Essay about Matching Dell

This paper will discuss a company called Apple computers. It will further access the market forces and strategies used by apple.

How and why did the personal computer industry come to have such low average profitability?

Dell uses a just in time order fulfillment policy and accurate forecasting of sales to minimize inventories. This allowed Dell to hold inventory of finished products far below levels of their competitors (10-20% compared to 50-70% industry level) and furthermore allowed them to quickly implement changes to their product lines as new technologies became available. This quick inventory turnover also allowed Dell to retain more capital. Finally, this policy enabled Dell to respond immediately to technological progress in components and deliver state of the art new finished products (e.g. Pc’s holding the newest Pentium microprocessors) while competitors

IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42%

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.

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.

Dell and Hewlett Packard (HP) are two of the most influential companies in the PC market. The CEO of HP requires an understanding of how dells strategy allows it to achieve a competitive advantage so that he/she can counteract it. This report has been carried out to provide the CEO with the necessary information to do this. Therefore the objective of the report is to provide the CEO with detailed information on Dell as a business and its strategy. In order to achieve this, first the main strategies of Dell and how they provide competitive advantage will be identified, then the business models and e-business initiatives used

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

In comparison, HP operates in seven segments: Imaging and Printing, Personal Systems, Enterprise Systems, HP Services, HP Financial Services, Software and Corporate Investments and their principal activity is to provide solutions and services to individual consumers and businesses.

Dell revolutionized the PC industry in the 1990’s because of its strategic innovation of the Build-To-Order model. It was a bold new business model that changed the rules of the industry. Through our research we have come to know that in today’s competitive world, a brilliant business model alone does not create a sustainable advantage, unless it is supplemented by operational excellence, the continuous identification and adoption of best practices.

MICROSOFT (windows server) 2. INTEL ( cutting-edge technology) 3. SAP ( IT infrastructure) 4. VMWaRE ( virtual infrastructure solutions) 5. ORACLE ( database solutions) 6. BMC (data centre automation.) 7. BROCADE ( networking solutions) Cost structure36 1. Cost of Revenue $48260m 2. Sales & Admin expense $7664m 3. R&D Expense $856m 4. Capital Expenditure $675m 5. Total Acquisition $2562m 6. Total Operating expense $57640m 7. Software&network 33 %&39% increase Revenue streams21 Key resources35 1. Acquisition 2. Brand equity 3. Long ability (as high per company) 4. Intellectual property 5. R&D and revenue stream 6. Human resource 7. Core competence Key activity37 1. Support & deployment Services 2. Cloud & security services 3. Software & peripherals ( Printer, TV, networking, wear less product, anti-virus) 4. Client product (PC, Monitor, note book, work station, tablet, Smart phone) 5. Developing technologies ( in 2011 its open the dell silicon valley research and development centre ) Value proposition 1. Dell customization 2. Direct sell approach 3. Product configuration 4. Pre & post sell customer

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

Started by Michael Dell, Dell Computer Corporation is one of the world’s leading direct marketers of personal computer systems. Dell Computer Corporation designs, manufactures, markets, services, and supports a wide range of computer systems, including desktop personal computers, notebook computers, and network servers. In addition, it also markets peripheral computer hardware and software, as well as service and support programs. The success of Dell Computer Corporation can be traced to Michael Dell’s strategic vision and distinctive competency.

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.

By grafting its system of custom direct sales onto the Internet infrastructure, Dell has transformed these activities, creating an innovative and efficient procurement, production, and distribution network. The innovative advance made by Dell in deploying Internet communication as the foundation of its production network, is a process innovation. Although to some extent, the Internet has enabled Dell to create a new product -- a PC custom-configured through Internet communication -- it is the process of organizing flows of materials and information within its network, from customer order to procurement, production and delivery, by means of Internet communication, that defines the innovation at the Firm. The case supports this notion by stating “While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer