Professional Documents
Culture Documents
Dell computer was founded by Michael Dell. Dell traces origins to 1984 when Michael dell created PCs limited. The company changed its name to Dell computer corporation in 1988 and began expanding globally as a multi national company first in Ireland. In 1992 Fortune magazine included Dell computer corporation in its list of the worlds 500 largest companies. Michael Dell is the youngest CEO of the fortune 500 ever. Dell Inc. is now the 41st among the fortune 500 companies.
Future Plan
Dell Inc. is planning a major expansion of its retail presence in China, one of the companys largest and fastest growing markets. Dell is planning six new tablets and three new Smartphones. In recent times Dell is planning for more powerful gaming laptops and desktops named Alienware. Dells supply chain optimization team has targeted forecasting for process improvement. Each group used its own judgment and biases to modify the forecasts of demand.
Products
Desktops Servers Notebooks Netbooks Peripherals Printers Televisions Scanners Pen Drives Smart Phones
Dell is an American multi national technology based company centered in Round rock, Texas, United states. Dell has a big market share in China and India. In 2006, Dell cut its price in an effort to maintain its 19.2% market share
Competitors in PC industry:
U.S. top five players:
U.S. PC market Share
OTHERS 40%
DELL 25%
IBM GATEWAY 6% 7%
HP 9%
COMPAQ 13%
DELL 14%
OTHERS 60%
NEC 3%
Growth strategy
Process streamlining: Dell built a significant advantage in the marketplace by focusing on innovations in the supply chain. Dell focused on enabling "just in time" delivery of parts and components. Product diversification: Dell has used a diversification strategy to enable business growth. Market penetration: Dell has achieved market penetration internationally with various segmentation strategies
Innovation Approach
Dell helps drive the course of future industry innovation through a timetested process that puts customer needs first.
Value Bubble
Attraction
Dell uses many different areas to attract people to there site.
Dell uses television adds and magazines to get the word out on how easy it is to customize your own computer on the dell website. Uses B2B customers to attract B2C customers and vice versa. Customers are also attracted to the site via the numerous links that get you there from different places on the web.
Value Bubble
Learn
This is a very important phase for dell because they are constantly changing based on customer wants and needs and if they did not gather the proper information from there customers they would fail. They are very good at this phase due to the direct sales model, which gives them direct access to there customers.
Information is constantly gathered from the site.
account information Click streams Blog information Suggestion forms Customer service representatives.
Value Bubble
Relating
Dell puts the information that they collect from various sources into use.
My Account
Allows customers to totally customize there shopping experience and give Dell the chance to show the customer things they might be interested in.
Usability information is constantly being checked and updates are constantly being added to the site.
With the only presence being an online one the attention paid to the actual site is crucial.
Dell is committed to building a diverse environment that is reflective of a diverse global marketplace. They are striving to ensure they are engage with key marketplace segments to advance their global diversity and inclusion activities.
Dell believes that to be a successful company and a great place to work, our business must be able to leverage the similarities and differences of all team members. Dell creates mutually beneficial partnerships with national civic organizations, professional development organizations, and multicultural business and community groups in advancing their marketplace and workplace diversity and inclusion activities.
Dell uses both organizational structure and culture to have a direct bearing to their companies profit. Dell has a highly collaboration and informative process Dell uses development designs to maximize networking technology. Dell plans to gain additional benefits from its integrated identity environment by leveraging.
Conclusion
Dell started as a market leader and still retains that trait in some areas. With there slipping sales in the U.S. they are being forced to look at alternative ways of brining revenue to the company, which is a process that they are used to. I think that they will continue to gain market share and continue to be a large player in the personal computer industry for years to come.
Virtual Integration
Dell did something else other PC companies were not doing; strategically targeting only the customers they wanted. By defining their customer as a knowledgeable PC user Dell made their task of providing a PC easier. Their customers did not need to go to a retail store to gain knowledge about their product. This enabled the Direct Model for purchasing PCs to work From this concept three key integrations formed: 1. A symbiotic relationship between Dell and its suppliers; 2. Customers linked directly to manufacturer; and 3. End user were linked to proper customer service assistance. Each one of these measures enabled costs cuts; quicker deliver time, and a more reliable finished product. Tailoring manufacturing to a customer's specific needs allowed Dell to integrate production schedules with sales flows, assemble all parts of the PC on site, and install the specific software that the customer requested. These manufacturing interactions sped up the final products completion time to thirty-six hours. The swiftness of the manufacturing process added value to the customer by quickening the delivery time.
Advantages of HP Strategies
Among the biggest advantages is HP's ability to hide the price of many strategic commodities. Neither contract manufacturers nor HP's competition know what the company paid for a given part. As a result, they can't put pressure on suppliers to match the price for other OEMs. Like many high-tech leaders, HP has embraced the doctrine of outsourcing. It relies on multiple contract manufacturers to turn out sub-assemblies and branded product, including personal computers and printers, at sites around the world. Certain commodities, such as memory devices, have high price volatility and are subject to frequent renegotiations. HP can lessen the impact of price changes through direct management. It also ensures that new prices are implemented in a timely fashion.
Outsourcing of manufacturing is feasible only if it can be separated from other supply chain activities: product development, branding, marketing, distribution, and after sales services. The same is true for outsourcing marketing or distribution, and R&D. For instance, Dell decided to expand its ties in the Indian outsourcing market, building on the contact center and R&D operations it already has established; and a customer contact facility in Gurgaon to complement its existing operations in Bangalore, Hyderabad and Mohali.
This means that as additional activities are outsourced, the supply chain turns from a single integrated process, performed within the boundaries of traditional corporations, to a fragmented and disintegrated process, a collection of separate and disjointed activities performed across several independent subcontractors. And although such a fragmentation and disintegration of the value chain offers companies a number of well publicized advantages, it has an unintended consequence: It eases the entry of new competitors to the industry easier, intensifying competition, shortening product cycles, and squeezing return on invested capital. That could explain why successful consumer electronics companies like Apple and Google limit outsourcing to manufacturing, keeping product design, branding and marketing, and after-sales service in-house.
The ultimate source of Dells great historical success has been its direct sales model. By cutting out the middlemen, Dell benefits in many ways. Since it doesnt have to fill traditional sales channels, it doesnt have a lot of PCs sitting in inventory all over the place. So on the production/distribution side of the PC business, Dells direct model has given it a big cost advantage, which in the past enabled it to make lots of money selling machines at prices that competitors could match only by taking a loss. But theres another side to the PC business: the support side. And here, the direct model looks less attractive. If, after all, youre selling directly to customers, you have to shoulder all the related support costs, from handling information requests before the sale to taking and tracking orders to handling service inquiries after the sale. You cant offload any of those costs onto resellers or retailers or other distribution partners because you dont have any distribution partners. The direct sales model provides a cost advantage on the production side, in other words, but brings a cost disadvantage on the support side. Now, as long as most of the costs (for you and your competitors) lie on the production side, youre golden. If, however, the balance of costs shifts toward the support side, youre in trouble.