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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…… [Read More]
Dell Computer's turnaround: Can it work?
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…… [Read More]
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…… [Read More]
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%…… [Read More]
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…… [Read More]
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…… [Read More]
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,…… [Read More]
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)
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…… [Read More]
Desktops are essential when computing doesn't require traveling or when the use of computer is stationed to a fix location.
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.
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…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
Operations management: Dell Computer
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,…… [Read More]
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…… [Read More]
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…… [Read More]
Competitive advantages and strategies, innovation, sustainability and strategy effectiveness
When evaluating the competitive advantage of Dell Computers in relation to its competitors, virtually every market analyst emphasizes its mastery of its supply chain. Dell is not known as a particularly innovative company in terms of its product line -- unlike Apple, it has no signature iMac or iPod that is uniquely 'Dell.' &D occupies only 1.3% of Dell's revenues compared with 15% for its competitors Intel and Microsoft. Unlike Apple, Dell does not nurture potentially profitable long-term research projects. It practices a "ruthless form of corporate Darwinism" within its organization, "killing off its own straggling product lines with savage speed" (Schrage 2002:1).
At Dell, the goal has always been "to offer computers at irresistible prices -- and to leave the cost and the risks of innovating to others" (Jones 2003). Its careful micromanagement of its inventories has been…… [Read More]
Dell Computer Corporation Expansion Overseas
In the past ten years, foreign expansion has become a major part of the business community. Many companies are seeking to expand globally in an attempt to maximize profits. This research paper will explore the foreign expansion of the Dell Computer Corporation. e will explore the ways in which this relatively young company has expanded overseas. e will examine the history of the company, the industry and the ways in which the company has expanded.
History of Dell
Dell Computer Corporation was founded by Michael Dell in 1984 and was incorporated in 1987 and has grown substantially in recent years. ("Dell Computer Corporation (NASD) - Business Description") The growth of the company has been unprecedented in lieu of the relatively young age of the corporation. ("Dell Computer Corporation (NASD) - Business Description") The headquarters for the corporation is located in Austin, Texas Dell's products include…… [Read More]
Dell Computer Organization Problems
Dell Computer Organizational Problems
There are a few big names in computing everyone seems to know: Apple, IBM, Dell. And many people are also aware that all of them have had problems from time to time, in one area of their business or another. Apple had trouble in virtually all of its business functions for a while after one of the founders left. In fact, the introduction of the iMac is arguably the thing that saved the company. IBM is a behemoth, and much of its income is derived from corporate business, not selling to consumers. Dell, on the other hand, serves primarily consumers. According to the Financial Times, desktop computer systems accounted for 53% of revenues in 2003, with notebook computers accounting for 27% and enterprise systems for 20%. hile corporations may certainly be supplying their personnel with desktops and laptops bought from Dell, the…… [Read More]
[...] transaction customers, which represent 30% of U.S. sales, are small and medium size enterprises (about 20%) and home office customers and consumers" (Kraemer, Dedrick and Yamashiro, 2000)
The built-to-order production strategy was implemented to the great success of Dell Computer Corporation as it aided it differentiate itself from competing PC manufacturers. It ensured customers of the highest levels of interest in satisfying their needs and it as such gained their trust. But is also has some limitations in the meaning that it requires more time, implies more costs and forces the organization to "have available specific components as they are needed to fill an incoming order" (Kraemer, Dedrick and Yamashiro, 2000). Then, as it implies a high level of customization, it prevents the company from producing large masses of similar products, which could reduce costs and offer Dell a comparative advantage - process otherwise know as economies…… [Read More]
e-Business Models of Dell Computer and Gateway
The e-business models of high tech manufacturers that combine quoting, pricing, and product configuration systems with production, Enterprise esource Planning (EP), and fulfillment systems exemplify how advanced multichannel selling has progressed over the Internet. The intent of this analysis is to evaluate Dell and Gateway's e-business models, as each have real-time integration of their customer facing quoting, pricing and product configuration systems with production, EP and fulfillment systems. Both of these companies are redefining the value chain of high tech manufacturing using the speed and accuracy of the Internet as the basis of their multichannel selling strategies. Selling over the Web, through telemarketing, catalogs, through stores, mass merchandisers including WalMart, and for enterprise accounts, through a direct sales force, Dell's e-business strategy is what makes it possible to unify all these channels into a consistent user experience. Dell continues to evolve their e-business…… [Read More]
To some users of personal computers, who state, never trust a computer that you cannot lift; the IBM has been viewed, more often than not, as an enemy, and according to Byte, the computer magazine, this was because of the fact that the IBM company rose to fame mainly on the basis of its mainframe computers, that were large and forbidding, and overwhelmingly bulky. This was probably why, when the rest of the world was eyeing the emerging opportunities in the minicomputer market, the IBM never paid any attention, and even though IBM did succeed in capturing a large chunk of that market, it did not happen until Digital had captured the minicomputer market and had grown into a large corporation.
In the past few years, IBM has agreed to change the ways in which it conducts its business, and adapt to the changing times when the prices of computers…… [Read More]
The head office of Dell is at Austin, Texas at the same place where the company was based. Dell Americas is also located in Texas, which is the regional business unit for the United States, Canada and Latin America. The regional headquarters offices of the company are in England, for Europe Middle East and Africa; in Singapore catering to Asia-Pacific; and in Kawasaki, Japan, to serve the market for Japan. The production unit for the manufacture of computers is located in Texas, Tennessee, Brazil, Ireland, Malaysia, and China. Dell Computer Corporation sells products and services meant for Information Technology and the Internet backbone. The proceeds of the company for the previous four quarters were $31.2 billion. (Stories of Entrepreneurs: Michael Dell)
Dell's product, pricing, distribution, and promotion strategies
The Dell product line-up of high performance computer systems comprises of PowerEdge servers, PowerApp server applications, PowerVault storage products,…… [Read More]
The current situation for Dell is that it is trying to recover from a downturn in its business. The company has a good brand name, a strong online distribution channel and good relationships with its suppliers. Key weaknesses are a lack of innovation, poor offline distribution channels and the company's finances are not great anymore. There are opportunities for Dell to rebuild its corporate business, or enter new consumer segments like tablets. The company could also focus on growth in overseas markets, as these remains a major source of growth in the PC industry. There are a lot of different threats for Dell, however. The company is threatened by competition, the state of the economy, by increasing costs at suppliers and technological changes such as the commodification of PCs, even though this was once an opportunity for Dell.
In order to succeed again, Dell has undertaken a number of…… [Read More]
Dell is one among the largest computer system companies in the world, which is unique and popular because of its direct marketing policy. It deals in manufacturing personal computers, servers or enterprise products, storages and offer IT solutions for the customers. The services provided by the company are of high quality and low cost, thus providing the source of economical investment to the clients. Dell is among the pioneers and still a unique company that carry direct marketing operations. It started its sales via telephone and then expanded it using internet.
A 19-year-old teenager Michael Dell founded Dell in 1984 with only $1,000 capital. He started business with an aim of selling IM-compatible PCs. Dell received high worldwide success and profit in just few years of its functions. During the first year, it made $6 million gross revenue. The next year, Dell started selling computer of its own design name…… [Read More]
For many organizations, their performance in the international market is more important for their survival and growth than their performance in the home market and this performance has to be achieved. Dell as a company has outlined clearly its policies for operating in the International market and these should be viewed as its global strategy. This also should be the starting point for any discussions regarding its globalization.
The history of the company is quite interesting and it had begun as the company of Michael Dell in 1984 while he was still a student in Austin. The business started as one of selling upgrades of IBM compatible PCs and then shifted to a business of selling its own brand. He was operating on the direct sales model where the PC was built to the specification of the customer. Their retailing activities started in the year 1990, but the business…… [Read More]
Thus far, Dell has largely ignored the consumer market since the company views the margins in this market to be insufficient. Yet, if Dell can develop an effective route to market for consumers and/or streamlines its ordering process, Dell can expand its customer base substantially. It is already finding that consumers are coming to it after buying their first computer elsewhere, so the market is clearly ready for Dell computers.
The third potential market is in mobile devices. Personal digital assistants are becoming popular at this point. They have fairly limited computing ability but as chips shrink or become more powerful, the potential functionality of these devices is likely to increase. If Dell wishes to enter this market, it could build market share while the market remains relatively young and the majority of competitors are fairly weak.
As strong as Dell's market position is, they still have significant threats. The…… [Read More]
In addition to the America's, your company also did well in the European market.
The company was able to fortify its No. 2 annual share position. In calendar 2003, your company held a 10.5% market share compared to 9.6% market share in 2002 ("Dell Annual Report 2004"). In deed the company's globel presence is increasing at a remarkable rate.
In 2004 your company's Gross margin as a percentage of net revenue increase to 18.2%, compared to 17.9% in 2003 and 17.7% in 2002("Dell Annual Report 2004"). In addition, your company's cost savings initiative drove the year-over-year improvement for fiscal 2004 and 2003 ("Dell Annual Report 2004").
The company also made a concerted effort to improve margins by implementing four main cost reduction initiatives ("Dell Annual Report 2004"). These cost reduction initiatives affect warranty costs, manufacturing costs, design costs, and operating expenses ("Dell Annual Report 2004"). In addition, the cost savings…… [Read More]
This helps to provide a higher level of value to charitable organizations and encourages volunteerism on an ongoing basis. But One Dell: One Community is more than just volunteering.
Dell have been introduce some special edition laptop in Malaysia like studio 14 and 15 which comes with some artistic style designed by Mike Ming, Derek Welch, Andrea Rosenberger and (PRODUCT) RED. All this laptop offers 10+ original designs for customers to choose from. It is an extension of one's personality which include restrained, expressive, wild and sublime. Furthermore, when customers buy the (PRODUCT) RED laptop, part of the proceeds will go to the Global Fund to help eliminate AIDS in Africa.
The Dell Company faces major competition from other companies, this include Apple, Sun Microsystems, Gateway, Sony, Asus, Toshiba and Hewlett Packard which is also mentioned to as HP. All of these companies are its competitors but HP is…… [Read More]
Throughout the past trailing twelve months, the Dell share has decreased from a maximum of $26.04 to a current trading value of $10.62 (the Motley Fool, 2009). This negatively impacts its perception among investors.
A second strength was manifested in the packaging of their products. The Dell management sustained intense efforts to ensure that the organizational customers would receive their products as rapidly as possible and in the best of conditions. To ensure then the full protection of the hardware items, they would pack the products in large packages. This however brought severe criticism from environmental organizations which argued that Dell was wasting precious resources that were already scarce (Murray, 2008).
Following the same agenda of reduced prices and customer satisfaction, the Dell engineers sometimes fail to pay enough attention to all details. In 2006 for instance, 4.1 million laptop batteries were withdrawn from the market for fear that they…… [Read More]
Dell Case Study and Business Strategy
Comment by Sabina:
Dell is one of the leading industries for computer production and sales globally. The brand is highly recognizable and the company is mainly known for its personalization of computers for customers. In 2004-2005 Dell became one the leaders in the industry for PC sales, by overtaking Hewitt Packard. However since 2007 sales have dropped and Dell is struggling to keep its market share. Dell must compete in a very competitive market against competitors such as Apple. The competition has advance technology and has adapted similar business strategies to gain market share. Some of the major challenges that Dell faces are failure to keep with the technological advances of the competition, defect in equipment and management struggles to keep production cost low. In this paper I will discuss Dell's business strategies, some changes in the last two decades, their financial performance and…… [Read More]
Given how Dell translates its foreign-currency financial statements into dollars, how would a falling razilian real affect Dell Mercosur's financial statements? What about a rising real?
The falling real would help to improve Mercousur's financial statements. The reason why is because it made costs cheaper and increased profitability. A rising real would have a negative impact on the company, as it will cause their operating expenses to increase and profits to decline. ("Dell Mercousur," n.d.)
Dell imports about 97% of its manufacturing costs. What type of exposure does that create for it? What are its options to reduce that exposure?
It creates exposure that can cause the underlying cost of parts to increase, based upon moves in the currency. This is problematic, because it can have an impact upon profitability and forecasting. The options to reduce this exposure are: to aggressively hedge against adverse moves in the currency.…… [Read More]
Dell Case Study Summary
Dell Computer Corporation (DELL:NASDAQ) was founded in 1984 by Michael Dell, who defined a unique business model at the time of purchasing IBM PC components, assembling them to his customers' unique requirements, and selling the complete system at a profit. Originally founded as PC Limited, Michael Dell and the founders changed the name to Dell Computer Corporation in 1987, went public with an Initial Public Offering (IPO) on the NASDAQ stock exchange, and generated $73M in Sales. Dell was the first to revolutionize the high tech industry supply chain (Kopczak, Johnson, 2003) which led to the company's successful launch of their online business in 1996. Since that decision to go online, Dell has expanded their product categories to sell MP3 players, printers, servers, data storage, networking equipment, software, computer peripherals, cameras, HDTV (High Definition Television) and entire storage networks.
In 2003, the company changed…… [Read More]
The potential the Internet provides businesses to scale their supply chains, manufacturing, fulfillment, services and new product development strategies globally is exemplified in the decades of lessons learned at Dell Corporation. Of the thousands of businesses that sought transformation of their business models with the Internet by concentrating only on the websites, Dell was immediately contrarian, looking to streamline back-office systems first. This analysis presents how the core strategies Dell continues to differentiate on, including build-to-order, configure-to-order and mass customization continue to earn them new customers and retain existing loyal ones through their website strategies. Dell has taken a more systemic and process-based perspective of their websites and as a result the product configuration, guided selling, pricing and innovative service applications are immediately functional and scale globally. Dell has been able to define a development methodology for online strategies that enables the core strengths of their order management,…… [Read More]
HP has long been a respected computer brand and Compaq also had a decent share of the market prior to the merger. Together the companies have become a force to be reckoned and although HP has experienced some of its own problems recently, these problems have been internal issues that have not really affected the company's performance as it relates to profits.
Future of Dell / possible solutions
It seems that the problems at Dell have come in rapid succession; perhaps these issues can be overcome and perhaps they can not. The ability to overcome these problems will play a significant role in the ability of the company to be successful in the future. The primary thing that the company has to evaluate is the safety and the dexterity of the products that it sells. The company can not afford to cut corners as it relates to the development and…… [Read More]
Dell, an American multinational computer technology company, was founded in 1984 by Michael Dell. Established on a build-to-order and direct sales business model, the company rapidly established its position in the rigorously competitive global computer technology industry to become the largest personal computer (PC) and server vendor by 2003. In addition to PCs and servers, the company is involved in the development and retailing of computer-related products such as network switches, software, data storage devices, computer peripherals, as well as consumer electronics; all in which it commands a substantial share of the global market. Despite its robust position in the industry, the company has over the years faced significant competitive pressure, with the future presenting even more aggressive rivalry. This case study provides a strategic analysis of the company. First, a SWOT analysis of the company is provided. Second, attention is paid to the organization's corporate-level and business-level strategies. Third,…… [Read More]
Dell business model and strategy is one of the best strategies that can be employed by various organizations for them achieve their set goals and business objectives (Hall, 2000). In this paper we describe how the auto industry might work differently if it were designed in accordance with the Dell Model.
The Dell model
The Dell Model (Hall,2000,p.6).
The strategy comprises of three main components namely the best direct customer experience, virtual integration as well as low cost provider. In the Dell Model, the company occupies the Original Equipment Manufacturer (OEM) space between the suppliers and customers.
The best direct customer experience
One of the strategies that are employed by Dell is the provision of the best direct customer experience that they can have with machines (computers) as a tool. This involves the obtaining of these computers, using them as well as servicing them appropriately. This stage involves no intermediaries…… [Read More]
Dell's strategic management. It uses no source except for the case.
Michael Dell right from the beginning has been more of an entrepreneur then at technological guru. Although he had not taken active part in strategic decision making, he nevertheless realizes its importance. For this purpose he had brought leaders like Walker and Meyerson to aid him. As a leader he was dynamic in the sense that he easily takes into account of how the company could run with help of shared leadership. He also believes in cooperative work. Hence, in leadership, he has performed very well but as far as strategic management is concerned, Dell depended on other's skills more then his own.
Dells' strategy consist of the following elements:
embrace new ideas
Profit and loss management for each unit of business.
Growth through informal enabling management like development of capabilities
Strategy should be based…… [Read More]
Strategic Issues for Dell
Dell: Major strategic issues
In contrast to its rivals Intel and HP, Dell pioneered a business model rather than a product that made it famous: the direct-to-consumer model. Instead of focusing on research and development and creating an innovative type of hardware, Dell sold computers directly to consumers, including businesses that purchased computers 'in bulk' as well as individual consumers. Marketing and sales were the strategic focus of the Dell organization. Inventory was closely monitored and kept at a minimum so it was tailored to consumer needs. Computers were custom-built, ensuring that there was no stockpile of unneeded or obsolete inventory. There was also a strong emphasis on customer support and service.
The critical nature of Dell's business model cannot be underestimated, given that Dell's success as a business was founded upon its business model more than its products, in contrast to its competitors.…… [Read More]
Users can upgrade to a Sound Blaster Audigy sound card, which is also integrated. Apple's eb site does not indicate the type of sound card used on the iMac but it is integrated with the motherboard. The iMac has a built-in microphone and includes optical digital audio input and output ports that also support headphones. The Dell Dimension does not include digital audio input or output support on its standard jacks. All iMacs have built-in speakers, whereas the Dell PCs do not, and consumers must use external speakers.
Both the iMac 17" and the Dimension C521 have a DVI output port as well as VGA and S-video. However, the iMac's output port is mini-DVI, offering the user the option of purchasing an adapter to be used for any external video device. The Dell Dimension C521 has separate ports for each. The iMac comes with two Fireire 400 ports; the Dell…… [Read More]
Dell Company Profile
The author of this report is asked to answer a few questions about a company of the author's choice. The author, in this case, chose Dell. The questions to be answered include the globalization and technology changes that are at foot. The second thing to be discussed is the industrial organization model that includes wielding the general environment, the industry environment and the competitive environment in a way to garner above-average returns. The third general question to be answered is to assess how the vision statement and mission statement and its influence on the corporation will render itself. Finally, it will be evaluated how each category of stakeholder, both internal and external to the company, will manifest itself. While Dell does need to reinvent itself a little bit for the future, the same is true of all companies both software and hardware given the mobile revolution that…… [Read More]
Computer clustering involves the use of multiple computers, typically personal computers (PCs) or UNIX workstations, multiple storage devices, and redundant interconnections, to form what appears to users as a single integrated system (Cluster computing). Clustering has been available since the 1980s when it was used in Digital Equipment Corp's VMS systems. Today, virtually all leading hardware and software companies including Microsoft, Sun Microsystems, Hewlett Packard and IM offer clustering technology. This paper describes why and how clustering is commonly used for parallel processing, batch processing, load balancing and high availability.
Despite some challenges such as achieving transparency, mitigating network latency and the split-brain problem, clustering has proven to be a huge success for bringing scale and availability to computing applications. Hungry for even more efficient resource use, IT departments are now turning their eye on the next evolution of clustering called grid computing.
Parallel processing is the processing of program…… [Read More]
ell vs. Gateway
The personal; computer industry has been transformed over the past few years by several pioneers in the computer industry. Among those who are at the forefront of such changes are ell and Gateway. Their user-friendly individualistic format of marketing often leads the customer to believe that their services are indispensable for the consumer. They both take previously unknown technological terms and offer them to the consumer in a relaxed format, so the consumer may understand them better and feel more confident making a purchase that details the need of their individual PC.
Gateway Computer additionally, was the main leader in building individual home and office computers for each consumer based on what the consumer reported its use to be and was first to offer a financing plan that included an open ended policy which allowed the consumer to grow with the technology, trading up in the same…… [Read More]
In particular, Wyse gave Dell a better foothold in the sprawling segment of cloud computing. This area has helped companies save money through the delivery of affordable services and software over internet-based infrastructures (Ignatiuk, 2008).
Dell will also benefit from the prior experience of Silver Lake expertise that has revived several tech companies such as Skype. This wrenching would typically change Silver Lake to be tricky for a public corporation anxious to help shareholders not to panic. If such challenging maneuvers were dealt with, it would assist Dell under the covers (Bamford & West, 2010). While this is true, it is clear that taking Dell private will not solve the strategic web of troubles surrounding the company. The company will still be forced to ensure it swings the axe carefully in light of PC segments. This is because Dell will require cash to help service the enormous debt. In addition,…… [Read More]
Dell, Inc. operates on a strategy of "persistent focus on delivering the best possible customer experience by selling products and services directly to the customer" (Form 10-K, 2005). Dell relies on customer intimacy by eliminating wholesale and retail dealers and manufactures products based on the customer's needs. Customers order directly from Dell and can track the order from manufacturing through shipping.
Dell, Inc. faces business risks of general economic, business, or industry conditions and no assurance of maintaining a competitive advantage. A substantial portion of revenue is dependent on international sales, which are subject to risks and uncertainties. Product, customer, and geographic mix can be different than anticipated. Infracture failures and inaccurate product transition can have adverse effects. Supplier failure or disruptions in component availability slows delivery to the customer. Foreign exchange hedging or the ability to get licenses can have adverse effects. Failure to attract or retain qualified personnel…… [Read More]
If this was applied at GM, it is likely that demand will further drop, with the company unable to honor orders for long periods of time.
Wal-Mart is a similar situation. Running out of a certain item on the shelves is less likely to cause a sudden demand in the Wal-Mart customers. However, a long waiting period for a car will certainly play worse on GM's company image.
Demand forecasting seems like a better fit inventory instrument. If the company would be able to evaluate both future potential demand, as well as the potential demand variation over the next period of time, then it is likely that it would also be able to better adapt its supply to match demand and avoid the type of inventory problems it is facing.
In this sense, it is more likely that the problem GM is facing is less one strictly tied to inventory,…… [Read More]
The company can no longer look to its production model as a source of sustainable competitive advantage. Although it can still provide competitive advantage, evidence over the past few years indicates that any such advantages will be temporary. Production cost control is only a core competency, therefore, not a source of sustainable competitive advantage. The company's brand is a source of sustainable competitive advantage as the Dell name has opened doors into other product lines, some of which have been successful for Dell. The company name, however, is no stronger than that of Hewlett-Packard or Apple, two of its main competitors, and is arguably weaker than either two. Thus, while the brand value of Dell is more easily sustained it is not necessarily a source of competitive advantage.
This leaves Dell in a challenging position. It has built its market share on its ability to deliver the lowest-cost computers and…… [Read More]
What should Maxwell recommend to Michael Dell?
In order to expand their business to Latin America and set up a manufacturing unit there, Dell choose to set up a manufacturing unit in Brazil. The reason for choosing Brazil as the country to set up the unit was that the rise in sales in personal computers as the highest in Latin America compared to the world and Brazil was one of the largest Latin American countries with a population of more than 1500. This made Brazil a very attractive country.
The company chose to set up its unit in the state Rio Grande do Sul as the company found that the state had the requisite number of qualified personnel, adequate supply of electricity and requisite infrastructure for telecommunications and transport. The state also offered special financial incentives to the company. During that period Brazil was divided into…… [Read More]
The customer expectations of large business or enterprise customers is also very specific about the customization of PCs and their delivery, as are the many government accounts Dell has globally. What all of these customers share in common is an expectation of receiving a PC customized to their specific needs in the timeframes committed (Gunasekaran, Ngai, 2005).
Compared to traditional procurement and SCM strategies, the Dell e-business model requires a much faster pace of fulfillment with less room for error on each order. Traditional procurement processes often operate in a 90 day forecast period while Dell will often operate in one that is 72 hours or less, using Just-in-Time (JIT) production scheduling techniques (Kapuscinski, Zhang, Carbonneau, Moore, eeves, 2004). Dell has also revolutionized the aspect of supply chain collaboration throughout the PC industry as well, creating shared resources and the ability to create cross-supplier visibility measures of performance as well.…… [Read More]
While looking for a multibillion dollar management, the success of a company is measured by its business ideas and its strategic moves. The capacities of the individual personnel shouldn't limit the operating capabilities. The winning combination for a management team comprises of practical experience along with intellectual capacity while being able to respond to the ever changing requirements of an industry. A case in point is Michael Dell.
Michael Dell had humble beginnings, born in February 1965 with a startup investment of just $1,000. Currently, he is the chairman of the Dell board of directors. He is the proud owner of Dell to which he gave birth in 1984. The key idea here was to build rapport and long-term relationship with the clientele (Dell, 1999).
His vision Dell rose to unreachable heights within his lifetime. It was a childhood vision. He was raised in suburban Houston, Texas,…… [Read More]
The first of these was co-designed with Sony, and established the modern layout for laptop computers that has remained popular ever since.
In 1994, Apple revamped its Macintosh line with the introduction of the Power Macintosh, which was based on the PowerPC line of processors developed by IM, Motorola and Apple. Apple's operating system software was adjusted so that most software written for the older processors could run in emulation on the PowerPC series.
After an internal power struggle with new CEO John Sculley in the 1980s, Jobs resigned from Apple and went on to found NeXT Inc., which Apple ultimately bought. This move brought Jobs back to Apple's management. On July 9, 1997, Gil Amelio stepped down as CEO of Apple after overseeing a 12-year record low stock price and crippling financial losses. Jobs stepped in as the interim CEO and began the critical restructuring of the company's product…… [Read More]
43% and 59.80%, respectively. In the late 1990s when Apple was doing well, Dell was doing better, with 1998, 1999, and 2000 ratios of 91.19%, 82.06%, and 46.53% for those years. Dell has had some ups and down, but it has never faced the negative return on equity issues that Apple has seen in previous years, and the return on equity numbers for Dell remain very strong - much stronger than those of Apple.
Even though Apple's ratios are improving, the improvement is slow and not nearly as strong as the numbers that Dell Computer Corporation is showing. his is, naturally, suspected to be rather troublesome for Apple, especially when it did so well late in the 1990s. It is unfortunate that it has fallen by the wayside to some degree, but one often sees advertisements for Dell and Gateway computers, and rarely sees them for Apple. he marketing may…… [Read More]
Relationship buyers offered Dell its "highest gross margins," (185). Transaction buyers consisted of the small-to-mid-sized businesses and individual home users who placed small and irregular PC orders. Transaction buyers called a different telephone number to order from Dell and rather than have a personalized sales representative team, they would speak with an inside representative who would encourage the buyer to investigate more advanced systems (185).
As Dell grew, the need to refine customer categories grew. To tailor to the specific needs of each market segment, Dell divided its relationship buyers into further categories such as specific governmental sectors or "global enterprise accounts," (185). Dell developed sophisticated means of direct sales, such as its Premier Pages for select relationship accounts: corporations could log onto a special website that would enable them to view their entire transaction and order history and discover when they might need to update their systems.
Regardless of…… [Read More]
His leadership has also led to the build-to-order strategy becoming an exceptionally profitable manufacturing strategy across dozens of industries.
Buffington, J. 2011, "Comparison of mass customization and generative customization in mass markets," Industrial Management + Data Systems, vol. 111, no. 1, pp. 41-62.
Dell Investor elations (2012). Investor elations. etrieved February 23, 2012 from Dell Investor elations and Filings with the SEC Web site: http://content.dell.com/us/en/corp/about-dell-investor
"A revolution of one: Michael Dell invented a business model that all the world wanted to copy; yet after all these years, almost nobody has; why?," 2001, Economist, vol. 359, no. 8217, pp. 63-63.
Dell, M.S. 1994, "Making the right choices for the new consumer," Managing Service Quality, vol. 4, no. 2, pp. 22-22.
DellIsola, M.,D. 2002, "Impact of delivery systems on cost management," AACE International Transactions,, no. 15287106, pp. PM31-PM36.
Gama, J. 2006, "What Could Be the Solution?," AmericaEconomia,, no. 327, pp. 69-71.…… [Read More]
Gateway Computers has a rich heritage and a remarkable business story. Founded in 1985 in a U.S. Midwestern farmhouse, Gateway has grown into one of the world's best-known technology brands with millions of satisfied customers; starting with a $10,000 loan guaranteed by his grandmother, a rented computer and a three-page business plan, founder Ted aitt turned Gateway into a revolutionary company whose innovations helped shape the technology industry (Gateway, N.d.). Gateway's history includes several milestones that helped the computer industry in general develop. Although the company has also experienced many setbacks over the years, Gateway serves as a prime example of how a revolutionary vision can help shape an entire industry. Gateway's vision (before the Acer acquisition) was:
To profitably grow their business faster than the competition by better understanding and serving the desires of their customers and aggressively marketing the highest value directly to their…… [Read More]
Gateway Computers gives an introduction about the company and outlines the main business strategies adopted by the company. This paper also describes the company's major business decisions and what contribution it has made to enhance the use of Information Technology among its consumers.
In its seventeen years of business, Gateway Inc. has made valuable name and place in the global market of computers. Ted Waitt, founder of the company initially conceived his corporation on an Iowa cattle farm. Seventeen years later its head quarters can be found outside San Diego, California. The company was primarily founded on the ingenious idea of selling computers straight to the consumers rather than through retailers and distributors. The main aim of the company was to make to profit via abating costs of computers to consumers through a direct sales approach. In the beginning, the company acquired success but eventually suffered as its…… [Read More]
The common perception is that price is often the most effective differentiator and catalyst for driving up sales of products. Ironically for laptops, where there are many competitors and the price is often already very low, dropping the price doesn't increase demand. The inelastic nature of the laptop market makes price a positioning variable in the marketing mix. By raising prices on certain laptops for example, Dell has been able to communicate greater value for them, which is especially the case in the higher-end build-to-order product models (Fields, 2006). Pricing is used as a means to communicate relative value and critical to the financial success of a given product. Dell uses pricing very effectively for communicating both market position and optimizing the potential for profitability.
The promotional strategies for laptops center on both print and online media, with social networks being heavily used to launch new models. Dell…… [Read More]
2). The company has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories; in fact, almost 20% of every standards-based computer system sold in the world today is a Dell: "This global reach indicates our direct approach is relevant across product lines, regions and customer segments" (Dell at a glance, 2007, p. 3).
Today, Dell competes on a global basis, and it manages its business through three key geographic segments as shown in Table 1 below:
Dell Geographic Business Segments.
This business unit accounted for about 64% of the $56 billion the company earned in revenues in 2005 (Allison, 2006). This market region includes the U.S., Canada, and Latin America (Dell Annual eport, 2006); one Dell executive, Lawrence Pentland, was recently assigned control of the operations in…… [Read More]
It adopted a lateral structure that lacked hierarchy and was more informal. Employees were encouraged to practice self-managing behaviors and actively participate in the decision making process. It was important to the transformation process that all employees knew that their input was valued and that they all played a significant role in the success of the organization.
CRM strategy should analyze customer segments and make the appropriate determinations on whether each segment is profitable for their business and how to affect the purchase patterns of the segment so the business can experience the profitable attributes of CRM; loyalty purchasing, cross selling, up selling, etc. Direct Mail fits perfectly into the customer communication strategy for customer segmentation. With variable printing and data rich files a company can use their intelligence and print relevant Direct Mail that will move customers toward the purchase decision. Additionally customer communications should also enable the company…… [Read More]
Supply Chain Management at Dell Computer Corporation
Supply chain management systems have historically been designed to bring increasingly higher levels of automation and standardization of processes throughout supplier relationships, fulfillment, quality management and services. Throughout the latter half of the 20th century the concentration on lean supply chain performance sought to drill out every errand and unnecessary step and costs from supply chain collaboration, planning and execution (Foreman, Gallien, Alspaugh, Lopez, Bhatnagar, Teo, Dubois, 2010). This was especially the case in high technology industries including personal computers where the greater the level of standardization, the higher the level profits and lower the costs. Lean supply chain management and manufacturing was the approach Compaq took to establishing an early market share lead, yet was quickly challenged by Dell with its innovative uses of build-to-order supply chain management and rapid mass customization selling techniques (Gunasekaran, Ngai, 2005). The intent of…… [Read More]
Small Desktop Computer (Intel® Pentium® 4 Processor 2.80GHz, 1M/533MHz FSB, Microsoft® Windows® XP Professional Operating System, 256MB DDR SDRAM, 60GB Hard Drive, 17" Flat Panel Display (E152), Dell AS500 Sound Bar Speakers, Integrated Intel Extreme Graphics 2 Graphics Card, 48X32 CDRW/DVD, Integrated 5.1 Channel Audio Sound Card, PCMCIA Type II slot, 1.44MB 3.5" Floppy Drive, Windows XP Office Standard)
Network Computer Printer (Monochrome Laser, 1200 x 1200 dpi, 25 ppm, 160 MB RAM, 10/100 BaseT Ethernet built-in for Networking, TCP/IP Setup Utility, 100 to 127 volts (V) at 50 to 60 hertz (Hz), Power cable included with, 3,000-page Toner cartridge and 250-sheet standard drawer)
Wireless-G Access Point
Wireless Network PC Card
Smart Board 580 72"/182.9 diagonal with Smart Board Floor Stand 570
CAT-5…… [Read More]