...Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Case Analysis: Dell Corporation By: Ijaz Qureshi & John Muffich For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004 © Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA 1 Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. 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...
Words: 1930 - Pages: 8
...Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Case Analysis: Dell Corporation By: Ijaz Qureshi & John Muffich For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004 © Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA 1 Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. 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...
Words: 1903 - Pages: 8
...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 Computer Industry is largely unfavorable...
Words: 2962 - Pages: 12
...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 : D ell’s Key Strategic Issue s 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 Computer Industry is largely...
Words: 2951 - Pages: 12
...A Project Case Analysis Of Dell Corporation A Case Analysis Project Submitted to the Faculty of the University of Perpetual Help System – Jonelta City of Biñan, Laguna In Partial Fulfilment Of the Requirements for the Degree of Bachelor of Science in Business Administration Major in Marketing Management JOHN PHILIPP M. PE March 2015 CASE TITLE: DELL INCORPORATION INTRODUCTION: In 1984, Michael Dell invested $1,000 in start-up capital to register his business as Dell Computer Corporation, which was known as PC's limited. The company becomes the first in the industry to sell directly to end-users by passing the dominant system of using computers resellers to sell mass-produced computers. Dell Computer also pioneers the industry first thirty-day money back guarantee. It became the cornerstone of Dell's commitment to expand its service offerings, superior customer satisfaction, and the industry’s first on-site service program. It also established its first international subsidiary in the United Kingdom, and raised $30 million in its initial public offering. STATEMENT OF THE PROBLEM:The problem with Dell Inc. was the rapid growth within the company in their beginning stages. STATEMENT OF THE OBJECTIVES: The objective of this study is to know how Dell Corporation solve the problem of rapid growth within the company in their beginning stages and how they win over their competitors. TIME FRAME: 24 Months POINT OF VIEW: Business leaders such as Dell constantly...
Words: 696 - Pages: 3
...MARKETING CASE STUDY MATCHING DELL SUBMITTED BY: GROUP C2 Aniruddh Singh Rathore Himanshu Arora Jeevan James Raghavendra B Shenoy Ramya Dadi 1. Executive Summary Dell Computer Corporation is one of the world’s largest computer systems companies. Since its establishment in 1984, Dell has been selling personal computer systems with a great after sales support. It designs and customizes products and services according to the requirements of the end-user. It also offers them the extensive list of peripherals and software which can be chosen while placing an order. The company has experienced a very good growth over the last several years and has been incredibly profitable. Its products and services are sold in more than 140 countries to customers ranging from government agencies, major corporations and educational and medical institutions to small businesses and individuals. Traditionally, Dell has been targeting its products to a small number of segments. So, in future it has to break into segments which are currently controlled by its customers. According to our analysis of the data, Dell is financially into a very good position currently and it is predicted that in the next year also it will continue to grow. The analysis, strategy and financial predictions are henceforth discussed. 2. Situation Analysis The case has been analysed using the 5C analysis where 5C’s stand for: Company, Consumers, Collaborators...
Words: 3003 - Pages: 13
...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...
Words: 3942 - Pages: 16
...| Managerial Marketing | | Case Study: DELL New Horizons | Case Study: DELL New Horizons Questions 1- What has made Dell Succeed to date? Up to 2002 The key to Dell’s success to date was its innovative direct business model, which focused on selling Dell products directly to customers rather than through intermediaries. Dell believed so called “middlemen” added little to no value to the end product and that their associated fees were essentially unnecessary mark-ups for customers. By completely cutting out intermediaries, Dell not only reduced its customers’ costs, but also enabled the company to customize computers and focus on meeting customers’ needs and providing superior customer service. So doing ultimately helped Dell establish itself as one of the most customer-centric information technology companies in operation. When it came to product development technology, Dell did not aspire to be the industry pioneer. Instead, Dell left product innovation to its competitors and relied on its unique marketing distribution formula to generate sales. The intuition of Dell’s top management, especially Dell’s namesake and CEO, Michael Dell, contributed significantly to the effectiveness of this formula. As noted in the case, Dell had the “uncanny ability to reach out into the market and identify the next high-margin technology product that could be driven to scale with lower priced products driven by its direct model.” This foresight basically eliminated Dell’s need...
Words: 2108 - Pages: 9
................................................. 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 are the consequences for Dell’s cost structure and profitability of replacing inventories with information? Answer: Dell has been able to achieve the lowest inventory levels in...
Words: 613 - Pages: 3
...MARKETING INNOVATION CASE STUDY Name: Randa Purnama Amin NIM: 1340002316 Question for Dell: 1. Explain why Dell is loosing its competitive edge. Dell is slowly losing its competitive edge because of its highly innovated competitors and because competitors such as Apple are able to capture the consumer’s attention by offering differentiated and innovated products in the market. 2. In your opinion, what should Dell do to keep its position? Explain. 3. Create a TOWS analysis • Strength - Good Customer Services - Good Customer Relationship - Direct Model Approach • Weakness - Limitation of direct selling approach - Lack of innovation - Absence of retail stores - Internal control • Opportunity - Enter new geographic locations where consumers are price sensitive. - Concentrate on winning the college students. - Build a competitive advantage by strengthening itself with the enterprise users. • Threat - Competitors are intense especially because Dell’s competitors are more innovative their products are more differentiated. - The price is very similar to Dell’s offerings. - The competitors can easily copy Dell’s strategy if they decide to. To summarize the strengths of Dell, there are basically three strong points and that is their customer service, customer relationship and...
Words: 873 - Pages: 4
...BY LINDA UWAOMA, SHANSHAN LI, REHANA DAYANANDA AND ANDREA VAN DER WEST OPERATIONS MANAGEMENT REPORT- DELL COMPUTERS ! Table of Contents OPERATIONS MANAGEMENT REPORT- DELL COMPUTERS ...................................................1 OPERATIONS MANAGEMENT REPORT- DELL COMPUTERS ...................................................2 EXECUTIVE SUMMARY..............................................................................................2 INTRODUCTION .....................................................................................................3 BODY..................................................................................................................4 EXAMINATION OF DELL’S SUPPLY CHAIN OPERATIONS .......................................................4 • Direct to customers (DTC); a pull based system: ...............................................4 • Direct to Retailers (DTR); Employing Partners and specialty stores: .......................5 A Problem statement: ........................................................................................7 RECOMMENDATIONS ...............................................................................................8 • MARKETING AND PRODUCT IMPROVEMENTS: .................................................................9 • SUPPLY CHAIN IMPROVEMENTS; A HYBRID PLAN: ............................................................10 • A NEW SYSTEM STRUCTURE AND VALUE CHAIN MODEL:..................................
Words: 2427 - Pages: 10
...and Extending the Business Model With Information Technology: Dell Computer Corporation Kenneth L. Kraemer, Jason Dedrick, and Sandra Yamashiro Center for Research on Information Technology and Organizations (CRITO), Graduate School of Management, and Department of Information and Computer Science, University of California, Irvine, Irvine, California, USA Keywords The exceptional performance of Dell Computer in recent years illustratesan innovative response to a fundamental competitive factor in the personal computer industry—the value of time. This article shows how Dell’s strategies of direct sales and build-to-order production have proven successful in minimizing inventory and bringing new products to market quickly, enabling it to increase market share and achieve high returns on investment. The Dell case illustrates how one business model may have inherent advantages under particular market conditions, but it also shows the importance of execution in exploiting those advantages. In particular, Dell’s use of information technology (IT) has been vital to executing both elements of its business model—direct sales and build-to-order—and provides valuable insights into how IT can be applied to achieve speed and exibility in an industry in which time is critical. Many of the insights gained from this case can be applied more generally to other time-dependent industries, suggesting that the ndings from the Dell case will have implications for a growing number of companies and...
Words: 12929 - Pages: 52
...Content 1. Financial Individual Case Introduction ……………………………………………………...………………2 1.1 The life situation and personal value …………………………………….….....2 1.2 Evaluation strengths and weakness of financial condition…............................3 1.3 Development of personal financial goals…………………...…………….…….4 1.4 Financial plan ........................................................................................…...........5 2. Corporation Financial Case Introduction ………………………………………………………………………6 Five financial tools…………………………………………………………………...6 2.1 Scenario 1………………………………………………………………………..7 2.2 Scenario 2………………………………………………………………………..7 2.3 Scenario 3………………………………………………….……….…………....8 2.4 Scenario 4………………………………………………………………………..10 2.5 Scenario 5………………………………………………………………………..12 Recommendation……………………….……….…………………………………..12 Individual Case Introduction In individual cases, can be very good analysis of the family income and expenditure and their financing conditions, for different groups, members should have different portfolio models, such as married, single, reproductive or not reproductive, middle-aged or elderly etc. Identify the life situation and personal value Greg and Cindy Hana, 35 and 27, are the parents of two small children with a third on the way. The family is only supported by Greg, who is the sole trader and earns $66,000 annually. And his works is a relatively dangerous occupation. That is, the family income is uncertain and risky. In addition to, the...
Words: 2416 - Pages: 10
...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...
Words: 15270 - Pages: 62
...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...
Words: 1084 - Pages: 5
