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Started by- Michael Dell(19 at that time) in his dorm room at the University of Texas in 1984 with $1000. Company headquartered- Round Rock, Texas, USA. Revenue- around US$63.07 Billion in 2012. 2001- became the No.1 computer systems in the world. 2013- 3rd largest PC vendor in the world after HP and Lenovo.

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39 views18 pages

Done by Group 2

Started by- Michael Dell(19 at that time) in his dorm room at the University of Texas in 1984 with $1000. Company headquartered- Round Rock, Texas, USA. Revenue- around US$63.07 Billion in 2012. 2001- became the No.1 computer systems in the world. 2013- 3rd largest PC vendor in the world after HP and Lenovo.

Uploaded by

ravina10008
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Done by Group 2

INTRODUCTION
Started by- Michael Dell(19 at that time) in his dorm room at the University of Texas in 1984 with $1000. Company headquartered- Round Rock, Texas, USA.

Revenue- around US$63.07 Billion in 2012.


2001- became the No.1 computer systems in the world.

2013- 3rd largest PC vendor in the world after HP and


Lenovo.

COMPETITION IN PC INDUSTRY
The PC industry is driven by rapid technological improvements in components, microprocessors, semi conductor and storage devices.

2 factors came into play in determining the availability of


PC companies to manage inventory and introduce new products. Traditional distribution system of PC Industry- Indirect Model: THE CHANNEL.

COMPETITOR ANALYSIS

SWOT ANALYSIS
Strengths
Direct Model Approach. Customization of products. Strong customer base. Excellent customer service.

Weaknesses
Lack of dell stores. Overdependence on suppliers.

SWOT
Opportunities
Use of Direct Model to sell other IT products. R&D investment.

Threats
Imitation of products. Fierce competition by other companies. Slowdown in the market.

CORE ELEMENTS OF STRATEGY


Mass customization- End result: meeting customers needs. JIT component inventories- quick introduction to latest technology.

Direct Sales.
Market Segmentation. Customer relation. Extensive data and information sharing with both suppliers and customers.

BUSINESS MODEL

BUSINESS MODEL
Pioneer in Configure to Order approach- delivering individual PCs configured to customer specifications. To minimize delays between purchase and delivery- Dell has a

general policy of manufacturing its products close to its


customers.

Implementation of JIT- which minimizes inventory cost.

MINIMUM INVENTORY- A SUCCESS!


Build to order model.
Direct to Sell.

DELL DIRECT MODEL


Components Component Manufacturer Dell Products

Customers

Order

Distributor

DELL DIRECT MODEL


The company outsourced all components but performed assembly. It eliminated retailers and shipped directly from its

factories to end users.


It took customized orders for hardware and software over the phone or via the internet. Designed integrated supply chain.

INTERGRATING THE INTERNET


Delivering online technical support and order status information. Designed online retail stores. Premier Pages-access to only authorized employees of the specific customers. The model strengthened Dells efficiencies- transaction and relationship. Dells key suppliers could access Dells internet portal- see the order flow and pipeline inventory of the components.

CUSTOMER SERVICE
Service became a feature of Dells strategy in the year 1986. It provided free on site service for a year after the sale.

Contracted with local service providers to handle


customer requests and repairs. Technical support via the phone or the internet.

PRODUCT GROWTH
Personal Computers:
Worlds No. 1 PC maker with largest share in the PC market

Workstations:
In 2000, the market leader in the U.S. and in the world in terms of Windows NT workstations

Servers:
It was segmented into high end servers, midrange servers, and entry-level servers. Entry level server : 2/3rd of its server sales

Storage:
Shift from Direct Attach source to external storage.

ANALYSIS & SUGGESTIONS


Analysis Even during the slowdown, the company is going strong due to the business model, direct to sales approach,

inventory management, CRM and so on.


Even after the slowdown, continuing with these activities, Dell can sustain their value in the market and also have a strong relationship with the customers and the suppliers.

ANALYSIS & SUGGESTIONS


Suggestions

Invest more in R&D.


Maintain customer

Use of inexpensive ways to connect with the market


segment. For instance- the internet(growing during that

time).

THANK YOU!!!

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