Michael Dell is a global icon, especially on his college-based business of building personal computers using available parts, which he used to create a global business. The Dell Computer Company officially became a global corporation in 1984 (Dell, 2009). The priority of Dell Corporation was the build to order strategy, whereby clients ordered computers; their orders routed via credit check, and then the manufacturing followed (Qurechi and Muffech, n.d). Afterwards, the company built the order, tested, and shipped to the client who later received the computer within 5-7 days from the date of placing the order. This approach resulted to beneficial outcomes. First, the company eliminated the use of intermediaries.
In so doing, Dell passed customer's savings in the form of affordable prices, understood the customer's needs and embraced market changes in a quick manner than competitors (Dell, 2009). Another significant benefit is that the company built computers…...
At one point in its history, Dell Computers was considered to be a paragon of mold-breaking business innovation because of the radical way in which it challenged the accepted model of the computer industry. ather than focusing on product innovation, Dell chose instead to primarily focus upon direct-to-consumer sales (both B2B and B2C). Dell "rose to fame in the 1990s and early 2000s by letting big companies and everyday people completely customize their PCs and build them to order, at cheap prices. During that era, PCs were seen as mostly a collection of commodities shoved into a box. Everything was a PC and it all ran Windows" (Van Camp 2012). Less than 1.5% of the Dell budget was spent on &D (Van Camp 2012). By custom-building its computers Dell could keep inventories low and increase its profits. But in 2009, Dell's net worth was…...
Dell Computers presents a useful company to perform a strategic management analysis upon. The personal computer industry has changed and evolved considerably in the past years and the market conditions today are also presenting new and exciting problems for this organization. The purpose of this essay is to examine Dell and its industry in terms of its current strategic outlook. The essay will present information on the personal computer industry, the competitive forces that make up that industry and the strategic outlook for Dell within this specific area.
Dell Computer Corporation is a company that provides computer products and services for customers worldwide that provide these customers with their information-technology and networking infrastructures. Dell's ascension to market leadership is the result of a constant and effective approach to delivering the best possible customer experience by directly selling standards-based computing products and services. According to Bloomberg, revenue for the last four quarters…...
(Microsoft Solutions)
Constraints to Success Achievement
As mentioned earlier, Dell Computers was just another second-tire personal computer maker in the early months of the year 1994, and like all other PC makers, it had to order all the components in advance, and therefore had a large inventory of components. Then Michael Dell decide to implement his brand new business model, wherein the initial process by which he would use a build to order plan whereby he would provide direct sales to customers was changed, and Dell would now take a series of indigenous steps to make sure that he would be able to eliminate his inventories. The results that he managed to achieve were indeed spectacular, and over the next four years, Dell grew from a $2 billion company to a $16 billion company, at a growth rate of about 50%. Earnings per share of Dell increased by about 62% per…...
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References
Allan, Roy. A. A History of the personal Computer, the People and the Technology.
Allan Publishing. 2001.
Davis, Timothy. Customer service like you've never experienced, an analysis of the Dell
As far as regional sales are concerned, U.S. business sales comprise the most sales (Annual Report, p. 58). This is not surprising because Dell's home country is the U.S. The other markets represent emerging markets and represent excellent chances for growth in the future. However, they are not yet established. Dell established its core business in the U.S. before it began to branch out into other markets. These secondary markets were established due to a maturing, and rather saturated market in the U.S. They represent a way to continue growth as the U.S. market becomes mature.
At the current time, storage solutions represent only about 2% of total revenue. However, storage solutions are not a part of their core business. They were an additional service that was added after the establishment of the PC business. Their branding is not established on storage solutions. They must evaluate their position regarding this…...
Dell Computers Incorporated is a global technological corporation that develops, manufactures, sells, and supports personal computers and computer and electronic-based devices. Dell was indeed the first company in the IT sector to ordain that no computer should be built without first being sold in advance. This also ensures that Dell holds no extra surpluses. The stock in the company does not stick at a place for a long time. Dell best understands consumer needs and efficiently provides the most effective computing solutions to meet those needs by selling computer system directly to the customer. This direct business model eliminates retailers, who added unnecessary time and cost, and also allowed the company to build every system to order, offering customers powerful, richly configured systems at competitive prices. Dell introduced the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory an average of every four…...
Because of this, in less than two decades, Dell became the number-one retailer of personal computers. Michael Dell still remains wary of having extra parts building up in a warehouse that should handle items built and ready to ship ("A evolution of One," 2001). That inventory obsession continues to reduce Dell's inventory while increasing the profit on cost of goods sold.
Dell's concept of direct marketing is a critical key to success. Most computer companies sell their products to retailers, who sell them on to customers. This indirect distribution process obviously adds cost since there is profit needed for the manufactured, shipping costs, store sales and inventory costs, and associate taxes. Dell's model eliminates this through direct selling. Furthermore, this approach brings a number of other critical business advantages. By dealing directly with its customers, Dell is able to more accurately judge consumer trends and react quicker to market changes,…...
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REFERENCES
Revolution of One. (April 14, 2001). The Economist Retrieved from:
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Electronics, Software & Accessories: (Programs for the computers including operating systems, games, accounting, publishing and other software is available for Dell consumers to use on their machines.)
Axim Handhelds & MP3 Players: (This is a relatively new market for Dell as the Market growth explodes.)
Monitors: This is used to view all things being done with the computer with the exception of printing. One can use the monitor to view word processing actions, play video games, watch news clips and other things)
COMPETITOS
Dell's principal competitors include Compaq, IMB and Hewlett Packard.
Compaq was the world's leading PC manufacturer, with a global market share of approximately 13%. Compaq's strategy was to sell almost exclusively through resellers -- distributors and PC retailers, particularly large computer stores like CompUSA. It was starting to build computers to order and operate its factories with smaller inventories of parts and components, but it had to soft-pedal direct sales so as…...
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References
____(1999) DELL COMPUTERS ABC Good Morning America; 5/10/1999; CHARLES GIBSON, DIANE SAWYER ABC Good Morning America 05-10-1999
____(2001) Dell Takes Title of Largest Personal Computer Sales Company from Compaq.
Desktops are essential when computing doesn't require traveling or when the use of computer is stationed to a fix location.
Servers
Servers are used as the main source of information which links other computer clients to form a network. It plays the role of a host between computers. Generally, a server responds to every need of computers within the network.
Monitors monitor is a device that provides the main display of data and information to computer users.
Product-Market Grid
Notebooks
Desktops
Servers
Monitors
Professionals
Homes
Schools
Market Analysis
Among the major competitors of Dell Computers include IM, Compaq, and Hewlett Packard. All of these companies compete for quality computer products. However, there is one advantage that gives Dell Computers an edge to customers and clients. That is, Dell offers affordable prices of their products. One solution that works to this market strategy of Dell is through online purchasing of Dell's products. Obviously, online sales lessen Dell Computers with costs to establish stores at…...
Organizing at Dell Computers
Thanks to significant changes in the personal computer marketplace, the performance of Dell has been on the downward spiral. Most notably, Dell has been known to keep off from the negotiating table even at a time when its rivals were rejuvenating their operations through mergers and acquisitions. However, since Michal Dell made a comeback, there has been a change of strategy at Dell with the chief executive promising far reaching changes to take the company back to where it was just five years ago. It can however be noted that for an organization like Dell to make significant strategic changes, some adjustments have to be undertaken in the organizational structure as well. In this text, discuss the primary initiatives adopted by Dell to turn around the PC Company. In so doing, I will also give a personal opinion on whether Michael Dell stands much chance in restoring…...
There are several advantages and disadvantages to locating the company headquarters here, and part of the reason for this headquartering is a matter of historical convenience -- it is still near where Michael Dell formed the corporation in 1984, so initially this was a matter of personal expedience, to some degree; since then, the company has grown hugely yet remains in the area because that is where the company grew up. Even with international distribution and operations, there are definite advantages to being headquartered in the United States and Texas specifically, including certain regulatory and tax advantages, not to mention the respect and continued sense of solidity that being based in the United States provides. There are also disadvantages, however as this location means that Dell headquarters are far removed from many of their operational facilities, including primary manufacturing and customer service establishments, which are overseas.
If given a choice…...
Dell omputer orporation was founded by Michael Dell, a savvy entrepreneur whose ambition was evident from the early days of his life. When Dell was a high school senior, he sold so many newspapers that he paid for a BMW in cash. Since then, Dell, now in his 30's, has sold so many computers, he could probably buy the entire BMW corporation.
Dell is now a multibillionaire and has earned a regular spot on the Forbes 400 list of wealthiest Americans. Interestingly, Dell does not even possess a college degree, as he dropping out of college after only one year to found Dell omputer orp. This paper will examine the history and background of Dell omputer orp. It will also discuss how Dell has evolved over the years and where it stands today. Finally, this paper will look at Dell's future strategies in an effort to determine whether or not Dell…...
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Conclusion
Dell's track record suggests that the company will meet $60 billion revenue goal by 2006 (Park, 2003). Dell is already involved in the markets for inexpensive servers and data-storage gear. In a period of less than six months, its first handheld computer captured 37% of the U.S. market for such devices. Rollins believes that initial sales of Dell printers are double its internal targets. With the potential growth in PCs and new markets, few analysts doubt that Dell can generate the 15% annual growth needed to reach its goal.
Dell appears to be well on its way to enormous success in the technology world. With Michael Dell's management philosophy of constant improvement, I predict great things for the future of Dell Computer Corp.
This seems fitting, given that it was Dell who conceived of the unique business model that catapulted Dell to the forefront of the PC market for nearly a decade. What is so extraordinary about the Dell success story (and some would say, the Dell fall from grace) is that Dell achieved its success through its operations management rather than creating a new product like Apple or Microsoft. Dell, in fact, hardly spends any money at all on &D. "It's a simple business model, but what makes it a success is doing it on that kind of scale and with that kind of complexity... Dell spends little on product research and development -- $440 million a year, vs. $4 billion a year at Hewlett-Packard" (Maney 2003).
The direct-to-consumer model
Dell pioneered the direct-to-consumer model of computer sales. By building computers customized to consumer needs, Dell was able to bypass…...
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References
Byrnes, Jonathan. (2003). Dell manages profitability, not inventor. Harvard Business School.
DELL Computer Corp. Singapore Establish explain Ansoff's Growth Matrix DELL Computer Corp. Singapore market propose specific strategic actions DELL -establish position a global market leader PCs Industry Singapore (based Ansoff's Growth Matrix) choose focus Market penetration, Market developement, Product development Diversification propose strategy Thank .
Dell Computer Co: Market penetration in Singapore
The Dell Computer Company
While Apple and Microsoft are famous for the unique forms of technology they have created, Dell Computer achieved its success through its innovative supply chain model. What set Dell apart from its competitors was its "consumer-oriented focus" and the fact that it allowed for people to "customize their computers during the ordering process. ecause each computer was individually assembled" Dell could keep inventories fairly low and thus reduce waste, storage, and operating costs (Dell, 2010, Printer Ink Cartridges). Dell also gained a strong reputation for catering to the needs of its customers, and for being user-friendly. The…...
Dell Computer Corporation: Strategy and Challenges for the 21st Century, by Thompson and Gamble. This case analysis will evaluate a variety of factors including, the role of Michael Dell as CEO, and his strategy. Further, a brief SWOT analysis will be given, and a competitive strength assessment will compare Dell to major competitors. Advantages of Dell's strategy and an assessment of the company's financial performance will be given. Finally, a brief personal assessment of Dell will be given.
Michael Dell is an excellent CEO. Remarkably, he founded the highly successful Dell Corporation at the age of 19. He had a vision that personal computers could be built to order, based on customer specifications. This vision has been the basis of Dell's success, and has seen the company and the CEO through many financially difficult times. As such, I would have to note that it is Michael Dell's vision which makes him…...
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