...BACKGROUND [pic] [pic] Introduction of Dell Inc. Dell Inc. is a multinational technology corporation that develops, manufactures, sells, and supports personal computer and other computer related-products. Dell Inc. based in Round Rock, Texas. Dell Inc. employs more than 82,700 people worldwide. Dell Inc. grew during the 1980s and 1990s to become (for a time) the largest seller of PCs and servers. As of 2008 it held the second spot in computer sales within the industry behind HP. The company currently sells personal computers, servers, data storage devices, network switches, software and computer peripherals. Dell Inc. also sells HDTVs that are manufactured by other brands. In 2006, Fortune Magazine ranked Dell Inc. as the 25th-largest company in the Fortune 500 list, 8th on its annual “Top 20” list of the most admired companies in the United States, In 2007 Dell Inc. ranked 34th and 8th respectively on the equivalent lists for the year. A 2006 identified Dell Inc. as one of 38 high-performance companies in the S&P 500 which had consistently out-performed the market over the previous 15 years. History Background and Origins While a student at the University of Texas at Austin in 1984, Michael Dell founded the company as PC's Limited with capital of $1000.[5] Operating from Michael Dell's off-campus dorm-room at Dobie Center [1], the startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling...
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....................................................... 4 PART 1: OVERVIEW – INTERNET PROPERTIES & MARKETING IMPLICATIONS .................. 6 Website analysis................................................................................................................................. 6 Web and other online content ............................................................................................................. 7 Website properties (table 1.6) ............................................................................................................. 8 Website design and usability features ................................................................................................. 9 Multimedia and interactive features .................................................................................................. 10 PART 2: BENEFIT, COST AND VALUE CREATION ..................................................................... 13 Customer relationship management .................................................................................................. 13 Benefit, cost and value creation ........................................................................................................ 14 Customer experience ......................................................................................................................... 15 Marketing mix...
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...industry environment 3 4.Allocation of resources 5 5. The currently strategies of Dell Company 7 6.Analysis of Dell Company 10 6.1.Cost structure strategy analysis. 10 6.2 .Products differentiation strategy analysis. 11 6.3. Exit barriers and transfer cost strategy analysis. 12 6.4. Production capacity expansion method analysis. 12 6.5. Type of rivals analysis. 12 7. Recommendation 13 8.References 16 1.Summary In this report, through the analysis of the overall economic situation, resource allocation and the current market strategies of Dell Company, to explore the challenges and opportunities which does Dell Company face. The analysis shows that the lack of core technology is the biggest challenge of Dell. And the marketing strategies, which are used now, are sustainable, but these strategies still have the development space. Therefore, Dell should increase the investment in technological development, as well as improving the current strategies to more directional, focused, differences, and the ability to cooperate with other enterprises effectively. 2.Introduction of the company and the process of globalization Dell Inc., headquartered in Austin, Texas, is in the leading position of global IT products and services provider (Dell, 2012). Its businesses include helping the customers establish the self-information technology and Internet infrastructures. The fundamental reason of Dell became the market leader is providing the standard technology products...
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...Research Publication Date: 12 November 2010 ID Number: G00208603 Case Study for Supply Chain Leaders: Dell's Transformative Journey Through Supply Chain Segmentation Matthew Davis Faced with ever-changing customer needs, product commoditization, unique global requirements and new, low-cost competitors, Dell embarked on a three-year journey to segment its supply chain response capabilities. The company designed its supply chains based on a mix of cost optimization, delivery speed and product choices that customers value, while aligning internally across all functions to execute against this vision. Key Findings Dell's market and business strategies changed, requiring the company to move from a single supply chain to a customer segmentation supply chain approach. A unified, cross-functional business strategy with collaborative, decision-making processes across sales, marketing, product design, finance and supply chain is essential for segmentation. Segmentation is enabled by a cost-to-serve (CTS) methodology to dynamically allocate costs to business decisions, highlight net profitability and drive the right actions for each supply chain. Supply chain segmentation is a multiyear journey enabled by the development and alignment of organizational skills to the needs of the journey's different phases. Recommendations Start with segmentation of your company's customers and channels to understand the different demand rhythms and cycles. Focus on decreasing...
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...DELL INC. IN 2009 1. What generic competitive strategy did Dell follow, which made Dell the leading supplier in the global PC industry in 2003-04? What were the key elements in the strategy? (4 pts) A: Dell pursues the cost leadership strategy and differentiation strategy. Dell has driven costs out of company’s supply chain and kept inventory to a minimum. At that time, the low cost per PC in Dell and the high profit per PC form a poignant contrast. Dell has delivered the customer’s a series of unique and innovative combination of services at that time which not only set itself apart from other competitor but also perfectly matches the level of expectation at a cost that also assures an adequate level of profitability. 2. How well did the key elements fit together for Dell to gain competitive advantages over its competitors? What were the competitive advantages? Sustainable? (4 pts) A: During these years, the key elements fit very well for Dell. The first advantage gained is efficiency of order based on its Direct Model. The second advantage gained is a solid supply chain and lower inventory based on its low-cost strategy. However, I don’t think this will be sustainable because its strategies are easy to copy by other competitors. Moreover, Dell has not paid enough attention to technology innovation for a long time. 3. What caused Dell to lose its No.1 spot in PC industry in 2007? Internal factors and external factors? Anything to do with its strategy and implementation...
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...Research Publication Date: 12 November 2010 ID Number: G00208603 Case Study for Supply Chain Leaders: Dell's Transformative Journey Through Supply Chain Segmentation Matthew Davis Faced with ever-changing customer needs, product commoditization, unique global requirements and new, low-cost competitors, Dell embarked on a three-year journey to segment its supply chain response capabilities. The company designed its supply chains based on a mix of cost optimization, delivery speed and product choices that customers value, while aligning internally across all functions to execute against this vision. Key Findings Dell's market and business strategies changed, requiring the company to move from a single supply chain to a customer segmentation supply chain approach. A unified, cross-functional business strategy with collaborative, decision-making processes across sales, marketing, product design, finance and supply chain is essential for segmentation. Segmentation is enabled by a cost-to-serve (CTS) methodology to dynamically allocate costs to business decisions, highlight net profitability and drive the right actions for each supply chain. Supply chain segmentation is a multiyear journey enabled by the development and alignment of organizational skills to the needs of the journey's different phases. Recommendations Start with segmentation of your company's customers and channels to understand the different demand rhythms and cycles. Focus on decreasing the time required...
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...ON TOYATA’S GOBAL PRODUCTION STRATEGY Submitted to: Mr. Md. Zillur Rahman Course Coordinator Course Code: MGT-601 Course Title: 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...
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...Introduction Michael Dell founded the Dell Company in 1984, and became successful based on the idea of direct marketing strategy. Dell sells directly to the customer with no retailers this eliminates any unnecessary cost and time. When the consumer orders a computer it is tehn assembled and customized to the specifications of what the customer has specified. There is little to no inventory held as the computers are assembled as soon as the order is placed, using the just in time approach. Direct marketing strategy with low prices, customization and e-commerce is the key to Dell’s success. In 1996, Dell became the e-commerce leader with its website containing pages of details of products and online shop specializing computers (Dell Inc.). People can now buy a computer on the website, which covers 80 countries, 27 languages and 40 currencies without leaving home. Strategy Dell’s strategy is to provide products, services and support to the consumer and does not involve intermediaries. Dell believes in a direct relationship with the consumer, also known as Dell’s ‘direct business model’ while eliminating wholesale and retail dealers, which add unnecessary time and cost or diminish Dell’s understanding of customer expectations (Dell’s 10-K report, 2005). The direct customer relationship allows the customer to review, configure and price systems from Dell’s entire product line, order systems online as well as track orders from manufacturing through delivery (Dell’s 10-K...
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...provide a written report. Dell Computers was founded by Michael Dell in 1984 and has its head offices in Round Rock, Texas. (Benedetto, 2012, p. 165) Michael Dell has a very simply philosophy, selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. (Dell Inc. - Company Profile, Information, Business Description, History, Background Information on Dell Inc., 2012) Michael Dell started his company while he was still in College in 1984. The premise was to buy IBM parts wholesale and assemble computers and sell them for less money than the competitors were selling theirs for. Dell achieved sales of $6 million its first full year in business, approaching $40 million the next year. (Dell Inc. - Company Profile, Information, Business Description, History, Background Information on Dell Inc., 2012) Dell soon realized that he could not keep up with the explosive growth of the company and hired Tandy Corporations marketing executive team to run things. Tandy was a competitor at the time. Dell has experienced a very nice trajectory through the 90’s and projection over the next 5 years show a 47% increase in the number of units that will be sold in millions. Currently the three competitors of Dell that threaten the size and...
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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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...Macintosh Dell Computers The purpose for this report is to formulate the acquaintance of Dell Computers. Dell Inc. is formerly the Dell Computer Corporation. Dell and the CEO was a foundation of Michael Saul Dell. For many years Dell Computers has been around and many people are using products of Dell. Dell is the leading seller of personal computers (PCs). Computers such as Adamo, OptiPlex, Dimension, Precision, XPS, Latitude, Inspiron, Inspiron Mini, Vostro, Studio, and Alienware are being sold by Dell Computers. The product of Dell satisfies customer needs because they are very valuable. Dell Inc. provides a variety of promotions that are equal to the market and their customers. Dell is a corporation that allows customers to purchase their products from the store or online and they will require shipment to the customer house who purchase their products online. Dell had many environmental factors that were uncontrollable and the factors were social, economic, political and legally, technological, competitive, and institutional environments. Naturally, Dell is one of the most leading consumers of brands that are durable. Dell marketing mix is known to talk about the way that Dell has improvised to have gain for its competitive position. Dell computers ranges from different prices and the prices are based upon the change of the products that pass through the lifecycles. Dell provides varieties of business class as well as home consumer...
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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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...Case Analysis Dell Inc. in 2008: Can It Overtake Hewlett-Packard as the Worldwide Leader in Personal Computers? Executive Summary This case analysis contains an evaluation of Michael Dell’s corporation, Dell Inc. The year is 2008 and is a turning point for the IT product and service provider that is in need of a necessary revamp. The curtain state, pluses and minuses of the company, and what problems, options, and what solutions that should be evaluated are highlighted throughout this piece. Environment: -Dell exists in economic conditions that are currently spread out over the map, and that are at a considerable standstill. There are people and organizations that cannot afford to make any significant purchases at this time, and there are people and organization with disposable income that can purchase anything their heart desires. The high-class citizens apparently are becoming richer, and the middle-class and below seem to be getting poorer. It is a tough market currently, and a niche, a product or service that offers something unique to consumers is quite necessary at this time to capture sales. -Stylish, popular social trends such as iPhones, Apple, and being perceived as wealthy is the in at the moment, and consumers want to be it everyday. Looking beautiful, while possessing attractive items is the upmost desire. Companies are trying hard everyday to keep up with the current market, and are constantly trying to create new styles, and trends for each season...
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...Dell – CRM System The mission statement for Dell is “to be the most successful computer company in the world at delivering the best customer experience. Dell has been widely successful at meeting this task through their effective use of CRM (Customer Relation Systems). Dell’s CRM strategy includes building better customer loyalty, creating greater customer satisfaction, and producing higher sales and marketing performance. Dell utilizes several different CRM softwares to help complete these strategies. Dell uses the database software along with analytics software called ProClarity to help segment different markets and build better customer loyalty Segmentation has been the backbone of Dell since its inception. These particular databases store tables of data that can be mined for information about clients and include customer information, their interests, and products. This helps Dell determine effective and efficient ways to target and segment the customers. ProClarity offers in-depth analytical abilities, resulting in positive and negative areas of business being clearly highlighted. This software allows for sales to be broken down by region, with overviews of each sales team, enabling Dell to measure trends and successes throughout the company. One way that Dell helps increase sales and marketing performance is through software called Hotlink. Hotlink is a marketing automation software program used to aid e-marketers in effective targeting, efficient marketing communications...
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...Because of the high value of inventory, theft of inventory is the favorite target of employees. The embezzlement could occur in Dell Inc. Therefore, further investigation such as physical account of inventory and tracing or vouching method should be developed in inventory account. Furthermore, based on the SEC 2010 report, SEC charged Dell’s Chairman and CEO, former CEO and Former CFO $100 million with fraudulent behavior. And recent SEC compliant reports represent that illegal insider trades exist in Dell. Our audit team would concentrate more on the off-balance sheet information. 6.3 Identify Related Parties Dell Inc. Corporate governance policy requires that the CEO and CFO must sign certain representations regarding annual and quarterly reports and reviewed by audit committee. Since we rely on Dell Inc.’s inventory control after assess the internal control risk, we can assume that there is no misstatement or fraud with related parties’ transactions....
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