dellcase.pptx

8/12/2019 dellcase.pptx

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Done by Group 2


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INTRODUCTION

Started by- Michael Dell(19 at that time) in his dorm

room at the University of Texas in 1984 with $1000.

Company headquartered- Round Rock, Texas, USA.

Revenue- around US$63.07 Billion in 2012.

2001- became the No.1 computer systems in the world.

2013- 3rdlargest PC vendor in the world after HP and

Lenovo.


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COMPETITION IN PC INDUSTRY

The PC industry is driven by rapid technological

improvements in components, microprocessors, semi

conductor and storage devices.

2 factors came into play in determining the availability of

PC companies to manage inventory and introduce new

products.

Traditional distribution system of PC Industry- Indirect

Model: THE CHANNEL.


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COMPETITOR ANALYSIS


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SWOT ANALYSIS

Strengths

Direct Model Approach.

Customization of products.

Strong customer base.

Excellent customer service.

Weaknesses

Lack of dell stores.

Overdependence on suppliers.

Opportunities

Use of Direct Model to sell otherIT products.

R&D investment.

Threats

Imitation of products.

Fierce competition by othercompanies.

Slowdown in the market.

SWOT


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CORE ELEMENTS OF STRATEGY

Mass customization- End result: meeting customers needs.

JIT component inventories- quick introduction to latest

technology.

Direct Sales.

Market Segmentation.

Customer relation.

Extensive data and information sharing with both suppliers

and customers.


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BUSINESS MODEL


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BUSINESS MODEL

Pioneer in Configure to Order approach- delivering

individual PCs configured to customer specifications.

To minimize delays between purchase and delivery- Dell has a

general policy of manufacturing its products close to its

customers.

Implementation of JIT- which minimizes inventory cost.


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MINIMUM INVENTORY- A

SUCCESS!

Build to order model.

Direct to Sell.


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DELL DIRECT MODEL

Component

Manufacturer

Distributor

Dell Customers

Components

Order

Products


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DELL DIRECT MODEL

The company outsourced all components but performed

assembly.

It eliminated retailers and shipped directly from its

factories to end users.

It took customized orders for hardware and software over

the phone or via the internet.

Designed integrated supply chain.


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INTERGRATING THE INTERNET

Delivering online technical support and order status information.

Designed online retail stores.

Premier Pages-access to only authorized employees of the

specific customers.

The model strengthened Dells efficiencies- transaction and

relationship.

Dells key suppliers could access Dells internet portal- see the

order flow and pipeline inventory of the components.


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CUSTOMER SERVICE

Service became a feature of Dells strategy in the year

1986.

It provided free on site service for a year after the sale.

Contracted with local service providers to handle

customer requests and repairs.

Technical support via the phone or the internet.


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PRODUCT GROWTH

Personal Computers: Worlds No. 1 PC maker with largest share in the PC

market

Workstations:

In 2000, the market leader in the U.S. and in the

world in terms of Windows NT workstations


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Servers:

It was segmented into high end servers, midrange

servers, and entry-level servers.

Entrylevel server : 2/3rdof its server sales

Storage:

Shift from Direct Attach source to external

storage.


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ANALYSIS & SUGGESTIONS

Analysis

Even during the slowdown, the company is going strong

due to the business model, direct to sales approach,

inventory management, CRM and so on.

Even after the slowdown, continuing with these activities,

Dell can sustain their value in the market and also have a

strong relationship with the customers and the suppliers.


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ANALYSIS & SUGGESTIONS

Suggestions

Invest more in R&D.

Maintain customer

Use of inexpensive ways to connect with the market

segment. For instance- the internet(growing during that

time).


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THANK YOU!!!

Documents

dellcase.pptx