...Dell Computer Corporation is one of the world’s largest computer systems organizations. They design, build and customize products and services to satisfy a range of customer requirements, from the server, storage and professional services needs of the largest global corporations, to those customers at home. Dell is a perfect example of how harnessing the power of the Internet can lead to total market dominance. Through the company’s direct sales model, Dell has managed to grow from a $6 million to a $23 billion dollar company in 15 years. This is largely due to their extension of the direct model with information technology and the World Wide Web. The Internet became a worldwide tool for reaching Dell’s customer base and gave the company the ability to directly do business with partners and customers all over the world, one at a time, at no additional overhead. This successful business model put much emphasis on the customers. From the beginning to the end of the transaction, Dell understood completely what the needs of the customers were and this ony led to a network of satisfied customers with the potential to do business again and again in the future. However, the direct-sales business model was merely a tool for Dell to do business. If the success of Dell was based solely on this model, Dell would have not been able to rise to the top of the competition in two decades despite being a late entrant. Many competitors of Dell duplicated the model and tried to do...
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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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... Introduction This research identifies two business professionals, Michael Dell and Andy Grove; their main contributions to their fields; the resistance that each encountered in presenting and furthering their programs; the similarities and differences in their stories; and finally, the factors that may have impacted their success. Michael Dell Michael Dell is founder and CEO of Dell Corporation, a fortune 500 company which was the number one stock of the 1990s, soaring almost 90,000 percent (Krames, 2003, p. 58-59). Dell discovered his entrepreneurial abilities early in life when at 12 years, he issued his first product catalog, the Dell Stamps (Krames, 2003, p. 58). Dell has contributed positively to the technological industry by not only building computers, but also showcasing his outstanding entrepreneurial abilities. Through mass customization, Dell revolutionized the industry. According to Draft (2013), “mass customization refers to using mass-production technology to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers” (p. 31). Mass customization enabled Dell to achieve significant savings by eliminating intermediaries. Through customer segmentation, Dell was able to determine the needs and specifications of customers, while forecasting the demand. What is unique about this strategy is that, Dell was able to prove that, companies can be successful with mass customization only when the...
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...and Failures of Two Professionals Michael Dell is the founder and CEO of Dell Computer, and by the age of 27 he was the youngest CEO of a fortune 500 company. When Michael Dell first started out with Dell Computers his focus was with the sale of personal computers (Krames, 2003). Dell later began to manufacture other computer products. Dell believed that taking care of the customer should be the primary focus and he worked hard to ensure that plenty of input came from them. He always felt that there was no need for a middle man, which is what help him to make his relationship personal with his customers. By developing a personal relationship with his customers he was able to easily develop products customizing them to order (Krames, 2003). Another way that Dell was able to maintain its success was through price. Dell learned early on that in order to maintain a profitable competitive advantage was to make quality products and to be able to sell them at a low price (Krames, 2003). Dell’s company learned to forecast its products which helped them to limit waste and capitalize better profits for their products. By customizing products to order and eliminating the middle man it allowed Dell to reap even higher profits even though he was selling his products at a low competitive price (Krames, 2003). Some resistance that Dell felt was from its competitors for having such a low price. Some of Dell’s competitors believed that Dell was starting a price war. Other resistance factors...
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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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...selected to write in relation to is Dell. Dell is an international computer company that trades computers and additional devices of electronic for instance tablets. Dell commenced as an eccentric start-up PC company that ultimately grow up into one of the major internationally competitive computer business in our existing market. Michael Dell founded the Dell Company when he was only 19 years old; he established PC limited with only $1000 and had a game shifting visualization of how technology must be extended, produced and sold. Owing to the vision of Michael Dell, the business ascended to one of the apex five companies on the globe amid 1992 and 1995. When Dell speedily enlarged its worldwide operations around 1996, it started their online sales; they then placed the bar for worldwide e-commerce sales. Sometime around year 2000, Dell developed up becoming the number one computer producing company in the world (www.dell.com). The utmost success that Dell has had right through the years has been through their innovation. Innovation in the computer industry is the main ingredient for enduring to be successful. Year following year you have got to produce new products that will plea to customers out there. Dell has successfully done that for years, and they have been capable to continue as a foremost computer sales corporation together with further big computer companies for instance Microsoft and Apple. Its innovative nature is what continues Dell in the international marketplace...
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...A Direct Threat to the Status Quo An Analysis of the PC Industry and Dell, Inc. I. Personal Computer Industry Summary a. Industry Profile b. Typical Industry Competitive Strategy c. Porter Model Evaluation d. Globalization of the Industry e. Importance of I/T to the Industry II. Dell, Inc. a. Dell Company Profile b. Market and Financial Performance c. Competitive Strategy Statement d. Significance of Information Systems e. Strengths and Weaknesses of Dell, Inc. III. Structured Analysis of Information Systems Use a. Strategic Option Generator b. Roles, Roles and Relationships c. Redefine/Define d. Significance of Telecommunications e. Success Factor Profile IV Final Analysis a. Success of Business Strategy and I/T Use to Date b. Have the Above factors Positioned Dell for the Future? Objective of this paper A thorough analysis of the PC Industry yields a unique look at the most dynamic market arena in the last 25 years. This analysis paper seeks to offer just that: an in depth view of what it takes to succeed in this marketplace. While focusing on the international end-user and corporate markets, important topics such as threats, tactics, and future trends of the core market players will be scrutinized. Further, we offer an in-depth look at how Dell Inc., one of the market’s most successful players, deals with these threats and competition...
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...Comparison and Contrast of the Professional Stories of Michael Dell and Andy Grove Melissa A. Honea Northcentral University ABSTRACT Michael Dell and Andy Grove were both successful businessmen who use different approaches to their businesses. Both men had success and failures that shaped their business into the successful company’s they are today. Michael Dell tried a new approach to his business that he quickly saw was a failure. He realized that the approach he currently uses is the most successful for his company. Andy Grove made his company successful twice. While in the memory business he had 100 percent of the market share. He learned a hard lesson when his company was pushed out of its market share by competitors. The company had to quickly find a new niche. After three years, the company was successful again. Comparison and Contrast of the Professional Stories of Michael Dell and Andy Grove Michael Dell Michael Dell became an entrepreneur at the age of 12 when he advertised his business “Dell Stamps” in a local trade journal. While in college, Dell turned his dorm room into a personal computer laboratory and started selling them. In 1984, Dell started Dell Computer Corporation. In 1988, the company went public raising $30 million at its initial public offering (Krames, 2003a). Dell’s philosophy is to put the customer at the center of his business. All computers are custom ordered by the customer. The production process does...
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...Krames (2003) is very enlightening an intuitive. Michael Dell according to Krames (2003) believes in the power of the customer, be it their positive or negative feedback, but especially in what the customer wants from a product (p. 56). Michael Dell birth a business model based solely on a one-on-one relationship with customers is the foundation of his company the Dell Corporation. Andy Grove’s model mandates protection or maximization of sales opportunities so to be prepared for all possibilities of success or failure which he based on Time magazine’s 1997 person of the year Andras Grof paranoid perspective (Only the paranoid survive) (Krames 2003, pp. 66-67). Business partner Moore’s metaphorically likened their organization to that of a three legged stool, if one leg is off balance so is the entire organization (Krames 2003, pp. 137-139). Lastly, Grove named the fear of an organization being on the brink of total failure as a “strategic inflection point” (SIP) which he describes as an organizations face-to-face with massive must change events even to a point of complete organizational failure (Krames, 2003, p. 141). Resistance Comparison Michael Dell organization encountered near death when the brilliance of his technical engineering team and himself put together a massive computer (The Olympic) that customers had no real need for, which in-turn caused a huge financial loss to the Dell corporation. Michael Dell went back to basics which involved customers from the beginning...
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...specifications on an instantaneous basis in the world with respect to its personal computer products. The organizations success has been because of its capacity to decrease costs and create a streamlined supply chain management system. Dell is able to offer effective personal computers to customers at a lowered cost plus gives the customers the ability to build a computer with a personalized customer’s specific requirements. This is a direct business model that ensures that computers can be configured according to the buyers’ specifications and directly delivered to them. This strategy helped Dell to become an industry leader for many decades (Chopra & Meindl, 2013). Dell’s model created the conditions for loyal customer base and ensured its success in a competitive industry. One strategy that works for Dell is their online selling system. When a customer goes online and searches for specifics on a computer to fit their application needs, one of the criteria they search for is of course affordability, reliability, and speed (RAM). One of the first computers I purchased myself in college is a Dell. Dell utilizes colleges or universities as one of their marketing outputs. The University collaborated with Dell to give discounted prices to students and for every computer purchased the student received a 15% offer (Chopra & Meindl, 2013). In the past Dell experienced related challenges, as its build-to-order customization and cost-efficient supply chains no longer deliver...
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...Dell is an American technology company based in Round Rock, Texas which develops, manufactures, sells, and supports personal computers, servers, data storage devices, network switches, software, televisions, computer peripherals, and other technology-related products. In 1984, Michael Dell while a student at the University Of Texas founded the company as PC’s Limited with a capital of 1000.00. He operated from his off campus dorm room where he strived to sell IBM PC compatible computers. He believed that by selling personal computer systems directly to the customer, PC’s Limited could better understand the needs of the customers. Michael Dell then dropped out of school to focus full time on his growing business after receiving 300,000.00 in expansion capital from his family. In 1985 the first computer of its own design was produced and called “The Turbo PC.” PC’s Limited advertised the systems in the national computer magazines for sales directly to the consumers and custom assembled each ordered unit. This offered buyers prices lower than those of retail brands. Although PC’s Limited was not the first to use this model, they were the first to succeed with it grossing over 73 million in the first year. In 1987 the company set up its first operations in the United Kingdom. Eleven more international operations followed in the next 4 years. In 1988 the company changed it’s name to Dell Computer Corporation. Dell grew through the 1980s and 1990s and became the...
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...Apple, Inc. (Apple) and Dell, Inc. (Dell). Both are successful technological companies. Operating in the technology field they pay a great deal of attention to technological factors and trends in the industry. Their internal and external environments can be scanned and evaluated using the PESTEL tool and Porter’s value chain. Using the PESTEL tool will help them identify opportunities and threats that they might encounter. Using the Porter value chain will help them identify and separate strengths and weaknesses each has. According to Apple they are a worldwide company that produces consumer electronics, computer software, and commercial servers. Apple’s main product lines include the iPad, iPhones, iPod music player, and the Macintosh computer. In April 1976 Apple’s founders Steve Jobs and Steve Wozniak produced the first Apple Computer with their introduction of the Apple I. They incorporated their company in January 1977 in California and have been in business for over 30 years. Apple has had an up and down track record over that time period but also several proven successful products and brands. They also have demonstrated continual innovation despite some down turns and rough times. The death of Steve Jobs in 2011 presents another down time and set back and presents Apple with a great challenge to continue its innovation and proven success under Jobs’ leadership. Dell is a worldwide information technology company that was founded by Michael Dell who is one of the University...
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...Dell History Dell is an American technology company based in Round Rock, Texas which develops, manufactures, sells, and supports personal computers, servers, data storage devices, network switches, software, televisions, computer peripherals, and other technology-related products. In 1984, Michael Dell while a student at the University Of Texas founded the company as PC’s Limited with a capital of 1000.00. He operated from his off campus dorm room where he strived to sell IBM PC compatible computers. He believed that by selling personal computer systems directly to the customer, PC’s Limited could better understand the needs of the customers. Michael Dell then dropped out of school to focus full time on his growing business after receiving 300,000.00 in expansion capital from his family. In 1985 the first computer of its own design was produced and called “The Turbo PC.” PC’s Limited advertised the systems in the national computer magazines for sales directly to the consumers and custom assembled each ordered unit. This offered buyers prices lower than those of retail brands. Although PC’s Limited was not the first to use this model, they were the first to succeed with it grossing over 73 million in the first year. In 1987 the company set up its first operations in the United Kingdom. Eleven more international operations followed in the next 4 years. In 1988 the company changed it’s name to Dell Computer Corporation. Dell grew through the 1980s and 1990s...
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...Dell Computers Spin Out of Control Problem Statement Dell Computers requires a new and effective control strategy because of falling behind in product innovation and customer service. Analysis and Evaluation The original business model of dell computers allowed the company to obtain certain controls when it originally started its “value priced” business model early in the company’s conception. The company’s efforts to control costs by selling and shipping directly to the customer was one of the tight controls that ensured the early success of the company. There were other controls, such as flexible manufacturing for low-cost customization, and just in time inventory that held down carrying cost that also contributed to the early success of the organization that Michael Dell had built. There were lots of advantages that Dell gained from using this tight business model. The first of which was its effective effort to control costs. Dell opened a plant in North Carolina that could produce computers in almost half the time but with a lot less down time than other plants. This new factory could produce forty different models of computers at the same time, which was something that the older factories could not do. Other factories had a process driven flow, while this factory wanted to maintain the ability to get computers to the customers as quickly as possible. Another advantage that the Dell company had early on was an excellent quality control system. The assembly...
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...manufacturing in which products are not built until the product is ordered and paid for. Some companies that have successfully implemented JIT include Toyota, Dell and Harley Davidson. Toyota Toyota is considered by many to be the poster child for JIT success. The Toyota production strategy is highlighted by the fact that raw materials are not brought to the production floor until an order is received and this product is ready to be built. No parts are allowed at a node unless they are required for the next node, or they are part of an assembly for the next node. This philosophy has allowed Toyota to keep a minimum amount of inventory which means lower costs. This also means that Toyota can adapt quickly to changes in demand without having to worry about disposing of expensive inventory. Important Factors to Toyota Success: Small amounts of raw material inventory must be kept at each node in production, so that production can take place for any product. These parts are then replenished when they are used. Accuracy of forecasting is important so the correct amount of raw materials can be stocked. Dell Dell has also leveraged JIT principles to make its manufacturing process a success. Dell’s approach to JIT is different in that they leverage their suppliers to achieve the JIT goal. They are also unique in that Dell is able to provide exceptionally short lead times to their customers, by...
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