Dell Inc. In 2008 : Can it overtake Hewlett – Packard as the worldwide leaders in personal computers ? Submitted to : Prof. James Farmer Submitted By : Roshni Patel Student Number : 300686000 Question 1: Dell inc. Began with a ‘winning strategy’. At this time (2012), this strategy is not used to the extent that it was once was and the company is now not the company that it was once. Did Dell’s strategy fails, did the company fail to effectively execute the strategy or did the environment changes around Dell? Evaluate the possibilities. Answer: Dell is a global company that delivers products and services in more than 190 countries and company had given employment to over 4000 employees. The company deals in enterprise computing products, monitors, printers, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and downs from its inception in 1984 and has to face many challenges and competitors to stay ahead in the market. Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to consumers which would eliminate the additional cost of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risk associated with...
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...America. Sales reached 150 billion $ in 1996 with a total of 370,000 work force worldwide. The company stayed innovative and progressive in its strategy and business model. In the 1970's, the car market became more competitive with the Japanese manufacturers like Toyota and Honda gaining grounds in the auto market worldwide by producing high quality vehicles with extended life time. In 1999 Ford acquired the Swedish company Volvo to establish a foot hold in Europe and launched a campaign called "Ford 2000"to reengineer the company infrastructure and IT strategy that aimed at reducing their vehicle centers to 5 worldwide and requiring information technology to be the driving force and the link between the various company divisions. In doing so, Ford was trying to build a model similar to the one adopted by Dell computers to improve supply chain and delivery times. Dell launched the "direct business model" or "virtual integration" where Dell contracted with reliable suppliers to produce and assemble hardware and software for its computers and note books and tried to sell its products directly to organizations and individuals through the internet by cancelling the role of the retailers or intermediaries. I recommend the implementation of this model at Ford in the long run. There are few similarities between the car and the computer businesses but lots of differences Also Ford has to focus first on improving the quality of its vehicles to compete with Japanese manufacturers and...
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...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 this paper is to analyze Dell Computer Corporation (Dell) business...
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...contain systems and processes of maintaining the appropriate level of stock in a warehouse. It is important not only maintaining the inventory accuracy and level but also required to achieve customer satisfaction level and minimize the inventory carrying cost will not be easy task. Our main objective is to highlight to everyone, how Dell, one of the leading IT technologies company, improves its inventory. Slide 3. Focus (ALZAM) We’ll be focusing on Dell’s Historical background, follow by problem arises, key strategies solution and lastly the implementation to improve inventory. Now, I’ll pass on to ( ) for Dell Historical Timeline Slide 4. Historical timeline of Dell ( ) Under this overview of Dell Historical timeline, I’ll start off with Michael Dell, he had found "PC's [sic] Limited" in 1984 with just $1000 capital. A year later in 1985, this company produce it very first own design computer and name its “ Turbo PC”. In 1987, it set up it first on-site-service program. Follow by a year later, “PC Limited” was renamed to “Dell computer corporation” in 1988. 2 yrs down the road at 1990, Dell met a little small obstacle which cost its company to drop 64% in profit. Make him no choice but to refocus on the direct to consumer sale model in 1991. By 1992, the company was listed by Fortune Magazine to be one of the world 500 largest company. In order to pay more attention to mail order orgins, by 1994,...
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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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...follows; a plan that an organization needs is the strategy for managing all the resources that go toward meeting the demand for their product or service. Next is the source that organizations must choose the suppliers to deliver the goods and services that are needed to create their product. The make is the manufacturing step; these are the activities necessary for production, testing, packaging and preparation for delivery. The deliver, also known as the logistics is where the organization coordinates the receipt of orders from customers. The last component is the return, which is created to be a responsive and flexible network for receiving defective and excess products back from the customers. Dell Incorporated spearheaded the Direct Model concept of selling personal computers to the customer. Dell sells its computer systems directly to the end customer, bypassing distributors and retails. The organization’s supply chain consists of only three stages, the suppliers, the manufacturer and the end user. Having direct contact with the customer allows Dell to be able to properly identify market segments, analyze the requirements and profitability of each of those segments and develop a more accurate demand forecast. The capabilities allow Dell to match its supply and demand because of the orders for the computer configurations by the customers are made either over the phone or online via the internet. The computers are built from the components...
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...Case Assignment: Dell Michael Dell established the Dell Computer Company in 1984 with $1000. Over the years Dell grew to be the industry leader in personal computers. Michael Dell used many aggressive strategies to help Dell accomplish great success in a relatively short period of time. These strategies included allowing customers to individualize products, giving 24 hour phone service, and cutting out the middlemen by allowing direct mail order business. Outsourcing allowed Dell to have less inventory and have a faster turnover to new technology which gave a huge advantage over their competitors. Dell created good relationships with suppliers and that allowed them to cut costs by guaranteeing returning business. All these strategies cut costs and allowed Dell to be a leader in technology and quality. As other companies began to copy these strategies, competition began to heat up. In the 1990’s Dell launched an unsuccessful line of new laptop computers and had to recall 17,000 units because they were to slow and expensive. With more competition Dell decided to enter into the retail market which slowed down their strategy of cutting out a middleman and allowing quicker turnover to new technology. In 1993 after 14 consecutive quarters of rising profits Dell profits were only 10 million which was half of what they projected. Stock dropped drastically and many were already expecting the end of Dell. Three major problems were identified to be the reasons why Dell took a step back...
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...Malik September 28, 2015 DELL BATTERY CASE In October 1993, Mark Holliday and the portable computer development team at Dell were faced with three design options regarding a proposal for launching a new series of portable computers by late fall of 1994. The three design options at the end of the profile phase of product were regarding battery design; to stick with the nickel hydride batteries, to adopt the new lithium ion batteries or to defer the battery decision for another nine months until the qualification phase of product development and choose either a dual-path or over-design approach currently. If I were a member of the team, based on the information given in the case study my recommendation would be to defer obligation to either battery design and go with a dual-path approach for now. At the time of this decision regarding batteries, looking at the financial data of Dell presented in the case, there are many factors to be considered. The net sales of the company were $890 and $2014 million in 1991 and 1992 respectively. The increase was much more than the forecast. But the Dell’s sales market share of laptops showed a decrease from 12% in 1992 to 2% in 1993. Due to the austere character of Dell’s business model, the R&D expenses were also a small part of the sales. The R&D expenses represented 4.7% of sales in 1991 and dropped to 2.4% in 1992. There is an understated importance of laptop sales market share in 1993. The portable computer sales are forecast to...
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... Course Title Professor’s Name 14 March 2008 Dell Corporation Introduction Dell Corporation is one of the leading computer companies in the world operating on the global scale since 1990s. Dell relies on innovative technologies and new solutions which help the company to reach global consumers and market high quality products in different categories. International expansion helps Dell to obtain strong market position and sustain strong growth. A current strategy of Dell includes the determination of the basic long-term goals concerns the conceptualization of coherent and attainable strategic objectives. Key Components of the Business Environment of Dell High-technology market is marked by increasing capital markets activity over the past 5 years. It is estimated that average annual returns are anticipated to exceed 13 percent over the next 10 years, with investment alternatives performing at single digit growth rates (approximately 7 percent to 9 percent). This approach is based on Dell superior understanding of the problem solved by the product, the benefits it offers and issues it addresses. Dell is a leader in IT industry with S$ 57.095 billion revenue a year. Customers and technology are the primary driving factors in this arena (Dell Corporation Home Page 2008). Customers want products that satisfy their needs or improve their productivity. In 2 order to respond to external environment, Dell looks for ways to deliver these benefits at a lower cost...
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...their customers organization part of which is responsible for the activity.Every organizations operating functions, because each organization to produce certain types of services and products, however, not all types of organizations will be called operation functions, through the name. Competition from a rival company does not prevent the development of DELL Why Dell company can created Dell superior competitive advantage in a very short time? Implementation of effective management strategies is the company to success and the key to improve competitiveness.Develop a effective strategy, successful companies have gained faster development and achieved a better competitive advantage and market share. 1:Corporate to gain a competitive advantage, influence the development and implementation of corporate strategic management objectives causal analysis. Competition in the market, if the same way with the competitors management clearly does not produce a competitive advantage,so the business through the investigation and analysis, profiling internal and external complex factors, and then determine the correct strategy. DELL production system refers to the appropriate amount of production and inventory management mode of the Toyota company, and in accordance with the customer's order to produce ,a...
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...Introduction Dell Computer Corporation was founded in 1984 by Michael Dell in his dorm room at the University of Texas. In 2003, the company name was changed to Dell Inc. to reflect evolution of it from a computer manufacturer to a company that provides a wide range of technology related services. Dell Inc., now an American privately owned multinational company, became successful by providing quality inexpensive computer products than its competitors and grew to be the number one in the world (Exhibit 1) by implementation of its Direct Model. While competitors sold primarily through distributors, resellers and retailers, Dell directly took specified orders from customers through its established website and telephone lines, built and shipped devices to customers. Dell’s success started when its revenue surfaced $80,000 per month in 1984, and its ever growing revenue to billions of dollars, shares price and domination of PC market and standards until its defeat by Wlett-Packard (HP) in 2007. The ever falling of Dell’s shares price eventually made Michael Dell to buy back Dell’s shares in order to be able to restructure its legacy PC business one day. Company’s Current Strategy Dell Inc. pursues a focused differentiation strategy by offering premium quality products and devices and the best possible before and after sales customer service in a very timely manner. Dell believes it has the most efficient business model in the fierce competitive PC making industry. The company’s...
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...FORD MOTOR COMPANY’S | SUPPLY CHAIN STRATEGY | | | 11/13/2012 | *The Virtual Integration Model Analysis at Ford Motor Company, to Companies like Dell* EXECUTIVE SUMMARY As director of Supply Chain Systems, I have decided to implement portions of the new supply chain strategy of Virtual Integration and strategies from companies like Dell. Although there are several key differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, distribution system, dealerships and divisions. Special care will need to be taken to address the unique dependency of our custom Tier 1 supplier. The management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. In order to adopt the Dell Model we would: · Sell direct · Mass-produce customized products · Build to order · Substitute virtual integration with suppliers for vertical integration If we at Ford could find a solution to the obstacles of virtual integration, which I will explain in detail below. It could essentially make our supply chain run smoothly with less bottlenecking, inventory, and better overall performance. Managers could overcome the complex and error-prone manual process of forecasting and procuring parts which would result in reduced...
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... Dell Inc. Competitive forces The Competitive forces has five forces which are threat of new competition; threat of substitute products or services; bargaining power of customers or buyers; bargaining power of supplier; and intensity of competitive rivalry. I. Threat of new competition: In the other word, it is the threat of new entrants. For the threat of new entrants, based on the Porter's five forces, a model for industry analysis, " Barriers to entry are more than the normal equilibrium adjustments that markets typically make." (Porter's Five Forces). If a company wants to enter a new market, it should consider about the following factors in the industry which are Government policy, economies of scale, capital requirements, brand identity, absolute cost advantages and Industry profitability etc. II. Threat of substitute products or services: According to Wikipedia, " The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Note that this should not be confused with competitors' similar products but entirely different ones instead." (Porter five forces analysis, 2009). Many factors such as switching costs, buyer inclination to substitute, price performance, and trade- off of substitutes should be considered by a company. III. bargaining power of customers or buyers: based on Wikipedia"The bargaining power of customers is also described as the market of outputs: the ability...
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...EXECUTIVE SUMMARY Dell was losing its chief advantages – direct marketing and power over suppliers. In 2005, the percentage of PC sale via the phone and Internet fell in US as the sale through US retails stores rose – a channel in which Dell was absent. And by 2006, Dell’s growth in PC sales had slowed to about 5% a year. So that Dell should adjust to its changing environment. So that, the aim of this report are analyzing the internal and external factors, which can affect to Dell’s business, defining the problems and assess Dell’s performance based on it standards and recommending Dell should take corrective actions in order to improve its poor quality of products and services to gain more the competitive advantages than it has now to increase profit, and create a new image about Dell in customer’s minds. 2. INTRODUCTION Dell, Inc. was established in 1984 by Michael Dell at age of 19 while he was a student of University of Texas. He started to earn stake of money from buying back personal computers from the excess inventory of local retailers, then added more features such as memory and disk drivers, then sold out. In 1985, he began manufacturing his own computers and marketed them through ads in computer trade publication. After that, the company kept growing up to be the world’s leading direct marketer of personal computers and one of the top five PC vendors in the world. In 1996, Dell offered its PCs via the Internet at dell.com. By 2001, Dell was at the first...
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