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Dell company's strategy
Dell company's strategy
Dell company's strategy
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Dell Mission and Strategies
Mission:
Dell is a company leader in delivering the latest technology in computer systems to customers, and a broad range of products that enhance the service. The main concept is to sell directly to customers without intermediaries to better understand their needs and provide personalize assistance to take customers to the next level of service. (1)
Strategy:
Dell combines direct customer model which is our initial goal, with relevant technologies and solutions, efficient manufacturing and logistics, and strive to find new distribution channels amongst businesses and individuals around the world. Within the customer experience, superior value, high quality, relevant technology, and customized systems set us apart from our competitors. Also, product differentiation, and new acquisitions are a part of the widening of the business. (1)
Trends:
No single customer accounted for more than 10% of our consolidated net revenue during any of the last three fiscal years.
Marketing Strategy:
By directly selling our products and services to customers, we improve service quality. We have committed personnel who sell our products through telephone-based sales, and online at www.dell.com. Dell customers come from every single industry, from large governmental agencies to individual consumers. Each geographic region we have has been assigned with sales and marketing resources who work for seeing the consumer needs, and preferences fulfilled. We value our customer’s opinion and behold suggestions as important as our customers, therefore we continuously work hand in hand with the customer to develop and improve our products.
For large industries, and businesses we keep a handful number of representatives, consultants, and field-based system engineers, who build up long-term relation ships and develop specific tailored solutions for them throughout the world. Our support programs especially cater multinational customers across global regions, and have access to central purchasing facilities. Our main source of advertising is the television and the internet, as well as direct mail of marketing publications such as catalogs, promotions, and newsletters. (1)
Organization and Employees:
Our workforce has grown in the last year, at the end of Fiscal 2007, we had approximately 90,500 total employees (consisting of 82,200 regular employees, 7,200 temporary employees, and 1,100 DFS employees), compared to approximately 73,500 total employees (consisting of 65,200 regular employees, 7,200 temporary employees, and 1,100 DFS employees) at the end of Fiscal 2006. Approximately 29,100 of the regular employees at the end of Fiscal 2007 were located in the U.S., and approximately 53,100 were located in other countries.
Acquiring and retaining a loyal customer base is no simple task. Businesses are no longer just looking at how they can beat the competition in price; they are seeking more efficient and service friendly applications to differentiate themselves from the pack. At the same time, consumers are increasingly more discerning when it comes to the companies they choose to do business with.
Computers have become more common products sold by many stores nowadays, instead of when they were first introduced as a specialty item. Computers continually change and progress further as we move further into the technological age. Currently when one goes to a retailer to buy a computer, there are many brands of computers being sold. However in reality, there are two different types of computers actually being sold. One type is a personal computer, or PC, that is typically used for personal home use. The other type is an Apple Macintosh, or MAC, which has become rather popular among students for college or school use. Computers reveal to be a rather interesting product one needs to research to better understand the different retailer
How and why did the personal computer industry come to have such a low profitability?
1. How and why did the personal computer industry come to have such low average profitability?
Today, hardware is affordable and support is abundant. With these major changes businesses are upgrading and installing complete network systems with multi-site databases and very complex Intranets. Along with the systems comes the support. The options are to have an outside firm support the system or an onsite/internal IT Department.
Best Buy offers a variety of products from several different brands. It is not very easy to run an electronic store that offers such a vast a variety of products. It carries everything from basic washer dryers to highly technical laptops, printers and scanners. Therefore the nature of the business requires highly skilled and technical people to assist the customers better. This is a challenge for the managers who have to pr...
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.
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.
Is Intel still a technology leader? How well do the three corporate macro strategies outlined in the case serve to guide Intel through the 1990s?
In the 21st century, it is more likely that most of globalised companies will be a service industry rather than a manufacturing stated Bian (2005). The new economic pattern is service pattern and it is a competitive advantage for service industry. Therefore, Lenovo’s service department should take Dell and HP as a role model; Lenovo ought to offer more detail information on selling personal computers...
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
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 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).