...Date: November 3, 2010 To: Linda Glassburn From: Ivan Radan Subject: Dell Inc. I have researched Dell Inc. thru many articles and publications to determine what exactly makes them a Fortune 500 company and what they planned to do in the future. They have a few new products coming out in the near future and are always looking to advance in the technology field by bringing out the latest and most advanced products. Background Dell was founded in 1984 by Michael Dell, the computer industry's longest-tenured chief executive officer, on a simple concept, that by selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory every three days on average. Long the world's largest direct-sale computer vendor, Dell Inc. is now also the leading seller of computer systems in the world, capturing a global market share of more than 15 percent. Dell markets desktop personal computers, notebook computers, network servers, workstations,...
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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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...Case Analysis Dell Inc. in 2008: Can It Overtake Hewlett-Packard as the Worldwide Leader in Personal Computers? Executive Summary This case analysis contains an evaluation of Michael Dell’s corporation, Dell Inc. The year is 2008 and is a turning point for the IT product and service provider that is in need of a necessary revamp. The curtain state, pluses and minuses of the company, and what problems, options, and what solutions that should be evaluated are highlighted throughout this piece. Environment: -Dell exists in economic conditions that are currently spread out over the map, and that are at a considerable standstill. There are people and organizations that cannot afford to make any significant purchases at this time, and there are people and organization with disposable income that can purchase anything their heart desires. The high-class citizens apparently are becoming richer, and the middle-class and below seem to be getting poorer. It is a tough market currently, and a niche, a product or service that offers something unique to consumers is quite necessary at this time to capture sales. -Stylish, popular social trends such as iPhones, Apple, and being perceived as wealthy is the in at the moment, and consumers want to be it everyday. Looking beautiful, while possessing attractive items is the upmost desire. Companies are trying hard everyday to keep up with the current market, and are constantly trying to create new styles, and trends for each season...
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...the there are four key strategies for the company in delivering superior customer value; 1. Selling direct to the customer is the most efficient way to market the company’s products cause it eliminates wholesale and retail dealers that impede Dell’s understanding of customer needs and expectations and that add unnecessary time and cost. 2. Allowing customers to purchase custom-built products and custom-tailored services is the most effective way to meet customers’ needs. 3. A highly efficient supply chain and manufacturing organization, grounded in the use of standardized technologies and selling direct, paves the way for a low-cost structure where cost savings can be passed along to customers in the form of lower prices. 4. Dell can deliver added value to customers by (1) researching all the technological options, (2) trying to determine which ones are “optimal” in the sense of delivering the best combination of performance and efficiency, and (3) being accountable to customers for helping them obtain the highest return on their investment in IT products and services. In almost all cases, non-propriety, standardized technologies deliver the best value to...
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...be introducing is called Dell, Incorporated. Dell is a computer hardware manufacturer and distributor. The company is one of the world's largest computer distributors in terms of both quantity of units sold and gross income, and one of the United States largest corporations. From 1999 until 2006 Dell delivered more complete computer systems worldwide per quarter than any other PC manufacturer. The guy who started Dell, Inc is Michael Dell. He is the official founder of Dell Inc. He started his business by simple built to order concept. He was selling directly to customers. The plan was a success. Michael Dell eventually started direct sales by mail and phone. This was a great idea because most people liked convenience. When you are able to order by mail and phone, how convenient is that? Dell is the first company to list a website. Michael Dell started to see plenty of profits when he started to sell its products through the website. The more convenient ordering is, the more people will buy. Dell believed in great customer service. He made it his mission to aim is to create loyal customers by providing superior experience. He not only gave them great customer service, he gave his customers good deals. Michael Dell provided the best products with standard based technology. He out did the competition with value of his products and customer service. Dell, Inc provides a range of technology solutions worldwide. This company has been successful. Dell is serving the world with...
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...In 1984, Michael Dell started his own business while in college. The company he started was PC's ltd., which was the forerunner to Dell Inc. today. Dell started his business with a simple concept which is made to order computers. The computers were to be direct sales to consumers. Dell maximized his profits by bypassing distributors and retailers. After its failed experiment through distribution US retail stores in the 1990s; he soon took the product out of the stores and continued focus on direct sales. Initially, Dell started selling computers by mail and phone orders then until 1994 when he started a website to sell his computers. By 1995 the company was the world's leader in direct marketing. By 2001 Dell ranked first in global market share. The company changed its name to Dell Inc. Fiscal year 2005 was an outstanding year, soon however; increasing competition and cost pressures began to erode Dell's margins.In 2007 Dell began shipping to major U.S. and Canadian retailers; followed by sales elsewhere in the world. Resources: •Dell brand name •Michael Dell •Integration of the new executive team; Motorola, Hewlett-Packard, and Apple •Kevin Rollins-CEO (Replaced Michael Dell in 2004) •Desktop, laptop, servers, storage systems, printers, software, peripherals, services, and structure •Direct marketing •Financial Sales Capabilities: •Master of process engineering and supply chain management •Strategic management •Product line •Marketing •PCs online ...
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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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...[edit] History [pic] Michael Dell, Founder of Dell. [edit] Origins and evolution | |This article or section may contain an inappropriate mixture of prose and timeline. | | |Please help convert this timeline into prose or, if necessary, a list. | While a student at the University of Texas at Austin in 1984, Michael Dell founded the company as PC's Limited with capital of $1000[4]. Operating from Michael Dell's off-campus dorm room at Dobie Center [1], the startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer-systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family. In 1985, the company produced the first computer of its own design — the "Turbo PC" — which contained an Intel 8088-compatible processor running at a speed of 8 MHz. PC's Limited advertised the systems in national computer-magazines for sale directly to consumers, and custom-assembled each ordered unit according to a selection of options. This offered buyers prices lower than those of retail brands, but with greater convenience than assembling the components...
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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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...1.0 INTRODUCTION: 1.1BRIEF ABOUT DELL: Dell was established in 1984 by Michael Dell. It is based in Texas, USA. It sells laptops, personal computers, cameras, printers, and related products and software. Dell is very well-known for its direct-sales model and its “configure to order” way of supply, where customers can have their own order with required specifications and got it delivered at their place. Recently, Dell gave more focus to IT services and software. By 2012, Dell established a new software group and focus on four areas: end user computing, enterprise solutions, software and services Table 1: Basic Information about Dell Basic Information about Dell Name Nature of Business Dell Inc. Computers, IT and related software and products 1. Individual users with low income who appreciates technology such as students, small Target Customers home office users and so forth. 2. Large to mid-size businesses. Main Competitors locally & Globally Sony, Samsung, Apple Inc, Lenovo, Fujitsu, HP, IBM, 1 Intel, Seagate, Best Buy, SGI, SMCI, CRAY, CUDA, CSCO, CDW, FIO, IN, Acer, Toshipa. Marketing Strategy Innovative Direct Model Build-to-order approach. 1.2 FINANCIAL SITUATION: From graph 1 we may see that Dell is doing well enough through the last 4 years. Its revenues, expenses and profit are quite stable. It’s notable that revenues grew dramatically between 2010 and 2011. Revenues dropped again in 2013. Graph 1: Performance of Dell 2010-2013 ($ billions) 70,000 60,000...
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...GROUP ASSIGNMENT- CASE STUDY INTRODUCTION Michael Dell founded the Dell Computers in 1984 in USA and by 2001 the company became the world’s largest personal computer vendor, continuing to gain market share and post profits in an industry struggling with slumping sales and billions of dollars in losses. Dell sells 90% of its PCs directly to the final customer, largely bypassing the reseller channel that accounts for most of the world’s PC sales. This direct customer relationship is a key to Dell’s business model, and provides distinct advantages over the indirect sales model. Dell’s direct relationship with the customer allows it to tailor its offerings to customer needs, offer add-on products and services, and use the Internet to offer a variety of customer services. In addition, Dell’s PCs are built to customers’ specifications upon receipt of an order, giving Dell additional advantages over indirect PC vendors who must try to forecast demand and ship products based on those forecasts. Dell’s direct sales and build-to-order model has achieved superior performance in the PC industry in terms of inventory turnover, reduced overhead, cash conversion, and return on investment. Dell’s business model is simple in concept. Building PCs to order means that Dell must have parts and components on hand to build a wide array of possible configurations with little advance notice. In order to fill orders quickly, Dell has excellent manufacturing and logistics capabilities supported by...
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...Strategic Management Paper on: Dell International Services Philippines, Inc. Submitted to: Professor Eliseo Aurellado Submitted by: Ryan S. Villarica MBA - Standard Date: June 28, 2014 Table of Contents Executive Summary4 I. Introduction6 II. Research Methodology7 III. Mission and Vision Analysis8 Current Vision and Mission8 Review of the Current Vision9 Review of the Current Mission10 Proposed Vision and Mission Statements11 Review of the Proposed Vision and Mission Statements12 Communicating the Proposed Vision and Mission Statements14 IV. External Analysis15 Economic Forces15 Political Forces………………………......................................................................................... 18 Social, Cultural, Demographic and Ecological Forces 19 Technological Forces 21 Industry and Competitive Forces 22 Five Forces of Competition Model 24 Competitive Profile Matrix (CPM)28 External Factor Evaluation (EFE) Matrix 33 V. Internal Analysis39 Functional Audit39 Culture39 Management41 Operations43 Information Systems44 Human Resources45 Marketing and Hiring46 Financial Performance47 Internal Factor Evaluation (IFE) Matrix52 VI. Strategy Formulation58 SWOT Analysis58 Strategic Position and Evaluation (SPACE) Matrix 60 Internal-External (IE) Matrix63 Grand Strategy Matrix64 Summary of Matrices and Analysis65 VII. Quality Strategy Planning Matrix 66 VIII. Proposed Strategies69 Strategic...
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... Dell Inc. Competitive forces The Competitive forces has five forces which are threat of new competition; threat of substitute products or services; bargaining power of customers or buyers; bargaining power of supplier; and intensity of competitive rivalry. I. Threat of new competition: In the other word, it is the threat of new entrants. For the threat of new entrants, based on the Porter's five forces, a model for industry analysis, " Barriers to entry are more than the normal equilibrium adjustments that markets typically make." (Porter's Five Forces). If a company wants to enter a new market, it should consider about the following factors in the industry which are Government policy, economies of scale, capital requirements, brand identity, absolute cost advantages and Industry profitability etc. II. Threat of substitute products or services: According to Wikipedia, " The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Note that this should not be confused with competitors' similar products but entirely different ones instead." (Porter five forces analysis, 2009). Many factors such as switching costs, buyer inclination to substitute, price performance, and trade- off of substitutes should be considered by a company. III. bargaining power of customers or buyers: based on Wikipedia"The bargaining power of customers is also described as the market of outputs: the ability...
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...戴尔公司线上直销的经营模式十分适合进行社会化媒体营销。大学生群体亦是笔记本电脑消费的重要群体之一。本策划即针对中国的大学生市场开展戴尔笔记本的营销。由于戴尔已建成完善的CRM体系和社交社区平台，本策划着眼于借助线上活动制造“buzz”：“How Dell You, Alien？！”和“戴尔助力优秀学子”。 环境简析 公司概况 戴尔（中国）有限公司成立于1998年，业务涉及台式电脑、笔记本电脑、服务器等。戴尔笔记本电脑在中国的市场份额排名第三，约为10%，仅次于联想的35%和华硕的14.5%（2014上半年）。 SWOT分析 本分析仅讨论戴尔在中国的营销情况，不涉及世界市场及电脑技术问题。 * S 优势 1. 依靠出色供应链管理建立的线上直销的经营模式：不设专卖店，省去了中间商的维护成本。这也是戴尔的标志性营销措施。 2. 个性化定制服务，顾客可以根据自己的需要调整电脑的配置； 3. 产品质量出色，在同行业中有“质量领导者”的地位。 * W劣势 1. 与联想、华硕等主要竞争者的同配置笔记本相比，价格较高。 2. 在三四线城市的品牌知名度不高，远不及“联想”的品牌家喻户晓。 * O机遇 1. 10年前，网购的安全性不被广大消费者信任。而如今网上购物逐渐成为潮流，戴尔的线上直销模式更容易为消费者所接受。 2. 大学教育愈发依赖电脑，大学生群体的市场需求量巨大。 * T 威胁 1. 替代品平板电脑对市场的侵蚀。平板电脑虽然配置不高，但是能胜任学生的学习需要，而且其轻薄便捷的特性是笔记本电脑无法媲美的。而戴尔在平板电脑领域并无建树。 目标顾客分析 大学生群体是笔记本电脑消费的主力军，也是本次营销的目标顾客。中国的在校大学生（包括大专）超过4500万人，且几乎每人都需要使用电脑，这是非常庞大的细分市场。再进一步分析消费者的行为习惯，不难发现，相当一部分大学生都会在高考结束后的暑假购买笔记本电脑，并且使用多年。所以，我们还专门针对高考结束后的准大一学生开展促销活动。 这一群体的购买需求是刚性需求（因学业需要不得不买），且作为熟练使用电脑和网络的群体，超过2/3的人会在购买前通过电脑门户网站或社交媒体了解电脑相关信息。这使得社交媒体营销大有可为。 营销目标说明 由于大学生群体消费能力有限而戴尔的价格不具备优势，因此戴尔应该在学生群体中塑造更为突出的品牌形象以换取品牌的溢价，并辅以促销手段刺激潜在客户购买。 故营销的目标包括在大学生群体中提高市场份额、提升品牌形象：在大学生群体中，品牌认同度超越华硕、与联想的差距缩小至40%，并在四年内，市场份额提升50%。 选择社交媒体区域和载体 戴尔公司本身已具备完善的官方网站、官方微博和线上支付平台，以及从促销到售后服务到公益全面覆盖的微信平台，故不再提及。我的营销重点在于依靠创意制造热点活动，着眼用户的分享和顾客的情感体验。 区域类型 | 载体 | 主要作用 | 社交娱乐/发布 | App游戏软件，微博 | 塑造品牌形象；提高品牌知名度 | 社交商业 | 官网线上购买促销活动 | 在不有损品牌形象的前提下迅速抢占市场份额 | 线上营销活动措施 1. “How Dell You, Alien？！” * ——游戏App及微博推广活动 “Dell”即戴尔，取“Dare”的谐音。这是一款我精心思考的App游戏创意，并设计社交发布活动与之配套。旨在推广戴尔旗舰品牌：Alien ware系列笔记本，并且塑造“尖端、霸气”的品牌形象。Alien...
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...Dell’s Accounting Policies for Revenues, Expenses and Net Income: Dell includes both GAAP and non-GAAP financial measures in its 10k reports. The company claims that excluding certain items GAAP gives managers a better grasp on the financial performance of the company. Dell excludes severance and facility actions, and acquisition related costs from its GAAP financial measures, and also the amortization of intangible assets. Dell acknowledges that its non-GAAP financial measures may not be comparable with other companies that are using their own non-GAAP reporting standards. Dell is increasingly relying on international markets (notably Asia) for its revenue generation. Total net revenue from the US in dropped 5% from 2011 to $30.4 billion in 2012. Meanwhile, revenue from the international market increased 12% from 2011 to 2012. Dell continues to expand in these areas as growth in the US and Western European markets continue to decline. Dell distinguishes its revenues between Product Revenues and Service Revenues. According to GAAP, total operating expenses for Dell increased 18% to 19.4 billion. This is mainly due to what Dell reports as severance costs, acquisitions, and facility costs. Dell differentiates its expenses between Selling, General, and Administrative Expenses, and Research & Development and Engineering Expenses. Net income increased 33% to 3.5 billion on a GAAP basis. Dell attributes this mainly to increases in operating income and a lower effective...
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