Project Report on Marketing Strategies and Financial Statement Analysis of DELL

Institute of Innovation in Technology and Management

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 Institute of Innovation in technology & Management,
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 CONTENTS

Page No
S No Topic

1. Tittle page
_

2. Certificate(s)
_

3. Chapter-1: Company profile 1

4. Chapter-2: Marketing Strategies of the Company

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5. Reference
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 CHAPTER-1
COMPANY PROFILE

A. About the company.

B. Major Milestones.

C. Organizational structure.

D. Top management.

E. Products and services.

About the company

Founding and startup

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Michael Dell founded Dell Computer Corporation, doing business as PCs Limited, in 1984
while a student at the University of Texas at Austin. Operating from Michael Dell's off-campus
dormitory room at Dobie Center, the startup aimed to sell IBM PC-compatible computers built
from stock components. Michael Dell started trading in the belief that by selling personal
computer systems directly to customers, PCs Limited could better understand customers' needs
and provide the most effective computing solutions to meet those needs. Michael Dell dropped
out of college upon completion of his freshman year at the University of Texas at Austin in
order to focus full-time on his fledgling business, after getting about $1,000 in expansion-capital
from his family. As of April 2021, Michael Dell's net worth was estimated to be over $50 billion
the Vision

The company dropped the PC's Limited name in 1987 to become Dell Computer Corporation
and began expanding globally. At the time, the reasoning was this new company name better
reflected its presence in the business market, as well as resolved issues with the use of "Limited"
in a company name in certain countries.[23] The company set up its first international operations
in Britain; eleven more followed within the next four years. In June 1988, Dell Computer's
market capitalization grew by $30 million to $80 million from its June 22 initial public offering
of 3.5 million shares at $8.50 a share.[24] In 1989, Dell Computer set up its first on-site service
programs in order to compensate for the lack of local retailers prepared to act as service centers.

Dell Inc. is an American based technology company. It develops, sells, repairs, and supports
computers and related products and services. Dell is owned by its parent company, Dell
Technologies.[4][5]

Dell sells personal computers (PCs), servers, data storage devices, network switches, software,
computer peripherals, HDTVs, cameras, printers, and electronics built by other manufacturers.
The company is known for how it manages its supply chain and electronic commerce. This
includes Dell selling directly to customers and delivering PCs that the customer wants.[6][5]
Dell was a pure hardware vendor until 2009 when it acquired Perot Systems. Dell then entered
the market for IT services. The company has expanded storage and networking systems. It is
now expanding from offering computers only to delivering a range of technology for enterprise
customers.[7][8]

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Dell is a publicly-traded company (Nasdaq: DELL), as well as a component of the NASDAQ-
100 and S&P
500. It is the 3rd largest personal computer vendor as of January 2021.[9][10] Dell is ranked
31st on the Fortune 500 list in 2022,[11] up from 76th in 2021.[12] It is also the sixth-largest
company in Texas by total revenue, according to Fortune magazine. It is the second-largest non-
oil company in Texas.[13][14]

In 2015, Dell acquired the enterprise technology firm EMC Corporation. Dell and EMC became
divisions of Dell Technologies. Dell EMC sells data storage, information security, virtualization,
analytics, and cloud computing.

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MAJOR MILESTONES OF DELL

Dell’s vision statement, “Dell is committed to being a good neighbour in the communities we
call home. We must continue to grow responsibly- protecting our natural resources and
practicing sustainability in all its forms- and improve the communities where we live and work
through our financial and volunteer efforts.”

1984 - Dell can trace its origin back to 1984, when Michael Dell established Dell Computer
Corporation

1985 - The company produced its first computer with its own design- “Turbo PC”

1987 - Dell started its first operations in Ireland

1989 - Dell released its first notebook computer 316LT

1990 - Dell had nearly 1200 employees in its headquarters

1992 - Fortune Magazine included the Dell Computer Corporation in the list of 500 largest
companies of the world

1994 - Dell was the first company in offering long-lasting lithium-ion batteries

1995 – Dell started its worldwide operations in Europe, Americas, Asia with big ideas

1996 - Dell started selling its computers through the web sites

2001 - Dell became the No.1 provider of computer systems worldwide

2002 - The company expanded its product line and now included digital audio players,
televisions, printers.

2003 - The company was rebranded as “Dell Inc” for recognizing the company’s expansion just
beyond computers

2007 - The company issued quarterly earnings showing sales of $14.4 billion

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2008 - Dell switched the power resources of the headquarters to an environment-friendly one
2015 - Customer satisfaction rates reached a record high

2016 - Dell’s merger with EMC Corp was completed

Customer First-Attitude: Huawei’s employees have a customer-first attitude where they give
priority to their customers over their boss.

Decision Making - Slow & Steady: Ren Zhengfei is known to analyze in detail before going
ahead in any decision. The company gives importance to the power of thinking, a valuable
policy for the company’s philosophy.

Long-term Thinking: The long-term thinking of the management with the policy employee
ownership arrangement helps in retaining the Huawei’s dedicated employees

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ORGANIZATIONAL STRUCTURE

(HIERARCHY) OF DELL

Dell (Dell) companies in 1984 by entrepreneur Michael Dell founded the Computer industry; he
is currently the longest-serving CEO. Since Dell entered the Chinese market, choose a unique
Marketing approach allows Dell jumped the sky. Dell’s direct sales model, collaborative supply
chain, direct service and efficient marketing system combined into a whole for the Dell won the
unparalleled competitive advantage to Dell’s from a little-known small company into the
computer Industry giant.

Dell Corporation’s organizational structure is a functional, decentralized structure. The company

encourages different departments and functional components to contribute ideas to enhance the
strength of the organization. The hierarchical structure provides defines the various functions
provided by Dell Corporation, including Business Development, Education, and Global. A
decentralized structure provides more learning availability for all members of the enterprise, as
decisions come from various levels; in contrast, the centralized structure has more of the
decision-making coming from the upper levels of the enterprise, such as the CEO and Vice
Presidents. In the divisional organization, every division has its own groups to support that
specific division (such as purchasing units and human resources units).

Within Dell’s organisational Sales and Support divisions, the structure is quite typical of the
technology sector – each division has a senior manager, who oversees the work of the division
with a group of team leaders, who each have responsibility for a group of employees. The
workforce is dominated by Sales and
Marketing staff but also includes a significant Technical Support staff, as well as personnel
working in
Finance, Business Operations, IT and Human Resources divisions. The workforce in Dell is
non-unionized.

Dell markets its products with the promise of the “Dell Advantage”, which refers to a company
that is easy to deal with, easy to trust, and where the customer’s needs are paramount, so that

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each customer essentially has a customized PC built according to their specifications. In this
climate, excellence in Customer Service, from point of initial contact through product delivery
and on to after- sales support, is one of the keys to high performance. Dell promotes and values
continuous learning and has driven Business Process Improvements (BPI) into all elements of its
operations. The approach has been to educate employees to think from the customer perspective
and to use a methodology and toolset to improve everything they do. Lean Thinking and BPI
have enabled Dell to contribute to Dell’s competitive advantage.

Cross functional teams look at end-to-end repeatable processes with a view to improving the
customer experience, eliminating waste, reducing cost, increasing efficiencies and removing low
or non value-added activities from employees. While the programmer has the support and
involvement of senior management, the involvement of employees on the ground who use the
process on a daily basis is fundamental to the success of the programmer. Through BPI and
Lean, all Dell employees have the power to fundamentally change their day-to-day work
processes. These results in a high degree of flexibility coupled with a teambased approach to
problem solving, giving the company the capacity to respond effectively to new challenges.

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 TOP MANAGEMENT OF DELL

Technical Level

Dell Corporation is a layered organization which consists of technical, management and

community levels (Boone, Kurtz, 1992). The technical level is very important for Dell
Corporation because of the nature of tasks it performs. Technology is the primary driving factor
in this arena. It is concerned with specific operations and discrete tasks, with the actual job or
tasks to be done, and with performance of the technical function. Within Dell Corporation
technical level includes the physical production of goods. Accept computer technologies,
accessories for these types of products are the next major market in the electronics industry.
Along with accessories, the demand for “smart” appliances for the home and office will also
grow. More and more consumers will want their everyday appliances to be Internet-ready and
able to think for themselves. These areas are where PC and notebooks can find and exploit
opportunities. As any company Dell Corporation must look for new trends in business
development. Dell has 4,000 engineers and spends $600m each year on R&D (Dell Inc.
Company profile, 2005).

Administrative Level

Another level of organizational structure is the Administrative level. In Dell Corporation it is

concerned with the co-ordination and integration of work at the technical level. Decisions at the
administrative level relate to the resources necessary for performance of the technical function,
and to the beneficiaries of the products or services provided. Administrative level is concerned
with those activities involved in recruiting of professional staff, training, and development
within the organization and infrastructure, namely the systems of technology planning, finance,
quality control, etc. which are crucially important to an organization’s strategic capability in all
primary activities (Dell Inc. Company profile, 2005; Dell Inc. Home Page, 2005).

Decisions is concerned with mediating between the organisation and its external environment,
such as the users of the organisation’s products or services, and the procurement of resources;
and the ‘administration’ of the internal affairs of the organisation including the control of the
operations of the technical function.

Institutional level

Institutional level is concerned with broad objectives and the work of Dell Corporation as a
whole. Decisions at this level are concerned with the selection of operations, and the
development of the organisation in relation to external agencies and the wider social

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environment. It provides a mediating link between the administrative level and technical level
(Dell Inc. Company profile, 2005; Dell Inc. Home Page, 2005).

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 Product And Services

Scope and brands

The corporation markets specific brand names to different market segments.
Its Business/Corporate class includes:

• OptiPlex (office desktop computer systems)

• Dimension (home desktop computer systems)
• Vostro (office/small business desktop and notebook systems)
• n Series (desktop and notebook computers shipped with Linux or FreeDOS installed)
• Latitude (business-focused notebooks)
• Precision (workstation systems and high-performance "Mobile Workstation"
notebooks),[209]
• PowerEdge (business servers)
• PowerVault (direct-attach and network-attached storage)
• Force10 (network switches)
• PowerConnect (network switches)
• Dell Compellent (storage area networks)
• EqualLogic (enterprise class iSCSI SANs)
• Dell EMR (electronic medical records) Dell's Home Office/Consumer class includes:

• Inspiron (budget desktop and notebook computers)

• XPS (high-end desktop and notebook computers)
• G Series (high/medium-performance gaming laptops)
• Alienware (high-performance gaming systems) • Venue (Tablets Android /
Windows)

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 CHAPTER-2

Marketing strategies of DELL

A. MARKET SHARE.

B. SWOT ANALYSIS.

C. MARKETING STRATEGIES.

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 MARKET SHARE

The PC market ended 2021 with a bang, as fourth-quarter shipments exceeded 90 million for the
second year in a row. The latest Canalys data shows that worldwide shipments of desktops,
notebooks and workstations grew 1% year on year to 92 million units over 91 million a year
ago. This pulled up total shipments for fullyear 2021 to 341 million units, 15% higher than last
year, 27% higher than 2019 and the largest shipment total since 2012. Furthermore, the industry
saw strong revenue gains, with the total value of Q4 shipments estimated at US$70 billion, an
annual increase of 11% over Q4 2020. For the full year, revenue passed US$250 billion in 2021
against US$220 billion in 2020, up 15%, highlighting the seismic transformation in the industry.

The two-year compound annual growth rate of 13% from 2019 emphasizes how dramatically the
importance of PCs has grown since the onset of the COVID-19 pandemic. Notebooks and
mobile workstations continued to lead the charge, with shipments of these devices growing 16%
in 2021 to reach 275 million units. Desktop and desktop workstation shipments increased 7% in
2021 to reach 66 million units.

“2021 was a watershed year in the history of the PC market, with the PC’s place at the center of
work, learning and leisure truly cemented,” said Ishan Dutt, Senior Analyst at Canalys. “For the
market to post double-digit growth over an impressive 2020, despite the constant cloud of
supply constraints, speaks volumes about how strong PC demand has been over the last 12
months. Taking a long-term view, the most important developments in 2021 were the large
increases in PC penetration and usage rates. PCs are now in the hands of both young students
and older family members, while ownership of two or more PCs per person has become more
common in developed markets. Since the onset of the pandemic, a larger than normal proportion
of PCs shipped have been new additions to the installed base rather than replacement devices,
especially in areas such as education and remote work. This has set the stage for continued
success for the PC industry as there is no turning back from how embedded they are in our day-
to-day lives.”

Lenovo took first place in the PC market in Q4 with total shipments of 21.7 million units, an
annual decline of 6.5%. It was also the biggest-shipping vendor for full-year 2021, hitting a
record 82.1 million units, a 13.1% increase on 2020. HP ranked second, with Q4 shipments of
18.7 million units helping it reach 74.1 million units in 2021, growth of 9.5% over 2020. Third-
placed Dell posted stellar growth of 8.9% in Q4 to reach 17.2 million units and increased its
market share by over 1%. Dell ended 2021 with total shipments of 59.3 million units for the

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year. Apple came fourth with Q4 growth of 9.0% and full-year growth of 28.3%, making it the
best-performing vendor in the top five. It shipped 7.8 million units in Q4 and 29.0 million units
in full-year 2021. Acer rounded out the top five for both Q4 and the full year, posting shipments
of 6.6 million in Q4 and 24.4 million units in 2021.

MAJOR COMPETITOR OF DELL

1) Lenovo

Lenovo is a Chinese multinational technology company with headquarters in Beijing. It Like

Dell, Lenovo also specializes in designing, manufacturing, and selling of a number of computers
and computer-related devices, software, servers, and workstations. Because of its massive
distribution, it is one of the strongest Dell Competitors.

Until recently, Lenovo started manufacturing HD televisions and smartphones, which apparently
gave them an edge in the market since it generated considerable revenue, especially in the
Chinese market. It is ranked as the leading PC vendor since 2013 regarding units’ sale per year.

2) Apple

Apple Inc is arguably the most popular technology company in the world. It designs,
manufactures and sells quite a good number of products including consumer software, online
services, PCs, smartphones, smart TVs, tablets and other portable computer-driven devices.
Currently, Apple Inc generates more than half of its revenue from selling a million units of its
iPhone series.

However, it also manufacturers Mac PCs and iPads albeit in comparatively low volume. Its PCs
market is not as aggressive as its smartphone markets, but it should be understood that most of
its customers are unwaveringly loyal to this brand giving it an advantage in the market. As at
2017, Apple Inc has already opened approximately 500 stores with over 124,000 employees in
the US and other major markets especially in Europe.

3) Samsung

Samsung Group is a South Korean conglomerate company founded in 1938. It is a business that
comprises of several enterprises but it is the electronics market that it entered in 1960 that drove
the revenue for the brand. Samsung electronics majors in ICT products and was ranked fifth in
market value in 2016.

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The total revenue of this particular company generates about 17% of the overall South Korea’s
GDP. It explains why therefore it has significant influence in different political, social and
economic spheres of South Korea. In regards to PCs, Samsung has never been extensively
involved in manufacturing a wide range of computers. However, it has been able to penetrate the
market with the few number of PCs, scanners, printers and other devices that it has produced.

4) Hewlett Packard

HP Inc is arguably the fiercest competitor that Dell currently encounters in the market other than
IBM. Before breaking, it was perhaps the highest ranked American multinational company in
terms of unit sales. It developed and offered a wide range of computer hardware and software
products across the board ranging from small business units to large blue chip corporates and
government institutions.

Most of the products it specialized in producing include PCs, servers, printers and various
imaging products. Its merger with Compaq in 2002 and eventual acquisition of EDS also played
a significant role in its revenue growth. It, however, split its computer and printer business from
products and services business in 2015, which would see it coming with two independent
entities of HP Inc and Hewlett Packard Enterprise. All the same, it is still a brand to beat in this
particular industry.

5) Acer

Acer Inc is a Taiwanese company that deals with advanced electronics and consumer hardware.
It majors in manufacturing PCs, both desktops, and Laptops, servers, peripherals, smartphones,
tablets and storage devices.

Acer has been slowly getting bigger in this industry and has since established a business model
that has made it possible for it to shift to designing, marketing and distributing its products while
contracting independent manufacturers to perform its production processes.

This business model bore fruits in the sense that Acer was able to become among the top 5 PC
vendors in the world based on unit shipments. It also venturing into smartphone manufacturing
and other IT related services like cloud-based services integration. With the focus and ambition
that this company has, it is certainly rising to become among the top players in the computer
technology sector. Acer has a fantastic product portfolio with laptops being available of
practically all variety therefore making Acer one of the top Dell Competitors.

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6) Sony

Sony is a Japanese based multinational company that deals in professional and consumer
electronics, financial services, entertainment, and gaming consoles. Under the stable of Sony
Corporation, Sony electronics specializes in dealing with ICT components, network, and
semiconductors.

It was founded in 1946 and has transformed to serve almost all areas in the world. Its products
are widely accepted in different parts of the world, which has made it one of the leading
technology companies in the world. Sony’s computer hardware products are not however
common in different segments of the market.

This is attributed to the fact that it majors in other areas of its production line hence overlooking
its computer hardware market.

It thus does not pose as a major competitor in the computer hardware and telecommunication
market as it stands but still covers a considerable market share.

7) Microsoft

Microsoft is popularly known for its dominance in the computer operating system software. It
has claimed significant market share especially in desktops and laptops through MS-DOS and
currently its MS Windows series.

However, it also ventured into the computer hardware industry and started producing gaming
consoles, smartphones, and computer-related devices. Microsoft bought Nokia and began
producing Windowspowered smartphones under their label. But the change in leadership in the
recent past has made it possible for Microsoft to scale down on its production of hardware
products and rather focus on software and cloudbased services. But with the latest Microsoft
surface pro, Microsoft has received greater acceptance in the laptop market and might be one of
the future Dell Competitors on a large scale.

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 Q4 Q4
Vendor Q4 2021 2021 Q4 2020 2020 Annual
(company) shipments market shipments market growth
share share
Lenovo 21,701 23.7% 23,220 25.5% -6.5%
HP 18,645 20.3% 19,225 21.1% -3.0%
Dell 17,195 18.7% 15,794 17.4% 8.9%
Apple 7,810 8.5% 7,163 7.9% 9.0%
Acer 6,582 7.2% 6,166 6.8% 6.7%
Others 19,802 21.6% 19,431 20.7% 1.9%
Total 91,736 100.0% 90,999 100.0% 0.8%
Note: Unit shipments in thousands.
Percentages may not add up to 100% due to
rounding.
Source: Canalys PC Analysis (sell-in
shipments), January 2022

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 Swot Analysis of DELL

Strengths

1. Brand name. Dell has a very strong brand reputation for quality products. Its
brand is valued at $ 7.5 billion.
2. Product customization. Dell allows its customers to customize their laptops.
Such services were not originally found within any other major computer retailer
(and currently only Sony and Toshiba allow that), but add great value to the
customers and provides Dell with a competitive advantage.
3. Environmental record. Dell is engaged in many green initiatives and has
received many rewards for being an eco-friendly business. This is a benefit when
working with public and government agencies.
4. Competency in mergers and acquisitions. Over the last five years Dell has
spent $13 billion for successful mergers and acquisitions, which brought patents,
new capabilities, assets and skills to the business.
5. Direct selling business model. Dell doesn’t sell its products through big-box
retail outlets but instead sells directly to consumers and enterprises, keeping their
already thin profit margin to themselves.

Weaknesses

1. Commodity products. The large stream of Dell’s revenues comes from

computer, especially laptop, sales, which is a commoditized product. Computer
hardware (commodity) products are sold with a very low profit margin.
2. Poor customer services. Once praised, Dell’s customer services deteriorated due
to outsourcing its call centers offshore. Dell invested a large sum of money in
fixing this, but hasn’t yet regained its previous reputation for customer services.
3. Low investments in R&D. The company spends a much lower percentage of its
income on R&D that its main competitors and thus, missed an opportunity to
develop strong products for smartphones and tablet markets as well as to learn
new skill and capabilities.
4. Weak patent portfolio. Due to low spending on R&D Dell hasn’t acquired a
strong portfolio of patents and is now finds it hard to compete in lucrative
smartphones and tablets market.
5. Too few retail locations. Selling products online saves money and allows for
product customization but provides less visibility for the products. The consumer
finds it hard to trust the products if it can’t hold it first in his hands.
6. Low differentiation. Low price was once Dell’s competitive advantage but the
company is no longer able to provide competitive prices. Apart from the price,

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 Dell’s products are little differentiated from competitors’ products and are in
competitive disadvantage if the price offered by competitor is lower.
Opportunities

1. Expand services and enterprise solutions divisions. Dell provides various

services (cloud, security and infrastructure) and enterprise solutions (servers,
networking and storage), which are the most profitable Dell’s business at the
moment. Dell business should focus on growing these divisions as they promise
better growth opportunities and higher profit margins.
2. Obtain more patents through acquisitions. If Dell wants to diversify, it needs
new technology patents and new ideas. Dell hasn’t properly established its R&D
facilities to discover new technologies and patents, so the only feasible way to
obtain patents and technologies is to acquire other companies.
3. Strengthen their presence in emerging markets. Emerging economies are the
fastest growing markets for laptops, tablets and other electronic devices. Dell has
a good presence in these markets but should strengthen its position as the
company experiences declining market share.
4. Tablet market growth. Tablet market is expected to grow in double digits for
the next few years and the company has a great opportunity to release new tablet
models and benefit from the market growth.

Threats

1. Growing demand for smartphones and tablets. With a lower price and
strongly improved capabilities, consumers often choose tablets and smartphones
over laptops. The growing demand for the previous devices takes a share out of
laptops, the main stream of revenue for Dell.
2. Profit margin decline on hardware products. Dell’s main income is from
selling hardware products, which prices will increase in the future due to rising
raw material prices. This will add to costs for Dell and will further cut the profit
margin.
3. Slowing growth rate of the laptops market. Growth rate of the computer
market is slowing down and in the near future the markets will become saturated.
It will prove hard for Dell to compete in such market or at least fight back the
lost market share.
4. Intense competition. The company faces intense competition in all its business
segments. It competes in terms of price, quality, brand, technology, reputation,
distribution and range of products, with Acer, Apple, HP, IBM, Lenovo and
Toshiba.

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 Marketing strategies of DELL

Dell Technologies helps organizations build their digital futures and individuals transform how
they work, live, and play. Dell provides customers with one of the industry’s broadest and most
innovative solutions portfolios for the data era, including traditional infrastructure and extending
to multi-cloud environments.

Dell is helping customers accelerate their digital transformations to improve and strengthen
business and workforce productivity by offering secured, integrated solutions that extend from
the edge to the core to the cloud.

Dell is expanding its IT-as-a-Service and cloud offerings to give customers greater flexibility to
scale IT to meet their evolving business needs and budgets. As strategy enthusiasts, we decided
to analyze the business model, supply chain strategy, and marketing strategy of Dell.

Strategy adopted by Dell

Dell’s customers include large global and national enterprises, public institutions, governmental
agencies, educational institutions, healthcare organizations, law enforcement agencies, small and
medium-sized businesses, and consumers. Hence Dell has a unified global sales and marketing
strategy that is customerfocused, collaborative, and innovative.

Go-to-market strategy — Dell sells products and services directly to customers and through
other sales channels, which include value-added resellers, system integrators, distributors, and
retailers. Dell continues to pursue a direct business strategy, which emphasizes direct
communication with customers, thereby allowing it to refine Dell’s products and marketing
programs and strategy for specific customer groups. In addition to Dell’s direct business
model, Dell uses its network of channel partners to sell Dell’s products and services, enabling
it to serve a more significant number of customers efficiently. Dell has a partner program for
the development of channel sales, which provides appropriate incentives to encourage sales
generation. During Fiscal 2022, Dell’s other sales channels contributed over 50% of Dell’s net
revenue.

Dell’s go-to-market engine includes a 32,000-person sales force and a global network of over
200,000 channel partners. Dell Financial Services and its affiliates (“DFS”) offer customers
payment flexibility and enable synergies across the business.

Large enterprises and public institutions — Dell maintain a field sales force for large
enterprises and public institutions. Dedicated account teams, which include technical sales
specialists, form long-term relationships to provide Dell’s most prominent customers with a

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single source of assistance, develop tailored solutions for these customers, position the
capabilities of Dell Technologies, and provide it with customer feedback.
For these customers, Dell offers several programs to provide single points of contact and
accountability with dedicated account managers, special pricing, and consistent service and
support programs. Dell also maintains specific sales and marketing programs targeting federal,
state, and local governmental agencies and healthcare and educational customers.

Small and medium-sized businesses and consumers — As part of its marketing strategy, Dell
markets its products and services to small and medium-sized enterprises and consumers through
various advertising media. To react quickly to Dell’s customers’ needs, Dell tracks its Net
Promoter Score, a customer loyalty metric widely used across multiple industries. Dell also
engages with customers through Dell’s social media communities on Dell’s website and in
external social media channels.

Supply Chain Strategy of Dell

Dell owns manufacturing facilities in the United States, Malaysia, China, Brazil, India, Poland,
and Ireland.
Dell also utilizes contract manufacturers worldwide to manufacture or assemble Dell’s products
under the
Dell Technologies brand as part of Dell’s strategy to enhance Dell’s variable cost structure and
to achieve Dell’s goals of generating cost efficiencies, delivering products faster, and enhancing
Dell’s supply chain strategy.

Dell’s manufacturing process consists of assembly, software installation, functional testing, and
quality control. Dell conducts operations utilizing a formal, documented quality management
system to ensure that Dell’s products and services satisfy customer needs and expectations.
Testing and quality control are also applied to components, parts, sub-assemblies, and systems
obtained from third-party suppliers. Dell’s quality management system is maintained by testing
components, subassemblies, software, and systems at various stages in the manufacturing
process.

How Dell pioneered the Just in Time to gain market share?

Dell has implemented programs and methodologies to ensure that the quality of Dell’s designs,
manufacturing, test processes, and supplier relationships are continually improved. Dell
maintains a Supplier Code of Conduct, actively manages recycling processes for Dell’s returned
products and is certified by the Environmental Protection Agency as a Smartway Transport
Partner.

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As part of its supply chain strategy, Dell purchases materials, supplies, product components, and
products from many qualified suppliers. The strategy of contracting multiple vendors for
procurement needs is called Multi-vendor sourcing.

Dell maintains more than 2,400 vendor-managed service centers. Dell’s supply chain strategy
drives longterm growth and operating efficiencies, with approximately $75 billion in annual
procurement expenditures and over 750 parts distribution centers. Together, these elements
provide a critical foundation for Dell’s success.
How does Dell make money: Business Model
Before we understand how Dell makes money and its business model, let’s understand the
structure of offerings from Dell. Dell designs, develops, manufactures, markets, sells, and
supports comprehensive and integrated solutions, products, and services. Dell is organized into
two business units, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

Infrastructure Solutions Group (“ISG”) — ISG enables customers’ digital transformation

through trusted multi-cloud and big data solutions built upon modern data center infrastructure.
ISG helps customers simplify, streamline, and automate cloud operations in hybrid cloud
deployment. ISG solutions are built for multi-cloud environments and optimized to run cloud-
native workloads in public and private clouds and traditional on-premise workloads.
Client Solutions Group (“CSG”) — CSG includes branded hardware (such as desktops,
workstations, and notebooks) and branded peripherals (such as displays and projectors), as well
as third-party software and peripherals. For customers seeking to simplify client lifecycle
management, Dell’s PC-as-a-Service offering combines hardware, software, lifecycle services,
and financing into one all-encompassing solution that provides predictable pricing per seat per
month. CSG also offers attached software, peripherals, and services, including support and
deployment, configuration, and extended warranty services.

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Dell made $102 Billion in 2021, a 17% growth from 2020. Dell makes money primarily from
two revenue streams: products and services. Product revenue includes the sale of hardware
products and software licenses. Service revenue includes service offerings and support services
related to hardware products and software licenses. Products and Services contribute 70% and
21% to Dell’s revenue, respectively.

In 2021, product revenue increased by 18%, primarily due to an increase in product net revenue
for CSG and, to a lesser extent, ISG product net revenue. CSG product revenue increased
primarily due to increases in units sold of both commercial and consumer product offerings as a
result of continued strength in the demand environment and, to a lesser extent, an increase in
average selling price principally related to our commercial offerings. ISG product net revenue
increased primarily due to increased sales volumes of server offerings.

At the same time, services revenue increased by 13%, driven primarily by growth in CSG
services revenue and, to a lesser extent, growth in both ISG and other businesses’ services
revenue. Growth in CSG services revenue was primarily due to increases in services net revenue
attributable to both CSG hardware support and maintenance and CSG third-party software
support and maintenance. ISG services revenue increased primarily due to growth within
hardware support services, while other business services’ net revenue increased due to software
support and maintenance growth within VMware Resale.

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 Chapter -III:

Financial Ratios

⦁ Explain any 5-7 ratios with formula and do the interpretations.

1.Current Ratio: The current ratio measures a company's ability to pay its short-term liabilities
with its current assets. A higher current ratio is generally preferred because it indicates a
company has enough current assets to cover its current liabilities.

Formula: Current Ratio = Current Assets / Current Liabilities

Interpretation: A current ratio of 1 or higher is considered acceptable, while a ratio of 2 or higher

is generally preferred. A ratio of less than 1 indicates that the company may have difficulty
paying its short-term liabilities.

2.Debt-to-Equity Ratio: The debt-to-equity ratio measures the amount of debt a company has
compared to its equity. A higher ratio means a company is relying more on debt financing, which
can increase risk.

Formula: Debt-to-Equity Ratio = Total Liabilities / Total Equity

Interpretation: A lower debt-to-equity ratio is generally preferred, as it indicates a company is

relying more on equity financing. A higher ratio could indicate that a company is taking on too
much debt, which could lead to financial distress.

3.Gross Profit Margin: The gross profit margin measures how much profit a company makes on
each dollar of revenue after accounting for the cost of goods sold.

Formula: Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue

Interpretation: A higher gross profit margin indicates a company is generating more profit per
dollar of revenue, which is generally preferred. A lower margin could indicate a company is
facing pricing pressure or struggling with production costs.

4.Return on Equity: The return on equity measures a company's ability to generate profit from its
equity.

Formula: Return on Equity = Net Income / Total Equity

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Interpretation: A higher return on equity indicates that a company is generating more profit from
each dollar of equity investment, which is generally preferred. A lower return on equity could
indicate that a company is not utilizing its equity effectively.

5.Price-to-Earnings Ratio: The price-to-earnings ratio compares a company's stock price to its
earnings per share. It is a popular valuation metric used by investors to determine the relative
value of a stock.

Formula: Price-to-Earnings Ratio = Stock Price / Earnings per Share

Interpretation: A higher price-to-earnings ratio could indicate that a stock is overvalued, while a
lower ratio could indicate that it is undervalued. However, the interpretation of the price-to-
earnings ratio can vary significantly depending on the industry and the company's growth
prospects.

6.Return on Assets: The return on assets measures a company's ability to generate profit from its
assets.

Formula: Return on Assets = Net Income / Total Assets

Interpretation: A higher return on assets indicates that a company is generating more profit from
each dollar of assets, which is generally preferred. A lower return on assets could indicate that a
company is not utilizing its assets effectively.

7.Inventory Turnover Ratio: The inventory turnover ratio measures how efficiently a company is
managing its inventory by comparing its cost of goods sold to its average inventory.Formula:
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Interpretation: A higher inventory turnover ratio indicates that a company is selling its inventory
quickly, which is generally preferred. A lower ratio could indicate that a company is facing
inventory management issues or has an excessive amount of inventory.

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28
 Dell Technologies Inc Stock Price Analysis 2023

This report will help you with various insights regarding the 2023 (current year) performance
(price and returns) of Dell Technologies Inc (DELL) stock in NYSE.

What Would Have Been The Performance Of A 1000$ Investment In Dell Technologies Inc
(DELL) Stock On Jan 1, 2023?

Note: We have used the values of Return and Annual Projected Return computed from the
previous section (2) in the current one.
If you had invested 1000$ in DELL on Jan 1, 2023 what will be your portfolio gain/loss during
06-02-2023 and during the end of the year?
Performance as on (06-02-2023) = 1000 + (R (Return in % ) x 1000)
= 1000 + (( 17.52 / 100 ) x 1000) = $1175.2
Projected Performance at the end of 2023 = 1000 + (AR (Annual Return in %) x 1000)
= 1000 + (( 42.05 / 100 ) x 1000) = $1420.5

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Dell Technologies Inc (DELL) Dividends In 2023?

Are you one of those willing to invest in dividend paying stocks? If so this section will help you.
Did DELL pay dividends in 2023?
Yes, Dell Technologies Inc (DELL) has handed out dividends 2 times this year 2023. Below are
the dates and dividend in dollars per share.
Date Dividend Per Share
01-24-2023 $0.33
04-24-2023 $0.37

Highest Daily, Weekly and Monthly Performances Of DELL Stock in 2023

06 months have passed since the start of 2023. At this juncture, you may be interested to know
the best daily, weekly and monthly prices of DELL stock.
Date Highest Prices Volume (In 1000 units)
One Day 05-26-2023 $48.51 4297.11 K
Week Week 21 - 2023 $47.28 3908.01 K
Month June-2023 $46.36 11186.50 K

Lowest Daily, Weekly and Monthly Performances Of DELL Stock in 2023

The previous section highlighted the highest price performances. Now let us check the lowest
prices.
Date Lowest Prices Volume (In 1000 units)
One Day 03-13-2023 $36.26 5580.85 K
Week Week 11 - 2023 $37.06 6888.02 K
Month March-2023 $38.11 4906.43 K

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 Chapter-IV:

Initiatives towards Sustainability and Unique Practices

ADVANCING SUSTAINABILITY

Moonshot Goal By 2030, for every product a customer buys, we will reuse or recycle an
equivalent product. 100% of our packaging will be made from recycled or renewable
material. More than half of our product content will be made from recycled or renewable
material.

Dell has been actively involved in various initiatives towards sustainability. Some of the
notable initiatives are:

1. Circular Economy: Dell has invested in building a circular economy by reusing and
recycling materials from older products to create new ones. The company is taking steps to
ensure its products reach the end-of-life stage with minimal environmental impact.

2. Energy Efficiency: Dell is committed to reducing its carbon footprint and increasing
energy efficiency. The company has set targets to use 100% renewable energy for its
operations and products by 2040.

3. E-waste Management: Dell has implemented a global responsible recycling program,

where it collects e-waste from customers and recycles them responsibly. The initiative is
aimed at reducing the hazardous effects of e-waste on the environment and promoting
sustainable practices.

4. Green Packaging: Dell is using sustainable materials for packaging, such as bamboo and
wheat straw, to reduce the environmental impact of packaging waste. The company is also
working to reduce the amount of packaging material used and optimize packaging design
for sustainability.

5. Social Responsibility: Dell is committed to providing safe and ethical working conditions
for its employees and suppliers, as well as promoting diversity and inclusion. The company

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also supports various social and environmental causes through its Corporate Social
Responsibility programs.

Overall, Dell's sustainability initiatives are noteworthy and demonstrate the company's
commitment towards environmental and social responsibility. The company has set
ambitious targets to reduce its environmental impact and promote sustainability, and it is
making significant progress towards achieving them.

Green initiatives

Dell became the first company in the information technology industry to establish a product-
recycling goal (in 2004) and completed the implementation of its global consumer recycling-
program in 2006.On February 6, 2007, the National Recycling Coalition awarded Dell its
"Recycling Works" award for efforts to promote producer responsibility. On July 19, 2007, Dell
announced that it had exceeded targets in working to achieve a multi-year goal of recovering 275
million pounds of computer equipment by 2009. The company reported the recovery of 78
million pounds (nearly 40,000 tons) of IT equipment from customers in 2006, a 93-percent
increase over 2005; and 12.4% of the equipment Dell sold seven years earlier.
On June 5, 2007, Dell set a goal of becoming the greenest technology company on Earth for the
long term.[249] The company launched a zero-carbon initiative that includes:

1986 reducing Dell's carbon intensity by 15 percent by 2012

1987 requiring primary suppliers to report carbon emissions data during quarterly
business reviews
1988 partnering with customers to build the "greenest PC on the planet"
1989 expanding the company's carbon-offsetting program, "Plant a Tree for Me"

Dell reports its environmental performance in an annual Corporate Social Responsibility (CSR)
Report that follows the Global Reporting Initiative (GRI) protocol. Dell's 2008 CSR report
ranked as "Application Level B" as "checked by GRI".
The company aims to reduce its external environmental impact through an energy-efficient
evolution of products, and also reduce its direct operational impact through energy-efficiency
programs.

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Progress Reported in FY 2022

- In FY22, Dell recovered 12.1% of products sold to their customers (measured as total units
collected for recycling and reuse, divided by total number of units sold). This represents a 2.5
percentage point improvement from the previous year

- In FY22, 90.2% of Dell’s packaging was made from recycled or renewable materials. This
represents 3.2 percentage point improvement from the previous year.This metric only applies to
known Dell customer packaging programs

- In FY22, 5.9% of the material used in Dell’s products was made from recycled or renewable
material content. This represents a 2.0 percentage point improvement from the previous year

- The company has reduced their emissions from direct material suppliers per $MM 3.0% from
their FY20 baseline (a MTCO2e to $MM ratio of 42.4 in FY22, vs. 43.7 in FY20)

- In FY22, 33.9% of Dell’s global workforce identified as women. This represents an annual
addition of 2.1% points toward the goal

- In FY22, 28.2% of Dell’s people leaders identified as women. This represents an annual
addition of 2.4 % points toward the goal

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Targets Towards ADVANCED SUSTAINABLITY GOALS

• We will reach net zero greenhouse gas emissions across Scopes 1, 2 and 3 by 2050

• We will reduce Scopes 1 and 2 greenhouse gas emissions by 50% by 2030

• We will source 75% of electricity from renewable sources across all Dell Technologies
facilities by 2030 — and 100% by 2040

• We will reduce the energy intensity of our entire product portfolio by 80% (FY12–FY21)

• We will partner with our direct material suppliers to meet a science-based greenhouse gas
emissions reduction target of 60% per unit revenue by 2030

• We will drive sustainability improvements in our global workplaces through 2030

• Each year through 2030, we will show continued commitments to provide healthy work
environments where people can thrive

• Each year through 2030, we will deliver future-ready skills development for workers in our
supply chain

• Each year through 2030, we will continue engagement with the people who make our products

"We believe that people, technology and data together are the recipe for positive change in
society."

Reuse, repair, refurbish, recycle

Dell Technologies wants to take a pioneering role in the circular economy. "We want to reuse or
recycle the same type of product for every product sold by 2030. Half of our product content and
all of our packaging should be made of recycled or renewable materials by then. We are looking
at the entire production process, from design to use. We focus on the four pillars 'reuse', 'repair',
'refurbish' and 'recycle'. For example, we want to design products to be modular, which means
that the various components can be easily disassembled and replaced. The design of the products
must also make it possible to upgrade them easily to a newer version, which reduces the need for
customers to replace a product."

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Recycle today Protect tomorrow

At Dell Technologies, we’re committed to protecting our customers and our planet. That’s why
we provide secure and responsible recycling options for both consumers and businesses around
the world. Find the service that's right for you today.

Technology as a driver

To be fully climate neutral by 2050, Dell Technologies is setting itself the goal of reducing its
greenhouse gas emissions by 60% by 2030 already. "To that end, we are establishing a
comprehensive 'science-based' climate programme, with emissions targets at the facilities,
operations and supply chain levels."
Dell Technologies emphasizes the central role of technology in that process. "Artificial
intelligence can help develop new logistics systems and chains to enable greater disassembly and
recycling of products. We connect knowledge and data so that we can understand the path that
materials take through the supply chain. This reveals where there is material loss or where there
are opportunities to make the process more efficient and reduce our emissions."
"Technologies like AI and machine learning also uncover where the largest emissions are
occurring and which form of carbon emissions are easiest to address. With that information, we
can then determine which measures will have the most impact."
Activating employees

Dell Technologies has for several years been providing increased awareness and education to its
employees through its Employee Resource Groups. The ERGs address thirteen social issues,
including "planet," and encourage some 54,000 employees worldwide to participate in various
activities. In Belgium, for example, employees went litter picking during afternoon walks and
worked around Earth Overshoot Day and Earth Hour.

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 Chapter-V:

Conclusions and Suggestions

Minimum five points about what have you learnt from above mentioned marketing
strategies and financial ratios

In conclusion, Dell has demonstrated a strong commitment towards sustainability through its
various initiatives. The company has set clear targets and targets for reducing its environmental
impact and promoting social responsibility, and has made notable progress towards achieving
them.

As a responsible corporate entity, Dell has several responsibilities to uphold. It must continue to
prioritize sustainability and environmental stewardship in all its operations and work to minimize
its ecological footprint. The company should also promote ethical practices and ensure fair
working conditions for its employees and suppliers.

Moreover, Dell should strive to innovate and lead the way in the adoption of sustainable
technologies, such as renewable energy, energy-efficient products, and circular economy
practices. By doing so, Dell can set an example for the industry and inspire other businesses to
follow suit.

Overall, Dell has a vital role to play in promoting sustainability and environmental stewardship,
and it must continue to shoulder its responsibilities in this regard to build a better and more
sustainable future for all.

The analysis of financial performance of Dell Limited is stated in this report. The liquidity
position of the company is satisfactory hence the company can meet out its short term liabilities
and have enough quick assets to pay off current liabilities and future it has to maintain day to day
cash management to increase the absolute liquid ratio alone. However the profitability position
of the company is not much better, that the company has to decrease the cost of production and
keep the cost lower or increase sales price and also need to improve the efficiency in converting
sales into actual profit.

Today's reality is that technology is no longer boxed in - it's happening all around us. Enabled by
emerging technologies but founded upon effective data management. What does this mean for
organizations to be inclusive and their technology leaders today?

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CIOs are faced with no shortage of competing projects and priorities. And with many projects
being put on hold due to economic uncertainty, picking the right areas to advance is critical. The
data shows why technology leaders would be well served to preserve and even accelerate their
data management initiatives since more mature organizations are able to:
• Drive innovation and transformation with data-driven product development.
• Deliver a superb customer experience by better understanding and acting on
customer data.
• Ensure uptime and reduce risk with proactive and predictive maintenance.
All of these combine to help organizations with mature data management practices achieve
improved economic results.

Marketing Strategies for DELL

1.Digital Marketing: Fintech companies often rely on digital marketing channels such as search
engine optimization (SEO), search engine marketing (SEM), content marketing, social media
marketing, and email marketing to reach their target audience and generate leads.

2.Partnerships and Referral Programs: Collaborating with other fintech companies, financial
institutions, or relevant businesses can help increase exposure and customer acquisition.
Additionally, implementing referral programs that incentivize existing customers to refer new
customers can be an effective marketing strategy.

3.Thought Leadership and Content Creation: Establishing thought leadership within the industry
by creating valuable content such as blog articles, whitepapers, webinars, and podcasts can help
build credibility, attract potential customers, and nurture leads.

4.User Experience and Customer Satisfaction: Focusing on providing an exceptional user

experience and ensuring customer satisfaction can lead to positive word-of-mouth referrals and
increased customer retention.

5. Exclusive rewards: Cred offers exclusive rewards to its users who pay their credit card bills
through the platform. These rewards include cashback, discounts, and other benefits, which
incentivize users to use Cred for their credit card payments.

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SUGGESTION

The company is able to pay short term obligations and the company has enough quick assets to
pay for its current liabilities, so the company has to maintain this further

The company's day-to-day cash management need to be improved.

The gross profit margin may be improved by increasing sales price or decreasing cost of sales.

The company has to improve the efficiency at converting sales into actual profit to enjoy the best
profit.

The company should try to keep the costs lower and increase its sales.

1.Deliver exceptional products or services: Focus on delivering high-quality products or services

that meet or exceed customer expectations. Consistently providing value to your customers is
crucial for building a strong reputation.

2.Establish a strong online presence: Build a professional and user-friendly website that
showcases your company's expertise, offerings, and achievements. Optimize your website for
search engines to improve visibility. Leverage social media platforms to engage with your
audience and share valuable content.

3.Highlight customer testimonials and case studies: Collect testimonials from satisfied customers
and showcase them on your website or in your marketing materials. Develop case studies that
demonstrate how your products or services have benefited clients. This social proof can
significantly enhance your credibility.

4.Obtain industry certifications or awards: Seek industry-specific certifications or awards that

validate the quality of your products or services. These external validations provide evidence of
your expertise and credibility within your industry.

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5.Foster partnerships and collaborations: Form strategic partnerships with reputable companies
or organizations in your industry. Collaborating with established and credible entities can
enhance your own company's credibility through association

References

1). https://en.wikipedia.org/wiki/Dell

2). https://www.dell.com/en-in

3). https://www.google.com/

4). https://www.investopedia.com/

5). https://www.marketing91.com/dell-competitors/

6). https://enlyft.com/tech/products/dell-powerconnect

7). https://www.infoclutch.com/infographic/dell-company-history-timeline

8). https://www.ukessays.com/essays/business/organisational-structure

9). https://www.scribd.com/document/437684675/Introduction-of-Dell-Comapany

10). https://thestrategystory.com/2022/11/29/dell-business-model-supply-chain-marketing-
strategy/

11). https://www.canalys.com/newsroom/global-pc-market-Q4-2021

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