...1.Which company is competitively stronger—Dell or Hewlett-Packard? HP is still competitively stronger than Dell today in regards to overall sales. While Dell had been the industry leader in lean manufacturing approaches and cost-efficient build-to-order production methods in producing desktop PCs, it had fallen behind in producing laptop computers. The three elements in Dell’s business strategy included: entering the white-box pc segment, advertising, and continuously reducing costs. While these strategies have brought success to Dell, the Hewlett-Packard Company excelled in the printer market. Dell believed that HP was using its big margins on printer products to subsidize selling its PCs at prices comparable to Dell’s, even though Dell had costs that were about eight percent lower than HPs. Since the computer technology industry is constantly changing, the market leaders shift all the time. Currently Acer Inc. is close to taking over HP’s industry lead. 2.What actions and strategy changes would you recommend to Michael Dell to boost the company’s performance and its prospects for overtaking HP in global sales of PCs? Most of HP’s global market share in PCs and servers came from having the world’s biggest and most diverse network of distribution partners. The percentage of PCs and servers sold by its direct sales force and by its various channel partners varied by geographic region and country. The customer buying patterns and market conditions from these different...
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...analysis Dell’s Direct Model and its basic working and success and future challenges. Dell’s Direct Model Dell has been following it’s unique direct build-to-order sales model for more than 20 years. Customers can plan their own configuration and place orders directly with company via the phone or a web site. Over the years Dell supply chain efficiencies and direct sales gave it a competitive advantage. Dell has also leveraged JIT principle to make its manufacturing process success. Dell’s approach to JIT is different in that they leverage their suppliers to achieve the JIT goal. They are also unique in that Dell is able to provide exceptionally short lead times to their customers by forcing their suppliers to carry inventory instead of carrying it themselves and then demanding (and receiving) short lead time on components so that products can be simply assembled by Dell quickly and then shipped to the customers. Characteristics of direct model * Eliminate costs and risks of carrying large finished goods inventories * High velocity * Low-cost distribution * Direct customer relationship * Build-to-order * Just-in-time manufacturing * Products and Services aimed at specific market segments * Reduced channel costs: from 13.5%-15.5% to 2% of product revenue * Latest Technology was introduced faster than indirect channels * Dell can use IT to directly control its value chain, set quality measures and monitor in real time how material...
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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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...accounting. I will also develop strategies to recruit the appropriate applicants. I will finally include a discussion of how the strategy is legally compliant. Dell was founded in 1987 by Michael Dell in order to directly serve their customers with computers that meet their needs. The company was called PC’s Limited and he was still a student at University of Texas. In the year of 1987, Dell came out with their very first computer called the Turbo, which had an eight mega hertz processor. The major goal was to produce personal computer systems that were IBM compatible and were produced or entirely stock parts. The company grossed 73 million dollars in the first year. The company went public in 1988 offering shares of stock for $8.50 a piece. The first Dell laptop made its debut in 1991 and by 1993; it became one of the top five computer companies in the world. By 1995, those $8.50 shares of stock were worth $100. The progress of the business was rapid and in 1997, Dell had shipped its ten million systems. In the Industry Identifications both manufacturing and consumption, Asia/Pacific represents the most dynamic region of the worldwide PC industry. The people at Dell believe that their continued successful will require teamwork and continuous learning on the part of each team member in order to develop and grow. Dell focuses on building a pipeline of talented, diversified individuals in order to meet current and future staffing needs in order to develop Dell's leaders of tomorrow...
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...Environmental Scan The survival of any organization is produced and habituated by the environment because of perceptions, resources, issues, and chances. Because of the ever changing environment it is essential for any business to observe the applicable changes that occur in the environment and devise policies to adjust to variations. For a company to succeed, a company needs to conquer the trials of the constant shifting environment. Environmental scanning is a process of analyzing, monitoring, and evaluating the information from the internal and external environments to certain people in the corporation (Wheelen & Hunger, 2010). Conducting an environmental scan for the two following companies will offer a background to increase chances and distribute the resources in expectation of the changes in the environment. The competitive advantage, measurement guidelines, and the effectiveness of the measurement guideline will be reported on for Ford and Dell. Ford The Ford Motor Company has been a force in the automotive industry since the early 1900’s. Ford has been a company that has endured trials and tribulations and has even recently been able to prevail in our economic downfall. An analysis of their standards, views, missions and values, we can understand how it is that they have remained a strong force within the automotive industry. Ford takes a unifying approach in their business stance when concerning their mission. Their mission is to work as "ONE Ford" with...
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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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...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...
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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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...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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...PROCESS OF DELL. EXECUTIVE SUMMARY Every organisation has different processes it uses to be successful and there are some that are quite essential for a business to identify what it is doing right and what it is not doing. Through this process clearly analysed in Dell Corporation in this report it is able to help a business grow, and thus by identifying all this factors a business is able to make starategic decisions on what is best for the business and develop goals that will help move the company forward. So by looking at Dell we will be able to identify all this important processes and thus run a successful business. INTRODUCTION. Dell which was formed by Michael Dell in his university dorm room as shown in http://www.bizface.co.uk/bizfaceforum/blogs-leading-articles/43905-famous-dell-case-study-finance-case-study-dell-s-dilemma-brazil-del.html in 1984 when he was only 19years and is now one of the biggest computer seller worldwide. It has over 100,000 employees in the world and sells 110,000 systems daily to over 180 countries. In its’ second quarter of the fiscal year ended 30th June 2010, dell generated a net income of $545 million. All this huge figures just show how big a corporation dell is and many may ask what were the factors that attributed to this dells’ success. There are a number of factors that attribute to dells success and according to http://ivythesis.typepad.com/term_paper_topics/2008/02/dell-strategic.html the main ones being; • Dells direct model...
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...Target Market Baby Boomer Or Muppies Marketing Essay As a parent, they are worry about many things which they give to their child. Such as, what should they feed, which school should they send him/her to, or what kind of toys able to help in educating them, give them extra knowledge. They might also worry about the toys which they bought are suitable for their children. If the child is newborn between age 0 to 2, parents must make sure the toys are safe enough, and it should be large enough to avoid choking hazards. Therefore, they are willing to buy good quality toys which are really safe to their children. For example: the truck toys which the color will not fade easily as the child might accidently swallow the colors. Product In the exchange process, many benefits obtained by consumers that having a good services with a tangible and intangible attributes. Products in marketing mix are separate into two types. That is internal considerations and external considerations. Internal considerations are when we are producing the product, we need to know about what are the costs of developing, producing, distributing, and selling. Firstly, we must have a plan to avoid wasting money. External considerations are after produced the product, producer need to think what of the best product serves consumption patterns for the target segment. Is the packaging can attract consumers; how about the transportation, usage, and disposal of the product. The consumers will like to compare the...
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...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 takes place online. The supply chain and data integration with suppliers has made Dell one of the most efficient...
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...Staffing Plan Paper The following report is an overview of Dell Company as it expands its computer business into the Indian market. This paper identifies the challenges facing Dell as it expands into India, including the cultural and regulatory factors involved. In addition this paper will identify the staffing strategies employed by Dell including the recruitment and selection process of its business managers. This paper will discuss the changes to Dell's organizational structure as it expands into the Indian market. A competitive analysis is also made, which shows the strategic alternatives and choices for the future Industry Identifications In both manufacturing and consumption, Asia/Pacific represents the most dynamic region of the worldwide PC industry. The people at Dell believe that their continued successful will require teamwork and continuous learning on the part of each team member in order to develop and grow. Dell focuses on building a pipeline of talented, diversified individuals in order to meet current and future staffing needs in order to develop Dell's leaders of tomorrow. They focus on attracting top candidates with the skill sets they require by working on the basis of early recruitment and full utilization of their pipeline program. This strategy has supported their mission statement fully until now. But if Dell plans to take a large amount of the market share in India, it will have to change its mission and strategy according to the needs of...
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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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...Dell’s Buyout Dell has always been one of the largest PC makers in the United States. Recently, though its share of the PC industry has been declining. It went from the number one low cost provider of PCs in the world to number 3. Its inability to adapt to the new markets that have emerged has caused the company to fall behind other hi-tech companies such as IBM, Apple, and even HP. I feel this is an important topic because it is an example of a large company that has lost touch with what consumers want and is currently trying to restructure itself in order to gain back the dominance they once had. Consequently, Michael Dell has announced his decision to attempt a leverage buyout in order to retain control of his company. Furthermore, throughout this paper, I will present the pros and cons of a leverage buyout and analyze the decision of Michael Dell to buy back his company. Jeff Sommer from The New York Times attempts to explain the situation in his article “The Dice are rolling on Dell’s Legacy” from the New York Times and goes into detail of the largest leveraged buyout that is taking place in the US since the financial crisis in 2008. Michael Dell founded his own tech company known as Dell in his dorm at the University of Texas in 1984. He revolutionized the PC industry when he created personal computers that were more powerful, reliable, and inexpensive whose features were able to be customized by the buyers (Sommer). Technology has evolved exponentially since then with...
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