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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!!!
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