Dell Value Chain

1717 Words Jul 8th, 2011 7 Pages
VALUE ADDED CHAIN IN DELL

SUBMITTED BY:
SIDDHARTHA DAS
ROLL NO: 32
BATCH: PGDM (FM) 2010-12
SUBJECT: Project and Infrastructure Management: Financing, Implementation and Control

Table of Contents Sl.No. | Description | Page No. | 1 | VALUE CHAIN ANALYSIS | 3 | 2 | VALUE CHAIN IN DELL | 4 | 3 | DIRECT SELLING STRATEGY OF DELL | 5 | 4 | COMPONENTS OF DIRECT SELLING STRATEGY | 6 | 5 | ADVANTAGES OF VALUE CHAIN OF DELL | 8 | 5.1 | CONCLUSION | 9 |

CHAPTER-1
What is Value Chain analysis?
The value chain of a company is the entire product flow of a company beginning from its suppliers to the customers as well as managing the flow of information so that both the customers derives maximum satisfaction while at the
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Products were first stored in company warehouses and later dispatched to resellers, retailers, and other intermediaries who typically added a 20–30 percent markup before selling to their customers. But Dell sells directly to all its customers, “from home-PC users to the world’s largest corporations”. Inbound Component Logistics
Final Assembly
Outbound Supply Logistics
Direct Marketing & Sales
Product Service

Dell’s value chain as per Porter’s Model
CHAPTER-4
Components of Dell’s Value Chain (A) SUPPLIERS: Dell outsources all of its component manufacturing. But, it does not outsource the final configuration and keeps control over the production and supply chains. Since Dell follows build –to- order and just-in-time, the inventory remains in the supplier’s books till Dell puts the order. Dell’s direct selling model depends critically on lead-time management so that inefficient lead conversion time would not leave the company with overage or underage of components. Dell selects suppliers that have “expertise, experience and the ability to deliver value” and their performance is regularly evaluated against pre-agreed measures. In fact, every quarter Dell meets with its suppliers to provide direct feedback on performance and future expectations. The performance is evaluated through a scorecard that compares each supplier with its competitors based on cost, quality, reliability and
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