...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 is at the forefront of the computer industry, with the company serving multiple sectors of the market, including households, businesses, educational facilities, and even governmental agencies. The company started small under Michael Dell, who was 19 years old in 1984 when the company began. Dell initially had $1,000 to use on computers parts that he assembled into PCs and sold over the phone. However, the demand for PCs continued to rise, and Dell had to begin to expand the company. It moved to a five-employee staff working around a table assembling computers while taking orders, and eventually, by 1993, Dell had 4,500 workers and had to hire additional employees each week to keep up with the continually rising demand for PCs. Dell quickly realized that he could not manage the company by himself, so he recruited strategic managers who could assist him in the company’s various areas such as manufacturing, finance, and marketing. This move to a functional structure involved grouping employees by their skills in order to better organize the value chain. The company’s structure also became taller with a more structured hierarchy that would allow Dell and his managers to keep necessary control over the business. As Dell Computer grew in size and revenue, it developed a lean organizational culture, with the employees working together to cut costs as much as possible while continuing to serve its customers with the best customer service possible. Dell Computer became...
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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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...a Disruptive Strategy to propel business @ Dell Social Media by itself is disruptive. In the age of Facebook, Instagram and twitter ideas, articles and information can trickle to all the corners of the world in a matter of hours. Dell realized this when there was lot of outrage in the social media space against them. There were one sided conversations because dell was not on the social media space. The firm was also scared that the employees would misuse the space and hurt the company's reputation. Dell looked at this as an opportunity to make social media as a strategic priority to connect with its customers better. Dell made many strategic changes to leverage the social media technology. These strategies involved creating a centralized social media operation, SMaC University and driving sales through social media and direct to sales. All these strategic initiatives had a direct impact on the bottom and top line of the firm. Centralized social media operations Dell created a centralized social media operation. This center was instrumental in creating two blogs; Direct2Dell and Ideastorm, both focusing on its customers. Direct2dell was focused on solving customer issues and grievances and introducing Dell's new products & services to its customers. Idea storm was a platform provided to its customers to communicate their views and ideas about the products, features and services. These blogs allowed Dell to connect and understand its customers. SMaC U Dell created a SMaC...
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...uStrategy Implementation at Dell Dell was one of the fastest-growing companies of the 1990s, and its stock price increased at the rate of 100% per year, delighting its stockholders. Achieving this high return has been a constant challenge for Michael Dell. One of his biggest battles has been to manage and change Dell’s organizational structure, control systems, and culture as his company grows. Michael Dell was 19 in 1984, when he took $1,000 and spent it on the computer parts he assembled into PCs that he sold over the phone. Increasing demand for his PCs meant that within a few weeks, he needed to hire people to help him. Soon he found himself supervising three employees who worked together around a 6-foot table to assemble computers while two more employees took orders over the phone. By 1993, Dell employed 4,500 workers and was hiring more than 100 new workers each week to keep pace with the demand for the computers. When Dell found himself working 18-hour days managing the company, he realized that he could not lead it single-handedly. The company’s growth had to be managed, and he knew that he had to recruit and hire strategic managers who had experience in managing different functional areas, such as marketing, finance, and manufacturing. He recruited executives from IBM and Compaq. With their help, he created a functional structure, one in which employees were grouped by their common skills or tasks they performed, such as sales or manufacturing, to organize...
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...CHAPTER 12 Implementing Strategy in Companies That Compete in a Single Industry Synopsis of Chapter Chapter 12 examines how managers can best implement their strategies in single-industry firms in order to achieve a competitive advantage and superior performance. First, the main elements of strategy implementation—structure, control systems, and culture—are analyzed in detail, focusing on the way they work together to create an organizing framework. Then the chapter turns to the topic of using structure, control, and culture at the functional level to build distinctive competencies. After that, the chapter addresses the challenges of implementing the generic business strategies of cost leadership or differentiation in a single industry. The final section covers restructuring and reengineering, two strategies that single-business firms can use to improve corporate performance. The next chapter takes up where this one leaves off and examines strategy implementation across industries and across countries—that is, implementing corporate and global strategy in firms that compete in more than one industry. Teaching Objectives 1. Introduce the main elements of strategy implementation—structure, control systems, and culture—and their relationships to each other. 2. Demonstrate how structure, control, and culture can build distinctive competencies at the functional level. 3. Describe the use of structure, control, and culture in implementing a single-business...
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...Integrative Problems Para: Perry White, Editor, Daily Planet De: Reportero de negocios Re: Próximas series de las finanzas multinacionales Uno de los problemas que están confrontando las empresas internacionales en comparación con las domesticas a nivel administrativo es el riesgo de los cambios de moneda. Si las cotizaciones de los tipos de cambios entre los mercados de Londres y Nueva York no estuvieran regulados, por ejemplo, entonces una compañía pudiera obtener beneficios comprando en los mercados en donde la moneda este más barata y vender en un mercado donde la moneda sea más cara o valga más. Este tipo de estrategia de compra-venta implicaría una inversión de fondos de cero neto y no se tiene que asumir riesgo por lo que ofrece un beneficio seguro (Keown, Petty & Scott, 2005). Para prevenir este tipo de comportamiento es que existe lo que se conoce como arbitraje. Este concepto se puede definir como el proceso de comprar y vender en más de un mercado y lograr obtener una ganancia sin riesgos. Las empresas tienen varias opciones para tratar de reducir los riesgos de cambios de moneda. Por ejemplo, el arbitraje simple elimina las diferencias de tipo de cambio a través de los mercados de una única moneda, como la que existe entre Nueva York y Londres. De igual manera, existe el arbitraje triangular que hace lo mismo en todos los mercados para todas las monedas. Por último, se encuentra el arbitraje de interés cubierto que elimina las diferencias entre los...
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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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...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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...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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...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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...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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...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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...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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