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    Robin Lusabio
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    Dell was planning a major outsourcing initiative to cope with competition. In 2009 and 2010, Dell shut down 5 manufacturing plants, including one in Poland that built computers for Europe, the Middle East, and Africa. Most of Dell's rivals that outsourced manufacturing gained competitive advantages over those that maintained in-house production, like Dell. Outsourcing manufacturing could open innovation opportunities for Dell. However, Dell needed to consider how outsourcing would impact employees and costs, qualify new suppliers, and minimize risks of knowledge leakage by closely managing relationships with outsourcing partners.

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    Dell was planning a major outsourcing initiative to cope with competition. In 2009 and 2010, Dell shut down 5 manufacturing plants, including one in Poland that built computers for Europe, the Middle East, and Africa. Most of Dell's rivals that outsourced manufacturing gained competitive advantages over those that maintained in-house production, like Dell. Outsourcing manufacturing could open innovation opportunities for Dell. However, Dell needed to consider how outsourcing would impact employees and costs, qualify new suppliers, and minimize risks of knowledge leakage by closely managing relationships with outsourcing partners.

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    © All Rights Reserved
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    17 views1 page

    Dell Case Study

    Uploaded by

    Robin Lusabio
    Dell was planning a major outsourcing initiative to cope with competition. In 2009 and 2010, Dell shut down 5 manufacturing plants, including one in Poland that built computers for Europe, the Middle East, and Africa. Most of Dell's rivals that outsourced manufacturing gained competitive advantages over those that maintained in-house production, like Dell. Outsourcing manufacturing could open innovation opportunities for Dell. However, Dell needed to consider how outsourcing would impact employees and costs, qualify new suppliers, and minimize risks of knowledge leakage by closely managing relationships with outsourcing partners.

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    © All Rights Reserved
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    Lusabio Jr, Robin A.

    BSBA 2.1B
    DELL CASE STUDY

    Dell’s company is planning on having a massive outsourcing to coup up with the competition. In
    2009, Dell has shut down five (5) of their manufacturing plants and in 2010, sell’s the plant in
    Lodz, Poland, which builds computers for Europe, the middle east, and Africa. Outsourcing is
    the new norm in PC industry, most of the rival industry that outsourced their manufacturing
    facilities have gained competitive advantages over those still maintain in-house production like
    dell company. With these space and possibility outsourcing will give a positive effect on the
    dell’s company, Outsourcing PC manufacturing can open a great innovation and advantages for
    the dell company.

    I. DELL’s COMPANY AREAS OF COSIDERATION BEFORE TAKING


    MASSIVE OUTSOURCING INITIATIVE.
    - The dell company must have a study if the outsourcing will be aligned in their services base
    on their target and goals.
    - Employee’s that will be affected of outsourcing, they must have a strategic plan or program
    to provide the needs of these employee and consider job relocation if possible.
    -Expenses it must carefully weight the cost of outsourcing vs. in-house production to achieve
    cost efficiency.
    -New Supplier’s capability and Integrity.

    II. WAYS TO MINIMIZE THE RISK OF OUTSOURCING


    Outsourcing means the organization allowed other party to access to its core competency,
    knowledge, process and market information, leakage of such info is leading to creation of
    potential competitors. Dell should polish their company policy and build a good term with
    them outsource to avoid this kind of problem. One way is to establish a better relationship
    with their supplier and employee.

    III. Option for the service delivery should dell inject to the company strategy to
    eliminate outsourcing risk.
    In-house a Managing Agent, Dell’s company must have a managing agent to monitor all the
    Organization transaction, obligation, liability, information, and responsibility. In that way
    dell company has a way to monitor and make sure that their product value will be maintain
    and safe from leakage.

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