...Abstract Company Overview Michael Dell, who was a student at the University of Texas, decided to establish a computer company with a capital of only $1000. He was following the "direct model" concept where all the products were customized based on the orders and requests of the customers. It is headquartered in Round Rock, Texas but receives nearly half of its revenues from outside the United States. Dell offers produces and markets a wide range of technology products for the consumer, education, enterprise, and government sectors. In addition to a full line of desktop and notebook PCs, Dell offers network servers, data storage systems, printers, Ethernet switches, and peripherals such as displays and projectors. In addition to third-party software and many services such as asset recovery, financing, support and so on. Strategic analysis summary This case study analyzes Dell Company from a strategic perspective, which shows that Dell follows a differentiation Strategy. In the analysis of Internal and External factors; Dell has scored medium on both external and internal factors analysis with scores of (2.78) and (2.56) respectively. Showing good financial position compared to its competitors, the financial analysis revealed that the company was able to enhance and increase its market share and power after the recession especially after 2009. This study led us to recommend using the QSPM matrix. Dell has to be aware of the price war started by rivals in which...
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...Dell Critical Analysis For the longest time, Dell Inc. has been the top, most efficient personal computer maker globally and a strong competitor in the technology industry. A recent shift in the industry’s focus has forced other 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...
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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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...Dell SWOT Analysis Strengths Build-To-Order Dell is servicing customers on a build to order PC model through an online sale channel more then through middleman retailers, giving Dell a great advantage over its competitors. This makes Dell computers more personalized and unique by giving each customer exactly what they want instead of a generic model PC offered to everyone while at the same time saving themselves money on production costs for Dell (Baker, 2011, 254). This strength that Dell has can offer consumers a variety of product differentiation that is not offered by other competitors. Dell allows customers to choose the size of their computer screen, the processor, the software, the color, the support, the protection, different cloud software, the storage detail and much more (Dell.com, n.d). Just-In-Time Michael Dell has been able to have an edge over its competitors since its life cycle began by focusing on cost efficiency as its top priority. In order to achieve such a big core competency Dell had to focus on a few key business models. Dell offers high quality products created in short spans of time to ensure quick delivery to consumers. This is done by working on a just in time manufacturing process which keeps finished inventory low leading to low inventory costs and low excess unwanted inventory. When fixed costs are low the savings can be related back to the consumer with aggressively low pricing (Baker, 2011, 254). Weaknesses Production Process Dell...
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...Comparative Analysis of Apple and Dell Table of Contents Introduction……………………………………………………….………………………………………………….…………………3 Apple Corporation Overview…………………………………………………………………………………….………………4 History Products Major Competitors Dell Corporation Overview……………………………………………..………………………………….…………………….4 History Products Major Competitors Ratio Analysis……..…………………………………………………………………………………………….……….……………6 Liquidity & Efficiency…………………………………..….……….…………………………….……………………6 Solvency………………………………………………………………………….………………………………….………8 Profitability………………………………………………………………………….……………………………..….…..8 Conclusion………………………………………………………………………………………………………………………………9 References……………………………………………………………………………………………………………………………..10 Introduction The purpose of this report is to compare the financial statements of two companies, Apple Corporation (Apple), and Dell Corporation (Dell). The comparison will use ratios calculated from financials of each company. The reason for using rations rather than simply reviewing the financial statements themselves is that financial ratios are an efficient way to compare companies independently of size, volume or market share. Ratios go beyond just looking at the numbers to reveal just how profitable a company is, does it have enough cash to cover fund the business, or is it heavily dependent on debt (Ingram 2013). Examining ratios are instrumental in planning and making strategic decision within a company. Ratios are also valuable to investors...
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...SWOT analysis of Dell This is a Dell SWOT analysis for 2013. The original analysis can be found at Dell SWOT analysis. For more information on how to do SWOT analysis, please refer to our article. Company background Name | Dell Inc. | Industries served | Computer hardware, Computer software, IT consulting, IT services | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Michael Dell | Revenue | $ 63.07 billion (2012) | Profit | $ 3.49 billion (2012) | Employees | 110,000 | Main Competitors | Apple Inc., Samsung Electronics Co., Ltd., Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation, Fujitsu Limited and many others. | Dell Inc. is an American multinational computer technology corporation that develops, sells, repairs and supports computers and related products and services. The company is one of the largest technological corporations in the world and is listed as number 44 in the Fortune 500 list. It is the third largest PC vendor in the world after HP and Lenovo. You can find more information about the company in its official website or Wikipedia’s article. SWOT Dell SWOT analysis 2013 | Strengths | Weaknesses | 1. Brand name valued at $7.5 billion2. Product customization3. Environmental record4. Competency in mergers and acquisitions5. Direct selling business model | 1. Commodity (computer hardware) products2. Poor customer services3. Low investments in R&D4. Weak patents portfolio5. Too few retail locations6...
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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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...Dell SWOT Analysis Strengths: Dell is one of the world’s best and most known brands. The company has partnered with many corporations throughout many different industries. Dell has been able to accomplish this due to their reputation for building quality products at an affordable price. Dell continues to use the latest technology in all of their products, sells directly to the customer, and was among the first computing companies to offer next day, on site product service. Dell also strives to provide their customers excellent customer service both before and after a sale has been made. This enables the customer to get the exact product for their business or individual needs, as well as provide the proper support after the sale has been made. Another strength of Dell is they make all and assemble all of components in every computer giving them total command of their supply chain. Weakness: While Dell has many strengths as previously listed, they are not without their weaknesses. One major weakness is the company holds no proprietary technology. Dell has been unsuccessful in attracting the college student segment of the market. Dell’s sales revenue from educational institutions such as colleges only accounts for a merely 5% of the total. Due to Dell’s lack of brick and mortar stores, customer cannot go to retailers because Dell does not use distribution channels. Customers just can’t buy Dell as simply as other brands because each product is custom-built according to...
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...Personal computers (microcomputers) [44-571.9904] Sector: Manufacturing Sales Class: industry-wide Firms Analyzed: 117 Contents P1: Income-Expense statement- dollar-based P2: Income-Expense statement- percentage-based P4: Balance Sheet- dollar-based P5: Balance Sheet- percentage-based Sources-Uses of Funds P6: Financial Ratios - Cash Flow-Solvency P8: Financial Ratios - Profitability P10: Financial Ratios - Efficiency-Debt-Risk P13: Financial Ratios- Turnover P15: About the Data QII columns throughout refer to the 12-months ending June 30. See P2 notes on Business Receipts for financial industry exceptions. Income and Expense- Profit and Loss ($) 2007 Business Revenue Cost of Sales Gross Margin Officers Comp Salary-Wages Rent Taxes Paid Advertising Benefits-Pensions Repairs Bad Debt Other SG&A Exp. EBITDA Amort-Deprec-Depl Operating Expenses Operating Income Interest Income Interest Expense Other Income Pre-Tax Net Profit Income Tax After Tax Net Profit 914,900,704 597,979,100 316,921,604 5,031,954 126,713,748 7,959,636 17,017,153 16,834,173 33,668,346 7,410,696 1,372,351 166,511,928 -65,598,381 39,066,260 421,586,245 -104,664,641 11,436,259 10,155,398 344,460,115 241,076,335 84,376,717 156,699,618 2008 1,233,105,285 738,260,134 494,845,151 7,645,253 160,673,619 9,864,842 19,729,685 21,579,342 25,401,969 7,891,874 986,484 226,768,062 14,304,021 46,734,690 527,275,820 -32,430,669 13,934,090 14,057,400 154,014,850 121,460,871 42,511,305 78,949,566 2009 1,284,392,373...
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...Dell Strategic Management Assignment/Case Study Solution Dell Strategic Management Assignment/Case Study. It reviews the organizational structure, vision, mission, SWOT, PESTEL Analysis, Strategic Group Map Competition and Product Positioning Map of Dell. This is a sample paper. If you like to order your own paper, please Click Here Introduction This report undergoes a strategic management overview of Dell, one of the leading PC vendors of the world with a unique operations model focusing on built to order and direct to consumer frameworks. The report begins with a comprehensive overview of the company’s operations, its hierarchy, location and principle of logistics. An understanding of the vision, mission and objectives allows for the strategic analysis to be put into context and perspective. Our first strategic analysis tool is the SWOT analysis followed by an internal and external factor analysis. This is accompanied by a TWOS matrix allowing the report to pin point specific strategies which may help the organization cash on its strength and opportunities to offset threats. An overview of the life cycle of the industry is followed by a PEST analysis. Understanding the political factors is critical and along with the location principles explained in the first section – allows us to pin point some strategic direction for the company. Similarly the economic, social and technological factors are discussed for the industry and the implications for Dell on a strategic level. A competitive...
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...The Acer Group is one of the world's largest PC and computer component manufacturers. Associated Acer companies include the world's third largest PC manufacturer, and Acer's mobile computers, network servers and personal computers are ranked in the world's top ten most popular brands in their respective product categories. Acer is the market leader in many countries around the world, and is ranked in more than 30 countries globally owing to the strength of its core business. On the distribution side, in 2007 it is the world's No.4 PC branded PC vendor, number one in South East Asia, Latin America and Middle East, etc... Since spinning-off its manufacturing operation, Acer has focused on globally marketing its brand-name products: mobile and desktop PCs, servers and storage, LCD monitors and high-definition TVs, and handheld/navigational devices. Acer's unique Channel Business Model is instrumental to the company's continued success. The model encourages partners and suppliers to collaborate in a winning formula of supply-chain management, allowing Acer to provide customers with fresh technologies, competitive pricing, and quality service. Established in 1976, Acer Inc. employs 5,300 people supporting dealers and distributors in more than 100 countries. Estimated revenue for 2006 is US$11.31 billion (Acer Annual Report 2005). Stan Shih, the founder and chairman of the Acer group and widely regarded as a high-tech visionary, had a long term vision to transform the Group into a...
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...Business Analysis Business Analysis In this paper, an overall business analysis of Apple Inc. will discuss the company’s financial statements, the company’s financial health and how it compare to other companies in the industry and globalization and how it has affected the company’s business strategies. Lastly, a benchmarking analysis will be conducted in the following comparison with other companies in the same industry. Apple Inc. has the talents of Steven Jobs along with other top idealists. Having such talent clearly gives Apple the advantage over other competitors in this industry. The collaborative efforts of the leaders give Apple Inc. a clear strategic advantage. Apple main goal is to stay on top of its competition. In order to accomplish this goal, the employees have to spend long hours determining what the consumer’s want and how to design their products based on that outcome. A good example would be the development of the iPhone. The iPhone was derived from a display of information of the iPod. This included a bigger touch screen that helped in the development of the smart phone. This vision didn’t stop there; Jobs began to think in the future toward concepts of applications for the smart phone. Once it was realized that the iPhone was a personal computer, three years later Apple Inc. introduce the iPhone and its application system. According to (Bajarin, 2011) Apple raises the bar with every new generation of the iPhone. Apple’s new version of the iPad has stood...
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...Dell Computer Corporation designed, manufactured and sold high performance personal computers. Initially it started by upgrading IBM computers then they began to market and sale its own brand. They followed built-to-order model which enabled Dell to have a much smaller working capital requirement compared with its competitor. It also allowed Dell to offer its products at a very competitive price and introduce the new technology more quickly than its competitors. SWOT analysis Strengths * Since the company followed its built-to-order model it did not spend a lot of capital in the business. * Low inventory which allowed the company to have very competitive prices and the introduction of newer technology at 1/3 the time taken by its counterparts. * Since Dell inventory it’s so low, it dramatically reduces the cost of storing inventory, which is part of the Cost of Goods Sold. * The Defects in raw material were easily pick over * High inventory turnover and low inventory days which means low cash conversion cycle. Weaknesses * Large dependence of suppliers * Small compared to its competitors Opportunities * Expansion of business activities due to globalization. * Increasing need of personal computers which will be reflected in an Increment in the demand of personal computers. * Change of the millennium * Adoption of new technology * Internet Threats * Rapid upgrade of new technology * Larger competitors Now I am going...
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...Product Development at DELL Since its founding in 1984, Dell corporation had enjoyed tremendous success in the desktop computer industry. Their strategy was to eliminate the middleman by directly servicing the customers through mail orders . Dell grew from obscurity to a fortune 500 company in 1992, making its founder Michael Dell one of the youngest highly successful entrepreneurs of his time. At the core of Dell’s business model was Spartanism which inspired informality in processes and low R&D costs allocation. This worked with their desktop business and their imitators such as Gateway 2000 and CompuAdd were always playing the catching-up game. However moving ahead this philosophy, their foray in to the portable computer business was not as successful. This was an industry that revolved around several technological breakthroughs and required higher workmanship & quality control to manufacture products. Here, Dell fell short of delivering quality portable computers. Their brand suffered a major setback when their first line of portables were reported to have technical problems and about 17,000 units had to be recalled just one day before the launch. Soon after, Dell’s percentage sales in portable computers went to 2% from 17%, and their stock plunged by $7 in a single day. The portable computer industry was growing fast [Exhibit 1] and was deemed to spark a new wave of consumer demand. The major problems staring Dell in face were regarding quality and management...
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...[pic] Dharini Giri 12050221051 FC- 3yr Dell Introduction Dell Inc. is an American privately owned multinational computer technology company based in Round Rock, Texas, United States, that develops, sells, repairs and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell sells personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players and also electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications. Dell was a pure hardware vendor for much of its existence, but a few years ago with the acquisition of Perot Systems, Dell entered the market for IT services. The company has since made additional acquisitions in storage and networking systems, with the aim of expanding their portfolio from offering computers only to delivering complete solutions for enterprise customers. History Dell traces its origins to 1984, when Michael Dell created PC's Limited while a student of the University of Texas at Austin. The dorm-room headquartered company...
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