...Matching Dell Case Analysis 6/27/2013 Submitted By: Group-4 Manjul Shrestha Megha Shrestha Mohit Basnet Sujal Dhungana Submitted To: Mr. Rupesh Krishna Shrestha Facilitator, Marketing Management Kathmandu University School of Management Background The case “Matching Dell” basically describes the history, market structure and environment of computer and peripherals industry especially emphasizing the success story of Dell Computer Corporation. Despite the fierce competition from the IBM giants and the IBM clones, Dell stood out as a successful name by focusing exceptionally on operations and manufacturing, measuring performance through several performance metrics and concentrating on products and market trends. Dell Computer Corporation emerged as a small dorm room part-time business in the mid-1980s, the era of booming popularity and purchases of the personal computers when every family wanted to own a PC for their homes and every employee wished to have a PC on their desk. So, consumers were demanding PCs and there was Dell bursting on the scene with its “direct approach”, handling each customer individually through customized PCs, delivering its core strategies of improved customer satisfaction and minimum inventory holdings. While all the other big competitors were running towards developing their retail and reseller chains and relationships, Dell with its unique approach focused on handling its customers directly and thus was rewarded with huge raise...
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...Matching Dell BA 4700 October 12th, 2010 Bing Bai Zexin Li Ian Ruehle Erin Strack Chun Zhang Introduction The Dell Computer Corporation was founded in 1984 by Michael Dell, who began the company by refurbishing IBM clones out of his dorm room for extra money. From the beginning and through the 1990’s, the company grew quickly and was very successful. Dell used a cost leadership strategy and focus on creating products that were already in the market place, but changed the timing of production and the method of distribution that was in place with the company’s competitors by assembling computers to order and selling directly to the customers. The company focused on creating value for customers and meeting their needs, but into the new millennium they lost touch with the needs of their customers, which caused a significant decrease in their share of the market. In order to understand what made Dell so successful from the period of 1984 through 1998 it is useful to evaluate several analysis tools including an examination of Dell’s market segmentation, a STEP analysis, Porter’s Five Forces Model, an evaluation of the company’s value chain, and a CRIG analysis. Market Segmentation The majority of Dell’s customers were large corporations and government entities who ordered large numbers of computers and also reordered in following years as repeat customers. The customer base was broken down by entity and location so that each segment could be better served with more efficient...
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...Matching Dell BA 4700 October 12th, 2010 Bing Bai Zexin Li Ian Ruehle Erin Strack Chun Zhang Introduction The Dell Computer Corporation was founded in 1984 by Michael Dell, who began the company by refurbishing IBM clones out of his dorm room for extra money. From the beginning and through the 1990’s, the company grew quickly and was very successful. Dell used a cost leadership strategy and focus on creating products that were already in the market place, but changed the timing of production and the method of distribution that was in place with the company’s competitors by assembling computers to order and selling directly to the customers. The company focused on creating value for customers and meeting their needs, but into the new millennium they lost touch with the needs of their customers, which caused a significant decrease in their share of the market. In order to understand what made Dell so successful from the period of 1984 through 1998 it is useful to evaluate several analysis tools including an examination of Dell’s market segmentation, a STEP analysis, Porter’s Five Forces Model, an evaluation of the company’s value chain, and a CRIG analysis. Market Segmentation The majority of Dell’s customers were large corporations and government entities who ordered large numbers of computers and also reordered in following years as repeat customers. The customer base was broken down by entity and location so that each segment could be better ...
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...Matching Dell Como en cualquier negocio o circunstancia, una empresa o persona tiene que tomar decisiones que impliquen dejar algo a un lado, estos “trade offs” son parte de cualquier estrategia, no se puede hacer todo siempre. El punto del caso para mi es claro, si analizamos como estaba el negocio de IT en 1998 vemos un Dell creciendo con una estrategia clara con una excelente ejecución, vemos la competencia que quería imitar lo que estaba haciendo Dell, sin ser su estrategia, y una ejecución regular tendiendo a ser positiva. En mi opinión, lo que en ese caso tenía que hacer Dell es seguir ejecutando con su modelo directo, le venía funcionando, los resultados eran excelentes, lo único que les recomendaría es estar atentos al punto de inflexión donde esta estrategia dejara de ser tan exitosa, para adaptar el cambio de manera rápida y ordenada. Lo que tenía que hacer HP, Compaq, etc, es definir si quieren dedicar sus recursos, modelo de negocio, etc a la venta directa o seguir como estaban operando con canales muy definidos, pero tratar de atacar los dos sectores iba a traer algunos costos de complejidad, y diferencias con alguno de los modelos, ya sea un “enojo” de parte de los resellers, o un “enojo” de parte de los compradores directos. Se pueden hacer análisis de porter, u otro tipo de análisis para confirmar la hipótesis, pero el hecho es que aun cuando hay maneras muy buenas de hacer las cosas en otros lados (en este caso la manera de Dell), la solución no siempre...
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...Matching Dell - Case Summary by jaina2004 | studymode.com Matching DELL History: IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42% IBM Strategy : • Purchase PC components as against manufacturing inhouse (Main frame) • Open Architecture : OS – Microsoft, Microprocessor – Intel , reason, to encourage application developers and enhance Peripheral market • Sales : o Largely corporate clients - thought its huge sales force o Retail clients through value added resellers – handled, installations, configured SW,customer networks and service part of responsibility • Competition : Apple with propriety architecture had 20% market share, Compac enters in ’82, Dell in ’84, • Competitors strategy :: use resellers for large corporate accounts, due to lack of sales force • 1986- IBM moves to propriety architecture with PS/2 line and rejects 386 chip • 1980-90 – PC performace improved and chip price declined, o New technology advancement of 386DX and Pentium II processors were significant o Windows 3.0 launched in 1990, commonly called Wintel architecture o PC Sales declined in 1990 due to US recession • Post 1990 o Demand picks up due to economic growth, and technology like computer Networking, email and WWW. o PC prices decline to less than 499USD, 45.5% of US household owsn PC in 1998 â–ª Modular architecture prevalent for HW and SW, PC differed depending on configuration â–ª Most HW components sourced my numerous companies...
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...Harvard Business School 9-799-158 June 6, 1999 D Matching Dell O N Between 1994 and 1998, the revenue of Dell Computer Corporation rose from $3.5 billion to $18.2 billion, and profits increased from $149 million to $1.5 billion. The company’s stock price rose by 5,600%. During the same period, Dell grew twice as fast as its major rivals in the personal computer market and tripled its market share. In the first half of 1998, Dell reported operating earnings that were greater than the personal computer earnings of Compaq, Gateway, Hewlett1 Packard, and IBM combined. On Forbes magazine’s list of the richest Americans, Michael Dell, the 33-year-old founder of Dell Computer, ranked fourth with an estimated worth of $13 billion. He trailed only Bill Gates, Warren Buffett, and Paul Allen on the list and was worth more than Gates had 2 been at the same age. O Dell Computer had pioneered the widely publicized “Direct Model” in the personal computer (PC) industry. While competitors sold primarily through distributors, resellers, and retail sites, Dell took orders directly from customers, especially corporate customers. Once it received an order, Dell rapidly built computers to customer specifications and shipped machines directly to the customer. T The success of the Direct Model attracted the intense scrutiny of Dell’s competitors. By 1997, headlines such as “Now Everyone in PCs Wants to Be Like Mike,” “Compaq Reengineers the Channel: Will...
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...complex and the products sell for such a high price. In analyzing why the profitability in the PC industry is so low, it is helpful to look at Porter’s five force model for an explanation. Competition (rivalry) is the biggest reason for why companies in the PC industry make such a small profit. In 1981, IBM published most of the specifications for their PC system so that an “open architecture” could be formed, in order to encourage software developers to “write programs for the IBM PC and to spur other firms to make compatible peripherals such as printers” (2). Because these specifications were made public, many IBM clones began to appear, which created many similarly-powerful competitors. Compaq entered with a low-priced portable clone, Dell Computer Corporation was established, and other competitors such as Hewlett-Packard shifted to the IBM standard (2). This industry is also so competitive because making PCs is not an arduous task- many companies manufacture them, and computers are all relatively homogenous products. They are manufactured by assembling standardized parts: “Computer makers used basic assembly-line techniques to assemble PCs from standard parts” (5). For about a million dollars, “a manufacturer could buy and install the capital equipment required for an efficient PC assembly line, capable of assembling 250,000 PCs per year,” and prices of the component parts declined 25-30% per year (5). In addition, there are high exit barriers, meaning firms...
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...February 11, 2012 Porcini's Pronto - Harvard Business Case What is unique about the “new” approach being considered and how does it tie in with the competitive advantage being sought? Porcini’s “new” approach is unique both to Porcini’s and the restaurant business. Facing a saturated restaurant industry, Porcini’s is striving to differentiate their business by providing excellent quality food at moderate prices to customer’s looking for a quick eating experience. Great service is also expressed as being an essential item for success. Porcini’s feels that restaurants have been unable to accomplish these four functions into one experience. This strategy attempts to make the competition irrelevant. Porcini’s Porto creates a new segment outside of the three major segments: fast food, single location full-service restaurants and full-service chain restaurants. Porcini’s “new” approach creates a new uncontested market space (Blue Ocean Strategy, W. Chan Kim and Renée Mauborgne). Any alternative means for a person to eat is Porcini’s competition. Porcini’s experience differentiates in an advantageous way from the three major segments. Porcini’s wireless technology creates a quicker eating experience for the customer that is not available at competitors in full-service restaurant chains. It’s also important that this innovative strategy does not decrease the value of the product/service offered. The project team identified fast food to be the primary competition. Porcini’s quick...
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...reviewer(s), etc., please visit www.BaselineScience.com B a s e l i n e S c i e n c e , I n c . • w w w. b a s e l i n e s c i e n c e . c o m Matching Dell: A Strategic Case Analysis Dan Demers GS 604, Thursday 5:00 – 7:20 Matching Dell: Dell’s Key Strategic Issues At the close of the case, Dell is presented with two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry: Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that the Personal...
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...Matching Dell Outline with General Questions Read the following instructions before proceeding. 1) Write in a continuous, narrative style within each question. Keep section headings. 2) The questions in the outline are to help you analyze the case and develop your own thought. 3) Limit your memo to three pages of text. Diagrams and tables do not count as part of the three pages of text. Do not use bullet points. 4) Double-check your grammar before submission. It matters! 5) Upload your write-up in Word format to WISE. What can we learn from this case? 1) Barriers to imitation (entry): it illustrates how fit among numerous activities, tradeoffs between positions, historical commitments, and threats of retaliation by other players can deter imitation. Interestingly, the retaliation threats come from both immediate rivals and downstream “partners.” 2) Different types of imitation attempts: “Straddling” by Compaq and IBM, “repositioning” by Gateway, and potentially new entry by some members of the channel. 3) The case allows us to quantify Dell’s cost advantage and estimate the portion of that advantage which is threatened by the imitation attempts of others. 1. Environment a. Threat of New Entrants: It is low. Because high technology industry is highly competitive with continuing developments. Costumers are more likely to purchase on famous brands and be loyal to those familiar brands. So there...
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...1. Is the PC industry attractive in the mid to late 1990 ? Strong Economy Growth, Emergence of New Services Fierce Competition (IBM, Compaq, HP Gateway) , 2. Why do you think it become this way ? (1) A. History B. Products World Wide Web, E-mail, less than $ 1,000(‘97), 45.5% of household in the USA(’98), etc. Declined PC prices (numerous global manufacturers) - Housing, keyboard, monitor, modem, etc. - Microprocessor (Intel, 80~90%) ☞ Sub-$1,000 market by AMD (50%) Soft Ware ⇒ Bundled PC - Operating system : Windows - Application s/w : office productivity applications Large & midsize businesses, governments - MIS Dept. (highly knowledgeable staffs) Small business and offices - Lacked MIS staffs (reliability, performance, brand, etc.) Individual consumers - Independent org. such as Consumer Reports ※ Sensitive to price and brand name Educational institutions (3~6%) C. Customers U.S. PC Sales (’97) 32.7% 3.6% 39.8% Large/Mid Small Home Education 24.0% 2. Why do you think it become this way ? (2) D. Channel Retailers (Circuit city, CompUSA 14.1% margin, etc) Distributors (Ingram Micro 5~7% margin) Integrated resellers (MicroAge, Vanstar) Direct distribution (telephone, Internet, shipper) E. Manufacturing Basic assembly-line techniques The Cost at $1,000 Components prices declined by 25~30% - Roughly 1% per week (‘98) Apple, HP, IBM - 2~3% of sales on advertising - 25,000 sales staffs of IBM White-box PCs - No AD. & nonexistent sales forces...
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...last-mile connectivity issues, through DropSewa we are solving this problem in the most seamless and user friendly manner. We save users time, so that time we save, is used by our customers for something that they love to do. Time to bid goodbye to autos, taxis which usually take a lot from your pocket. Time to order a DROP. Challenge Client want to be the leader in market for bikes as a mode of public transport. Our challenge is to create a real time solution for all last-mile connectivity issues with the best user experience possible. Solution * Rider download Drop app from Playstore and sign in as user. Similarly, bike owners can login as drivers * Rider needs to setup a pickup location and request for a ride. Our matching algorithm matched the ride to a biker who arrives for pickup in minutes * Upon completing the ride, rider can pay cash or use Drop wallet to pay for ride Figure 1. Application work flow We acknowledge that in today’s times, to give a great service, we need to address issues of temporary network outage, customer safety and ease of use of the product. We have tackled each and every issue through our cloud based infrastructure with a scalable architecture. Features * Scalable Architecture: We have deployed state of the art...
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...Vijay V. Vazirani College of Computing Georgia Institute of Technology Copyright c 2001 Approximation Algorithms Springer Berlin Heidelberg NewYork Barcelona Hong Kong London Milan Paris Singapore Tokyo To my parents Preface Although this may seem a paradox, all exact science is dominated by the idea of approximation. Bertrand Russell (1872–1970) Most natural optimization problems, including those arising in important application areas, are NP-hard. Therefore, under the widely believed conjecture that P = NP, their exact solution is prohibitively time consuming. Charting the landscape of approximability of these problems, via polynomial time algorithms, therefore becomes a compelling subject of scientific inquiry in computer science and mathematics. This book presents the theory of approximation algorithms as it stands today. It is reasonable to expect the picture to change with time. The book is divided into three parts. In Part I we cover a combinatorial algorithms for a number of important problems, using a wide variety of algorithm design techniques. The latter may give Part I a non-cohesive appearance. However, this is to be expected – nature is very rich, and we cannot expect a few tricks to help solve the diverse collection of NP-hard problems. Indeed, in this part, we have purposely refrained from tightly categorizing algorithmic techniques so as not to trivialize matters. Instead, we have attempted to capture, as accurately as possible, the individual character...
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...Neural Networks for Matching in Computer Vision Giansalvo Cirrincione1 and Maurizio Cirrincione2 Department of Electrical Engineering, Lab. CREA University of Picardie-Jules Verne 33, rue Saint Leu, 80039 Amiens - France exin@u-picardie.fr Universite de Technologie de Belfort-Montbeliard (UTBM) Rue Thierry MIEG, Belfort Cedex 90010, France maurizio.cirricione@utbm.fr 1 2 Abstract. A very important problem in computer vision is the matching of features extracted from pairs of images. At this proposal, a new neural network, the Double Asynchronous Competitor (DAC) is presented. It exploits the self-organization for solving the matching as a pattern recognition problem. As a consequence, a set of attributes is required for each image feature. The network is able to find the variety of the input space. DAC exploits two intercoupled neural networks and outputs the matches together with the occlusion maps of the pair of frames taken in consideration. DAC can also solve other matching problems. 1 Introduction In computer vision, structure from motion (SFM) algorithms recover the motion and scene parameters by using a sequence of images (very often only a pair of images is needed). Several SFM techniques require the extraction of features (corners, lines and so on) from each frame. Then, it is necessary to find certain types of correspondences between images, i.e. to identify the image elements in different frames that correspond to the same element in the scene. This paper...
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...P. 72840, M´ xico e 1 ⋆ Author to whom correspondence should be addressed; E-Mail: migue@bioplantas.cu; Tel.: +53-33-224-016. Received: 25 January 2012; in revised form: 28 February 2012 / Accepted: 28 February 2012 / Published: 8 March 2012 Abstract: Improving fingerprint matching algorithms is an active and important research area in fingerprint recognition. Algorithms based on minutia triplets, an important matcher family, present some drawbacks that impact their accuracy, such as dependency to the order of minutiae in the feature, insensitivity to the reflection of minutiae triplets, and insensitivity to the directions of the minutiae relative to the sides of the triangle. To alleviate these drawbacks, we introduce in this paper a novel fingerprint matching algorithm, named M3gl. This algorithm contains three components: a new feature representation containing clockwise-arranged minutiae without a central minutia, a new similarity measure that shifts the triplets to find the best minutiae correspondence, and a global matching procedure that selects the alignment by maximizing the amount of global matching minutiae. To make M3gl faster, it includes some optimizations to discard non-matching minutia triplets without comparing the whole representation. In comparison with six verification algorithms,...
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