Dell's Business Down Into Four Groups

Since the beginning Dell has been selling customized computers. In 1988 Dell became a public company, turning the company more profitable by acquiring new investors. From 1990 to 1993, Dell used to sell computers in retail stores such as Wall Mart, Best Buy, Staples, etc. and because of low profit as results, in 1994, the company refocused its strategy to direct sales, eliminating retailers, wholesalers and consequently acquired satisfied customers by reducing cost and time for them and also the company. In 1997 the company became the low cost leader in pc vendors. During 2002-2007 the company had 7 elements as its strategy: making build-to-order manufacturing progressively more cost-efficient; partnering closely with suppliers to reduce cost of the supply chain; using direct sales techniques to gain customers; expanding into additional products and services and technical support; keeping R&D and engineering activities focused on better meeting the needs of customers, and using standardized technologies in all product offerings. As a conclusion, Dell has been always changing its strategy according to customer needs and in a way to make the company more profitable.

□ The Company was founded in 1984 by Michael Dell, now the computer industry's longest-tenured chief executive officer, on a simple concept: that by selling personal computer systems directly to customers, Dell could best understand their needs, and provide the most effective computing solutions to meet those needs.

Dell is a leading computer technology organization. Dell constantly keeps up with changes in their market to stay competitive. Dell is focusing on cost from issues of storage to transportation of products.

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

The proposal presented herein gives the background information of Dell Computers Corporation highlighting the current operation for the manufacture of computers. The proposal highlights the potential of the company to increase its market share and profitability through change of its culture from order based to inventory base.

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.

Founded in 1984 by Michael Dell with the aim of building relationships directly with customers. Dell is a premier provider of PC products and services sought by customers worldwide to build their information technology and internet infrastructures. Through its direct business model it designs, manufactures and customises products and services to customer requirements and offers an extensive selection of software and peripherals.

Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years.

What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

1. a. In a span of 20 years, from 1984, Michael Dell became the leader of one of the most profitable and innovative organizations in the world. The meteoric rise of Dell Computers Corporation was largely a result of some innovative strategies and perspectives and reveals a new model for doing business in the information age. Discuss the major mistakes made during this period and the resulting lessons learnt by Dell.

Dell hold and maintain its business model on integrating five key strategies: rapid time to volume, products built to order, elimination of reseller markups, superior service and support, and low inventory and capital investment.1 They designed project and the resulting tools to support Dell’s low-inventory and low-capital-investment strategy and to widen its impact further than the plant floor into the foregoing stage of its supply chain. Tom Meredith, at the time chief financial officer, said in the May 18, 1999 earnings conference call: “Customers see no advantage in a manufacturer low-ering inventory to six days if there are still 90 days in the supply

In addition, Dell gain competitive advantage through its supply chain management by requesting that key suppliers develop inventory hubs in close proximity to their assembly plants. By doing this, Dell could communicate with the inventory hubs of their suppliers in a timely fashion so that delivery is done in a short span of time. Also, Dell’s new PC models could now be brought to the market quicker which resulted in drastic cost advantages (Strickland,

Michael Dell, founder of Dell Computer Corporation had his humble beginnings in the computer industry when he began selling personal computers directly out of his dorm room. This impressed upon him that this was the path to take in his professional life, he started his company in 1984, registered as Dell Computer Corporation. Krames, (2003) Unlike other computer companies at the time, Dell was heavily focused on the end user, the consumers who would actually be purchasing the computers. By placing the emphasis on the consumers instead of big box stores to sell his product he brought a new way of selling computers to the industry, which was an uncommon way of doing business at that time. This is a notable contribution to the computer

Dell is the largest computer-systems company based on estimates of global market share. It is also the fastest growing of the major computer-systems companies competing in the business, education government and consumer markets. Dell’s product line includes desktop computers, note book computers, network servers, work stations and storage products. Michael Dell founded the company based on the concept of bypassing retailers and

Michael Dell was the founder member of the Dell Company back in the year 1984. Michael is one of the youngest known developers who have ever lived. He founded the company at the tender age of 19 while he was still a student at the University of Texas. Michael Dell’s journey of success started when he added features to personal computers that he obtained from local retailers. Michael therefore sold such computers that he had modified himself and after making profits he decided to expand his business by hiring more people to help him in the supplies. In 1985, to do the business on a permanent basis, he left school and began to manufacture his own computers and sold them with the aid of advertisement in publications of computers trade (Hunger, 2006).