Case Study Dell 2

The most critical shifts in Dell’s contextual factors, including industry dynamics, trends, technology changes and shift of the competitive landscape are following: The industry has changed significantly over the last 20 years. The traditional business model in the PC industry was inside-out, supplying machines based on orders from distribution, resell and retail channels, thus following the indirect selling concept. Dell’s direct model was at this time a new, challenging concept, taking orders directly from the end-consumer, and thereby, eliminating the middleman, costs and time. This was the initial crucial shift away from the traditional schema, allowing Dell’s quick

The proposal presented herein gives the background information of Dell Computers Corporation highlighting the current operation for the manufacture of computers. The proposal highlights the potential of the company to increase its market share and profitability through change of its culture from order based to inventory base.

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

Essay 1 : Introduction to Dell 3 Parts - Look at the Business Model in Particular (Is it fit for purpose?) – Then the Ecosystem – The Modularization and mention licensing Look the Paradigm of Dell Conclusion

Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.

Third, Dell has a rapid-response system for linking all suppliers, workers, managers, and customers to Dell’s value chain. This interactive real time communication system is employed to order parts, manufacture and outsource computer modules, and coordinate assembly and distribution of products to customers. Managers employ this system for all human resource functions, workers and suppliers for all coordination sequencing and quality control processes,

Dell owed much of its success to its vaunted “Direct Model”: While competitors sold primarily

Michael found that his ‘direct model ' could easily become a strong differentiator for the company as it reduced unnecessary distribution overheads that clogged other PC majors. Traditionally a long chain of partners was involved in delivering the product to the customer. Companies with long distribution systems had to fill their distribution channels with inventories in order to meet their financial targets. Such companies were not aware of customer needs. According to Michael, because Dell was talking to both customers who bought their products and also prospective customers, it had a clear idea about what customers wanted. This direct relationship with customers was built initially through telephone calls, then face to face interactions, and then through the internet.

The goal of entering the laptop market is to expand the company and to offer customers the high-quality customized computers they want at a competitive price, as quickly as possible and backed by great service. In order to reach these goals Dell needs to gain advantage in production cost and to select an effective distribution channel. The drawbacks that makes this situation difficult is the bad past experience and the need of new educated employees in service and manufacturing sectors, as well as the need for new suppliers. The distribution question is also essential, because many small office and home buyers prefer purchasing through the retail channel where they can see and touch the product, whereas Dell communicates with customers directly through the Internet.

As one of the pioneers in selling computers, Dell has been widely recognized as a company which can deliver their sales to costumer effectively and efficiently by eliminating intermediaries’ channels. By selling their Personal

Dell’s strategy emulates IBM, Hewlett-Packard and Oracle, which package software, hardware and services as part of

Supply-chain management – in order to obtain market share in the U.S. and abroad, the company would need to visit malls, stores, and shopping districts where their customers frequented. Dell started to make its models available in specific, large retail stores in the United States, the Ukraine, Japan,

For the long time, Dell was well known as the largest manufacturer and marketing company of personal computers. But then due to increasing competition in the market,

Earlier Dell didn’t manufacture any of the parts on its own. It mainly dealt with assembling the right products. It provides IT solutions and services along with the recovery of the asset, financing, infrastructure consulting, support, system integration and training.