Difference Between Dell And Dell

Dell's business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use.

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

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.

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?

Dell attempted a cost leadership strategy although it’s PC’s and laptops were comparable in price to competitors. Gateway was the cost leader in the industry and once trailed only Dell as the leader of direct sales of computers to customers. Dell does offer computers that are customized to buyer specifications so their computers are more custom than competitors. Very large customers who purchased over $1 million in PC’s made up 70% of the firms revenues. The firm would take a big revenue hit if it lost these customers.

What is Supply Chain Management (SCM)? Supply Chain Management is the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand. To provide the highest degree of customer satisfaction at the lowest possible cost is the flow in supply chain in management of material and information. The commitment of supply chain partners is important and requires to work together to coordinate order generation, order taking, and order fulfillment in Supply Chain Management. To maximize customer value and gain a competitive advantage in the marketplace is the active streamlining of a business’ supply-side activities in Supply Chain Management. Development and implementation supply chains by suppliers is the effort represents Supply Chain Management that are as efficient and economical as possible. To product and development, the information systems are needed to direct these undertakings which is cover everything from production by supply chains.

Dell has also employed two major strategies, customization options for clients who demand cutting edge technology along with a build-to-order option. As a result this has drastically increased its value to customers and also allows Dell to carry fewer inventories which could in turn result in obsolesce. In other words the overproduction is greatly reduced as the production is essentially in line with the demand and the market.

Dell has been in the market with a strategy ‘to strive to provide the best possible customer experience by offering superior value; high quality, relevant technology, customized systems; superior service and support and differentiated products and services that are easy to buy and use’

The advantages support one another. The economies that Dell has built with these advantages are difficult to imitate. The supply chain relationships and the high switching cost to customers due to high customization offered increases the difficultness to imitate. Even the competitors want to imitate it will take time because of the path dependency that Dell has built. And moreover, Dell has been constantly upgrading itself. Hence the model of Dell is inimitable and hence can continue delivering sustainable

These are customized products at low prices, plus fast delivery and perfect customer service. With the direct business model, all of Dell's products are manufactured by customer’s order. This approach help Dell Computer Corporation become the world's largest leading manufacturer and direct distributor computer systems. A customer can call to branch or access to www.dell.com Dell to order your computer which you want. Within 5 days the computer will be delivered to the customer with the same computer configuration, Dell offers lower price about 10-15 % than the prices of competitors. Besides, a maintenance service of Dell is considered perfect. Dell is a leading company with reliable products and perfect service with 40% of world PC shipments in U.S’s owned computer makers. Distribution form one - one from customer’s needs helps Dell does not get bogged down with the computer that nobody wants. With direct model sale, Dell should not have to pay for intermediate distributor. Thus Dell offer prices below the average up to 12 % compared to competitors. Nearly 2/3 of Dell’s products are sold to government, large corporations and educational

This paper will enumerate a brief background of Dell, customer Focus Company that has maximized its value chain for the profitability of the company. This paper will analyze the unique value chain of the company. Furthermore, the paper will evaluate how Dell has used its direct sales and build-to-order model to develop an exceptional supply chain. The main advantages and disadvantages of Dell’s direct sales model will also be analyzed. Also noted is how Dell competes with other retailers that already have stocks in house and how Dell’s supply chain deals with the bullwhip effect. Finally an inferred conclusion is made about the company’s value chain and its role in the company financial status in the market.

Dell Computer's initial business model concentrated on creating build-to-order personal computers to customers' specific needs. This has grown from a fairly modest operation to a $62B business as of the close of their latest fiscal year (FY 2012). Dell succeeded with an Internet-based business model by concentrating on the accuracy, agility and speed that its much larger competitors could not match. Honeywell, IBM and others could not match the speed and agility that Dell had in basic build-to-order product strategies, which would eventually grow into the core part of their business model. Dell was able to rely on the ubiquity of the Internet to create a much large, diverse customer base compared to its competitors who were constrained by traditional retail channels (as was IBM's case) or a reliance on direct sales forces (Salvador, de Holan, Piller, 2009). Dell was able to capitalize on latent customer demand for customized PCs, laptops and servers at a much greater rate that competitors who failed to see the disintermediating influence the Internet was having on distribution channels (Salvador, de Holan, Piller, 2009). Dell succeeded at this strategy where dozens of other companies failed by concentrating on having the most thorough integration of their supply chain, production, fulfillment and services online globally, all unified through secured Internet-based networks. While the many competitors Dell had

Supply chain management can be described as a means with which companies across the globe are identifying powerful new sources of competitive advantage. This process incorporates all integrated activities that bring products to the market and generate customer satisfaction. Some of the major aspects in supply chain management include purchasing, manufacturing operations, transportation, and distribution in a unified process. Therefore, successful supply chain management processes involves coordinating and integrating all these operations and functions in a flawless process. As part of ensuring effective supply chain management, companies usually incorporate and link various partners in the chain or process. The major partners in the chain include third-party firms, vendors, information system providers, and carriers. Supply chain management is defined as all activities and processes associated with the movement of goods from raw-materials to the end-user product (Zigiaris, 2000).

Dell started out having a first mover advantage that allowed them to generate high returns and large growth in itd sales due to a unit direct sales model. As the industry matured, other competitors entered the market and markets pulled back Dells performance suffered. Today, Dell is the IBM of 2000 as it’s a mature business with GDP type growth in a

Ten years back, where the majority of business transactions were conducted offline. Today, the trend of most of companies is to deal with its consumers through internet and not just using PCs, the customers are using different types of platforms such as mobile phones, tablets and other small mobile devices. Just imagine that all computer manufacturers are in along marathon has no end point, guess who is running alone in the front? Answers would be different but sure Dell is one of them. Its success came from a strategy which is missing with most of its competitors. Dell has effectively relied on its online selling strategy more than offline selling strategy. Actually, the core of Dell’s strengths is