NAMES PRITI.PANDEY SWATI TERADE TEENA.

BOROLE NIKITA KOCHAREKAR

ROLL.NO 35 37 38 40

ABOUT DELL COMPANY

Michael Dell founded Dell Computer in 1984. At the time he was only 19 years old, and in his first year of studies at the University of Texas in Austin. Michael Dell had a simple but powerful vision: that personal computers could be built to order and sold directly to customers. This followed from his belief that the PC, made up of little more than software from Microsoft and chips from Intel, was rapidly becoming a commodity product. For more than 26 years, Dell has empowered countries, communities, customers and people everywhere to use technology to realize their dreams. Customers trust us to deliver technology solutions that help them do and achieve more, whether theyre at home, work, school or anywhere in their world. Learn more about our story, purpose and people behind our customer-centric approach.

PRODUCTS
The corporation markets specific brand names to different market segments. Its Business/Corporate class represent brands where the company advertising emphasizes long life-cycles, reliability, and serviceability. Such brands include: OptiPlex (office 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 notebooks),[39] PowerEdge (business servers) PowerVault (direct-attach and network-attached storage) PowerConnect (network switches) Dell/Compellent (storage area networks) EqualLogic (enterprise class iSCSI SANs)

Dell's Home Office/Consumer class emphasizes value, performance, and expandability. These brands include: Inspiron (budget desktop and notebook computers) Studio (mainstream desktop and laptop computers) XPS (high-end desktop and notebook computers) Studio XPS (high-end design-focus of XPS systems and extreme multimedia capability) Alienware (high-performance gaming systems) Adamo (high-end luxury laptop) Dell EMR(electronic medical records)

DELL MISSION STATEMENT

"Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of: Highest quality Leading technology Competitive pricing Individual and company accountability Best-in-class service and support Flexible customization capability Superior corporate citizenship Financial stability"

DELLS STRATEGIC OBJECTIVES

Automation of virtual machine management and movement across data centers regardless of scale while maintaining visibility, security policies and resource efficiency. Enable improved manageability to reduce IT resources and deployments by standardizing IT processes while consolidating storage, server and networking infrastructures. Deliver a cost effective, flexible and efficient networking infrastructure which instantly responds to evolving application needs for agile, business-driven responsiveness, listen to customers and delivers worldwide innovative technology, business solutions and services they trust and value. Dell is committed to delivering the services, solutions and products our customers need to drive their business goals and suit their lifestyles.

KEY ELEMENTS OF STRATEGY

1).Account selection. Dell purposely selected customers with relatively predictable purchasing patterns and low service costs. The company developed a core competence in targeting customers, and kept a massive database for this purpose. A large portion of Dell's business stemmed from long-term corporate relationship accounts customers having predictable needs closely tied to their budget cycles. 2). Demand management. "Sell what you have" was the phrase that Dell developed for the crucial function of matching incoming demand to predetermined supply. This occurred at several levels. At a monthly MSP/MPP (master sales plan/master production plan) meeting led by CEO Michael Dell, top-level managers agreed on a five-quarter rolling forecast with a strong focus on "the current quarter plus one." Dell's pricing also reflected real-time demand management, and varied significantly from week to week. While its competitor's prices were stable with periodic adjustments.

KEY ELEMENTS OF STRATEGY

3). Product lifecycle management. Because Dell's customers were largely high-end repeat buyers who rapidly adopted new technology, Dell's marketing could focus on managing product lifecycle transitions. The company's direct marketing provided real-time customer feedback which led to the rapid rounds of learning essential to product development and crisp lifecycle timing. Dell became expert at curtailing the end-of-life tail of its six-to-nine-month product cycle. 4).Supplier management. Although Dell's manufacturing system featured a combination of build-product-to-order and buycomponent-to-plan processes, the company worked closely with its suppliers to introduce more flexibility into its system. Dell concentrated its supplier base into 50 to 100 suppliers accounting for 80 percent of its purchases.

KEY ELEMENTS OF STRATEGY

5). Forecasting. Dell's forecast accuracy was about 70 to 75 percent, due to its careful account selection. Demand management, in turn, closed the forecast gap. When in doubt, Dell managers overforecast on high-end products because it was easier to sell up, and high-end products had a longer shelf life.

6).Liquidity management. Direct sales were explicitly targeted at high-end customers who paid with a credit card. These sales had a four-day cash conversion cycle, while Dell took forty-five days to pay its vendors. This generated a huge amount of liquidity that helped finance Dell's rapid growth and limited its external financing needs.

KEY ELEMENTS OF STRATEGY

7).Supply Chain Management Supply Chain Management (SCM) aims at integrating all corporate air conditioningtivities to improve relineships at Dell developed its internal business process by creating production cells that start assemblage at the point of order. It also established an interior informine system to make the details of the products under production electronically available to all parties within the chain. To manage the supply of computer pmartial arts styles, Dell maintained close relineships with their suppliers and logistics providers to make their vendors manage the inventory system while Dell focused on product assemblage

COMPETITORS OF DELL
Dell's major competitors include Hewlett-Packard (HP), Acer, Toshiba, Gateway, Sony, Asus, Lenovo, IBM, Samsung, Apple and Sun Microsystems. Dell and its subsidiary, Alienware, compete in the enthusiast market against AVADirect, Falcon Northwest, VoodooPC (a subsidiary of HP), and other manufacturers. In the second quarter of 2006, Dell had between 18% and 19% share of the worldwide personal computer market, compared to HP with roughly 15%. In late 2006, Dell lost its lead in the PC-business to HewlettPackard. Both Gartner and IDC estimated that in the third quarter of 2006, HP shipped more units[dead link] worldwide than Dell did. Dell's 3.6% growth paled in comparison to HP's 15% growth during the same period. The problem got worse in the fourth quarter, when Gartner estimated that Dell PC shipments declined 8.9% (versus HP's 23.9% growth). As a result, at the end of 2006 Dell's overall PC market-share stood at 13.9% (versus HP's 17.4%).

STRATEGIC PROCESS
In Phase 1 of its management strategy (which is already underway), Dell focuses on standardizing and automating management processes and procedures in order to effectively monitor and control networked devices (servers/storage), to streamline systems deployment, and to automate backup functions. As part of this effort, Dell is concentrating on server consolidation, selective virtualization of systems/storage resources, availability clusters and disaster recovery.

Phase 2 shifts the focus from point-based one-to-many solutions for availability, backup, etc. to integrated management solutions. In this phase, Dell will focus on simplifying, standardizing and integrating hardware, operating systems (OS) and application environments. As this phase progresses, Dell plans to standardize the way that resources are virtualized and put in place performance-optimized policy management solutions

Phase 3 (which Dell plans to start sometime in the 2007 timeframe) will focus on policydriven control of underlying, virtualized systems resources. In this phase Dell, in cooperation with numerous third-party independent software vendors (ISVs), will introduce best-ofbreed policy-based selfmonitoring/correcting/managing applications, tools and utilities.

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STRATEGIC IMPLEMENTATION
Product Approach To implement this strategy Dell plans to use its OpenManage management environment as the basic control point from which it launches either home-grown utilities or third-party ISV management solutions. OpenManage is an umbrella management environment comprised of technologies, tools and alliances that provides Dell customers with the applications and utilities needed to manage their information systems environments.

Client Management
For client management, OpenManage offers utilities and applications for client administration (OpenManage Client Administrator), recovery (Altiris Local Recovery), workgroup management

Network Management
For network management, Dell provides its own OpenManage Network Manager (designed to manage Dell PowerConnect switches) and recommends several solutions from partner Dorado Software.

The companys strategy is to: Deliver the products that its customers are telling Dell they need the most (for instance: change management, core monitoring, remote monitoring, and easy deployment tools); Build tools and utilities to manage Dell-specific gear; Rely on partners to fill-in the gaps and/or bring highly-functional, well-integrated management solutions that can assist in managing Dell and non-Dell environments; Tuck all of these solutions under the OpenManage umbrella Extend beyond systems and storage management to process flow and service-level provisioning when standards solidify.

PROCESS OF EVALUATION STRATEGY

1. Strategy evaluation is necessary for all sizes and kinds of organization. Strategy evaluation should initiate managerial questioning of expectations and assumptions should trigger a review of objectives and values and should stimulate creativity in generating alternative and formulating criteria of evaluation. 2. Evaluating strategies on continuous rather than a periodic basis allows benchmark of progress to established and o\more effectively monitored. 3. Managers and employees of the firm should be continually aware of progress being made towards achieving the firms objectives. As a critical success factors change, organization members should be involved in determining appropriate corrective action.

MAJOR STRATEGIES OF DELL

Product Diversification Dell has used a diversification strategy to enable business growth, notably in its efforts in the consumer market. Dell's early business model focused on lowcost computers aimed at cost-sensitive buyers. However, in March 2006, Dell moved to diversify by acquiring Alienware, a manufacturer of high-performance desktop and laptop computers targeted at PC gaming enthusiasts.

Market Penetration Dell has achieved market penetration internationally with various segmentation strategies. It first entered the Indian personal computer market indirectly, through partnerships with local businesses in 1992. However, Dell returned to its direct sales strategy in 2001, putting its efforts into penetrating corporate dekstop market.

Sales Strategy Dell's new approach to the PC business had two advantages: (1) bypassing distributors and retail dealers reduced marketing and sales costs by eliminating the markups of resellers, and (2) building to order greatly reduced the costs and risks associated with carrying large volumes of both and finished goods. Michael Dell started his company with only US$ 1,000 of capital. Dell Computer experienced its share of difficulties in the first few years, to the point where some family members and friends wondered whether it had been wise for Michael to drop out of university. Several times it had to refine its strategy even as it was implementing it. The company started off by using the direct sales model for upgraded versions of IBM-compatible PCs. However, within a year it was selling its own brands of PCs. Most of Dell's customers in the 1980s were hobbyists and experienced PC consumers.

SWOT ANALYSIS
Strength

Customer oriented marketing strategies.

Well-Known for online selling of Computers Dell Company employs more than 76000 thousand people Low manufacturing cost Dell has nine of manufacturing plants Dell always keen to embed latest technology in its products. It has a reliable support and service

Weaknesses

Elimination of bonuses in 2006 to increase the company financial performance. Closure of Dells biggest call center in April, 2003 terminating 1100 employees. On January 8, 2009 Dell announced the closing of its manufacturing plant in Limerick, Ireland with the loss of 1,900 jobs and the shift of production to its plant in Poland. Dell have no proprietary technology, the currently used technology by dell are shared by the other major competitors. Dell is dependent on its suppliers.

Opportunities

India, Pakistan and Bangladesh are the untapped markets. Market penetration in education and Government markets. Cost reduction in latest technology. Partnership or acquiring of suppliers. Dell has opportunity to sell computer directly to retailers.

Threats

Fluctuation in currency outside US. Major competitors in the market. Most of the countries are hit by recession which may result in the reduction of revenues. Government Policies.

KEY TO SUCCESS

Commit to providing customer specific personal computers and software quickly, efficiently, and at a competitive price. Consider third-party providers in the delivery of hardware service. Provide a reduction in overall cost of ownership for personal computers, specialty products, and services. Be the single point of contact for customers and outsource complex projects. Enhance manufacturing efficiencies. Focus on the hardware market while managing other product lines and services businesses. (Aragon,1998)

SUCCESS DELLS STORY

This is a great American success story. In the third quarter of 2002 Dell reclaimed the position as the No. 1 PC manufacturer as a leading supplier of PCs to corporate customers, government agencies and educational institutions. This was accomplished despite the merger of Compaq with Hewlett-Packard. This growth to the first position in the industry had a very humble beginning. It bypasses computer dealers and avoids related price markups. Leveraging its relationships with key technology partners enables Dell to rapidly incorporate the most relevant new technologies into its products. The low inventory and low fixed-asset model results in one of the highest returns on invested capital in the computer industry. Dell has become the leader in the PC industry segment. For the revenue that it is producing, it is surprising that it has only 16,000 worldwide employees. Because it is so highly integrated, information systems play a critical role in the operation and management of the company.

SUMMARY
Organizational survival is reliant on its capacity to project and maximize trends, make express decisions by reassessing strategies, continually adding competitive advantage by leveraging and enabling the latest process concepts. Organizations must be responsive, agile, and capable of adapting to change quickly, as change is inevitable. Historically, management teams throughout highly successful organizations have correctly identified those change initiatives through SWOT Analysis that ultimately brought about competitive advantage and how they might evolve. The critical challenges marketing managers of the twenty-first century face today require innovative thinking and integration to create an agile infrastructure.

CONCLUSION
Dell is simply a triumph story; it shows how one can gain market the davidefit by simply understanding what brings value to customers. No one, even Michael Dell himself when he started,Online. thought that people would enjoy customizing their PC orders and wait patiently as the order makes its way in order to their homes. Some studies talk aonslaught how people challenged the initial delivery estimates provided by Dell to see if they were met. The level of expansion Dell strived to air conditioninghieve brought in problems products or services growing business. However, by changing techniques such as In-sourcing and mutual davidefit partnerships it reduced its potential staff from 80,000 to only 15,000. Dell also was familiar of fair conditioningtor or air conditioningtresss that would hinder its supply chain. They understood the importance of developing their own enterprise systems in-house to control all the variables and maintain their business processes.