The Impact Of Dell Computers

895 Words2 Pages
bulb-icon

Recommended: What is dells competitive strategy

Dell computers is a household name as far as the computer industry is concerned. These computers are made to the customer’s preference, from the color to the DVD drive. This method made Dell a household name, no other company made computers this way. This paper is about their rise and fall of invocation in the computer world. At the conclusion of this paper will be ways that, Dell can increase invocation at their company.
Dell computers was a creation of Michael Dell in his dorm room. He was a struggling college student with a new idea, made to order computers. He started the company out of his dorm room and it was an overnight success. This put Michael at a cross roads in his college career, does he stay in school or finish. Michael decide …show more content…

This lowered the price for the customer and cut out the intermediary. This in turn was higher profits for the company as a whole. The customers would order the computers online and they would choose all of the details. Another way that Dell had a leg up on the competition was its supply chain management.
If an organization can manage this then, this can greatly increase profits overall. By dealing direct to the customer, they knew what to purchase, as far as inventory was concerned. They never purchased more than was needed at that particular time. This enabled the suppliers to create good schedules for their employees and keep their cost down. Entrepreneurship helped Dell properly understand the needs of the consumer.
After all, of this success Dell ran into an issue that most businesses run into. They ran out of new ideas for keep growth levels place like before. This was due to competitors figuring out their system and perfecting it for themselves. Other issue was that Dell’s customers were mainly business customers. Other companies were selling to both business and regular …show more content…

Therefore, Dell had to retool its self and recreate its business model to stay in business. Dell has a blue print called Dell’s 2020 legacy of good plan. This focuses on three important areas of business environment, communities, and people. When it comes to the environment they, want their business to have a positive impact on the planet.
In the area of communities, Dell wants to use their technology toward improvements of social change. They also want to have positive relationships with people in all communities. By Dell, investing in people this will drive invocation for the long haul. People drive invocation for any company, organizations must invest in people. This is Dells goal for the coming years as they grow.
Dell is making some improvements in these areas their sales have improved overtime. They figured out have to navigate the retail market and get good shelf space. This has kept the company in the loop as far as retail is concerned. Dell has also added other products to their profile, to attract new business customers. They are selling storage devices so companies can keep up with

Show More
Related

  • Fastenal Company Case Analysis

    1122 Words  | 3 Pages

    After each order is made, the product is either picked from the store or ordered from one of the central hubs. If a product is ordered from a hub, an employee needs to track down the part, count out the correct amount of pieces, and ship the product. Once the product is shipped to the store, employees need to receive the parts and then deliver them to the customer. Behind every part bought, there is an extensive amount of labor time put into getting that product to the customer. Not only do the companies need to have labor to produce and distribute products, they need high-end technology to develop and distribute their products.

    Read More

  • Dell's Effect on Profit Margins of the Computer Industry

    1137 Words  | 3 Pages

    Why has Dell been so successful despite the low average profitability in the PC industry?

    Read More

  • Influence Of Computer Technology

    1222 Words  | 3 Pages

    “Is Google Making Us Stupid?” by Nicholas Carr and “How Computers Change the Way We Think” by Sherry Turkle are two articles that explore how technology influences our daily lives. “Is Google Making Us Stupid?” discusses the effects of the internet in our society, how it is robbing us of our deep thoughts, memories and our ability to read books. Carr also talks about how the internet has become our primary source of getting information. The writer also discusses about how he’s having difficulty focusing on reading. “How Computers Change the Way We Think” is talking about how people don’t use their brains full potential capacity to solve problems. Instead, we depend on technology to do that for us.

    Read More

  • Home Depot Marketing

    940 Words  | 2 Pages

    Dell attempts to sale products by convincing consumers they are a reliable, forward thinking, PC manufacturer, while, Home Depot aims to influence sales by being the do it yourself one stop shop. Delving deeper into the integrated marketing communications of advertising, personal selling, publicity and sales promotions, there are a lot of similarities. Firstly, both companies ad campaigns take place via the same mediums of television, internet, radio and print publications. Secondly, their personal selling mechanism both leverage the internet, phone and physical locations, though, Dell does not sale directly to their consumers by way of a brick and mortar store. Dell uses third part vendors such as Micro Center and Best Buy to handle face to face sales.

    Read More

  • The Success of Dell Computer

    1176 Words  | 3 Pages

    1. How and why did the personal computer industry come to have such low average profitability?

    Read More

  • Dell Inc. Case Analysis

    1028 Words  | 3 Pages

    Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired. First, they are left without internet access. Second, the time it reaches Austin, Texas, have it repaired, and shipped back can take days. The company opportunities were the Dell U.K. that open business in 1987 and in that country it was a lot of companies selling cheap computers. Dell Inc. strides on loyalty among customers and employees, and that could only be derived from having the highest level of service and performing products. Segmentation within the company enables them to measure the efficiency of the business in terms of assets use. Dell Inc. evaluates their return on invested capital in each segment, compare it with other segments, and target what the performance of each should be.

    Read More

  • Dell's Business Case Study

    1426 Words  | 3 Pages

    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

    Read More

  • Dell Computers Strategy

    1587 Words  | 4 Pages

    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. HISTORICAL REPORT Dell Inc, was founded as “PC’s Limited” in 1984 by Michael Dell, while still a student at the University of Texas at Austin, with just $1000. From Michael Dell's off-campus dorm room at Dobie Center, the startup aims to sell IBM-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs.

    Read More

  • Dell In China

    1666 Words  | 4 Pages

    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.

    Read More

  • Dell Business Strategy Change

    1926 Words  | 4 Pages

    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)....

    Read More

  • Walmart Customer Value Analysis

    1109 Words  | 3 Pages

    Companies must establish and maintain a high customer value for their products and services. Consumers make buying decision every day. Consumers ask the same question in every buying decision. What I am gong to receive worth what I have to give up in order to get it? Customers especially whose costs are driven by what they purchase. So, retailers must understand what customer value is and would have. Customer value could be created by understanding what was important to the customer meant they could stock the right products, they can do that by putting the right products to the right customers in the right place. There are ways to achieve customer value, these are through the products which retailers sell, through the services they offer and

    Read More

  • The Business Model Canvas: A Feasibility Study

    1053 Words  | 3 Pages

    A business is feasible when it is able to generate profits, standstill despite of risks and achieve the founders’ goals (Hofstrand, 2009). In order to meet all of these achievements, the researcher need to investigate investment, technical market and commercial feasibility (How to conduct a feasibility study, 2015). In terms of Business model Canvas, the ‘customer segments’ component presents the market feasibility. Dell has targeted four main segments which allow the company to design, produce, promote and deliver different products with different features. In comparisons, the ‘value propositions’ contribute to the technical feasibility when the product is formed and advertised, ready to deliver. Dell has used different strategies to maintain and developed the brand including remain the same brand name for different products. This strategy is promised to stimulate customers’ awareness of the company, thus, attract numerous number of clients and increase annual profits. Finally, ‘channels’ characteristic focuses on accessing technical feasibility. Dell disposes different channels in order to reduce the transportation and warehouse costs as well as guarantee customers with aggressive on-time delivery. Consequently, as the cost has been lowered and the reputation has been improved, Dell is expected to maximize their revenues

    Read More

  • Impact of cumputers on business and education

    834 Words  | 2 Pages

    The history of the modern computer age is a brief one. It has been about 50 years since the first operational computer was put into use: the MARK 1 in 1944 at Harvard and ENIAC in 1946 at the University of Pennsylvania. Early use of computers in education was primarily found in mathematics, science and engineering as a mathematical problem-solving tool, replacing the slide rule and thus permitting students to deal more directly with problems of a type and size most likely to be encountered in the real world.[6]

    Read More

  • Dell's Competitive Strategy

    2470 Words  | 5 Pages

    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...

    Read More

  • The Dell Theory

    1811 Words  | 4 Pages

    “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).

    Read More

More about The Impact Of Dell Computers

Open Document