...[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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... | INTRODUCCIÓN La planeación financiera a corto plazo de una empresa es muy importante, consiste en analizar los componentes que afectan a los activos y pasivos circulantes de una compañía; es decir, se enfoca en el capital de trabajo y en los flujos de efectivo necesarios durante un periodo menor o igual a un año. Los resultados de una buena planeación se pueden ver reflejados en el caso de la empresa tecnológica Dell que se analizará a continuación. PREGUNTAS DEL CASO i. ¿Cómo fue la gestión del capital de trabajo de Dell una fuente de ventaja competitiva? La empresa Dell, tenía un sistema de ventas que consistía en construir la computadora después de recibir el pedido. De modo que tenia la ventaja de anticipar las piezas que necesitaba. Más aún, los proveedores de componentes se encontraban cerca de las plantas de Dell...
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...Company’s History and Growth Through the years Dell went from producing PC’s to software, hardware, workstations, electronics, printers, tablets, mobile devices networking, storage devices, servers, security products and other electronic devices and information technology systems but it all started with just building computer systems. Dell doesn’t just sell products to personal consumers, Dell also targets government, healthcare, education and small and large corporations. Michael Dell founded Dell Company; hence the name of the company derived from his family name but the company wasn’t known as Dell back in 1984 when it was founded. In 1984 the company was known as PC’s Limited which designs, manufactures and sells technologies that has a dedicated founder who left his university to commit his time and effort for the company. What separated Dell from other firms in the industry in 1985 is their unmatched service for their customers in their first PC, “Turbo PC” (Dell 2012). Dell provided a “risk-free returns and next-day-at-home product assistance” (Dell 2012). From that Dell continued to grow by providing what was back then the PC with the fastest performance and opening branches internationally. One of the significant time and moment in Dell’s growth is in 1988. Dell was able to do their public offering which upped their capital from 1 thousand to 85 million dollars and Dell was growing at about an 80 percent rate (Dell 2012). By this time PC’s limited officially changed...
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...Dell Computer Company was established by Michael Dell in 1984, and it has grown to be the industry leader in the personal computer industry through aggressive risk taking and cost lowering strategies. The strategic idea that Michael Dell had while starting his company when he was 19 years old has not changed as the company has transformed into a billion dollar corporation. This strategic plan encompasses the aspects of individualized products and direct sales to the end customer, lowering retail costs. (Dell Case Analysis, 2004) The low overhead costs created by their partnerships with suppliers and amazing use of just-in-time inventory help to reduce retail prices, leading to the successes of Dell accumulates today. Down to business approaches, such as being one of the first companies to make e-commerce and internet usage a centerpiece in their corporate strategy has also benefited the personal computer leader. (Dell Case Analysis, 2004) The explosion of business over the internet helped Dell tremendously. As they followed the vision of built-to-order personal computers and direct sales from the company's inception, the internet gave computer buyers a more convenient medium to purchase Dell computers. The quality control measures Dell undertakes also promote customer loyalty. As purchasing products over the internet became more popular in the late 1990's, there is a noticeable increase in Dell's sales and market share during the same period. Dell's computer prices were already...
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...Introduction Dell Corporation is an American company based on Round Rock, Texas, United States. Their service is about IT services, makes, sells and develops personal computers, servers, peripherals, smartphone and televisions. Dell is one of the largest technological corporations in the world and has employers about 104,000 people worldwide. In 1984, Dell started small under Michael Dell 19 years old, Dell initially had $1000 to use on computers parts that he assembled into PCs and sold over the phone. First, Dell had just 5 employers to assembled and taking orders in the same times. Then, in 1993, Dell started to expand the company by increasing the worker about 4,500 people. After that Dell had to hire strategic managers who helped assist him in the company’s various areas such as finance, marketing and manufacturing. Dell Corporation is well known for providing excellent service to its customers, especially for the customers who were encountering issues with setting up their computers. But for the last 3 years its profits declined 4.8 per cent. Because now a day, there are so many competitors such as Apple, Samsung, LG and so on. They provide the products the same as Dell or even better and more such as smartphone and tablet. This is one of the reasons why the profits of Dell declined for the last three years. And the solution is they have to expanding rapidly by their strong capabilities, ongoing innovation and smart acquisitions (Modine, 2013). ...
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...asda aergaerg Dell Case 15 March 2012 Dell Case In the year 2004, Michael Dell stepped down as the CEO of Dell Computers and Kevin Rollins became the new CEO, since then the company has been steadily declining. The decline has been due to many reasons; one of them is customer service. Dell was a company that’s main goal was to generate profits and in 2001, the company decided to save money by outsourcing its customer service to India. This move made many customers angry due to the fact that the workers in India were not well trained. They were unsatisfied with Dell’s workers inability to speak beyond what they were scripted to say. This posed a problem because a part of the customer’s satisfaction is after-sales support. Not only was customer service a problem, but the quality and performance of their products was also a cause for the decline. In the year 2006, Dell had to order a massive recall of about 4 million laptop batteries. This was due to a video being released which depicted a Dell laptop overheating and getting lite on fire during a conference call in Japan. The news of this video began to spread rapidly and many other stories of Dell laptops becoming inflamed started to surface. The problem was not because of Dell, but because of the batteries manufactured by Sony. Many other companies had experienced the same problems, but Dell had been the company most publicized about. Another problem was that Dell did not make the switch from producing computers to laptops...
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...Question 3: Does Dells expansion into other IT Products and services make good strategic sense? Why or Why not????? Dells decision to expand in to other IT Products and services made good sense as customer can be brand loyal and prefer to have matching components for their PCs. Dell has a quality reputation which customers know and trust. Dells expansion into data storage hardware, switches, handheld PCs, Printers, and Printer Cartridges and software products represented an effort to diversify the company’s product base and to use its competitive capabilities in PC and servers to pursue revenue growth opportunities. The expansion into different products and services complemented sales of PCs and Servers. In 1995 Dell had a 2% market share in the server market, increasing to 30% in 2008. Dells idea to sell Data Routing switches proved to be a clever strategic move as they were able to price products 2 and a half times less than the market leader at the time Cisco. This resulted in Dell shipping 1.8 million switch ports in the period of a year. Senior Dell executives saw external storage devices as a growth opportunity because the company’s corporate and institutional customers were making increasing use of high speed data storage and retrieval devices. Competition in the IT industry can be a challenge. So for any company to survive within that industry, it has to have the ability to harness the basics of its core competencies to the very maximum. This is an inventive design...
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...Halden Zimmermann: Dell new horizons case Part 1 1. I. Executive Summary Since it was founded in 1984, Dell Computer Corporation has generated phenomenal growth of market share and revenue generation on a steady basis. With products such as desktops, notebooks, enterprise systems, servers, storage devices, printers, and handheld computers, Dell attempts to sustain the dominance in the computer systems market by providing customized solutions at a very low cost. Dell’s ability to effectively leverage its resources is evidenced by its year-to-year financial and market share growth. By continuing to efficiently package its resources, Dell will continue its steady growth and industry dominance while creating value for its clients and shareholders. As the U.S. market becomes increasingly saturated, however, Dell will need to identify how their direct sales approach can be translated into the growing and mostly untapped overseas markets. Although there are numerous possible strategies they could employ, any given strategy would arguably require Dell to attend to the myriad of cultural barriers, government and trade restrictions, as well as maintaining the integrity of the business model that has driven their tremendous success thus far. Given the complexity of these varied considerations, it is our recommendation that Dell work toward the development of a virtual integration software suite while increasing its international market penetration. The suite would aggregate Dell’s...
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...company that we choose is Dell Computer Corporation. The founder and inventor of Dell is Michael Dell when he was 19 years old. The original name of the company was PC’s Unlimited. In 1988, its name changed to Dell Computer Corporation. At the same year, the Dell company went public and offering market share for $8.50 a piece. Dell is founded in order to directly serve their customers with computers that meet their needs. The company was started with $1000. Four years later, shares of Dell stock were sold for $8.50, and the IPO raised $30 million. The first computer produced by Dell called the Turbo, which had an eight-megahertz processor. The company grossed 73 million dollars in the first year. As a freshman pre-med student at the University of Texas in Austin, Michael Dell started to sell personal computers out of his dorm room in 1984. Dell purchased computer parts from wholesale, assembled them into clones of IBM computer, and sold through via mail in order to eliminate the middle man costs which will lead to higher prices charged to computer. Due to successful of direct selling scheme was grossing $80,000 monthly income, Michael Dell dropped out from school and incorporated his business in 1984. The first Dell laptop was made and make known to public in 1991 and it became one of the top five computer companies in the world during 1993. In 1987, Dell went international by opening their first subsidiary in the United Kingdom. In 1990, Dell also set up the following...
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...1.1 After carefully reading and understanding the various initiatives used in the company – DELL INC., explain the importance of effective operations management in achieving organizational objectives of Dell as a leading company in computer industry. (Criteria 1.1) Operation management is the adoption, design and control of the process in production of goods or services. All that to ensure the efficiency of business operation and at the same time meet the effective customer requirement. For this reason Dell and in spite of what all manufacture used to trust, adopted a new innovative business model in operation management. His sharp vision for the future market should be achieved by: -cutting out the intermediaries between the manufacture and the customer -a build-to-order manufacturing -the customers can themselves configure the product to meet their needs -the customers pay before they get the products Indeed the direct sales model enables closer customers integration so DELL built a strong and stable relationship to them which can able the company to collect a various information and databases about customers’ needs so DELL be first not only to release new products but also to maintain a high level in after sales services and anticipate in solving problems. The DELL direct sale process was adopted using telephone sale but with the emergence of the Internet, Dell Computer could extend the reach and scope of the direct sales model at a relatively low marginal cost...
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...González Ingeniero Industrial; jbonel@ubu.es (Universidad de Burgos) 2 Ingeniero de Telecomunicaciones; patxi_bonel@terra.es 3 Doctor Ingeniero Industrial; ifontane@ubu.es (Universidad de Burgos) Escuela Politécnica Superior Departamento de Ingeniería Civil. Área de Organización de Empresas. Universidad de Burgos 1 RESUMEN Los modelos tradicionales de Marketing Estratégico no se adaptan a la Planificación Estratégica de las empresas ante los cambios económicos que afectan a los mercados emergentes al amparo de la Nueva Economía. Los autores hemos propuesto un Nuevo Modelo Estratégico de Creación de Valor y analizamos su aplicación a casos de éxito empresarial de nuevos modelos de negocio de e-business. Para ello se ha estudiado el caso DELL, empresa internacional dedicada a la venta directa de equipos informáticos, analizando el éxito de su modelo de negocio e-business con relación al Nuevo Modelo Estratégico de Creación de Valor para la Nueva Economía, destacando las relaciones de creación y transformación de valor entre agentes. "No pienso nunca en el futuro porque llega muy pronto" – Albert Einstein. Palabras clave: Marketing Estratégico, Creación de Valor, Nueva Economía, e-business 1. Nuevo Modelo de Creación y Transformación de Valor para la Nueva Economía. 1.1. Concepto y Agentes del Valor. Los autores definimos Valor como: "el conjunto de bienes económicos o cualquier otro tipo de utilidad (poder o prestigio) que persiguen los propietarios y dirigentes de una organización...
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...Introduction Michael Dell founded the Dell Company in 1984, and became successful based on the idea of direct marketing strategy. Dell sells directly to the customer with no retailers this eliminates any unnecessary cost and time. When the consumer orders a computer it is tehn assembled and customized to the specifications of what the customer has specified. There is little to no inventory held as the computers are assembled as soon as the order is placed, using the just in time approach. Direct marketing strategy with low prices, customization and e-commerce is the key to Dell’s success. In 1996, Dell became the e-commerce leader with its website containing pages of details of products and online shop specializing computers (Dell Inc.). People can now buy a computer on the website, which covers 80 countries, 27 languages and 40 currencies without leaving home. Strategy Dell’s strategy is to provide products, services and support to the consumer and does not involve intermediaries. Dell believes in a direct relationship with the consumer, also known as Dell’s ‘direct business model’ while eliminating wholesale and retail dealers, which add unnecessary time and cost or diminish Dell’s understanding of customer expectations (Dell’s 10-K report, 2005). The direct customer relationship allows the customer to review, configure and price systems from Dell’s entire product line, order systems online as well as track orders from manufacturing through delivery (Dell’s 10-K...
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...DELL INC. IN 2009 1. What generic competitive strategy did Dell follow, which made Dell the leading supplier in the global PC industry in 2003-04? What were the key elements in the strategy? (4 pts) A: Dell pursues the cost leadership strategy and differentiation strategy. Dell has driven costs out of company’s supply chain and kept inventory to a minimum. At that time, the low cost per PC in Dell and the high profit per PC form a poignant contrast. Dell has delivered the customer’s a series of unique and innovative combination of services at that time which not only set itself apart from other competitor but also perfectly matches the level of expectation at a cost that also assures an adequate level of profitability. 2. How well did the key elements fit together for Dell to gain competitive advantages over its competitors? What were the competitive advantages? Sustainable? (4 pts) A: During these years, the key elements fit very well for Dell. The first advantage gained is efficiency of order based on its Direct Model. The second advantage gained is a solid supply chain and lower inventory based on its low-cost strategy. However, I don’t think this will be sustainable because its strategies are easy to copy by other competitors. Moreover, Dell has not paid enough attention to technology innovation for a long time. 3. What caused Dell to lose its No.1 spot in PC industry in 2007? Internal factors and external factors? Anything to do with its strategy and implementation...
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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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...Dell Computers[1] Introduction Dell Computers was founded by Michael Dell in 1984 and has its corporate headquarters in Round Rock, Texas. Michael Dell’s winning idea was to sell computer systems directly to customers, allowing him and his company to understand customer needs well and therefore to provide the customer with the most appropriate computing solutions. Dell still practices the direct business model, saving time and cost by bypassing retailers and passing on the cost savings to the customer. Dell takes pride in its ability to provide customers with the most up-to-date technology more quickly than its competitors that still rely on slower indirect distribution channels. Dell has a major presence on the internet, having launched dell.com in 1994. By 1997, Dell was generating $1 million daily in online sales – the first company to achieve this mark. At dell.com, customers can put together their own computer system, order it online, and track its flow from manufacturing to shipping. Dell also offers its premier.dell.com Web pages, allowing business and institutional customers to conduct online business. Currently, Dell receives about two billion page requests per quarter, covering 81 country sites, 28 languages and dialects, and in 26 different currencies. The Computer Industry The market for personal computers has been growing rapidly for several years with little end in sight. As of the end of the year 2000, approximately 120 million PCs...
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