Yarroju

Srimannarayana
Roll: 278
Sec: M3

History of DELL
Dell computer was founded by Michael Dell. Dell traces origins to 1984 when Michael dell
created PCs limited
The company changed its name to Dell computer corporation in 1988 and began
expanding globally as a multi national company first in Ireland
In 1992 Fortune magazine included Dell computer corporation in its list of the worlds 500
largest companies. Michael Dell is the youngest CEO of the fortune 500 ever
Dell Inc. is now the 41st among the fortune 500 companies

Headquarter

Company headquartered in Round Rock,

Texas, U.S.A.

International market of Dell

Dell International started in India about by opening a customer contact center at
Bangalore in 2001. In 2003, the second contact center was opened at Hyderabad
After the U.S., Dell India is the second biggest centre with 13,000 employees
About 90% of dell computers are manufactured in China

DELL Suppliers and

Products
PRODUCT LINE

SUPPLIERS

Desktop computers
Notebook computers
MICROSOFT - for Windows

Network servers
Workstations
Storage products
Dell offers a total of 1.6 million
different possible product
configurations for all its product lines

INTEL
NVIDIA
SONY

- for micro processors

- for Graphic chips
- for monitors

Products
Desktops
Servers
Notebooks
Netbooks
Peripherals
Printers
Televisions
Scanners
Pen Drives
Smart Phones

General Environment
Target Consumers: small to medium sized businesses in the US market
Location: In the US, UK and 14 international subsidiaries by 1999
Operated sales offices in 33 countries
Served customers in more than 170 countries and territories around the world
Internet presented a medium which Dell used to enhance its direct sales approach
24 hour on-line technical support, order status information, and downloading of
software

Dell's major
competitors

SWOT Analysis
Business to Consumer
Strengths
Customization

Opportunities

Strengths
Customization

Customer

Market
International
strategy
Product
extensions

Tangibility

Competition

Technology

Price

Focused
Technical
Knowledge
Market
Diversification
Strong
Brand/Positioning
Media Savvy
Direct
Marketing Model
Non-myopic
strategy

Server

Business to Business

across markets
Commodity
Market
pricing
Commoditizatio
n
(shrinking
margins)
Inventory
Complexity of
Mgmt.
Growth
Threats
The Challenges andWeaknesses
Evolution of Marketing
exceeding
Technology

Price
Customer

Focused
Technical
Knowledge
Market
Diversification
Strong
Brand/Positioning
Media Savvy
Direct Marketing
Model
Non-myopic
strategy
Market
Inventory

Weaknesses

Opportunities
Server

Market
International
strategy
Additional
markets
Product
extensions
Strategic
partnerships

Competition

across markets
Commodity
pricing
(shrinking
margins)
Complexity of
Mgmt.
Growth
Threats
exceeding

Supply chain management of DELL

Dell revolutionized the way people in the united states buy computers.
Markets its direct sales model.
No intermediaries
No warehousing
No physical store presence
Dell eliminated the need for central warehousing as well as the need for a physical
store presence. Instead Dell attracts customers to its site and then builds bonds with
them there rather than investing in a physical relationship.
Saves money and time.
Sales
Production
Warehousing

Supply Chain Chart

REVOLVERS

SUPPLIERS

Customer
places an Order
(By phone or
through the
Internet on
www.dell.com)

Dell
processes
the order

Configuration
evaluations
(checking the
feasibility of a specific
technical
configuration)

2-3
days

Sends the order

to assembly
plant
(any one in Austin,
or any other)

Plants build,
test &
package the
product
(about eight
hours)

Dell typically
ship all orders
Financial
evaluation

(no later than five

days after receipt)

(credit
checking)

CUSTOMERS

ORE ELEMENTS OF STRATEGY

Mass customization (end result: Delivers exactly what the customer wants)
Partnerships with suppliers
Just-in-time components inventories (Quick

Introduction of Latest Technology)

Direct sales
Market segmentation
Customer service
Extensive data and information sharing with both supply partners and
customers