Dells Strategy and E-Commerce

Chapter two (Krames, 2003) depicts the values, journey and leadership style of Michael Dell. Michael Dell is the founder and CEO of Dell, Inc. According to the author, Michael had an entrepreneurial gene in him since the childhood. He started his first business Dell Stamps when he was 12. Michael started his revolutionary journey of Dell Computer Corporation when he was 19 year old. He was the youngest CEO of a Fortune 500 company at the age of 27.

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 has been quite a leader when it comes to manage its inventory and supply chain issues but it faced some challenges too while growing. In this case study two aspects of two Dell have been discussed which Dell faced while growing. The first challenge was Inventory Management while continuously meeting the demands and requirements of its customers and second challenge was how to maintain its customer relation.

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 Company has a successful business strategy. As it is following cost leadership strategy. Its success story is hidden in cost proposition, delivery, and unique customization. In response to the high performance and better chances for growth Dell is applying two way strategy parallel to one another.

In 1990, Dell Computer tried selling its products indirectly through warehouse clubs and computer superstores, but met with little success, and the company decided to re-focus on its more successful direct to consumer sales model (Frick, 2013). In 1992, Fortune magazine included Dell Computer Corporation in its list of the world’s 500 largest companies.(www.dell.com). That was when Michael Dell became the youngest CEO of a Fortune 500 company. Michael Dell has been trying to improve efficiency since the third grade (www.dell.com). When he heard an advertisement that said he could receive his high school diploma by taking a test he immediately took the opportunity. Although he failed at graduating high school at 8 years old, he did

“The power to do more.” That is exactly what Dell has been doing for the last 31 years. Dell was founded on February 1, 1984 by Michael S. Dell. Company headquarters is located in Round Rock, Texas where founder Michael Dell holds the position of CEO. The company primarily specializes and focuses on computer technology. In addition to computer technology, Dell also manufactures printers, tablets, and projectors. Over the past 31 years, Dell has taken a small company and grown it into one of the world’s number one computer systems manufacture. With such a huge company with business in over a dozen countries, Dell must find some way to keep it all together. (Company Heritage)

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 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

But there is one company that has stood and fought its rivals. The name of that company is Dell. Started on November 4 1984 by Michael Dell, Dell grew by the early 90’s to become the largest seller of PCs and servers. The company currently sells personal computers,

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 was founded by Michael Dell in 1984, and made its name as a PC maker. In recent years Dell’s focus has shifted to the enterprise, and the company has made dozens of acquisitions to fill out its hardware, software and services offerings. While Dell has been profitable, the company’s move from a PC to an enterprise company has yet to translate into strong financial results, and investors have lost patience. By taking Dell private, Michael Dell hopes to move away from the bright lights of Wall Street and help the company achieve long-term growth even if it has to withstand a few rough quarters.

Dell was established in 1984 and today ranks 44 among the Fortune 500 companies and is the world 's largest computer systems companies. Dell is the first organisation to start the concepts of selling personal computer systems directly to customers. The company designs, customizes products and services to end-user requirements.

Dell systems started off as a producer and seller of high performance personal computers. It was a direct seller who pioneered using a telephone hotline to sell products to its customers directly