Dell Computer Case Study

2185 WordsOct 19, 20109 Pages
. Using the published information about Dell Computers, write a brief case study showing the strategic development and its current strategic position. DELL'S SALES REVENUE 1984----------START UP 1992----------$2 BILL US 1996----------$16 BILL US 2004----------$41 BILL US 2008----------$61 BILL US 2009----------$61 BILL US ========================== DELL'S STRATEGY IS AN UNCONVENTIONAL APPROACH. • 1984 The company becomes the first in the industry to sell custom-built computers directly to end-users, bypassing the dominant system of using computer resellers to sell mass-produced computers. • 1986 Dell unveils the industry's fastest-performing computer, pioneers the industry's first thirty-day money…show more content…
The weekly Lead-Time Meetings had a very strong impact on Dell's culture. Once the sales executives agreed on a set of products to be made, they "owned" the task of ensuring that these products would be sold. The product lead times were posted daily for all to see, and this drove the daily profitability management process. Dell's core philosophy of actively managing demand in real time, or "selling what you have," rather than making what you want to sell, was a critical driver of Dell's successful profitability management. Without this critical element, Dell's business model simply would not have been effective. 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 buy-component-to-plan processes, the company worked closely with its suppliers to introduce more flexibility into its
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