...Case Study) Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in an interview with Joan Magretta[1], is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to focus on activities that drive sales instead of putting capital in producing items that other manufactures are already creating. In the 1990's, the computer market revolved around desktops, notebooks, and network servers. Dell competed with high-end machines from IBM, HP, and Compaq with a product line that provided value-priced systems for consumers and highly reliable networked systems for business. In the late 90's, around 40% of households owned a pc in the US. On the contrary, from the business side, around 80% of the companies still had old server and desktop machines. Management had to approve purchasing orders, which resulted in only 2.2% of servers' sale in comparison to the total purchases for desktop PCs in 1996. In order for Dell to achieve $7.8 billion from sales in the late...
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...Dell Online Case Presentation Introduction & Challenge Dell has emerged as one of the biggest sellers in the PC market. From humble beginnings in 1983, when Michael Dell worked out of his campus dorm room, to 1996 when we reached $7.8 billion in sales, the source of our amazing success has been our unwavering focus on the customer, termed the “Dell Direct Model.” The Dell Direct Model was ingenious. Michael Dell took a simple concept, selling direct to the consumer (Appendix. 1), and built a business model that, quite simply, outclassed his competitors. By selling to the customer direct, eliminating the traditional dealer channel and using a just-in-time (JIT) production procedure, Dell has created unparalleled efficiencies in operations. This allows us to provide high quality products at a lower price than our competitors. In addition we have leveraged supplier relationships to build a supply chain that is unmatched; our relationships with our suppliers have facilitated our JIT production model which allows us to enjoy a significant competitive advantage in price, product reliability and product delivery. It appears that we are perfectly positioned to take advantage of the new online market having sold direct to customers for the last decade and already establishing ourselves as the leader in internet sales. Michael Dell has presented a strategic objective for our company, to “…do at least 50% of our business over the web…” Despite our initial success selling...
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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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...1.0 Introduction DELL (CHINA) CO., LTD. operates as a subsidiary of Dell, Inc. The company was founded in 1998 and is based in Xiamen, China with additional offices in Dalian, and Shanghai (Roger,. L. 2013). Dell company started with ‘direct selling’ business model. Its means the company made a communication (phone call or face-to-face) with customers, asking what they need and what they want, the company will send customer the product depends on their requirements. “Listen. Learn. Deliver. That's what we’re about.” –Dell Company Dell has empowered countries, communities, customers and people everywhere to use technology to realize their dreams. “Win with integrity. Champion responsibility.” – Dell Company In Dell’s deep beliefs that technology can change the world and that it’s the essential for people to succeed. The purpose of Dell Company is that to make sure every, in any environment can take advantage of technology and improve the communities where people living and working. 2.0 The e-marketplace In China, Dell Company conducts a private sell-side e-marketplace, where products are offered to many individuals and businesses; a one-to-many approach in e-commerce. B2C business model linked the traditional business model with e-commerce business model, which fitting with Chinese culture. The official website http://www.dell.com.cn/ provides fair information for the website users which bring efficiency and convenience service for all the customers. Front-end...
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...Dell and Information Technology Dell is regarded worldwide as one of the largest and most popular computer companies in the business today, but they do much more than just make computers. Dell has exemplified the way e-business is conducted and has innovated many aspects of it to fit their own business model. Ranging from online computer sales to tailored corporate customer support, Dell has integrated several methods of e-business, which have given them a cutting edge against their competitors, especially at a rough time for the PC market. First let us look at Dell’s background a little bit. Dell is a technology company that not only sells computers, servers, and networking equipment, but IT services and consulting as well. Dell revolutionized computer sales by becoming the first company to sell products via phone and the internet instead of retail stores. While initially Dell blew away competition using this new approach, competitors have narrowed the gap. Dell currently employees over 103,000 people worldwide and is widely known for its supply chain and e-commerce strategies. Since its launch in 1996, Dell.com has been more than just a website, providing users with top level support, information, and purchasing abilities. Starting in 1996, Dell began to sell computers via their website, and in 1997 was the first company to record one million dollars in online sales. By 2000 Dell was pulling in $50 million a day in online sales. According to Dell, roughly half of the company’s...
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...environment 3 4.Allocation of resources 5 5. The currently strategies of Dell Company 7 6.Analysis of Dell Company 10 6.1.Cost structure strategy analysis. 10 6.2 .Products differentiation strategy analysis. 11 6.3. Exit barriers and transfer cost strategy analysis. 12 6.4. Production capacity expansion method analysis. 12 6.5. Type of rivals analysis. 12 7. Recommendation 13 8.References 16 1.Summary In this report, through the analysis of the overall economic situation, resource allocation and the current market strategies of Dell Company, to explore the challenges and opportunities which does Dell Company face. The analysis shows that the lack of core technology is the biggest challenge of Dell. And the marketing strategies, which are used now, are sustainable, but these strategies still have the development space. Therefore, Dell should increase the investment in technological development, as well as improving the current strategies to more directional, focused, differences, and the ability to cooperate with other enterprises effectively. 2.Introduction of the company and the process of globalization Dell Inc., headquartered in Austin, Texas, is in the leading position of global IT products and services provider (Dell, 2012). Its businesses include helping the customers establish the self-information technology and Internet infrastructures. The fundamental reason of Dell became the market leader is providing the standard technology products and services...
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...hardware, as well as the production of computer components, assembly, logistics distribution, sales, marketing, and the provision of information technology services. Dell is in the business of manufacturing computers and servers. Its competitors are Hewlett Packard/Compaq, IBM, Apple and Gateway. The new trend in the computer industry is to become a virtual corporation and Dell is leading the way. According to Dedrick and Kraemer (2006), “Dell is aiming to combine the cost advantages of horizontal specialization with close coordination of vertical integration.” In the early 1990’s, Dell shifted gears and tried to distribute its products through retail outlets, later realizing how unprofitable this approach was. It decided to focus on improving customer service and support by allowing customers to place and custom configure orders directly. This resulted in a unique strategy, synonymous with Dell, customization. Nearly one out of five standards-based computer systems sold in the world today is a Dell. Dell has one simple concept: to sell computer systems directly to customers. Dell’s customers are global wide and range from individuals, small businesses, large businesses, and institutional organizations, such as schools and hospitals. The mission statement for Dell is “to be the most successful computer company in the world at delivering the best customer experience.” Since Dell is a global wide company, its “direct approach is relevant across product lines, regions and...
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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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...Dell evolution Dell strategy past to present Daniel Spanier, Alexandra Bielková About the Presenters Daniel Spanier Alexandra Bielková Education: Education: Bachelors of Economics and International Management 6 Sigma Green Belt Certified Masters in Maths & Mgmt, Comenius University, 2002 PhD in Mathematics, Comenius University Work experience Dell: Work experience Dell: Finance Director – Commercial ESG Finance Director – EMEA FP&A Controller– EMEA Services Call Centers Services Globalization and Liberty Lead Americas Support Services Team Lead Worldwide Operations - Manufacturing North America PA FP&A Services FP&A manager Western EMEA FP&A EMEA RUM Forecast Coordinator OPEX controlling & consolidation EMEA Fin Systems Training 2 Agenda Dell strategy past to present Dell History Strategy Dell direct model Dell.com Dell embracing the channel Strategy shift 1) Going private – change in strategy? 2) 3 1) http://techaisle.com/blog/2012/04/dell-confirms-its-position-as-an-end-to-end-solutions-company/ 2) http://www.forbes.com/sites/connieguglielmo/2013/10/30/you-wont-have-michael-dell-to-kick-around-anymore/ Dell History 4 Dell Timeline 1986 1989 1988 1984 Industry's fastest performing PC (12MHz, 286based system) M. Dell founded company 5 1st Dell™ laptop computer, the 316LT Dell completes its initial public offering http://www.dell.com/learn/us/en/uscorp1/about-dell-company-timeline ...
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...Introduction of Dell Inc. Dell Inc. is a multinational technology corporation that develops, manufactures, sells, and supports personal computer and other computer related-products. Dell Inc. based in Round Rock, Texas. Dell Inc. employs more than 82,700 people worldwide. Dell Inc. grew during the 1980s and 1990s to become (for a time) the largest seller of PCs and servers. As of 2008 it held the second spot in computer sales within the industry behind HP. The company currently sells personal computers, servers, data storage devices, network switches, software and computer peripherals. Dell Inc. also sells HDTVs that are manufactured by other brands. In 2006, Fortune Magazine ranked Dell Inc. as the 25th-largest company in the Fortune 500 list, 8th on its annual “Top 20” list of the most admired companies in the United States, In 2007 Dell Inc. ranked 34th and 8th respectively on the equivalent lists for the year. A 2006 identified Dell Inc. as one of 38 high-performance companies in the S&P 500 which had consistently out-performed the market over the previous 15 years. History Background and Origins 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.[5] 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...
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...is proud to start offering its expanded product line online through e-commerce. Customers have to personally enter the business in order to facilitate purchases at this time for home and small office computer solutions. Currently N & F Computers is engaged in the local market with a Website but it does not allow online purchases. Through offering products for purchase via a modified Website within and outside conventional hours, the organization can reach new customers regionally and expand globally. Profits are expected through offering medium to large businesses affordable, mid-level, customized personal computers (PC’s), and enter the booming market of Chromebooks. Windows XP is an operating system in use that will have its last update released in April of this year. According to Bott (2013), “20.5 percent to 31.42 percent” (para. 3) of computers are still running this operating system. Potential customers will seek contemporary computers that have the hardware capability to support newer operating systems. Businesses will purchase computers in bulk allowing N & F Computers to purchase parts, operating systems, and common application suites from suppliers at a lower price. Passing this savings on to the customer will differentiate the organization from the competition by not sacrificing price for performance. Chromebook products are in the growth stage of the product life cycle. According to Mick (2013), the sales have increased by “4721.1%” (para. 6) during the last...
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...and Extending the Business Model With Information Technology: Dell Computer Corporation Kenneth L. Kraemer, Jason Dedrick, and Sandra Yamashiro Center for Research on Information Technology and Organizations (CRITO), Graduate School of Management, and Department of Information and Computer Science, University of California, Irvine, Irvine, California, USA Keywords The exceptional performance of Dell Computer in recent years illustratesan innovative response to a fundamental competitive factor in the personal computer industry—the value of time. This article shows how Dell’s strategies of direct sales and build-to-order production have proven successful in minimizing inventory and bringing new products to market quickly, enabling it to increase market share and achieve high returns on investment. The Dell case illustrates how one business model may have inherent advantages under particular market conditions, but it also shows the importance of execution in exploiting those advantages. In particular, Dell’s use of information technology (IT) has been vital to executing both elements of its business model—direct sales and build-to-order—and provides valuable insights into how IT can be applied to achieve speed and exibility in an industry in which time is critical. Many of the insights gained from this case can be applied more generally to other time-dependent industries, suggesting that the ndings from the Dell case will have implications for a growing number of companies and...
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...To meet the demands of their customers, Dell Computer’s has aggressively developed a business model to expand their coverage worldwide. The business problem facing Dell Computers is to ensure that consumer demand is being met and that their competitive advantage and value chain are being maintained. Having multiple manufacturing plants is an example how their competitive advantage is maintained and the value chain is operating successfully. Maintaining a lean production practice and providing a high level of Internet based sales in the personal and business sector are two sources of pride for Dell Computers. Knowing their customer needs and thoughts enables Dell to be on the cutting edge of product design and innovations; delivering their products quickly to their customers and at high level of mass customization. Dell Computers has established a strong relationship with all suppliers, which allows the company to maintain only the needed supplies. Having such a strong relationship with its suppliers, allows the company to focus their research budget on the best way to reach the consumer. The desktop, notebook and other production items are not produced until the order is received from the consumer. Corporations have access to a website that has been tailored specifically to their needs and that allows them complete access to all previous orders with ease. The streamlined production process also has significant accounting benefits. The materials are received as needed...
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...Consumer purchasing decision process Table of Contents A. Introduction 4 1. Steps in purchasing decision 4 1.1 Problem/Need Recognition 5 1.2 Information Search 5 1.3 Alternative Evaluation 7 1.4 Purchase 7 1.5 Post Purchase Evaluation 8 2. Analysis of computer industry business trends in SA 9 2.1 Industry overview (South Africa) 10 2.2 Market analysis 10 2.2.1 Supplier Power 11 2.2.2 Buyer Power 11 2.2.3 New Entrants Threat 11 2.2.4 Threat of Substitutes 12 2.2.5 Rivalry 13 2.2.6 Opportunities 13 3. DELL’S online only strategy in the 80s and 90s analysis 14 3.1 Dell’s online strategy 14 3.2 Online business value 15 3.3 Online Sales Growth 16 3.4 Convenience 16 3.5 Consumer behaviour intelligence 17 3.6 Was online only strategy suitable for under and developing nations? 17 4. Proposed Channel Strategy for Dell to be Market Leader In SA 18 4.1 Marketing Channel Selection 18 4.2 Market Research and Analysis 18 4.3 Distribution Channels 18 4.4 The Internet and disintermediation in the distribution channel 19 4.5 Channel Length 20 4.5.1 Consumer Channels 20 4.5.2 Business-to-Business Channels 21 4.6 Overcoming Limitations of shop floor space 21 4.7 Conflicts 21 4.8 Supply Chain 22 4.9 Distribution intensity 22 4.9.1 Selective Distribution 23 5. Conclusion 23 B. List of References 25 C. ANNEXURE 1 27 A. Introduction This report examines the consumer purchasing...
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...changes that future may bring, our vision Dell Vision will be our guiding force. Mission Statement Dell’s mission is to be the most successful Computer Company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of: Highest quality Leading technology Competitive pricing Individual and company accountability Best-in-class service and support Flexible customization capability Superior corporate citizenship Financial stability Organizational Structure Michael Dell is the chairman of the board of directors of Dell Inc. He has held this position since he founded the company in 1984, In July 2004, Kevin Rollins assumed the titles of president and chief executive officer. Kevin Rollins has been with Dell since accepting the position of senior vice president, corporate strategy, in 1996. Headquartered in Round Rock, Texas, Dell Inc. is managed on a geographic basis. The three geographic segments are the Americas, Europe, and Asia-Pacific. Dell Inc. maintains more than 7 million square feet of office, research, manufacturing, and distribution space in the United States. In addition, a new half-million square-feet manufacturing facility is under construction inNorth Carolina and is expected to begin operations in late 2006. Dell’s sales in America are reported in two different categories, Business and U.S. Consumer. The net revenue for business sales of $25,339 million in the Americas segment...
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