Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Competitive strategies used by dell
Dell competitive advantage case study
A case study of Dell and other competitors
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Competitive strategies used by dell
ERP Individual Assignment
Marco Arvioti
UIBS00753
Prof Mr Van Gastel
Introduction and ERP
ERP stands for Enterprise Resource Planning ( "enterprise resource planning").
It is a management system that integrates all of a company's relevant business processes such as sales, purchasing.
In an era when the cost of the added value increasingly important percentage of the cost of raw materials, to increase efficiency and profitability it is not enough to buy at the lowest price, but it is absolutely necessary to optimize all processes corporate organization, and this can only be achieved by introducing Computing software that eliminates waste and errors.
The first step is to avoid that the organization is "broken", or divided
…show more content…
Dell should manufacture highest quality products.
The fourth one is Deliver: in this step company gets order and customer should be satisfied with the product delivered and it should be done in time limit. Here dell gets some issues as it does not have any distributors to deliver its products.
Return: if the product is delivered company should have distributors to check it out for the customers. As dell does not have any distributors it should make the return process as easy as possible for the customers.
2. How has Dell influenced visibility, consumer behaviour, competition, and speed through the use of IT in its supply chain?
Dell focuses a lot on the inventory and holds much time of it in its supply chain which this would show the visibility.
Dell should also concentrate in its consumer behavior, this is a very important step in identifying the needs and wants of the consumer.
Nowadays it is a crucial part of the business to involve researches in the consumer behavior.
As shown in the case study DELL is the fastest company in producing due to their advanced technology.
DELL is as well trying to to do their best in working to catch up the success in the
…show more content…
According to Mr. Dell “Dell get closer with its large customer by using “Premier Pages” which is a paperless ordering process for configuration, ordering, services, support, and customized PCs according to customer’s need”
Explain how an ERP system could help Dell gain business intelligence.
Using ERP (Enterprise Resource Planning) is essential in making decisions for companies, in this case DELL. DELL is known worldwide and the demand is so enormous for this company that the monitoring of orders and the reductions of waste and stock is very important to have always profit.
Therefore to keep its customers happy, they must use ERP to help them plan for the future. Instead of having departments work individually, ERP helps them interact and help each other for the good of the company.
By using this system, the communication between all departments will get better which in turn could save the company time and money. By having everybody communicating they could speed up the process of getting their products to the customers quicker, this would give even a faster delivery than now even though they are already the fastest
Why has Dell been so successful despite the low average profitability in the PC industry?
Michael Dell, who is the founder of Dell Computers, began his venture towards revolutionizing the computer industry in 1980. In 1980, Dell purchased his first computer; an Apple II, and took it apart to understand how it was designed and made (Dell & Fredman, 1999, p. xi). In 1981, IBM introduced the Personal Computer (PC) and Dell saw this as a business opportunity. Dell switched from the Apple computer to the IBM PC and began to learn all of the possible components. Michael Dell’s hobby was to disassemble computers, rebuild them with improved components, and sell them directly to the user according to the biography by Mr. Dell in Smart Computing (2007). “Traditionally, in the computer industry, manufacturing companies built computers, which were distributed to resellers and dealers who sold them to businesses and individual consumers” (Dell & Fredman, 1999, p. 11). Dell noticed that IBM also sold their computers to through the distribution method, and in 1984, Mr. Dell made his business venture official. The original name for Michael Dell’s company was registered in the state of Texas as “PC’s Limited.” The organization transformed and renamed the company to Dell Computer Corporation in 1988.
When asked to review Dell and its marketing strategy I looked closely at its weakness and threats, because once you address a company weakness it then has the possibility of becoming a strength and when you acknowledge threats to a corporation, the company can then take the appropriate action to alleviate the threat.
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.
It is known that manufacturing process and cost reductions, which are pillar of the Dell business model, high profit margin will break the mightier growth for the company, through which, the best practices come in all forms. Hence, to conclude, when it comes time to decide the selection of the strategies, Dell should accept both strategies to a greater extent. It will be popular course of action for Dell to refute the claims of experts about the future of Dell. However, in this uncertain age of market, where globalization can play a key and integral role for business progress, Dell has to contemplate all the factors now to enhance its brand via products and marketing together with wide-ranging business models. Nonetheless, the management has to put its shoulder to the wheel to make the things
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.
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...
Dell’s direct business model (can be seen on the page three) may be simple in theory however it is very complicated executing it in reality. Building PC’s to order means that they must have the parts and components on hand to build a wide range of possible specifications over a short period of time (to ensure minimum time between order and manufacture). To complete these orders quickly, Dell must have first-rate manufacturing and ... ... middle of paper ... ...
The biggest area of expansion for Dell is the consumer market. In order to develop more sales in this market Dell needs to focus more advertising on the needs and wants of the consumer. Currently Dell promotes its direct model, which is a key factor Dell needs to create a better position for itself in the consumer market. With all of the PCs in the market being more or less equal, Dell needs to focus on what differentiates its products from the competition, namely service and support.
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.
The demand management process that Dell incorporated into its daily business cycle was the motto “Sell what you have.” Dell developed this motto for the critical function of matching inward bound demand to forecast the supply. Another important daily business process that Dell incorporated into the business is the product lifecycle management. Since Dell’s customers were largely high-end replicated buyers that were sympathetic towards new technology, Dell’s marketing focused on product managing product lifecycle transitions.
In order to be more productive and accurate, most of the companies depend on use of technology, with the help of enterprise resource planning (ERP) systems. (Olsen, and Saetre, 2007).
Dell Company has a clear understanding of its own company strengths such as selling their products directly to customers without a middle man and in designing its computers and other products to the customer's specifications. For example, Dell Company had designed its products to be more functional, lighter and more easier to use. This helps reducing the manufacturing costs that was needed. Dell Company also not forgetting its own weakness such as having no relationships with local computer dealers, which will be hard for getting supplies and support from the other companies. Besides, Dell Company is a company with a smaller capital, and at that time what they need the most will be financial support and sponsorship. Thus, with no relationship with local computer dealers disadvantages the company. Besides, they do not have unique technologies to offer the market compared to its competitors. Dell Company faced threats from other competitors such as Compaq and IBM, both of which had much stronger brand names and reputations for quality at that time. Moreover, it is hard for the Dell Company to compete in a market that the need for computers and laptops are getting lower, which these products are getting replaced by smart phones and tablets. Dell Company identified opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without the help from the sales person of the company. Dell Company should release new technology and new ideas that can attract and fulfill the customers. Related to that, Dell Company has to establish its Research and Development department in order to produce new products to the market. In the mean time, Dell Company provides various enterp...