DELL INCORPORATE

Group Members
Bushra Naz 03
Akbar Ali Ansari 14
M. Anis 15
Habib Ullah 26
Shakir Rashid 27
Azhar Bilal 31

The Islamia University of Bahawalpur

Shakir Rashid
Roll No. 27
 Dell Incorporation
Founded Austin, TX, USA
(November 4, 1984 as
"PC's Limited")

Founders Michael S. Dell

Headquarters Round Rock,
TX, USA

Area served Global

Key people Michael S. Dell

(Chairman & CEO)
 Industry Technology
Products Desktops
Servers
Notebooks
Netbooks
Peripherals
Printers
Televisions

Revenue ▲ US$ 61.101 Billion (2009)

Operating income ▲ US$ 3.190 billion (2009)

Net income ▲ US$ 2.478 billion (2009)

Total assets ▼ US$ 26.500 billion (2009)

Total equity ▲ US$ 4.271 billion (2009)

Employees 76,500 (2009)
Subsidiaries Alienware
ASAP Software
EqualLogic
Website Dell.com
1984-- Founded in 1984 with a capital of 1000 dollars.

1985-- Produced first computer “Turbo” of its own design.

1987-- Started the first international operations.

1988-- Changed its name to Dell computer corporation.

1989-- Dell released its first notebook computer.

1990-- Dell shifts business over seas to try to gain market share.

1993-- $500 million sales; with an extensive line of products.

1996-- Dell goes online; $1 million per day in online sales; $5.3B in annual sales.

1997-- Dell online sales at $3 million per day; 50% growth rate for 3rd
consecutive year, $7.8B in total annual sales.
Cont’
1999-- Dell overtook Compaq to become the largest seller of PC’s in US.

2002-- Introduced Dell brand printers.

2003-- Changed its named to Dell, Inc.

2004-- Michael Dell stepped down as CEO & Kevin Rollins was asked to take his seat.

2005-- Dell records one of its poorest years in company history.

2006-- Dell Acquired Alienware.

2007-- Kevin Rollins resigned. Michael Dell became the CEO once again.

2009-- $61.101B sales & employees over 76,500.

 Dell Achievements
Q1'05 y/y
WW Vendor Ranking 1995 Q1'05 Rank Growth
Dell 7 1 13.6%
HP (Merged) 1 2 10.6% Dell Takes No.1
IBM 3 3 2.2%
Position in 2004
Fujitsu Siemens n/a 4 14.0%
Acer 6 5 39.1%
Toshiba 8 6 22.6%
NEC 2 7 23.9%
Apple 4 8 42.5%
Legend / Lenovo 46 9 19.9%
Gateway 9 10 -20.0%

Went Up Went Down

No Change New Entry

Source: IDC PC Tracker, 1995 - 2005 (Full Year)
* In 1995 Pre-Merger, Compaq ranked #1, HP #7
 Interesting Facts

 The 10 largest US companies run on Dell.

 The top 5 US commercial banks run on Dell.
 14 of the top Supercomputers run on dell.
 Ships about 1,40,000 systems per day- that’s more
than one every second.
 Dell is the only computer company offering free
computer recycling to consumer worldwide.
 Introduction with case
 Buying a computer has never been an easy task.
Since you’ll be putting a huge investment into it
and you want to make sure that you are getting
the best one at a reasonable price.

 Dell and HP (Hewlett Packard) are known to be

the two top companies that leads the personal
computer industry.
 Vision Statement
 “It’s the way we do business……….!

 It’s the way we interact with the community…..!

 It’s the way we interpret the world around us---

our customers, needs, the future of technology
and the global business climate……whatever
changes the future may bring……. Our vision
………..Dell-vision --- will be our guiding force”.
 Mission Statement

Dell’s mission is to be the most successful computer company in

the world at delivering the best customer experience in markets we
serve. In doing so, dell will meet customer expectations of:-

 High quality
 Leading technology
 Competitive pricing
 Individual & company accountability
 Flexible customization capability
 Best in class, service and support
 Superior corporate citizenship
 Financial stability
Bushra Naz
Roll No. 03
 DELL Products

 Laptops
 Desktop PCs
 Servers
 Monitors
 Printers
 Electronics & Accessories
 Laptops

 Vostro
 Latitude E Series
 Dell Precision Workstations
 Notebooks
 Inspiron
 XPS
 Alienware
 Fast Track
 Desktop PCs

 Vostro
 OptiPlex
 Dell Precision Workstations
 Inspiron, Studio & XPS
 All-In-Ones
 Fast Track
 Power Edge
 Servers

 Tower Servers
 Rack Servers
 Blade Servers
 Monitors

 30” - 24” Widescreens

 23” - 22” Widescreens
 20” Widescreens
 19” - 17” Widescreens
 20” - 19” Flat Panels
 17” and below Flat Panels
 Printers

 Color Laser
 Black & White Laser
 All-In-One Inkjet
 Electronics & Accessories

 Laptop Accessories
 Desktop Accessories
 Televisions
 Cameras
 Software
 Projectors
 Scanners
Azhar Bilal
Roll No. 31
Strengths
 Dell has a reliable support and service.
 24X 7 Customer support.
 Efficient Inventory management.
 Well-Known for online selling of Computers.
 Dell always keen to embed latest technology in its
products.
 Provide quality PCs, Laptops and computer peripherals
at low price.
 Offer wide range of PC, Server, Laptops, Monitors and
LCDs, Data storage devices, network switches and
software.
 The company website at least receives 25 million visits.
Weaknesses
 Dell is dependent on its suppliers.
 Lack of technological expertise in upper management.
 Lapses in quality control.
 Ineffective entrance into profitable markets.
 Dell not able to attract the students of schools and colleges, this
segment earn only 5% of total revenues.
 Closure of Dell’s biggest call center in April, 2003 terminating 1100
employees.
 Elimination of bonuses in 2006 to increase the company financial
performance.
 On January 8, 2009 Dell announced the closing of its
manufacturing plant in Limerick, Ireland with the loss of 1,900 jobs
and the shift of production to its plant in Poland.
Opportunities
 Diversification strategy by introducing many new
products to its range.
 Making and selling low-cost, unbranded low-price
computers to PC retailers in the World.
 ASIA (India, Pakistan and Bangladesh) are the
untapped markets.
 Market penetration in education and Government
markets.
 Cost reduction in latest technology.
 Partnership or acquiring of suppliers.
 Dell has opportunity to sell computer directly to
retailers.
Threats

 Competitive rivalry that exists in the PC market

globally.
 Exposed to fluctuations in the World currency
markets (i.e., changes in exchange rates)
 Major competitors in the market.
 Rapid change in technology obsoletes the
product in small span of time.
 Aggressive marketing by competitors.
Habib Ullah
Roll No. 26
Competitors Analysis
 Computer Hardware Industry

The Products The Players

Notebooks
Desktops
PDAs
MP3 Players
Routers
Servers
Storage Devices
 Competitors Analysis

Top Segment Laptops Computer Systems and

Systems Technology
Top Brand Dell Precision HP Pavilion Lenovo
Workstations Laptop
CEO Michael S. Dell Mark V. Hurd Samuel J.
Palmisano
Business Segments 6 5 6
Revenue 61.101 B 114.552 B 95.757 B
Net Income 2.478 B 9.415 B 13.425 B
Total Assets 26.500 B 52.539 B 109.023 B
Total Equity 4.271 B 38.942 B 22.637 B
Employees 76,500 3,25,000 3,99,409
 HP Products
 Laptops
 Desktop PCs
 Monitors
 Printers
 Scanners
 Softwares
 Electronic & Accessories
 Laptops
 HP Mini
 HP Pavilion
 HP TouchSmart
 HP ENVY
 HP Ultra-Portable
 HP Everyday Computing
 Desktop PCs
 HP Pavilion
 HP Pavilion Slimline
 HP Pavilion Elite
 HP Pavilion All-In-One Series
 HP TouchSmart
 Monitors
 HP w1858 18.5" Diagonal HD Ready Widescreen LCD Monitor

 HP 2009m 20" Diagonal HD Ready Widescreen LCD Monitor

 HP 2159m 21.5" Diagonal Full HD Widescreen LCD Monitor

 HP w2338h 23" Diagonal Full HD Widescreen LCD Monitor

 HP 2509m 25" Diagonal Full HD Widescreen LCD Monitor

 HP 2709m 27" Diagonal Full HD Widescreen LCD Monitor

 Printers
 HP OfficeJet
 HP Photosmart
 HP LaserJet
 HP DeskJet
 HP DesignJet
Scanners
 Document Scanners
 Photo Scanners
 Software
 Operating System
 Photo
 Video
 Security
 Productivity
 Other software
Electronics & Accessories
 Calculators
 Cameras & Video
 Handhelds
 Computer Accessories
 HP Printer Accessories
 Handheld Accessories
 Scanner Accessories
Muhammad Anis
Roll No. 15
Top Computer Companies
Companies Revenue Net Income Total Assets

$ 114.552 B $ 9.415 B $ 52.539 B

$ 95.757 B $ 13.425 B $ 109.023 B

$ 61.101 B $ 2.478 B $ 26.500 B

$ 42.91 B $ 8.24 B $ 47.50 B

$ 17.9 B $ 384 M $ 17.3 B

 Competitive Profile Matrix

HP DELL IBM
Success Factors Weight Rating Score Rating Score Rating Score

Quality 0.13 4 0.52 3 0.39 3 0.39

Financial Position 0.15 4 0.60 3 0.45 4 0.60

Market Share 0.16 3 0.48 3 0.48 3 0.48

Technology/innov 0.12 3 0.36 4 0.48 3 0.36

ation
Global Market 0.10 3 0.30 4 0.40 3 0.30

Price 0.10 2 0.20 3 0.30 4 0.40

Competitiveness
R&D 0.14 4 0.56 3 0.42 3 0.42

Customer Loyalty 0.10 3 0.30 3 0.30 2 0.20

Total 1.00 3.32 3.22 3.15

Competitive Advantage by Dell
 Provide user-friendly instructions and bundled software
 Just in time manufacturing
 Use high quality components, build reliable Computers
 Direct to consumer business model
 Get paid via Credit Card
 Provide 24/7 Phone Support Service
 Provide warranty and repair service
 Advertise heavily in suitable publications and direct mail
 Dell's value chain allows Dell and its suppliers to
exchange information and interact with each other
Akbar Ali Ansari
Roll No. 14
Strategies and Goals

Continue to Innovate

Expand Distribution
Maintain Digital Music Lead
Network

Keep Costs Low and

Appeal to Mass Market
Quality High

Leverage Designs of Invest in New Product

Hardware and Software Areas and R&D
Continue to improve international Business
 Dell’s Global Presence
The Americas EMEA Asia Pacific China

Austin Limerick
Texas Ireland

Xiamen
Nashville
Tennessee China

Sales Offices in 43 countries

Eldorado do Sul Sales presence in 170 countries Penang
Brazil 6 Manufacturing Sites Malaysia
Recommendations

 Continue making “must have” products

 Leverage the power of the Laptop
 Stay ahead of the competition
 Partner with companies that complement the Dell brand
 Expand retail footprint
 Keep costs low and quality high
 Increase market share in the education, business and
government sectors