Different OM Perspective of an Organization

Dell

Analyze the different OM perspectives of an organization

Dell Incorporation founded in November 4th, 1984 by Michael Dell in Austin, Texas is a multinational corporation. Its main line of business is developing computers and its peripherals (Dell Company profile). It is on number 41 in Fortune 500.

Dell has many competitors: Hewlett Packard, IBM and Sun Microsystems, Compaq and Apple. They are all in the PC industry. But what makes Dell unique is that when Michael Dell founded the company, he inculcated the 'direct selling model' in his organization. Dell was the first one in its field to do so. Not only was the industry in closer contact with customers by cutting the middle man, there were various other advantages. Costs were cut down because the middleman didn't have to be paid. Also before Dell, there was no customization in the PC market. Buying the product was majorly influenced by the middleman, but Dell's direct selling model was better suited to meet customer's needs. Michael Dell was also the first leader in PC organizations to introduce support and service programs. It offers free technical support to customers. (Munroe, 2010)

Dell was also the lead in online commercial sales so the giant has kept its frontier on the Web as well. This is not only beneficial for customers but the company as well. While it is more convenient for customers to purchase online, it also allows Dell to keep minimum inventory. (Munroe, 2010)

Because of the direct connection with customers, a good hold over its suppliers and a good use of the internet, Dell has also been able to keep itself affordable over the years. The brand is associated with good quality as well as good price, so where as it has been able to always drive down prices, its competitors have not. So even if customers view, for example, HP's product quality as the same, but one is selling the same quality at a higher price and the other at a more affordable price!

Also, it portrays a very positive 'you attitude' by allowing customers to personalize their own computers. To those who do not want to have the same laptop or PC as everybody else, this is very appealing.

Apart from being lightweight, most Dell monitors also have slightly larger 'rear profiles' which makes it easier and cheaper to add on extra features. (Dell official website)

The customers now are becoming more aware of the environment and are curious to know where and how the products they purchase are produced and if they would have any negative impact on the environment. The main challenge for organizations now is how to 'go green.' This is not something that can be ignored and Dell realized this. And they introduced the Design for the Environment Program (DfE) which inculcates the environmental aspects into every stage of the product lifecycle, from procurement of the components from the supplier to the final bundles and solutions it offers to customers. (Dell official website)

These are the strategies and internal processes that Dell uses to keep itself on top of the game and so that it can differentiate itself from others in the market and manage and retain customers.

However, to maintain all the positive attributes and weed out the negative ones, every organization needs to have a strategy. These are developed by analyzing the company's strengths, weaknesses, environment, customer base, competitors, product lines etc. Strategy can also extend to global markets and partnerships.

The company's strategy at a glance is to keep the customers as top priority, offering them affordable products of their own choice and with convenience. It has established itself as a brand with good quality and good price.

Its global strategy is to penetrate all the big markets. It already manufactures PCs in China, Brazil, Texas, Tennessee, Ireland and Malaysia. Its business clientele also include all the major players in Fortune 500. Dell has been expanding itself over the years and not just by e-business which is one of the most significant contributors to globalization. (Ricadella, 2011)