1.2 Background of company Dell is a multibillion dollar industry founded in the year founded in the year 1984. The company has its headquarters in Texas in United States of America. The revenue of the company was $ 59 billion in the fiscal year 2015. The current CEO of the company is Michael Dell who also founded the company. The main products and services of the company include personal computers, smart phones, servers, televisions, etc. The subsidiaries of the company include Alienware, sonicwall, EMC Corporation, Force 10, etc. the company in the recent yearshasfaced a lot of heat due to low sales of personal computers in the market. In fact, the market share of the company has eroded to such an extent that the company sales and net profit …show more content…
The outsourced labor does not actually understand the problem faced by the real customer in America or other European Nations. This has agitated the customer base of the company, which has resulted in dip in sales in the recent past. The company has actually failed to meet the expectations of the people as they have downsized a substantial part of its labor to cut cost. Some experience on the customer sites indicate that the company personnel are not even clear about what products come under warranty and what type of warranty are given for which type of products. Even the customers have complained that the engineer the company sends to their homes are not well trained and are sometimes not able to understand the problem. This further irritates the customers, as without a laptop, one feels crippled. This has resulted for the company to reconsider the training program for their engineers and the company has actually considered giving up altogether on the after sales service. Sometimes, the customer of the company is too much demanding which also lead to a friction between the staff and the customer. As already mentioned above, since the company’s sales is hit by a shift in the sales pattern of products, it has placed its products at high end in the market which has also forced the customers to think twice before buying the …show more content…
1.6 Research questions The research questions that are set by the concerned person has been set below: How much the customers are satisfied by using the Dell computers? What are the demands of the customers for Dell computers? What is the effectiveness of the after sales services offered to the customers by Dell? What are the suitable strategies that help the company to satisfy the demands of the customers in an effective manner? 1.7 Summary In this section the concerned person has presented brief introduction to the topic that has been selected for detailed study and various expected research tools that would used to collection of data and analyze the
The Methodology used to gather information for this paper was found through various sources. The sources used are all verifiable and established informational resources including (but not limited to) the following; course textbooks, books, journals, and online databases.
The quality of products sold are very low because they are made in mass production, and made as cheaply as possible in order to make more money. This has caused more and more people to become dissatisfied with the market today. In What 's Wrong With Outsourcing?, an eBook by Ernie Zibert, Zibert conducted a survey that posed the question “what 's wrong with outsourcing?” The results showed that over 50 percent of respondents replied that “low customer satisfaction” was the main issue with outsourcing.This means that the quality of the product or service they receive did not amount to the quality they wanted in this outsourcing deal. Zibert also analyzed the value of business transactions with corporations not in the United States. His conclusion was that over time “you have a 50% chance of not being happy with your outsourcing relationship.” Many outsourcing business relationships tend to end badly because of the financial risk involved with outsourcing; and the risk between the businesses American companies are being involved with. For an outsourcing partnership to work effectively one must have an in depth contract stating how each will do business. Without this the partnership has a high probability of
Why has Dell been so successful despite the low average profitability in the PC industry?
This approach, called the direct business model, allowed Dell to customize each system to the unique needs of each customer while providing them with a competitive price, high quality, leading edge technology and personalized customer support.
Dell's strengths were oriented around listening to the customers, responding to the customers, and delivering what the customer wanted. The direct relationship was first through telephone calls, then through face-to-face interactions, and now through the internet. It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers.
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
An analysis and description of the study will be discussed in this paper. Literature Review There is no defined literature review section in this article;
The sites give both Dell and its partners a real-time access to order and manufacture systems, so that replenishment can be tied closely to orders.
Dell Inc. has realized that the most efficient path to the customer is through a direct relationship, with no intermediaries to add confusion and cost. With the power of their direct model and their team of talented people, they are able to provide to their customers high-quality, relevant technology, customized systems, superior service and support and products and services that are easy to buy and use.
Dell made the bold decision in 1994 to eliminate their products from retail stores and focused on mail order customers. In 1996 Dell began selling through their website as well. By eliminating the retail store presence Dell was able to reduce costs, reduce inventory, and maximize profit. Dell utilized a built to order system that allowed customers to specify exactly what they did and did not want on their Dell computer. Dell's just in time inventory system lowered inventory to 6 days and storage costs were saved.
Over the past few years, the increasing dynamism and competition in the business operating environment has led to a lot of changes in how the companies conduct themselves with respect to its customers. Customers being the focal point of revenue; manufacturers are increasingly taking interest in being focused on customer satisfaction by delivering the products and services on time.
Historically, personal computer companies produced most of the components for a computer which they assembled into their final products and distributed to resellers. The manufacturing of these components was vertically integrated into the organisation. Dell, as a small start-up, could not build this infrastructure. Instead, they developed a model where they developed relationships with organisations that could provide these components, allowing Dell to focus on selling and delivering computers. By selling directly to customers, initially through mail orders and later by using the internet, Dell avoided reseller mark-up. Dell also enabled customers to order customised computers, which Dell then assembled after receiving the order (Magretta, 1998, p.73-74). “Customers got exactly the computer they wanted and Dell saved money making the computers only when they were ordered” (Hill & Seggewiss, 2008)....
This strategy was carried out by selling via phone, fax and direct sales, instead of selling through retail stores. Not only this approach differentiated Dell from other competitors at the time, it also reduced its operating costs as it did not have to rent expensive retail space. In addition, Dell’s strategy of selling customised computers allowed it to hold only a small amount of inventory, which reduce...
The outsourcing activities of Dell and HP are considered to be one of the many reasons for their downfall in the recent past as they have not been able to perform well in their response to service requirements. Some competitors such as Apple have therefore outsourced only the manufacturing but have kept the design, branding and after sales service in house.
“The Dell Theory of Conflict Prevention,” is a theory that is approved by multiple famous authors. The theories main points are valuable and the theory should be looked upon more seriously. In Thomas Friedman’s essay, “The Dell Theory of Conflict Prevention,” he gives examples of how global supply chains would be constructive to promoting world peace. Friedman feels that if everyone is an ally to each other in some shape or form, then no one will want to engage in war. Madeline Albright would agree with Friedman’s theory according to her writings in “Faith and Diplomacy.” Albright felt that religion should play a factor in the diplomatic system of America, in order for us to maintain some kind of peace with other nations. Friedman and Albright both were looking for a solution to world peace. Albright would agree with this theory from the religious perspective. Appiah argued that an ideal global citizen would be essential to America, in his essays “Making conversation” and “The Primacy of Practice.” Appiah felt that people must have an understanding of each other in order to get along with each other. Both Appiah and Albright would agree with “The Dell Theory of Conflict Prevention.” “The Dell Theory stipulates: No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain”(Friedman 125).