Dell's Value Chain

The advantages of Dells model are: The internet allows Dell an extensive scope and reach for its products at a relatively low price (Dedrick and Kraemer 2001). Using the internet Dell has been able to automate many of its business functions, such as product configuration, order entry and technical support (Dedrick & Kraemer 2001), therefore the company can achieve higher revenues without customer service costs increasing greatly. Online configuration ensures that the customer gets exactly what they want. Dells build to order strategy means that inventory levels are low, they only hold approximately 4-8 days of stock, therefore inventory costs are low (Breen 2004).

Since the beginning Dell has been selling customized computers. In 1988 Dell became a public company, turning the company more profitable by acquiring new investors. From 1990 to 1993, Dell used to sell computers in retail stores such as Wall Mart, Best Buy, Staples, etc. and because of low profit as results, in 1994, the company refocused its strategy to direct sales, eliminating retailers, wholesalers and consequently acquired satisfied customers by reducing cost and time for them and also the company. In 1997 the company became the low cost leader in pc vendors. During 2002-2007 the company had 7 elements as its strategy: making build-to-order manufacturing progressively more cost-efficient; partnering closely with suppliers to reduce cost of the supply chain; using direct sales techniques to gain customers; expanding into additional products and services and technical support; keeping R&D and engineering activities focused on better meeting the needs of customers, and using standardized technologies in all product offerings. As a conclusion, Dell has been always changing its strategy according to customer needs and in a way to make the company more profitable.

Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in one of his interview, is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to

There looks to be a growing demand for computers in the household, and Dell would like to accommodate that need. Dell has felt the need to

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.

To choose the best suppliers for our various components, all existing suppliers are evaluated. Cost per item, accounts payable (A/P) terms, actual delivery time, average days late on delivery, and total ordered quantity are calculated and compared. Because on time delivery is vital to our daily operation, delivery time and average days late are considered the most important criteria. Based on this evaluation, suppliers recommended for each component are listed below.

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 's market and business strategies changed, requiring the company to move from a single supply chain to a customer

The reduced degree of customization indicates that production and assembly strategies may have to be changed from the one used for desktops in order to make the laptop manufacturing successful. As the demand for portable computers was growing Dell 's competitors (IBM, Compaq, Apple) were already gaining a great share of the market. Dell also needs to consider how to convince former customers to buy the improved computers. Furthermore, it is crucial for the company to decide between implementing the direct distribution strategy or the retail channel. All together these issues led to one main concern – how to make the entering into laptop market successful?

            In 1994, Dell was a struggling second-tier PC maker. Like many others, the company ordered its components in advance and manufactured to inventory. Then Dell began to implement a new business model. It converted its operations to a build-to-order process, eliminated its inventories through a just-in-time system, and sold its products directly to consumers.

Dell Inc. is an American exclusive multinational PC innovation organization situated in Round Rock, Texas, United States, that creates, offers, repairs, and backings PCs and related items and administrations. Eponymously named after its originator, Michael Dell, the organization is one of the biggest mechanical companies on the planet, utilizing more than 103,300 individuals around the world. Dell offers (PCs), servers, information stockpiling gadgets, system switches, programming, PC peripherals, HDTVs cameras printers MP3 players and hardware worked by different makers. The organization is understood for its advancements in store network administration and electronic trade, especially its immediate deals model and its work to-request design to request way to deal with assembling—conveying singular PCs arranged to client details. Dell was an immaculate equipment seller for quite a bit of its presence, however with the obtaining in 2009 of Perot Systems, Dell entered the business sector for IT administrations. The organization has subsequent to made extra acquisitions away and organizing frameworks, with the point of extending their portfolio from offering PCs just to conveying complete answers for big business clients.

Although Dell is an extremely successful company, there are areas of improvement and enhancement that should be considered. After a thorough analysis of Dell¡¯s IT tools, business model, IT infrastructure and competitive advantage, we have developed seven key suggestions. By implementing these recommendations, Dell can keep its high ranking in the competitive computer industry by increasing customer satisfaction, competitive advantage and superior value chain, without changing its principal operations to achieve these goals.

Place: For this reason, Dell has been able to affect the location strategy aspect of its marketing campaign. As Dell's products are always available at the nearest dealers customers develop trust for the "local Dell" thereby achieving the objective of gaining their trust in Dell products and services, and forming a large and diversified consumer base.

Dell was created on a simple concept: it’s Direct Business Model, which starts and ends with our customers. Michael Dell firmly believed that by selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's

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,