...CASE STUDY ANALYSIS REPORT ON SUPPLY CHAIN MANAGEMENT OF DELL COMPUTER CORPORATION Submitted By: Asmita Baz ACKNOWLEDGEMENT On the successful completion of the project, first and foremost I thank God, the Almighty without whose blessings the project would not have been a success. I take this opportunity to express my sincere gratitude towards Mr. Subrata Kar (faculty of SCM,Globsyn Business School) under whose guidance I completed this project report. I wholeheartedly thank him for giving his valuable time & attention & for providing me a systematic way for completing our project report in time. THANK YOU. CONTENTS Index | Page No. | Introduction | 4 | Supply Chain | 8 | Channel Strategy | 10 | Market Perspective | 11 | Cycle of Order | 12 | Information | 13 | Conclusion | 14 | INTRODUCTION DELL Computers, a leading PC supplier to corporate and government customers, today is now among the first companies to provide its customers with the next level of industry-standard Pentium processor power, while many vendors are still struggling to broaden their processor-based product lines. Dell's unique ability to take a market strategy position during important technology transitions because of its build-to-order manufacturing process. This build-to-order approach allows the company to maintain low inventory levels and integrate emerging technologies into systems. Today's customers are reducing their supplier bases, providing the opportunity...
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...Table of Contents ............................................................................................................................................................... 1 EXECUTIVE SUMMARY .................................................................................................................... 3 INTRODUCTION ................................................................................................................................. 4 PART 1: OVERVIEW – INTERNET PROPERTIES & MARKETING IMPLICATIONS .................. 6 Website analysis................................................................................................................................. 6 Web and other online content ............................................................................................................. 7 Website properties (table 1.6) ............................................................................................................. 8 Website design and usability features ................................................................................................. 9 Multimedia and interactive features .................................................................................................. 10 PART 2: BENEFIT, COST AND VALUE CREATION ..................................................................... 13 Customer relationship management ..........................................................................................
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...Dell Computer Corporation’s Rise to Success Theory in Practice by AJ van de Ven Strategic Management in Global Environments Dr. Ofer Meilich 7 May 2004 Table of Contents Dell at a Glance 2 Chapter 1 2 Company Profile 2 Dell’s Mission 3 Chapter 2 3 External Analysis 3 Player Identification 3 Five Forces Analysis 4 Chapter 3 6 Internal Analysis 6 Distinctive Competencies 6 Competitive Advantages 6 Chapter 5 7 Business Level Strategies 7 Generic Level Strategy 7 Competitive Positioning 8 Chapter 6 9 Industry Environment 9 Strategies to Manage Rivalry 9 Chapter 7 10 Technical Standards 10 Dominant Design 10 Standards 11 Paradigm Shifts 11 Chapter 8 12 Global Strategies 12 Global Expansion 12 Chapter 9 13 Integration Strategies 13 Vertical Integration 13 Strategic Outsourcing 14 Chapter 10 14 New Ventures 14 Expanding Beyond a Single Industry 14 Diversification 15 Chapter 12 16 Organizational Structure 16 Output Control 16 Organizational Culture 16 Functional Structure 17 “It Reminds Me of…” 17 Findings 18 References 19 Dell at a Glance Headquartered in Round Rock, Texas, Dell Computer Corporation is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell's climb to market leadership is the...
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...Dell Headquartered in Round Rock, Texas, Dell Computer Corporation is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. 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. Dell Global Citizenship Principles Dell's global citizenship principles guide the company as it globalizes its operations, enters new markets, and expands its global employment base. Dell's goal is to be a good neighbor in the communities where we live and work. Our global citizenship principles are based on our corporate values and policies regarding social and environmental stewardship and draw from the Universal Declaration of Human Rights and fundamental conventions of the International Labour Organization, the International Organization for Standardization, as well as the experience of other corporations around the globe. The Dell Effect Dell is committed to using its unique direct business model to make technology more affordable and accessible to people and institutions around the world so that they can take advantage of the tremendous economic and social benefits of more pervasive technology. To do this, Dell is: • Using its customer direct model...
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...Background of the company In 1983, 18-year-old Michael Dell left college to work full-time for the company he founded as a freshman, providing hard-drive upgrades to corporate customers. In a year’s time, Dell’s venture had $6 million in annual sales. In 1985, Dell changed his strategy to begin offering built-to-order computers. That year, the company generated $70 million in sales. Five years later, revenues had climbed to $500 million, and by the end of 2000, Dell’s revenues had topped an astounding $25 billion. The meteoric rise of Dell Computers was largely due to innovations in supply chain and manufacturing, but also due to the implementation of a novel distribution strategy. By carefully analyzing and making strategic changes in the personal computer value chain, and by seizing on emerging market trends, Dell Inc. grew to dominate the PC market in less time than it takes many companies to launch their first product I. Statement of the Problem Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage. II. Statement of Objectives * Examine and analyze Dell’s Direct model, its basic working, success and future challenges * Typical Working of Dell’s Supply Chain and future supply chain challenges * Highlights...
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...w areHow companies are named? ABN AMRO- In the 1960s, the Nederlandse Handelmaatschappij (Dutch Trading Society; 1824) and the Twentsche Bank merged to form the Algemene Bank Nederland ( ABN; General Bank of the Netherlands). In 1966, the Amsterdamsche Bank and the Rotterdamsche Bank merged to form the Amro Bank. In 1991, ABNand Amro Bank merged to form ABN AMRO. Accenture- Accent on the Future. Greater-than 'accent' over the logo's t points forward towards the future. The name Accenture was proposed by a company employee in Norwayas part of a internal name finding process (BrandStorming). Prior to January 1, 2001 the company was called Andersen Consulting. Adidas- from the name of the founder Adolf (Adi) Dassler. Adobe- came from name of the river Adobe Creek that ran behind the houses of founders John Warnock and Chuck Geschke . AltaVista- Spanish for "high view". Amazon.com - Founder Jeff Bezos renamed the company to Amazon (from the earlier name of Cadabra.com) after the world's most voluminous river, the Amazon. He saw the potential for a larger volume of sales in an online bookstore as opposed to the then prevalent bookstores. (Alternative: It is said that Jeff Bezos named his book store Amazon simply to cash in on the popularity of Yahoo at the time. Yahoo listed entries alphabetically, and thus Amazon would always appear above its competitors in the relevant categories it was listed in.) AMD- Advanced Micro Devices. Apache- The name was chosen...
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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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...CASE: DELL COMPUTER’S STATE‐OF‐THE ART PRODUCTION CENTERS USING VENDOR MANAGED INVENTORY MODELS Michael Dell reshaped the computer industry with build‐to‐order computers directly sold to consumers. His business model positioned the company for emerging internet sales , with one of the highest sales figures in the industry. But Dell has done more than streamlined the selling and distribution process, he has also streamlined the manufacturing process as well. Dell can deliver the latest technology exactly the way the customer wants it at blinding speed, which has earned them the nickname of “Dellocity”. Examples of their speed are; they delivered eight customized fully loaded PowerEdge Servers to NASDAQ within 36 hours of receiving the order, or when they delivered 2,000 PCs and 4,000 servers with proprietary and multimedia software delivered and installed at 2,000 different WALMART stores all in 6 weeks. How does Dell manage to do all this at such incredible speeds ?? Through close customer contacts and carefully orchestrated manufacturing and distribution system. Dell manufactures its’ computer systems in 6 different locations‐ Texas, Tennessee, Brazil, Ireland, Malaysia, and China. Dell has recently added a new factory in Round Rock, Texas, called the OPTIPLEX Plant. This factory is state‐of‐the‐art and there are only a handful of such factories in the world. The OPTIPLEX is a showcase of networked manufacturing. The factory is 200...
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...Dell Inc., currently a US$60 billion company, was started by Michael Dell in 1984 when he was an undergraduate student at the University of Texas, in the United States. Within two decades, Dell, with headquarters in Round Rock, Texas, grew to become one of the world’s great computer companies, with near leading shares in the personal computer (PC) and server markets. Nearly 65 per cent of its revenue originated in North and South America; 23 per cent in Europe, the Middle East and Africa; and 12 per cent in the Asia–Pacific region. In 2003, a year in which most computer makers lost money due to slumping global demand for PCs, Dell saw its annual revenues jump by US$5 billion to US$36 billion, made US$2.8 billion in operating profit, and gained 2.3 per cent in global market share. By this time Dell had gained, and held for five years, the position of market-share leader. However, during the mid to late 2000s, Dell’s position in the global PC market began to change. In 2005 it lost its market-share lead to one of its main rivals, Hewlett-Packard. By 2008–9, Dell’s second-place PC ranking came under threat from the Taiwanese computer maker Acer. In 2003, Acer had ranked seventh in PC sales around the world, but by 2008–9 Acer’s share of the global market had risen to 11.8 per cent, just behind Dell with 13.7 per cent and HP still on top with 19.6 per...
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...Krames (2003) is very enlightening an intuitive. Michael Dell according to Krames (2003) believes in the power of the customer, be it their positive or negative feedback, but especially in what the customer wants from a product (p. 56). Michael Dell birth a business model based solely on a one-on-one relationship with customers is the foundation of his company the Dell Corporation. Andy Grove’s model mandates protection or maximization of sales opportunities so to be prepared for all possibilities of success or failure which he based on Time magazine’s 1997 person of the year Andras Grof paranoid perspective (Only the paranoid survive) (Krames 2003, pp. 66-67). Business partner Moore’s metaphorically likened their organization to that of a three legged stool, if one leg is off balance so is the entire organization (Krames 2003, pp. 137-139). Lastly, Grove named the fear of an organization being on the brink of total failure as a “strategic inflection point” (SIP) which he describes as an organizations face-to-face with massive must change events even to a point of complete organizational failure (Krames, 2003, p. 141). Resistance Comparison Michael Dell organization encountered near death when the brilliance of his technical engineering team and himself put together a massive computer (The Olympic) that customers had no real need for, which in-turn caused a huge financial loss to the Dell corporation. Michael Dell went back to basics which involved customers from the beginning...
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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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...1. Acer's strategy has been described as "divide and conquer." Compare and contrast this to Lenovo's strategy. From the very beginning Acer has been a leading marketer of notebook and desktop PCs that were relabeled electronic products marketed and sold by recognized global companies. Acer struggled growing its business in the American market. To address this issue Acer spun off its manufacturing operations to transform from a global PC manufacturer to a marketing and services powerhouse by producing products faster, cheaper and more efficiently. The most effective way for Acer to grow was to engage in expanding its operations, marketing and selling activities to another market. In this case Acer decided to take the company globally and begin building a solid market in China. It's believed that if China becomes the company's "home" market, Acer will capture critical economies of scale that will allow it to develop innovative new products that will succeed in China as well as the rest of the world. Acer's chief technology officer, believes that Acer's knowledge of China's market will help the company achieve its growth and market share objectives. Acer implemented initiatives that placed them in a better position than Lenovo. At first Acer was suffering from poor brand recognition. Consumers were concerned about the quality and the reliability of its products. One of the ways that Acer overcame this obstacle was acquiring Gateway which created a path for Lenovo to their...
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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 Company Today, I would like to talk about a famous computer company called Dell. I chose to write about Dell company because it has become one of the most successful corporation in the computer business. From the year 2000, Dell Computer has become the U.S. leader in personal computer sales and the second biggest one worldwide. Before I start on my presentation, I would like to ask a question: What has made Dell company set apart from most computer companies? My presentation will be focusing on answering this question. But, before I answer such a question, let me first give us a brief history of Dell Company. Firstly, looking at the background of Dell company. Dell Company was founded in 1984 by Michael Dell who was a college student at that time. Michael Dell started out his business by buying computer parts from the wholesale distributors, assembled them using IBM models, and sold these computers via mail at a high price. Then, Dell expanded rapidly and its growth move fast. Now, Dell employs more than 77,000 people around the world. Now, let me talk about the secret behind the great success of Dell company. Dell has followed two strategies, which no company has ever thought about. The first strategy is to sell computers directly to consumers. In this way, they eliminate the need for retailers to serve as middle-men. This process is known as a "direct business model". It has made Dell to grow...
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...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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