1. 1. 1984 Michael Dell 19 The University of Texas PC features memory f t 1,000 1 000 Ad ti i Advertising 10-15% USD 50 000 50,000 USD 600,000 2 1
2. 2. 1985 Advertising 1987 : catalog g Large Corporation) PCs Limited Dell Computer Corporation pp 1989 Entrepreneur of the Year Inc.
3. 3. 1992 Man of the Year PC Magazine Fortune 500 Worlds largest companies 1993 CEO of the Year Financial World1995 3.5 PC Top five PC
4. 4. 1996 Direct Mail Telemarketing Internet : 2001 dell.comDell No. 1 USA Servers Intel Microprocessor 2003 Dell, Inc., 2005 Fortunes Most Admired Companies 2006 (NI) USD 3,572 USD 55,908
5. 5. Problems of Early Growth y Disorganization 546 1991 3 4 1995 3.4 Michael Dell 9 Dell form team Motorola, HP, Motorola HP Apple
6. 6. Problems of Early Growth (Cont) 1995 Distribution Di t ib ti 2004Kevin R lli K i Rollins CEO D ll D ll Ch i Dell Dell Chairman
7. 7. Business Model made-to-order PC PC World and PC Magazine Dell suppliers Dell Dell Computer (Supply-chain management)
8. 8. Business Model (Cont)Dell USD 463 R&DApple USD 534 R&D HP USD 4 R&D
9. 9. Business Model (Cont)Dell standard Standard PC Intel processors , Microsoft OS commodity Dell 40 50 %
10. 10. Business Model (Cont) Dell overheadhd 9.6% Dell USD 1 1 3 IBM 2 HP outsource express 2005Winston Salem,Winston-Salem, North Carolina 2005 3 Desktop 5
11. 11. Product Line and StructureDell line desktop , laptop servers, 2006Net revenue Desktop PC 38%, mobility 25%, software and peripherals 15%, servers and networking 10% services 9%, storage 3%
12. 12. Product Line and Structure (Cont)Headquarters Round Rock, Texas, near Austin 3 SBU 1. Dell Americas North and South America Texas 2. 2 Dell Asia Pacific Pacific A stralia Australia 3. Dell Europe, Middle East and Africa UK. 7 65% 23% 12% -
13. 13. Environmental Change 2006 PC 5% 2005 PC USA Apples iPod commodity PC Dell competitive Gateway HP Compaq 13.8% 14.9% 2005 Dell
14. 14. Environmental Change (Cont) Lenovo 13 8% PC notebook Thinkpad IBM Lenovo PC 26% () direct marketing
15. 15. Environmental Change (Cont) gEarly 2006Dell 20% 32%D ll 20 32 13% Direct marketing power over supplier arketi er erlier 2005 suppliers Dell corporate 85% . consumer
16. 16. Environmental Change (Cont)Consumer market 10% 2007Corporate market 7 8% 2007Ctkt7.8% Dell USA, Canada business model
17. 17. Environmental Change (Cont) Corporate package IBM, HP Dell Intel Intel Intel AMD microprocessors performance
18. 18. Internal Issues Dell 2 2005 18.7% 18 7 2005 13 6 2006 13.6% Rating 6.3% Rati 6 3% 74 survey re University of Michigan 45% Dell 1 complaint 2 2005 1533
19. 19. Internal Issues (Cont) USA 28% 1st quarter of 2006 40 A 2005 25 J 2006 Aug June consumer corporate Dell consumer Dell USA 6% Corporate 11% Gateway, HP, Lenovo
20. 20. Internal Issues (Cont) Dell 100 2006 2005 9% 13% Apple HP Consumer Service Call Center 1 3
21. 21. Internal Issues (Cont) Early 2006 2005 5000 35% Reduce Cost Dell Free Shipping low-end PC
22. 22. Internal Issues (Cont) HR Dell (Offensive) 2006 Dell Chip Intel AMD new line servers PC new XPS M2010 PC laptop
23. 23. Internal Issues (Cont) XPS 700 Video Gamers Dell Alienware C Ali Corporation ti Alien Gamer PC Dell2006 2 36% USD 605
24. 24. Future ProspectsMichael Dell 1990s direct-sales model Dell laptops serversDell Dell 2 3 Netherlands 40%
25. 25. Future Prospects (Cont) June 2006Dell 2.9 USD 23.99 2001 consumer
26. 26. External Factors Social USA and EuropeInnovative productMaturity Stage (standard PC as commodity) Emerging CountryLow penetration rateCustomer behavior standard PC
27. 27. Economic
28. 28. Environmental EuropeECMA (European Computer Manufacturers Association)Environmentally conscious design batteries electricaldesign, batteries,safety, energy consumption USAEPEAT (Electronic Product Environmental Assessment)conformed with IEEE 1680-2006
29. 29. Environmental Emerging Countries Peoples Republic of China Electronic Industry Standard (SJ/T 11364 2006) 11364-2006) Information for toxic or hazardous substances, environmental protection, etc. Technology gyWindows Vista
30. 30. Product Pr d ct Life CycleC cle USA.Penetration at 75% IndiaiPenetration at 5.1% R.O.C. Penetration at 9% with Growth 62%
31. 31. Internal Fact rs Factors StrengthSupply Chain ManagementR&D on process and Supply ChainDynamic Organizational Structure WeaknessRely on capacity of manufacturing componentsRely on only 1 business model
32. 32. Internal Factors (Cont) OpportunityHigh PPP in emerging country e.g. R.O.C.Low penetration in emerging countryWork at home trendDevelopment of complementary ppp y product e.g. Windows Vista g ThreatMain Market : Maturity Stage (Innovative product not fit Dell)Strong Competition (Apply, HP, Lenovo, Acer)
33. 33. Competitors C mpetit rs HP : M&A CompaqEmotional Marketing Lenovo : IBM Dell Logistic Efficiency Dell
34. 34. Corporate Strate C rp rate Strategy Intensive Growth:Market DevelopmentIndividual User : emerging countries retailersIntensive Growth: Product ih DevelopmentIndividual User : R&D Design
35. 35. Integration Growth Inte rati n Gr th Corporate & SMEp: Horizontal M&A Silverback Technologies : E-mail Desktop management E-mail, Everdream : desktop management company EqualLogici: storage systems provider i MessageOne: e-mail management
36. 36. Target Market1. 1 Corporate 2. SME 3. Individual User ii
37. 37. Positioning Corporate & SME : Corporate ProfessionalIndividual User : Local Producer with trust
38. 38. Marketing Strategy Product
39. 39. ServiceNon-personal service : Download software Service Call priority- Customer profitability Price i Market Penetration
40. 40. Place USA and EuropeHybrid Model - Direct Model : Premium (Customized product) - Retail channels ( standard mass) :: maturity customization
41. 41. Place Emerging CountryRetail channelsPromotion Be Direct Attitude Dell local producers
42. 42. Reference http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29 http://en.wikipedia.org/wiki/Economic_development http://en wikipedia org/wiki/Economic development http://en.wikipedia.org/wiki/Image:Gdp_nominal_and_ppp_2005_world_map_single_colour.png http://www.dell.com/content/topics/global.aspx/corp/environment/en/program_policy?c=us&l=en&s=corp&~section=002 http://www.epeat.net/ http://www.aeanet.org/governmentaffairs/gajl_LABELING_SJT11364_2006ENG.aspi j http://westwood.wikispaces.com/Life+Cycle+of+Computer+Hardware?responseToken=a19060b2ea7737e4ebcf803638c803f1 http://www.epeat.net/Docs/EPEAT%20Green%20Computer%20Launch%20(7-24-06).pdf http://en.wikipedia.org/wiki/Ecma_International
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