Case Study on Dell

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Question 1 (a)

Dell Inc.
Dell was founded by Michael Dell in 1984, while schooling at the University of Texas in Austin. Direct sales model was first adopted: Computers were first sold over the phone and they were built according to the customer specifications (Kraemer K. L, 2000). From a student’s personal company selling no more than 100 computers in its first years of existence, it became a big company of more than 35.000 employees and over 25.000 million dollars sales in 2000 (Koehn, 2001), competing “giants” such as IBM and HP. In 2010, Dell ranks fifth in the computer industry (World's Most Admired Companies, 2010).

Dell’s challenges
According to Michael Porter, any business that wants to succeed must develop strategies to
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“The supplier effectively becomes our partner”, as Michael Dell states (Dell, 2006).

Under the effort of minimizing its inventories, Dell demands from its suppliers to provide them with goods in a “high speed” – so instead of orders such as “deliver 5000 to this warehouse every two weeks”, the form of orders is more like “tomorrow morning we need 6.795 to be delivered at door A3 (of the warehouse) by 7 am” (Manataki, 2007). In order to deal with these high rhythms, main suppliers are required to maintain inventory near or in Dell’s plants; they can either produce close or keep inventories in revolvers or supplier logistics centres (small warehouses close to Dell’s assembly plants, that are shared by suppliers who pay the corresponding rent) (Kapuscinski, 2004).

Dell’s Database Management System (DBMS)
DBMS is the main software tool of database management approach because it controls the creation, maintenance, and use of the databases of an organization and its end users (O’Brien, 2009). In the past, Dell IT group ran its SCM database applications on large, expensive, proprietary servers based on the UNIX® OS. As company grew, a larger and more powerful server was required thus DellPowerEdge servers was used to enabled Dell IT to create cost-effective, highly scalable systems using Oracle Real Application Clusters (RAC) 10g. By sharing a

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