...Introduction Dell computers are the best example of carrying out direct sales business in today’s business world. The direct sales business of the firm has been made by possible by using internet and digital media. However there are many issues and concerns of the corporation which has been elaborated in detail in this report analysed from the provided case study. Some of these issues are related to analysing Dell digital strategy and finding out the methods to enhance this strategy so that organization can increase its performance. The kind of challenges and opportunities available in order to implement the digital strategy has been explained briefly in this report. This report elaborates in detail how the firm is using internet and digital technology to interact with its stake holders. The second last part of the report explains change in methods of communication in organization by digital technology. The last part of the report provides details and evaluation on the digital strategy success of the firm. Company Background Dell Computer was founded by Michael Dell in 1984, while he was a student at the University of Texas, Austin. Dell began by selling upgrades of IBM-compatible PCs and in 1985 began to sell its own brand of PCs. From the beginning, Dell operated on the direct sales model, taking orders over the phone and building PCs to the customers’ specifications. Dell entered the retail PC channel for several years in the early 1990s, but a downturn in business in 1993...
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...DELL INC. was founded in 1984 by Michael Dell at age 19 while he was a student living in a dormitory at the University of Texas. As a college freshman, he bought personal computers (PCs) from the excess inventory of local retailers, added features such as more memory and disk drives, and sold them out of the trunk of his car. He withdrew $1,000 in personal savings, used his car as collateral for a bank loan, hired a few friends, and placed ads in the local newspaper offering computers at 10%–15% below retail price. Soon he was selling $50,000 worth of PCs a month to local businesses. Sales during the first year reached $600,000 and doubled almost every year thereafter. After his freshman year, Dell left school to run the business full time. Michael Dell began assembling his own computers in 1985 and marketed them through ads in computer trade publications. Two years later, his company witnessed tremendous change: It launched its first catalog, initiated a field sales force to reach large corporate accounts, went public, changed its name from PCs Limited to Dell Computer Corporation, and established its first international subsidiary in Britain. Michael Dell was selected “Entrepreneur of the Year” by Inc. in 1989, “Man of the Year” by PC Magazine in 1992, and “CEO of the Year” by Financial World in 1993. In 1992, the company was included for the first time among the Fortune 500 roster of the world’s largest companies. By 1995, with sales of nearly $3.5 billion...
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...UOIT 12 Strategic Management Matching Dell Case Majuran Kulendran 100367320 BUSI 4701U – 002 Word Count - 895 UOIT 12 Strategic Management Matching Dell Case Majuran Kulendran 100367320 BUSI 4701U – 002 Word Count - 895 Q1. The attractiveness of the personal computer industry tends to be at its growing stages as many companies were shifting towards developing personal computers for home use. Porters 5 Forces could be used to analyze the industries attractiveness in this era. Threat of Substitutes - High In the case the threat of substitutes is quite low as the primary organizations are Microsoft and Intel. During this phase it there didn’t seem to be much competitors in that segment of the market. In terms of personal computers the threat of substitutes are currently high. Technology is changing more and more as new forms of computers are coming out such as laptops, netbooks, tablets, smartphones, which in turn create a threat of substitutes (Kynin, 2012). With the weight of cost and benefits taken in to consideration computers tend to have greater threat. Buyer Power - High The variety of computers and options the large businesses have are in such a wide range and ultimately the have a high buying power. It really sums to their preference in price, quality and service (Kalpesh Agarwal, 2009). “Buyer are powerful if: buyers possess a credible backward integration threat – can threaten to buy producing firm or rival” (Quick MBA, 2010). Buyer power...
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...SWOT analysis of Dell Computers Corporation Student Name Institutional Affiliation Professor’s Name SWOT analysis of Dell Computers Corporation Dell is a privately owned American multinational computer technology which develops, sells and repairs computers and related products plus services. It was named after its great founder, Michael Dell. The company is best known for the innovations it made on the management of supply chain and electronic commerce, mostly the model for direct sales and configure to order approach which they used in management to deliver customer’s specifications of configured PCs. Dell is one of the leading computer manufacturers in the whole world and it has tremendously grown since its incorporation by Michael Dell. Dell currently dwells in an ever changing market with competitors who are challenging the company with unique and new products in the market place. Therefore SWOT analysis will provide a basis for crafting strategy that will take advantage of the company’s resources and at the same time benefiting from the opportunities and defending the company the threats to its successful operations (Michael Dell 2009). Strengths Majorly, the strength of Dell comes because of the Direct Model which is considered as one the greatest assets of the company. The Direct Model gives consumers a chance to customize their laptops since the market is becoming more educated and every individual needs a laptop that will meet their needs especially in terms of performance...
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...The Assignment Questions for 'Revitalising Dell': 1. I would like you to consider Dell around 2004 and make an assessment of how well they were doing at that time and what you believe were the two or three most likely explanations for their success. For each explanation I am looking for a ‘complete story’ supported (wherever possible) by facts and analyses based on the data from the case. (10 marks) 2. In 2004, Dell was one of the 'stars' of the computer industry, yet just over five years later it appeared to be struggling. Again using the tools and concepts we have been employing throughout the term, I would like you to speculate on what are the most likely explanations for their ‘decline’. Again I want you to support your arguments wherever possible with facts and analyses based on the data from the case. (10 marks) 3. Building on your analyses above, I would like you to give me a quick assessment of the main alternatives you believe Dell Inc should have considered (in 2010) to 'revitalize' their computer business over the next 5-10 years (and why), and which option would you have recommended to the senior management? (5 marks) Key Points: * Page 2: open architecture. * IBM used its huge sales force to sell PCs to large corporate accounts. * Small business and individuals – IBM used retailers such as Sears * Value – added Resellers * Dell incorporated 1984 ( IBM clone ) * IBM –declined and then accepted –Intel’s 386 chip (1985-...
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...friends Steven Jobs and Stephen Wozniak shared a common love and interest in electronics. In their early stages, Apple I & II were designed as a hobby. Apple I was actually created in Steven’s bedroom. “They would showcase the computers at the Homebrew Computer Club (of which they were members) as a demonstration (Apple Museum, 2011)”. The highlights were the video screens, and the fact that it used few chips to operate (during this time keyboards and video screens were not well established). The blue prints/schematics were passed around freely for all to see. Stephen would go to the homes of friends and help them build their own. Their computer displays would take place at club meetings, showcasing new features and additions. Dell, Inc. began in 1984, when then freshman pre-med...
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...CASE STUDY ON Strategic Analysis Of Dell Inc. mujeeb [Pick the date] Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving with the passage...
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...EXECUTIVE SUMMARY Dell Inc. is an American multinational technology company based in Texas. Dell managed to enter Singapore market through foreign direct investment and relied on the sales of laptops, printers, and many more. In Singapore PC and laptop are used to assist daily activities supported with abundant Internet access, this makes Singapore a good market for computer and peripheral industry. There are a total of 6 parts in this report. In the beginning of this report, a brief history and background of Dell will be shown. Then, in the second part of this report, advanced technology is shown as one of many vital keys in computer and peripheral industry along with lesser keys like economic, political, and demographic conditions. For the third part, an industry analysis using Porter 5 forces theory will analyze how those forces affect computer and peripheral industry generally. The second and the third part will focus on the industry as a whole. For the fourth and fifth part of this report, it will highlight Dell. The fourth part will show Dell’s strategic capabilities and how they help and enable Dell to survive and competitive in the industry. Meanwhile, the fifth part of this report will talk about Dell’s business strategy and how it transforms Dell to be a better company. The last part of this report will show the evaluation of Dell’s strategy evaluation that determines the sustainability of Dell. TABLE OF CONTENT 1. BACKGROUND AND HISTORY ...
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...Case study on | Strategic Analysis | Of Dell Inc. | | mujeeb | [Pick the date] | | Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving...
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...word is carefully thought about and used properly while looking at a company’s worth internally and externally. The best strategies are when a company can do this and give proper energy and evaluation of the external and internal environment of the company. The strategies are created by gifted strategist that use their out of the box thinking to achieve an objective or goal which allows its business a chance to compete in its specific industry (Sooperturtorials.com, 2009). Porter’s five forces model of competitive analysis is very popular and widely used for developing many ideas and strategies across many industries. The intensity of competition varies across industry. The intensity of competition is likely to be higher in low return industries as compared to high return industries due to the fewer requirements of capital and common products that require minimum R & D and efforts for production. In the category of business technology involving personal and business, computers have become a commodity and Dell Computer Corporation has evolved with the growing market. The competition is fierce in this sector and margins can be low. The lower end computers with high-speed internet capabilities have become the main selling force. As dial up internet continually proceeds to fade away and the consumers’ needs to upgrade their computers grow, the need to satisfy the consumers demand for high-speed internet will increase as well. Competition in peripherals is also very intense...
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...DELL INC (DELL) 10-K Annual report pursuant to section 13 and 15(d) Filed on 03/15/2011 Filed Period 01/28/2011 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 28, 2011 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-17017 o Dell Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 74-2487834 (I.R.S. Employer Identification No.) One Dell Way, Round Rock, Texas 78682 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 1-800-BUY-DELL Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on which registered The NASDAQ Stock Market LLC (NASDAQ Global Select Market) Securities Registered Pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No þ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No þ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the...
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...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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...SOWT for Dell inc. case Strengths Weaknesses Opportunities When an opportunity arises, the company is able to increase its output which consequently increases the company's profits. This is facilitated by the chances and opportunities of reducing its operation costs, presence of a wide client's base, or its ability to offer a demand gap. The existence of a company in the industry is to optimize every available opportunity to achieve its objectives in the industry. Mostly company realizes an opportunity when the clients shift their preferences of a commodity. For a company to capitalize on the opportunities available, it should venture more on its strengths in the industry for instance through proper utilization of market strategy. Other opportunities available to a company include; developing and emerging market for its products or services, when there is a chance for mergers or venturing in to joint alliance with similar companies in the industry, expansion of market either locally or internationally (Gray 2008, p. 84). Dell Company saw a change in the top management positions with Kevin Rollins replacing Michael Dell in 2004 in the chief executive officer's office although Dell remained the chairman of the company. This change of managerial positions is likely to lead the company to new and more profitable ventures in the market. With the strong founder being the chairman and regarded as the youngest CEO in 1992, this trend will be hard and difficult for other companies...
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...In te r n a ti o n a l J o u r n a l o f M a n a g e me n t C a s es BOOTSTRAP FINANCING: FOUR CASE STUDIES OF TECHNOLOGY COMPANIES EVA M.TOMORY UNIVERSITY OF TORONTO, CANADA Abstract Innovative businesses, especially in the early stages of their life cycles, often encounter difficulty in obtaining long-term external financing. Their founders tend to seek financing through nontraditional bootstrapping methods to launch their ventures. Bootstrap financing refers to a range of creative ways to acquire resources without relying on borrowing money or raising equity from traditional sources (Freear et al., 1995a). The paper examines how successful technology entrepreneurs used bootstrap financing: the founders of Microsoft Corporation, Apple Inc., Dell Inc. and Research in Motion Ltd. The research investigates the elements of bootstrapping as described in Freear et al. (1995a) and in Winborg and Landström (2001), finding that entrepreneurs use bootstrapping extensively during the early stages of growth for both product and business developments. Bootstrapping methods change as the business develops with certain methods used more at the beginning of the life cycle, and different variations used as the business starts to grow. The study also points out that even the most successful technology-based consumer goods businesses relied on bootstrap financing at the early stages of their development. This technique deserves more attention from the scholarly community since it is certain...
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...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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