Dell Inc. Company 's Strategy

In 1994, Dell made the bold decision to remove their products from retail stores and focused on direct to customer sales. In 1996 Dell began selling through their website which is to this day their most successful sales channel. By eliminating their retail store presence Dell was able to reduce costs on multiple fronts, reduce inventory, and maximize profits. Dell created an order system which allowed customers to specify and select options, components and features they wanted on their Dell device. Dell 's just in time inventory system lowered inventory holdings to just 3 days from 9 days and storage costs were thus minimized significantly. In 1995, Dell entered the Chinese market where a population of 1.3 billion was a great opportunity to create a significant market presence; IBM, Compaq, and Hewlett-Packard had all penetrated the Chinese market prior to this date and had opened offices in China during the early 1990’s. It wasn’t long before Dell proved to be worthy competition with not only international companies but also with local companies like Toshiba, Samsung, NEC and Acer. With so

Dell. Dell’s products—computers, servers and printers—are commodities. Dell tends not to develop the technologies underlying these products. Instead, it purchases the components from firms that develop the technologies (semiconductors and computer software). Dell’s direct-to-customer marketing strategy is not unique, but the extent to which Dell performs this strategy better than anyone else in the industry gives it a competitive advantage. Its size, purchasing power, quality control, and efficiency permit it to operate as a low-cost provider.

Historically, Dell has been known as an industry leader in supply chain management. They have been credited with developing supply chain processes that have come to be recognized as some of the most innovative not only in their industry but throughout all business sectors. All of these accolades made Dell an unlikely choice since there didn’t appear to be much room for improvement, at least from a supply chain standpoint. However, over the past few

Supply-Chain Management is the activities that procure materials and services, and transform them into intermediate goods and final products and deliver them, through a distribution system (Heizer & Render, 2011, p. 452). DELL is a computer technology corporation that develops sells, repairs and supports, computers and computer related products. DELL has realized that supply chain is becoming more and more important for the success of today’s business world and they work accordingly to keep a competitive advantage in the market. This study will examine to what extent Dell has used supply chain management to gain and retain a competitive advantage in the computer market.

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

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.

Affordability of latest technology through Direct Sales Services - Dells uses direct customer relationship or as it calls it “customer intimacy” as its distribution strategy. This means meeting customer needs directly and cutting middleman interference as much as possible. This is done either through dedicated sales representatives, telephone based sales and online at www.dell.com. As a result, the purchase price would be lower than other competitors.

Dell runs much of its business internationally. In 1987, the company opened its first subsidiary in the United Kingdom. Several years later in 1993, Dell opened subsidiaries in both Australia and Japan. By 1999, Dell had manufactures in Ireland, China, Brazil, and the United States. The company also created customer support and

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

Dell was founded in 1984 by Michael Dell and it’s headquarter is located in Round Rock, Texas. Dell Inc develops, design, manufactures, markets, sells, supports computers and related products and services. It is the one of the largest technological corporation in the world. Almost 48% of employment is in United States and rest of 52% of its employment in other countries. Dell offers its services to almost all kind of market such as corporate businesses, government, education, healthcare organizations, law enforcement agencies, small and medium-sized businesses, individual customers, and retailers. Its product line include personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras,

This analysis describes the case of computer and peripherals industry especially the successful management of Dell Computer Corporation which grew twice as fast as its major rivals like Compaq, Gateway, Hewlett Packard and IBM. The main reason for the success of Dell was their "Direct Model" of selling computers which eliminated all traditional channels like distributors, resellers and retailers. Traditionally all its competitors like IBM, HP, and Compaq etc. used reseller, retailers and distributors to sell their computers to end users. IBM was the first company to launch its PC in 1981 and soon held 42% of the market. But the growth of IBM proved to be short

Dell is considered a very successful company. According to Govindarajan & Gupta (2005) one of the successes is its customer-direct concept that has been practiced since the company 's inception. The concept involves dealing with customers directly and not through a third party, which helps maintain the quality of the relationship with its customers and also the products. In addition, this concept allows Dell to eliminate unnecessary inventories, warehouse space and storage expenses. Dell succeeds by expanding its business, which can be measured by how it creates relationships with other big businesses, such as Walmart, Boeing, and Ford. Dell expands its business by providing products other than computers, for

Michael Dell, the founder of Dell, Inc., recently took the company private, because he would like to concentrate on the Enterprise Solutions, Software and Services divisions. He felt that stockholders did not want to change the core business from the manufacturing of computers. This doesn’t mean he plans to stop manufacturing computers; in fact, he wants to sell computers at a competitive price to get

The founder of Dell Computer Incorporation is Michael Dell in 1984. Dell’s primary products are personal and office computers and business of Dell also engages in other products such as printers and software. A feature that determines PC companies such as Dell to manage their products is through standardization of PCs. The main benefit of standardization is that it helps Dell to reduce the cost of productions. However, when Dell adopted standardization strategy, it made Dell more generic with other PCs companies such as IBM, Compact and Hewlett-Packard since most of PCs companies had access to the same suppliers such as Intel and Microsoft.

Dell is a technological sales company which performs their business in the whole world as is possible to see in the following diagram.