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Company Profile
Dell is an American multinational computer technology company based in Round
Rock, Texas, United States, that develops, sells, repairs, and supports computers and
related products and services. Named after its founder, Michael Dell, the company is one
of the largest technological corporations in the world, employing more than 103,300
people in the U.S. and around the world.
Dell sells personal computers (PCs), servers, data storage devices, network
switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players, and
electronics built by other manufacturers. The company is well known for its innovations
in supply chain management and electronic commerce, particularly its direct-sales model
and its "build-to-order" or "configure to order" approach to manufacturing—delivering
individual PCs configured to customer specifications. Dell was a pure hardware vendor
for much of its existence, but with the acquisition in 2009 of Perot Systems, Dell entered
the market for IT services. The company has since made additional acquisitions in
storage and networking systems, with the aim of expanding their portfolio from offering
computers only to delivering complete solutions for enterprise customers.
Dell was listed at number 51 in the Fortune 500 list, until 2014. After going
private in 2013, the newly confidential nature of its financial information prevents the
company from being ranked by Fortune. In 2015, it was the third largest PC vendor in the
world after Lenovo and HP. Dell is currently the #1 shipper of PC monitors in the world.
Dell is the sixth largest company in Texas by total revenue, according to Fortune
magazine. It is the second largest non-oil company in Texas – behind AT&T – and the
largest company in the Greater Austin area.[11] It was a publicly traded company
(NASDAQ: DELL), as well as a component of the NASDAQ-100 and S&P 500, until it
was taken private in a leveraged buyout which closed on October 30, 2013.
In 2016, Dell acquired the enterprise technology firm EMC Corporation;
following the completion of the purchase, Dell and EMC became divisions of Dell
Technologies.

2. Problem Identification
Dell, the personal computer manufacturer has long embraced the internet and e-
commerce in its supply chain. The figure at the bottom of this page shows Dell’s unique
e-commerce model. But behind of the e-commerce model there are some advantage of it.
Dell’s e-commerce model results in higher shipping costs than, selling through
distributors and retailers. E-commerce model also have specific market target for those
who connect with the internet. As the changes move further up of Dell’s supply chain
will create possibility for inventory fluctuations or inefficient asset allocation or we
called it Bullwhip Effect. Bullwhip Effect should be the concern of Dell manufacturer to
minimize.

3. Problem Solving: Company New Perspective and Idea


Dell’s longest-tenured chief executive officer, on a simple concept: that by selling
computer systems directly to customers, Dell could best understand their needs and efficiently
provide the most effective computing solutions to meet those needs. This direct business model
eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of
customer expectations.
The direct model allows the company to build every system to order and offer customers
powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant
technology much more quickly than companies with slow-moving, indirect distribution channels,
turning over inventory every three days on average.

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