DELL COMPUTER SYSTEM
Company Summery
Dell Computer Corporation was established in 1984 and today positions among the worlds largest computers companies. Dell pioneered the concepts of selling pc systems right to customers, supplying build-to-order computer systems, and rendering direct, toll-free technical support and next-day, on-site service. The corporation designs and customizes product or service to end-user requirements, and offers an extensive collection of peripherals and software.
Dells complete selection of high-performance computer systems include: Dell Dimension and OptiPlex personal pc computers, Lat. notebook computers, and PowerEdge network servers. The companys product or service are sold in more than 150 countries and territories to customers extending from major corporations, government agencies and as well as educational institutions to small businesses and individuals. The corporation employs about 11, 000 people. Head office are located in Round Rock, The state of texas, with production facilities in Austin, Texas, Limerick, Ireland, and Penang, Malaysia.
Dell Pcs business strategy is focused around their direct business structure and customer-focused initiative targeted at delivering the very best customer knowledge through direct, customer associations, cooperative r and d with technology partners, special computer systems and service and support courses tailored to consumer needs. Dell believes that this approach gives it with several competitive advantages. The approach reduces the need to support an extensive network of from suppliers and price tag dealers, therefore avoiding normal dealer mark-ups, avoids the larger inventory expenses associated with the wholesale/retail channel as well as the competition pertaining to retail space space, and reduces the obsolescence risk associated with goods in a quickly changing technological market. In addition , direct consumer contact enables the Dell Computer to maintain, monitor boost a database of information regarding customers and the current and future companies service demands, which can be utilized to shape future product offerings and post-sale service and support applications. This direct approach, combined with companys efficient procurement, production and syndication processes, allows the company to bring relevant technology to their customers more quickly and more competitively priced than many of its competitors.
Company History
The company was plagued by management changes during the mid-1980s. Renamed Dell Computer, it added international sales offices in 1987. A year later that started selling to government agencies and added a sales-force to serve much larger customers. That year Dell went public in a $34. 2 million offering.
Dell tripped in 1990, reporting a 64% drop in income. Sales had been growing, although so had been costs, mainly because of Dells efforts to design a PC using exclusive components and RISC potato chips. Also, the companys warehouses were oversupplied. Within a season Dell turned itself about by cutting inventories and coming out with ten new products.
Dell entered the retail arena by allowing Soft Factory Superstores (now CompUSA) in 1990 and office supply chain Worn in 1991 promote its PCs at mail-order prices. Also in 1991 Dell opened a plant in Limerick, Ireland in europe.
In 1992 Xerox agreed to sell Dell machines in 19 Latin American countries. That year Dell sold a new line of PCs through Price Club (now Price/Costco). Dell opened subsidiaries in The japanese and Austria in 1993 and started out selling Computers through Best Buy stores in 16 US states.
The computer manufacturer abandoned retail stores in year 1994 to refocus on the mail-order beginnings. The company had taken a $40 million charge to retool its stressed notebook computer series and later that year unveiled its Lat. notebook to general acclaim. The company likewise introduced a line of machines.
In 1995 the firm provided Pentium-based laptops, and hastened the interest in its desktops by cutting prices and publishing a dual-processor PC. The next year Dell ramped up its attempts in the Oriental computer market with fresh mail-order services in Hk, Japan, and Singapore, a fresh Asia/Pacific Consumer Center in Malaysia, and direct-sales procedures in Southern Korea and Taiwan.
In 1997 Dell and Toronto-based Newcourt Credit Group formed Dell Financial Services, a joint venture which will provide financing for Dell customers. That year Dell also declared plans to enter the market pertaining to engineering, research, and style computers known as workstations. Dell built up its consumer organization in 1997 by distancing that procedure from its small-business unit and beginning a leasing system for individuals.
The Dell Immediate Model
Dells award-winning customer care, industry-leading development and financial performance always differentiate the corporation from rivals. At the heart of this performance is Dells exclusive direct-to-customer business model. Direct identifies the companys relationships using its customers, via home-PC users to the realms largest corporations. There are not any retailers or perhaps other shops adding needless time and expense, or decreasing Dells knowledge of customer anticipations. Why are computer-systems customers and investors significantly turning to Dell and its exclusive direct model? There are several factors:
they would Price to get Performance. By reducing resellers, retailers and other costly intermediary methods together with the industrys most efficient procurement, manufacturing and distribution method Dell provides its customers more powerful, even more richly configured systems your money can buy than rivals.
l Customization. Every Dell product is built to order. Customers obtain exactly, in support of, what they want.
h Support and Support. Dell uses knowledge gained from immediate contact after and before the sale to supply award-winning, designed customer service.
h Most advanced technology. Dells useful model means the latest relevant technology is definitely introduced in the product lines far more quickly than through slow-moving indirect division channels. Inventory is flipped over just about every 10 or perhaps fewer times, on average, keeping related costs low.
h Remarkable Shareholder Value. During the last monetary year, the significance of Dell common stock a lot more than doubled. In 1996 and 1997, Dell was the top-performing stock among the Standard, Poors 500 and Nasdaq 75, and represented the top-performing U. S. stock within the Dow Smith World Share Index.
Competitors
AcerIBM*Tandy
Apple ComputerMatsushita Toshiba
CanonMicro Warehouse Unisys
Compaq**Micron Technology Siemens
Digital Products NCR Fiat
Fujitsu Oki Electric Sun Microsystems
Gateway 2000**Packard Bells Sharp
Hewlett-Packard Philips Electronics Hitachi
SWOT RESEARCH
Strengths
they would High performance and Low price
h Immediate marketing
h High sensitivity with the customer needs (because this sells immediate and offers direct contact with its customers)
l Custom Configured product
h Catalog/mail out data source of consumer
l Its determination to marketed relative good quality, relative low cost products that are custom designed
l Have the best customer satisfaction in the industry: warranty plans, installation, routine service, repair solutions, and customer support
h Services Innovation & Recognition
h Useful service
h The other largest PC manufacture inside the U. T. market as well as the third major PC on the globe, rank by 190 position in the Lot of money 500
h Efficient distribution channel keep the development cost low
they would A substantial price advantage from the resellers markup, the costs and risks associated with carrying large inventories of finished items
Weaknesses
l Stock Keeping Unit / Inventory
h Not have so many product lines (2 to get desktop, 2 for laptop/notebook and a couple of for workstation)
l Lacked of / neglected laptop computers / Notebook, which is the hottest piece of the LAPTOP OR COMPUTER market
h Insufficient diversifying circulation channel (too much concentrate on the direct channel)
h It is stock control and product forecasting devices could not sustain its growth
l Dependent an excessive amount of on the Wintel architecture. Dell Computer is a only produce who uses no different brand cpu except Intel and the simply manufacture whom offers an operating system from Microsoft for all of the broad range of product.
Opportunities
l Fastest Developing market in the Notebook section
they would International Development opportunity, The japanese (Dell is the ninth greatest local seller in Japan), Korea, European countries, Asia, Africa
l To be the most leading laptop industry when it comes to efficiency, earnings margin, returning on fairness (ROE) and innovation
h PCs is a huge market (Every person buys about 3 Computers every ten years, The U. S. statistics)
they would Huge opportunities to enter the derivation of the PC market, such as software, printer, scanner, and peripherals.
h Builds up and marketplaces its own operating systems that built based on the order of its buyer
Hazards
h Wintel Architecture
h Federal government Regulation, including Recycling, ENVIRONMENTAL PROTECTION AGENCY
l Because of its key customer is usually large company, it means they have a buying electrical power and this may squeeze the profit perimeter
they would Gateway 2150 is the closest competitor which has the same approach (direct advertising, cut draw up price, custom build computer and target the same segment buyer, such as midsection size and big corporation customers). In addition , Dell has to encounter head to head competition with Gateway 2000 inside the same nation, because both of them have the plant life in the same country: Ireland & Malaysia.
l Short product life cycle with the semiconductor via 5 years to 3 weeks (Rapid technology cycles).
h Operating in one of the most competitive business in the history.
h Item Transitions.
h Development Forecasts as well as high degree of uncertainty require.
they would Technology specifications and Essential licenses.
h Credit rating Risk
h Year 2000 Compliance
Bibliography
Channeling their energies, by Paley, Norton, Sales and Marketing Supervision magazines.
THE POWER OF VIRTUAL INCORPORATION: AN INTERVIEW WITH DELL COMPUTERS MICHAEL DELL, by Magretta, Joan, Harvard Business Assessment edition March-April 1998.
Dell shows that Web-based business isnt just a desire, by Tebbe, Mark, Infoworld.
Dell desires to15325 up channel business simply by going after local resellers, by Zarley, Craig, Computer Reseller.
Dell Computer system Corporation, Vacuums Company Profiles, WWW. HOOVERS. COM
Compaq Computer Organization, Hoovers Firm Profiles, WORLD WIDE WEB. HOOVERS. COM
IBM Corporation, Hoovers Business Profiles, WWW. HOOVERS. COM
Gateway 2k Corporation, Vacuums Company Information, WWW. VACUUMS. COM
Producing the right selections for the new buyer, by Dell, Michael S i9000, Managing Service Quality.
97 Warp-Up and 1998 Forecasts, by Creative Consumer Promoting
Service provides, by Dell, Michael T, Executive Brilliance magazines
