...Strategic Management & Case Analysis Department of Business Administration Sylhet International University, Sylhet Submitted by: Shakhor Ranjan Dash Roll No. 11382 MBA 2-2 Submitting Date : 30.11.2012 Dell Case: Question 1 :: What are the advantages to Dell of having manufacturing sites located where they are? What are the potential disadvantages? Answer: Dell’s manufacturing sites are in Brazil, China, Malaysia, Ireland, and the U.S. Advantages of these locations are that some of them are low cost (Brazil, China, Malaysia and, relatively, Ireland), they have educated work forces that are highly productive, and they are near large regional markets. Dell Case: Question 2 :: Why does Dell purchase most of the components that go into its PC from independent suppliers, as opposed to making more itself? (Does does little more than final assembly of components into PC) Answer: Dell outsources because it enables Dell’s business model to be successful. Dell’s comparative advantage is in pricing, customization and rapid order fulfillment, all advantages gained through supply chain management and logistics. By outsourcing, Dell does not carry risks connected to inventory such as obsolescence, Dell can maintain flexibility in its manufacturing, and Dell has lower coordination costs than if it were vertically integrated, producing its own parts. Outsourcing allows Dell to focus on what it does best. Dell Case: Question 3 :: What...
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...Executive Summary In general, product or brand hierarchy is defined as the process where the products and brands are categorized into elements that are used by the companies for promoting their products and services. Brand and product hierarchy is used by the companies for the purpose of increasing the branding and product relationships with their customers. Depending on the availability of brand elements, the companies categorize their products for representing their brands in the market. Within this study, five different industry sectors with each example company will be taken into consideration where researcher has conducted a hierarchical analysis for those company brands and products. On the other hand, the study even explores the information about the classes, categories, forms and brands of every company. A critical competitor analysis for those company brands will be carried out and finally the study draws a conclusion about their core competencies Hierarchical Analysis SECTOR1: CONSUMER DISCRETIONARY- RETAIL SECTOR- WALMART For the consumer discretionary industry the retail sector has been selected where again the world’s popular retailer company called Wal-Mart was selected as Example Company. According to the report of Wal-Mart (2011), Wal-mart is one of the world’s famous retailer companies which is based in USA that offers wider range of consumer products and goods to the customers across the world. Wal-Mart has different products...
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...CASE STUDY ON Strategic Analysis Of Dell Inc. mujeeb [Pick the date] Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving with the passage...
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...Case study on | Strategic Analysis | Of Dell Inc. | | mujeeb | [Pick the date] | | Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving...
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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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...Abstract……………………………………………………………………………….....3 Introduction…….…………………………………………………………………….…4 Dell Timeline……………….…………………………………………………………. 5 Mission Statement….……………………………………………………………….….6 Objective……………………………………………………………………………….7 Strategy...........................................................................................................................7 Financial Performance ...……………………………………………………………..13 Dell’s Evaluation……………………………………………………………………..15 Recommendation……………………………………………………………………..22 Conclusion…………………………………………………………………………….23 References…………………………………………………………………………….25 Abstract This case study examines the marketing strategy and innovation practiced by the Dell Computer Corporation IT details the history of the company which made its way in the industry by building custom configurations of personal computers. A major theme of this case is Dell’s build-to-order strategy which has been a success in marketing as well as an overall strategy in supply chains across the country. This case details how well Dell has cornered the personal computing home office market and also the manner in which it derives a substantial amount of its revenue from its small business clients. It also addresses potential problems in Dell’s strategic management and possible solutions to help them stay on top. Introduction History Dell was founded in 1984 by Michael S. Dell, a student at the University of Texas, who with $1,000 dollars in capital...
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...A CASE STUDY PRESENTED BY: MELWIN G. MENDE MBA -2 MARKETING MANAGEMENT BA213 III. EXECUTIVE SUMMARY Dell computer was founded by Michael Dell at age of twenty one in his dorm at the 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...
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...STRATEGIC MANAGEMENT BPMN6023 INDIVIDUAL TERM PAPER “DELL INC. : CHANGING THE BUSINESS MODEL (MINI CASE)” PREPARED BY : MOHD NOOR SHARIFFUDDIN AL-MUHARRAM BIN MAT SHUIB @ SHARIF MATRIX NO : 814812 MASTER OF BUSINESS ADMINISTRATION UNIVERSITI UTARA MALAYSIA TABLE OF CONTENTS Description | Page | 1 | Executive Summary................................................................................................. | 3 | 2 | Company Background.............................................................................................. | 3 | 3 | Industry Background................................................................................................ | 4-5 | 4 | Internal Environmental Analysis.............................................................................. | 5 | 5 | External Environmental Analysis............................................................................. | 5-6 | 6 | SWOT Analysis......................................................................................................... | 6-7 | 7 | Strategic Recommendation..................................................................................... | 8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1. Executive Summary The modern business environment is characterized by intense competition and this trend...
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...Question 3: Does Dells expansion into other IT Products and services make good strategic sense? Why or Why not????? Dells decision to expand in to other IT Products and services made good sense as customer can be brand loyal and prefer to have matching components for their PCs. Dell has a quality reputation which customers know and trust. Dells expansion into data storage hardware, switches, handheld PCs, Printers, and Printer Cartridges and software products represented an effort to diversify the company’s product base and to use its competitive capabilities in PC and servers to pursue revenue growth opportunities. The expansion into different products and services complemented sales of PCs and Servers. In 1995 Dell had a 2% market share in the server market, increasing to 30% in 2008. Dells idea to sell Data Routing switches proved to be a clever strategic move as they were able to price products 2 and a half times less than the market leader at the time Cisco. This resulted in Dell shipping 1.8 million switch ports in the period of a year. Senior Dell executives saw external storage devices as a growth opportunity because the company’s corporate and institutional customers were making increasing use of high speed data storage and retrieval devices. Competition in the IT industry can be a challenge. So for any company to survive within that industry, it has to have the ability to harness the basics of its core competencies to the very maximum. This is an inventive design...
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...Dusk At Dell Executive Summary This case analysis report focuses on the declining market share faced by Dell, Inc. (“Dell”, the “Company”) and recommendations are given as to where the Company needs to alter its strategy at a business level as well as a corporate level. Broad recommendations include foraying into the retail space at a more aggressive pace, laying greater impetus in fast emerging markets such as China and India, and focusing more on R&D efforts in order to ensure that higher levels of innovation are achieved by the Company. Introduction Dell, Inc. (“Dell”, the “Company”) is a multinational company that specializes in the development, manufacture, marketing and servicing of computers and computer related products. Dell has been one of the most successful firms in the computer industry, having achieved supernormal revenue growth and above average returns for several years spanning the mid 1990’s to the mid 2000’s. This was mainly due to their prowess in customizing products as per customer requirements, coupled with effective manufacturing and supply chain processes. The Company encourages little or no intervention from distributors and middlemen, and majority of all sales are based on a direct customer relationship business model. The firm’s resources focused on supply chain capabilities, with frequent inventory turnover and direct delivery emerging as Dell’s core competencies. At the time when Dell established these core competencies, they were valuable...
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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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...Major Case Assignment Case: Dell 2009 Concordia University John Molson School of Business July 22, 2010 INTRODUCTION Situation Synopsis After almost 20 years of unprecedented growth and industry leadership, Dell has started losing market share to its competitors: HP, Apple, Acer and Lenovo. Furthermore, its stock price has plummeted from its record 1998 high of US$139.88 to almost US$20.00 in July 2008. Due to poor performance, the founder of the company Michael S. Dell has returned to the company as CEO and has devised a plan to bring back Dell as a market leader in this industry and to improve its stock price. Company’s Current Strategy Vision: To be the world’s leading supplier of computer systems Mission: To enable millions of businesses and consumers to get online for the first time Objectives: Improving Dell’s stock price Corporate/Business Strategy: • Outsource full system manufacturing facilities in China for retail business. • Split product design departments into commercial and consumer teams. • Listening & reaching customers, expanding and customizing their product and service portfolio • Low cost structure - drive costs out of the company’s supply chain and expand into foreign markets • Grow company in consumer, enterprise and emerging markets 1. EXTERNAL ANALYSIS 1.1. General External Environment Demographic: Global commercial and consumer markets; Wide range of income distribution among customers from individual...
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... Business and IT Alignment What business is this organization in? Dell Computers was founded by Michael Dell in 1984 with the aim of providing consumers with computers that meet their needs. The Dell organization is in the business of making personal computers. Dell does not make most of the parts it uses for the computers but buys them from other companies. The computers are then assembled from stock parts. The company has become synonymous with customer satisfaction since it was established in 1984. The developments made by Dell computers on the personal computer market are astonishing given the amount of time it has taken them to reach the point they have reached right now. Dell has ventured into other products like printers, however; it has been criticized for modifying its printer cartridges to only work with Dell computers. Despite this shortfall, it remains one of the most popular personal computer sellers in the world. Who are this organization’s competitors? Customers? Suppliers? New entrants to this marketplace? Dell’s competitors are fellow PC manufactures and makers in the business. These include Hp, Microsoft, Toshiba and NEC. Its suppliers are mostly from the Eastern countries including Asia-Pacific and Japan. The Eastern countries generally offer their parts at a cheaper price than most suppliers offer and therefore making it easier for Dell to compete in the market despite the fact that it does not make most of the parts it assembles...
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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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...EXECUTIVE SUMMARY Dell Inc. is an American multinational technology company based in Texas. Dell managed to enter Singapore market through foreign direct investment and relied on the sales of laptops, printers, and many more. In Singapore PC and laptop are used to assist daily activities supported with abundant Internet access, this makes Singapore a good market for computer and peripheral industry. There are a total of 6 parts in this report. In the beginning of this report, a brief history and background of Dell will be shown. Then, in the second part of this report, advanced technology is shown as one of many vital keys in computer and peripheral industry along with lesser keys like economic, political, and demographic conditions. For the third part, an industry analysis using Porter 5 forces theory will analyze how those forces affect computer and peripheral industry generally. The second and the third part will focus on the industry as a whole. For the fourth and fifth part of this report, it will highlight Dell. The fourth part will show Dell’s strategic capabilities and how they help and enable Dell to survive and competitive in the industry. Meanwhile, the fifth part of this report will talk about Dell’s business strategy and how it transforms Dell to be a better company. The last part of this report will show the evaluation of Dell’s strategy evaluation that determines the sustainability of Dell. TABLE OF CONTENT 1. BACKGROUND AND HISTORY ...
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