...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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...Harvard Business School 9-799-158 June 6, 1999 D Matching Dell O N Between 1994 and 1998, the revenue of Dell Computer Corporation rose from $3.5 billion to $18.2 billion, and profits increased from $149 million to $1.5 billion. The company’s stock price rose by 5,600%. During the same period, Dell grew twice as fast as its major rivals in the personal computer market and tripled its market share. In the first half of 1998, Dell reported operating earnings that were greater than the personal computer earnings of Compaq, Gateway, Hewlett1 Packard, and IBM combined. On Forbes magazine’s list of the richest Americans, Michael Dell, the 33-year-old founder of Dell Computer, ranked fourth with an estimated worth of $13 billion. He trailed only Bill Gates, Warren Buffett, and Paul Allen on the list and was worth more than Gates had 2 been at the same age. O Dell Computer had pioneered the widely publicized “Direct Model” in the personal computer (PC) industry. While competitors sold primarily through distributors, resellers, and retail sites, Dell took orders directly from customers, especially corporate customers. Once it received an order, Dell rapidly built computers to customer specifications and shipped machines directly to the customer. T The success of the Direct Model attracted the intense scrutiny of Dell’s competitors. By 1997, headlines such as “Now Everyone in PCs Wants to Be Like Mike,” “Compaq Reengineers the Channel: Will...
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...Case Study - Toyota Motors / Dell.com (The Competing Organizational Values Framework) In 1937, Kiichiro Toyoda founded the Toyota Motor Company in Japan as a spin-off from Toyoda Automatic Loom Works to manufacture cars roughly based on the designs of Chrysler and Chevrolet. Toyota emerged from the rubble of war in the late 1950s to become Asia’s premiere manufacturing company and swiftly moved from a regional to a global brand. Gaining a foothold in the United States during the oil embargo of the 1970s, Toyota systematically extended its product array from compact cars, like the Corolla, to mid-size sedans. In the late 1980s, Toyota accomplished the previously unimaginable by successfully introducing, Lexus, a luxury car line to compete with European blue bloods BMW and Mercedes. In fact, the newly introduced Lexus established previously unimaginable initial quality records, and may be said to have been the car that most sparked the quality revolution in the North American auto industry. Today, Toyota is Japan’s biggest carmaker with over $120 billion in annual sales. Toyota is one the few companies that has demonstrated an ability to pursue several directions simultaneously. The traditional organizational identity at Toyota was highly focused and internally directed. Perfecting “lean production” and “just in time” manufacturing techniques, Toyota became symbolized by quality and efficiency which made it a benchmark for automobile manufacturing worldwide. Engineering, extensive...
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...Build-to-order model, Dell, Direct model, PC Manufacturing, SCM, Supply Chain Case Study Abstract The focus of this case study is the supply chain management practices of Dell. 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. Can Dell regain its market leader position from HP? In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). Industry analysts felt that, with Dell’s competitors also improving their supply chains and matching Dell’s direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations. This case study covers the...
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...Living in Dell Time 1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from the case (10 points). First they are using a production innovation the just-in-time model. (It is a strategy for inventory management in which raw materials and components are delivered from the vendor or supplier immediately before they are needed in the manufacturing process.) Inventory has been a form of security but this kind of security is very expensive because computer parts are fast moving goods, and if your stock is full of these goods you will lose a lot of money. Kevin Rollins the CEO of Dell said, “inventory is like fish, the longer you keep it the faster it deteriorates.” Eleven years ago Dell carried 20 to 25 day of inventory in their warehouses and today they don’t have a warehouse. But if it fails, its manufacturing operations will crash within a matter of hours. But they also said that if you have your stock full of components, always you will have a lot of the wrong stuff and none of the right stuff. Many companies are not sure if it´s good of running so lean in an uncertain world, because you never safe for terrorist attacks or natural disasters. Another innovation is when they miss a forecast and they see they are running out of 15-inch flat screens they make for example a one week special of 17-inch screens in that time they sell it cheaper and so they lead the customer what they should buy...
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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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...MARKETING CASE STUDY MATCHING DELL SUBMITTED BY: GROUP C2 Aniruddh Singh Rathore Himanshu Arora Jeevan James Raghavendra B Shenoy Ramya Dadi 1. Executive Summary Dell Computer Corporation is one of the world’s largest computer systems companies. Since its establishment in 1984, Dell has been selling personal computer systems with a great after sales support. It designs and customizes products and services according to the requirements of the end-user. It also offers them the extensive list of peripherals and software which can be chosen while placing an order. The company has experienced a very good growth over the last several years and has been incredibly profitable. Its products and services are sold in more than 140 countries to customers ranging from government agencies, major corporations and educational and medical institutions to small businesses and individuals. Traditionally, Dell has been targeting its products to a small number of segments. So, in future it has to break into segments which are currently controlled by its customers. According to our analysis of the data, Dell is financially into a very good position currently and it is predicted that in the next year also it will continue to grow. The analysis, strategy and financial predictions are henceforth discussed. 2. Situation Analysis The case has been analysed using the 5C analysis where 5C’s stand for: Company, Consumers, Collaborators...
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...CASE STUDY ON Strategic Analysis Of Dell Inc. mujeeb [Pick the date] Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving with the passage...
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...Case study on | Strategic Analysis | Of Dell Inc. | | mujeeb | [Pick the date] | | Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving...
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...Exchange (ANX) and the public Internet site went live in 1995. By 1997, the Internet site had more than 1 million hits per day. Ford was honoured as most improved automaker in the 1997 JD Power Initial Quality Study and by 1998 it acquired Volvo and surpassed Chrysler in profit per vehicle ($1770) while total profit hit $6.9 billion. Ford Motor Company is the second largest industrial corporation in the world operating in 200 countries around the globe with 180 manufacturing plants. Issues Teri Takai, Director of Supply Chain Systems is contemplating recommendations on information technologies (e.g., Internet technologies) from new high-tech industries could alter how Ford interacts with suppliers. • One group favoring "virtual integration" like Dell. • Another group believes differences between the auto business and computer manufacturing is substantive. Relative to Dell, Ford’s supplier network has more layers and companies, and Ford’s purchasing organization was more prominent and independent than Dell's. Sub Issue • Company-wide emphasis on shareholder value and customer responsiveness. • Market share Environmental and Root Case Analysis There exist many similarities between Ford`s processes and Dell`s virtual integration. The pertinent requirements of vehicles and computers are similar upon examination. There exist many differences that require scrutinizing....
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...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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...Consumer Buying Behavior Process Institute of Business and Information Technology University of Punjab Submitted by:- Maria Mohni Ali Farooq Submitted to:- Sir Basit Afzal Date:- 31/01/2014 Contents Executive summary 3 Methodology:- 3 Consumer profile 4 Yankolovich mind base segmentation:- 5 Trait sum up them:- 5 Stages of the Consumer Buying Process:- 5 Need Recognition:- 6 Pre-purchase Search or Information Search:- 7 Internal influence:-………………………………………………………………………………………………………………………8 External influence:-……………………………………………………………………………………………………………………..8 Evaluation of Alternatives……………………………………………………………………………………………………………………….9 Evoked set:-…………………………………………………………………………………………………………………………………9 Inept set:-…………………………………………………………………………………………………………………………………….9 Inert set:-……………………………………………………………………………………………………………………………………..9 Criteria used for evaluating brand:-……………………………………………………………………………………………10 Consumer decision rules:-………………………………………………………………………………………………………….11 Purchase decision:- 11 Post purchase evaluation:- 12 Comparison:- 13 Conclusion:- 13 Executive summary Consumer behavior is more related to consumer psychology as every consumer has to make a decision while purchasing something and decision making is the process which includes many external or internal factors. When we talk about the consumer psychology we are more concerned about the black box (human brain) where these processes run simultaneously like creation of need...
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...Formulation and Implementation MBA 980 Spring, 2009 Professor Jay Dial Office 860 Fisher Hall Email dial.12@osu.edu Phone 292-5438 Reading packet There is a required reading packet available at Uniprint-Tuttle Park that includes course readings, cases and lecture notes for classroom discussion. This is copyrighted material and each student must purchase an individual copy of the reading packet. Additional highly recommended readings will be selected from Management Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential sources of...
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...Formulation and Implementation MBA 980 Spring, 2009 Professor Jay Dial Office 860 Fisher Hall Email dial.12@osu.edu Phone 292-5438 Reading packet There is a required reading packet available at Uniprint-Tuttle Park that includes course readings, cases and lecture notes for classroom discussion. This is copyrighted material and each student must purchase an individual copy of the reading packet. Additional highly recommended readings will be selected from Management Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential sources of...
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...0736364876 Tel.: 0735054312 Tutor: Leif Sanner Title: Global introduction of new products – Case Study of Dell Problem: In order to survive in the tough competition, firms face the difficult and vital challenge which is to introduce a new product into a global market efficiently. Even though a product itself has a fine features and functions, failure on the introduction and marketing operation can result an unsuccessful product. Therefore, the manager must identify an optimal introduction strategy according to the conditions the firm faces. Purpose: There are two objectives for this study. First objective of this study is to investigate Dells’ operation regarding to global introduction of new products such as segmentation approach, its influence on the choice of introduction strategy and efficiency of the strategy itself. Second is to provide empirical framework in the field of global introduction of new product (the choice of waterfall or sprinkler strategy), which lacks in the earlier research and develop a deeper understanding. Method: We have conducted a qualitative research in order to provide inductive view of the relationship between theory and research, and develop deeper understanding of our empirical data. We have gathered both primary and secondary data. Our primary data contains personal interview with the marketing manager, Ted Schönbeck from Dell Sweden, and this data was used to analyse our empirical data. Our secondary data contains books...
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