Dell

In 1984, at the age of 19, Michael Dell founded Dell Computer with a simple vision and
business concept that personal computers could be built to order and sold directly to
customers. Michael Dell believed his approach to PC manufacturing had two advantages:
bypassing distributors and retail dealers eliminated the markups of resellers, and
building to order greatly reduced the costs and risks associated with carrying large
stocks of parts, components, and finished goods. While Dell Computer sometimes
struggled during its early years in trying to refine its strategy, build an adequate
infrastructure, and establish market credibility against better-known rivals, its build-to-
order and sell-direct approach proved appealing to growing numbers of customers in
the mid-1990s as global PC sales rose to record levels. And, just as important, the
strategy gave the company a substantial cost and profit-margin advantage over rivals
that manufactured PCs in volume and kept their distributors and retailers stocked with
ample inventories.

Going into 1998, Dell Computer had a 12 percent share of the PC market in the United
States, trailing only Compaq Computer and IBM, which held first and second place in the
market, respectively. Worldwide, Dell Computer had nearly a 6 percent market share.
And the company was gaining market share quickly in all of the world's markets. The
company's fastest growing market for the past several quarters was Europe. Even
though Asia's economic woes in the first quarter of 1998 resulted in a slight decline in
Asian sales of PCs, Dell's sales in Asia rose 35 percent. Dell's sales at its Internet Web site
were averaging $5 million a day and were expected to reach $1.5 billion annually by
year-end 1998. Dell Computer had 1997 revenues of $12.3 billion, up from $3.4 billion in
1994a compound average growth rate of 53 percent. Over the same period, profits were
up from $140 million to $944 million an 89 percent growth rate. Since 1990, the
company's stock price had exploded from a split-adjusted price of 23 cents per share to
$83 per share in May 1998 a 36,000 percent increase. Dell Computer was the top-
performing big company stock so far during the 1990s and seemed poised to become the
stock of the decade.
Dell's principal products included desktop PCs, notebook computers, workstations, and
servers. The company also marketed a number of products made by other
manufacturers, including CD-ROM drives, modems, monitors, networking hardware,
memory cards, storage devices, speakers, and printers. The company's products and
services were sold in more than 140 countries. Sales of desktop PCs accounted for about
65 percent of Dell's total revenues; sales of notebook computers, servers, and
workstations accounted for about 33 percent of revenue. In early 1998, the company
had 16,000 employees.

Stalmot

1. Introduction

The Stalmot Ltd. is a new company in the furniture industry. The core activity of Stalmot Ltd. is
production of metal structures of chairs and armchairs. Stalmot Ltd. is a supplier of furniture
manufacturers. Stalmot Ltd. company is specialized in mass production and this is its main
competitive advantage on the market. The Stalmot's Customers are international furniture
manufacturers which supply the products to big distributors like IKEA, Castorama and others.

Company is located in Nidzica. The city in the warmińsko-mazurskie province.

Stalmot Ltd. has two production plants:
1) Production Plant in Nidzica
Address: 13-100 Nidzica, Sienkiewicz 2 St.
2) Production Plant in Bartoszyce
Address: 11-200 Bartoszyce, Wood 5 St.

The main business of the company is:

• Manufacturing furniture’s hardware, locks, hinges, furniture itself, electrical or hardware goods,
plastics
• Wholesale and retail trade of industrial goods, including hardware, furniture and construction
accessories, furniture and interior decors, metal and plastic products

In 2004 company name Wolszyńska Fittings Factory "WOLMET Sp. z o. o. based in Wolsztyn joined
Stalmot group.
In November 2006, there was formation of a new subsidiary in 100% owned by Stalmot: Stalmot
Distribution SRL, based in Arad, Romania.

Scheme no.1

The company sells its products to 33 countries worldwide. The whole capital group employs about
600 people.

2. Description of the Company

2.1 Market
 Stalmot’s activity in the furniture industry has seized domestic and foreign market.

Domestic market

With the country's production of fittings and furniture accessories deals several dozen
companies. In the majority, there are small businesses employing less than 50 employees.
Due to size of the enterprise, employment or sales volume, Stalmot Ltd. remains having a leadership
position in the domestic market. The biggest threat and competition for the company are polish
companies, such as Tagmet Sp. z o. o. , Marex.pl Sp. z o. o.

Foreign market

In Europe, the company compete with German companies such as Lusch and Stanzwerk Wetter.
Studying the environment, we cannot forget about the competition from China.

2.2 Forms of activity selected company on the market

Stalmot LTD. works on the B-2-B model. Stalmot is supplier for the furniture manufacturesrs which
are suppliers to the big wholesalers like IKEA, Castorama. There is no direct link from Stalmot to final
Customer, however Stalmot has important step in Suplly Chain of Chairs.
Picture 1: Supply Chain Structure for chair production

Because of the specific position in the furniture supply chain, Stalmot cooperates mainly with
the furniture manufacturers in the New Product Development.

The furniture manufacturer sends the RFP (Request For Proposal) to Stamot. Next Sales department
analyses the feasibility of requested project. After preliminary acceptation a request is transmitted to
R&D department where the engineers works on design, construction and technological processes.
The final feedback from R&D department is the cost calculation and technical contstraints definition.
Based on this estimations, Sales department is preparing an offer for furniture manufacturer. If the
offer is accepted there is the next important process – production planning.

Stalmot Ltd. has more than 500 clients from abroad. Sales outside the polish border takes
place on the basis of direct exports supported by the Central Sales Office in Nidzica.

The strategic location of foreign clients:

 Beside the direct exports, Stalmot also uses indirect distribution channels beyond the polish
borders. Channel’s formation is conducted with barriers like formal and legal impediments, labor
costs, the specifics of the market.
An important instrument in the development of international activities of Stalmot is participation in
international furniture exhibitions and fairs.