DELL

Group members Arjun sharma Jatin khanna Rahul singh Rajender soni Shivani sharma

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HISTORY

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overview

Headquartered in Round Rock, Texas Founded in 1984 By Michael Dell Sells Wintel systems via the direct model

Company type
Fiscal YearEnd
2005 Sales (mil.)

Public
(NASDAQ: DELL January
$49,205

2005 Net Income $3,043 (mil.) 1-Year Net Income 13.1% Growth

of all data is the Dell 2005 10-K filing unless otherwise noted
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Things you should know about DELL

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Mission and strategy

Mission Statement: To provide customers with superb value, high quality, relevant technology, customized systems, superior service and support, and products and services that are easy to purchase and use. Strategy Statement: To do business with its consumers oneon-one, through the phone or internet.

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PC Industry Structure
Competitors: Compaq, IBM, HP, Gateway

Suppliers: Components, Software, Service

Dell

Channel

Customers: Businesses, Government, Education, Consumer

Substitutes: Typewriter, Word Processor, Calculator

NBC1, (c) 2008Jay A. Smith

Pc industry growing but hard

Highly competitive Big companies compete at many levels Pricing/Margin pressure

Commodity-like business cost advantage is key Margins 35%-40% 1991 => 20% in 1996

Strong power of dealers

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DELL Inc Company Comparison

DIRECT COMPETITOR COMPARISON

DELL
Market Cap: Employees: Rev. Growth (ttm): Revenue (ttm): 89.29B 55,200 18.70% 49.21B

HPQ
60.17B 151,000 9.40% 81.85B 23.87% 3.50B

IBM
121.16B 329,001 8.00% 96.95B 37.42% 8.25B

SUNW
11.79B 32,600 -2.20% 11.20B 40.88% 645.00M

Industry
112.93M 341 6.20% 116.36M 23.94% -153.00K

Gross Margins (ttm): 18.32% Net Income (ttm): 3.04B

Above Data shows DELL is a perfect example of a Lean Machine

Enterprise System: servers, workstations, storage, network products Client Systems: notebooks, PC, printing, imaging systems, software and peripherals Dell Financial Services (DFS) joint venture with Citi group

Manufacturing

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Marketing

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MAIN ASPECT: customisation

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4 Ps

Dell focuses on the four PsPeople, Processes, Performance, and Price.

People Processes

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 Performance Price

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PC Distribution Channels
Manufacturer (Dell, Gateway, ) Direct (22%)

Nat ional Ret ail Chains (Circuit Cit y, Com pUSA, Sears)

Dist ribut ion Cent er Dist ribut ion Cent er Dist ribut ion Cent er

Ret ail St ores Ret ail St ores Ret ail St ores VAR (15%) Ret ail (30%)

Manufact urer (IBM, HP, Com paq)

Nat ional Dist ribut ors (Ingram , Merisel)

Independent Value-Added Resellers (I VARs) Nat ional Resellers Wholly-Owned Sales & Service Cent ers Franchised Sales & Service Cent ers

Cust om er

Nat ional Resellers (MicroAge, Com puCom , Vanst ar, Ent ex)

Nat ional Reseller (33%)

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Train employee

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qCreate a culture of respect, trust, and business integrity qProvide quality, timely, and cost-effective individual and team-based training for everyone qProvide coaching, mentoring, and knowledge management transfer programs for all team members qBuild leadership skills for all team members qCreate and implement recognition and reward programs qHold people accountable and provide timely feedback to help improve individual and team performance

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Market statergy for india

India is now the 13th market for DELL.

Big MNCs and business houses are our prime market.

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Dell will concentrate on selling its products to the business houses. Big MNCs and business houses are our prime market. The $28.5-billion Dell Computer Corporation, a computer systems company and provider of Internet infrastructure, will now sell its products and support operations in India.

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Target markets

By Organization Type
Business Government Education

Business/Institutional

DELL have always been suppliers for businesses and that is the way it is going to be in India. DELL is No.1 in the businesses market, while number four in the consumer market.
.

Consumer/Home/Individual

By Michael Dell

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Financial situation

Financial situation (contd)

Competitors

Dell Sales History II

$60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 -$10,000
1986 1988 1990 1992 1994 1996 2005

$56 billion 64

(Millions)

N t S le e a s

N t In m e co e

$7.76 billion 9.31

NBC1 2008, (c) 2008Jay A. Smith

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Dell direct Sale advantage

Control of channel / No Channel Conflict or Confusion Direct, real-time access to customers Fresher computers (dont sit on store shelves, warehouses) Better Cash Flow Manufacturing cost
Faster cash than via dealers Faster cash from transactional customers

Short lead time lowers inventory costs and investment Short lead time lowers parts costs due to downward price trend

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U.S.P.
(in millions of $)

Expenditure in R&D
R & D Expenditures
$463 489 878

% of Net Revenue
< 1% 6% 4%

Dell Apple HP

Source: Dell, Apple, and HP 10-K filings

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swot

Strength:

Weakness:

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Opportunity

Threat :

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Global diversity

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Environmental record

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Future

Dell Adamo to take on MacBook Air

Ultraportable laptop to launch.

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KEY GOALS

50% Online in Next Few Years (Michael Dell) How to turn Dell Online into sustainable competitive advantage Want to use Dell.com to get more customers, not just those who would buy Dell another way

Last wants to be best in the business

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THANK YOU

Ref by : Prof . Maninder singh

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