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
Headquartered in Austin, Texas, Dell is the number 1 PC Company in the world in terms of total sales. In addition to offering a full line of desktops and notebooks designed for consumers, Dell offers network servers, workstations and storage systems. The company also sells handheld computers and it markets third-party software and peripherals. Dell’s growing services unit provides systems integration, support and training.
Why has Dell been so successful despite the low average profitability in the PC industry?
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.
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
Dell Inc. is a privately owned multinational technological company, which develops, sells repairs and supports computers and relates products and services. Dell Computer has a fully Internet-enabled supply chains, which is constructed by the extranet to automate interactions with suppliers, service partners and customers .
Dell Computers Strategy Global companies play an important role in the business environment, because they connect their businesses together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.
Michael Dell founded the company Dell to offer network servers, workstations, storage systems, Ethernet switches, desktops, and notebook PCs after successfully selling his computers to customers directly in Texas. Over the course of three years his sales volume warranted the opening of an international sales office in 1987. In 1988 he began selling to large customers including several government agencies and Dell became a publicly traded company.
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.
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.
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)....
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;
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.
“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).