Dell Case Study

On 04/22/16, Ken'Dell came to school with a red scratch mark on his face. The reporter stated that the child isnt complaining of pain or needs any medical treatment. According to the reporter, Ken'Dell told her the scratch on his face came from running into a pole. According to the reporter, the child told he ran into a pole while chasing his baby brother, that chased a cat. The reporter stated that the children were not properly supervised and was outside the home alone. Ms. Pendleton stated there are not any prior concerns and the child's basic needs are being met. Ms. Pendelton stated her primary concern is the proper supervision.

The economic segment is an important threat to Dell. Dell faces significant challenges in the midst of the current economic recession. Forrester Research analyst Andrew Bartels predicts “the brunt of the slowdown in IT spending will hit servers and PCs,” which is Dell’s primary market. The worst-case scenario for IT spending in 2009 will be no growth in the United States, and IT expenditures are expected to shrink in Europe (Hitt). Dell’s first quarter Net Revenue fell by 23 percent. In 2009, the Large Enterprise segment, the companies’ largest commercial revenue stream, dropped 31 percent to $3.4 billion and operating margins of 5.7 percent. Also, revenues for the public, SMB, and consumer segments all dropped an average of 19.2 percent in 2009. Publicly traded on the NASDAQ, Dell has been a volatile stock over the past year with a high of $26.04 and a low of $7.84 per share. Dell’s 12-month stock performance is -48.29 percent, which is due in large part to the global recession.

One critical factor repeatedly presented itself throughout this research project and that is the absolute necessity for Dell to find a way to innovate in a sustainable manner. Having Chairman Michael Dell at the helm again is beneficial to the growth and cohesive vision of the firm, but Dell is losing ground to rivals such as HP in the areas of technological advances and sales. Another key take away is that Dell leaders must invest in the training and re-educating of employees and invest in the research and development of products in collaboration with the firm’s key suppliers in its network. Critical to the success

Dell has emerged as one of the biggest sellers in the PC market. From humble beginnings in 1983, when Michael Dell worked out of his campus dorm room, to 1996 when we reached $7.8 billion in sales, the source of our amazing success has been our unwavering focus on the customer, termed the “Dell Direct Model.”

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.

The company's evolution was achieved by taking away share from business frontrunners and “co-modifying” the product. Rather than being the market leader in other consumer electronic products (such as HDTV, digital cameras, etc.) when the prices for new products are high and consumers are doing research prior to the purchase Dell's home might be to jump into the market as consumer electronic products begin to changeover into merchandises. The company can be prepared to capture the second wave or level of consumers who have not taken on new technologies and products until the prices lower and technology becomes accepted.

From the Financial performance of Dell Computer Corporation we find that Net Sales has been consistently increasing at $6 Billion. However employees of Dell towards the end of case are not confident of continuing to achieve 30% growth rates of the past. To continue the growth in similar pattern calls for new measures & initiatives at organization level.

This enabled strong customer relationships and increased customer satisfaction. One of the characteristics that distinguishes Dell from its other competitors is that Dell provides the facility to customize computers of their choice and taste and deliver the system to the customer as it is. This is the most crucial and critical success factor behind Dell Computers. Dell’s direct to consumer model concept helped them reach above-average returns and remain in business today. Customers have developed a brand-name loyalty to Dell because of their cost efficient differentiation strategy. Their strategic moves for their products created an image for themselves in the market and is the reason for their dominant existence. This enabled them to earn more market share in the industry. The customer segmentation that Dell focuses on is the corporate segment and large businesses form the majority of its clients. This customer segment targeting is more likely a result of its operational strategy and not the other way round. However, with corporate segment customers seeking high performance, reliable, affordable solutions, Dell fits in comfortably. Dell also appeals to those customers who want hands on experience of the latest technology and the idea of customized computers is very appealing. For Dell, it focused on providing superior quality services to its customers through its sales representatives. It also shifted

            Currently, Dell has been able to sustain most variable costs, however, worldwide factors exist that must be considered.  Other companies are competing with them, therefore, making efforts to produce more items at lower costs.  So Dell must be aware of factors such as increasing prices of oil, labor and transportation.  If these costs can be kept down, then profit should be able to increase as

Dell responded to changes in the market by determining how different segments of customers derive value from its products and services. The company 's analytics showed customer demand had become quite complex. The B2B market demands predictability, speed, customization, services and precision delivery. Consumers want multiple channel options, the ability to personalize for niche products, low-price options and devices that deliver content. This complexity will only increase as content and virtualization begin to drive the market. To address

Added to this has been the threat from competitive rival Dell as their profits and market share grew. Using key frameworks, I will examine and conclude

Dell is the #1 personal computer provider in the USA and #2 worldwide. Dell has nearly two billion interactions with customers worldwide each year, and processes more than three million transactions daily. On average, over 140,000 Dell computer systems are shipped each day.2

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.

This report is fully of supports from my parents. They give me not only financial support but also materials mentally. My sincere supervisor, to my tutor, Dr. Rajendra Kumar, whose professionalism, provided his opportunity, patience to encourage me. And then I can finish this report successfully. Every time his value feedbacks and suggestions are constructive to my writing. At last, I would like to thank to my University to give me a great chance to improve my education, and it will bring

During the early 1990s, computer industry developed rapidly. With the entrance of Dell, the dynamic structure in the industry changed. Between 1994 and 1998, Dell 's growth was twice as fast as its major rivals (IBM, Compaq, Gateway, and Hewlett-Packard). Dell provides high performance PCs at low prices. Its competitive advantage is mainly established by the innovation of the Direct Model and other firm level strategies that enable Dell to utilize its resources and build up its capabilities more efficiently.