...1. Analyzing Dell’s supply chain management system Dell’s supply chain strategy is legendary. If you want to build a successful SCM system, your best bet is to model your SCM system after Dell’s. In a team, research Dell’s supply chain management strategy on the web and create a report discussing any new SCM updates and strategies the company is currently using that were not discussed in the text. Be sure to include a graphical presentation of Dell’s supply chain model. When researching Dell’s supply chain management strategies on the web, I discovered new SCM updates and other strategies the company is using to improve business. Dell is leading second in hardware design, manufacturing and distribution; It is lead by HP. The reason for their success is, it has a Direct relationship with customers, it has a low cost and but best value, It’s built to order, it has customized systems and the highest quality and technology. The idea of supply chain management system is one of the most important systems for a PC in business because, the material s for Dell accounts on average for about 20 billion a year. Improving SCM by .1% has a bigger impact than improving the manufacturing process by 10%, and the Technological breakthroughs cause very short Product life cycles. Competitors have falling short to Dell because unlike competitors, 90% of dells supplies are ordered online using integrated websites of suppliers and Dell’s business to business strategy. Dell’s factories...
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...a freshman, providing hard-drive upgrades to corporate customers. In a year’s time, Dell’s venture had $6 million in annual sales. In 1985, Dell changed his strategy to begin offering built-to-order computers. That year, the company generated $70 million in sales. Five years later, revenues had climbed to $500 million, and by the end of 2000, Dell’s revenues had topped an astounding $25 billion. The meteoric rise of Dell Computers was largely due to innovations in supply chain and manufacturing, but also due to the implementation of a novel distribution strategy. By carefully analyzing and making strategic changes in the personal computer value chain, and by seizing on emerging market trends, Dell Inc. grew to dominate the PC market in less time than it takes many companies to launch their first product I. Statement of the Problem Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage. II. Statement of Objectives * Examine and analyze Dell’s Direct model, its basic working, success and future challenges * Typical Working of Dell’s Supply Chain and future supply chain challenges * Highlights Dell’s evolving Supply Chain practices and strategy and steps being taken by it to recapture its lost market leader...
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...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 into computers. Dell’s suppliers include AMD, Cypress, Parade, Sonix, and Coolit Systems. Dell’s customers include personal computer home users, corporate organizations and governmental agencies. There are no new entrants in this marketplace. The threat of new entrants comes mostly from China where the...
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...Ford Production System (FPS) and Order to Delivery (OTD) in more depth. Secondly they left the main issue quite open to debate and not specific in terms of the recommendations and the suggested course of action at different levels of the organization and how exactly to integrate the emerging technologies into its supply chain. If we were the presenting team we would have approached this case in a very different way. An important part of analyzing any case is to elaborate on the alternatives the company has, delving the implications of each and exploring ways how best it can be implemented. Therefore we have enlisted the alternatives with a brief description of the pros and cons. Then we also go ahead and recommend the best alternative according to us and discuss the reasons behind it. Alternatives with their pros and cons: - 1) Keep its existing supply chain a) Advantages: No major changes and additional costs involved. b) Disadvantages: Ford’s IT will eventually become obsolete. 2) Form a mix of online and offline operations and lay procedures to enable customization and ordering by customers over the internet but maintain physical dealerships as well. a) Advantages: Customization to clients, start of vertical integration, b) Disadvantages: Costly, time consuming, requires internal and external changes which are not easy to handle and integrate with other operations. Team 4 Critique 4 3) Create a virtually integrated supply chain based on Dell's model. Ford and...
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...An important part of analyzing any case is to elaborate on the alternatives the company has, delving the implications of each and exploring ways how best it can be implemented. Therefore we have enlisted the alternatives with a brief description of the pros and cons. Then we also go ahead and recommend the best alternative according to us and discuss the reasons behind it. Alternatives with their pros and cons: - 1) Keep its existing supply chain a) Advantages: No major changes and additional costs involved. b) Disadvantages: Ford’s IT will eventually become obsolete. 2) Form a mix of online and offline operations and lay procedures to enable customization and ordering by customers over the internet but maintain physical dealerships as well. a) Advantages: Customization to clients, start of vertical integration, b) Disadvantages: Costly, time consuming, requires internal and external changes which are not easy to handle and integrate with other operations. Team 4 Critique 4 3) Create a virtually integrated supply chain based on Dell's model. Ford and all its suppliers would share information between their systems and the Internet to coordinate the flow of materials and production. All customer orders would be taken either via Ford's web site or by phone and then built. A pull system would be implemented completely. a) Advantages: Customization to clients, start of vertical integration in the supply chain. b) Disadvantages: Ford's traditional processes and production...
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...Background (General Facts from Case Study) Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in an interview with Joan Magretta[1], is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to focus on activities that drive sales instead of putting capital in producing items that other manufactures are already creating. In the 1990's, the computer market revolved around desktops, notebooks, and network servers. Dell competed with high-end machines from IBM, HP, and Compaq with a product line that provided value-priced systems for consumers and highly reliable networked systems for business. In the late 90's, around 40% of households owned a pc in the US. On the contrary, from the business side, around 80% of the companies still had old server and desktop machines. Management had to approve purchasing orders, which resulted in only 2.2% of servers' sale in comparison to the total purchases for desktop PCs in 1996. In order for Dell to achieve...
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...WHO IS BETWEEN YOU AND YOUR CUSTOMERS? NO ONE The 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...
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...Dell’s CRM effort 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...
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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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...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 in the demands and market share. Issue ...
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........................................... 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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...Dell, Inc. A Strategic Management Case Study October 8, 2013 Sophie Yanez University of the Incarnate Word Table of Contents I. Introduction II. Dell’s Strategy a. Vision Statement b. Mission Statement c. Strategies and Objectives III. Recommended Vision and Mission Statements IV. External Assessment a. Porter’s Five Forces Model b. External Factor Evaluation c. Competitive Profile Matrix V. Internal Assessment a. Value Chain b. Internal Factor Evaluation VI. Porter’s Five Generic Strategy VII. SWOT Analysis a. SPACE Matrix b. Boston Consulting Group Matrix c. Internal-External Matrix VIII. Strategy and Objective Recommendations IX. Recommended Implementation Plan X. Strategy Review and Evaluation References Appendixes I. Introduction Dell was founded in 1985 under the name, PCs Limited by Michael Dell who at the time was a college student of the University of Texas. In 1988 the company’s name was changed to Dell Computer Corporation. The company is headquartered in Round Rock, Texas and is the world's #3 supplier of Personal Computers (PC) behind HP who ranks as #2 and Lenovo who ranks as #1 (According to IDC worldwide quarterly PC tracker). Dell provides a broad range of technology products for the consumer, education, enterprise, and government sectors. In addition to its line of desktop and notebook PCs, Dell offers network servers, data storage systems, printers, ethernet switches, and peripherals, such as displays and...
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...companies to change accordingly by acquiring new companies and widening their capabilities, while Dell has remained stagnant. The evolved industry requires innovation in multi-technological products and services, incorporating the Internet and mobile devices, in order to stay competitive in the market. Cliff Edwards’ article “Dell’s Extreme Makeover” points out that while Hewlett-Packard, Apple, and IBM successfully adjusted to, and even in some regards initiated, the industry’s progression, Dell has fallen back due to its lack of focus and stubborn tactics. In response, the company reinstated founder Michael Dell as its CEO in January of 2007. Dell, in light of these events, returned to his own company with the attitude of a newcomer, aspiring to completely restructure the business and drastically shift its focus towards flexibility, awareness, and innovativeness. During its flourishing stage, Dell Inc. was largely successful because of its ability to sell customizable computers directly to customers at unbeatable prices. In essence, Dell derived its competitiveness from specialization. However, with the rapidly changing technological industry, what was once Dell’s biggest strength has simply become a limitation in the newly emerged market and plunged the company from a $100 billion juggernaut to a $30 billion dinosaur. While the company is among the best at making personal computers, it is unable to rival its competitors in other emerging sectors of the industry. This caused Dell...
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...1. 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...
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...@ STRATEGY IMPLEMENTATION MDP 111M GROUP ASSIGNMENT 01 Due Date: Aug-2011 ANALYSING THE EXTERNAL AND INTERNAL ENVIRONMENT OF “DELL” Inc By Group DRIVE (Delegate, Research, Interview, Verify, Execute) |Group members |Student numbers | |1 |HYLTON LUDWIG |73014699 | |2 |GERT LABUSCHAGNE |73030074 | |3 |SAM BALOYI |73019909 | |4 |AVINAASH SINGH |73030090 | |5 |VICTOR MTHOMBENI |71914161 | |6 |SHAWN GORMAN |73026700 | |7 |JACO BIERMAN |73051764 | Contents 1. INTRODUCTION 1 2. ANALYSIS OF THE EXTERNAL ENVIRONMENT USING PESTLE 2 2.1 Political 2 2.2 Economical 2 2.3 Social 3 2.4 Technological 4 2.5 Legal 5 2.6 Environmental 5 3. ANALYSIS OF THE EXTERNAL ENVIRONMENT USING PORTERS 5 FORCES 6 3.1 Threat of New Entrants 6 3.2 Bargaining Power of Customers. 7 3.3 The Threat of Substitute Products 8 3.4 The Bargaining Power of Suppliers...
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