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Date: 20.01.2019
(SIGNATURE)
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The Direct Model of the company and Just in Time
methods are the core competencies of the company.
With the help of these features, the company is able to
offer its products much faster and cheaper than its
competitors to its customers. In the year 1999, Dell
Computer Corporation was in the second position in
computer manufacturing behind Compaq (Tan & Young,
2003).The company sells different products in the
different market segments according to the products’
brand name. In the business class segment, the
company sells various products such as OptiPlex-
Desktop computers Dell N-Series, Latitude- the
commercial notebook, Vostro- mainly designed for the
small businesses, Precision- high performance notebook,
power edge, Power Vault, etc.
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At the level of home and consumer class, the company
sells the following products: XPS- high performance
system, Inspiron- the consumer desktop and notebook,
dell monitors, LCD Plasma TVs monitors, etc. The
company also sells the products for the services and
support to the customers such as ‘Dell on Call’ for EMEA
customers, hardware and software support products,
etc.
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Dell is an American multinational computer technology
company based in Round Rock, Texas, United States,
that develops, sells, repairs, and supports computers
and related products and services. Named after its
founder, Michael Dell, the company is one of the largest
technological corporations in the world, employing more
than 103,300 people in the U.S. and around the world.
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Dell sells personal computers (PCs), servers, data
storage devices, network switches, software,
computer peripherals, HDTVs, cameras, printers, MP3
players, and electronics built by other manufacturers.
The company is well known for its innovations in supply
chain management and electronic commerce,
particularly its direct-sales model and its "build-to-
order" or "configure to order" approach to manufacturing
—delivering individual PCs configured to customer
specifications. Dell was a pure hardware vendor for
much of its existence, but with the acquisition in 2009
of Perot Systems, Dell entered the market for IT services.
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Dell traces its origins to 1984, when Michael Dell created
Dell Computer Corporation, which at the time did
business as PC's Limited, while a student of
the University Of Texas At Austin. The dorm-room
headquartered company sold IBM PC compatible
computers built from stock components. Dell dropped
out of school to focus full-time on his fledgling business,
after getting $1,000 in expansion-capital from his family.
In 1985, the company produced the first computer of its
own design, the Turbo PC, which sold for $795. PC's
Limited advertised its systems in national computer
magazines for sale directly to consumers and custom
assembled each ordered unit according to a selection of
options. The company grossed more than $73 million in
its first year of operation.
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In 1993, to complement its own direct sales channel Dell
planned to sell PCs at big-box retail outlets such as Wal-
Mart, which would have brought in an additional $125
million in annual revenue. Bain consultant Kevin
Rollins persuaded Michael Dell to pull out of these deals,
believing they would be money losers in the long
run. Margins at retail were thin at best and Dell left the
reseller channel in 1994. Rollins would soon join Dell
full-time and eventually become the company President
and CEO.
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as second- and third-time computer buyers who wanted
powerful computers with multiple features and did not
need much technical support were choosing Dell. Dell
found an opportunity among PC-savvy individuals who
liked the convenience of buying direct, customizing their
PC to their means, and having it delivered in days. In
early 1997, Dell created an internal sales and marketing
group dedicated to serving the home market and
introduced a product line designed especially for
individual users.
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From 1997 to 2004, Dell enjoyed steady growth and it
gained market share from competitors even during
industry slumps. During the same period, rival PC
vendors such as Compaq, Gateway, IBM, Packard Bell,
and AST Research struggled and eventually left the
market or were bought out. Dell surpassed Compaq to
become the largest PC manufacturer in 1999. Operating
costs made up only 10 percent of Dell's $35 billion in
revenue in 2002, compared with 21 percent of revenue
at Hewlett-Packard, 25 percent at Gateway, and 46
percent at Cisco. In 2002, when Compaq merged
with Hewlett Packard (the fourth-place PC maker), the
newly combined Hewlett Packard took the top spot but
struggled and Dell soon regained its lead. Dell grew the
fastest in the early 2000s.
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Three years later, Dell passed Compaq as the top
provider of Intel-based servers, with 31 percent of the
market. Dell's first acquisition occurred in 1999 with the
purchase of Converge Net Technologies for $332 million,
after Dell had failed to develop an enterprise storage
system in-house; Converge Net's elegant but complex
technology did not fit in with Dell's commodity-producer
business model, forcing Dell to write down the entire
value of the acquisition.
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In 2003, the company was rebranded as simply "Dell
Inc." to recognize the company's expansion beyond
computers.
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Disappointments
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Throughout the entire PC industry, declines in prices
along with commensurate increases in performance
meant that Dell had fewer opportunities to up-sell to
their customers (a lucrative strategy of encouraging
buyers to upgrade the processor or memory).
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Michael Dell announced a number of initiatives and
plans (part of the "Dell 2.0" initiative) to improve the
company's financial performance. These include
elimination of 2006 bonuses for employees with some
discretionary awards, reduction in the number of
managers reporting directly to Michael Dell from 20 to
12, and reduction of "bureaucracy". Jim Schneider
retired as CFO and was replaced by Donald Carty, as the
company came under an SEC probe for its accounting
practices.
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turnaround, which involved moving these call-center
jobs offshore to cut costs.
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In late 2006, Dell lost its lead in the PC-business to
Hewlett-Packard. Both Gartner and IDC estimated that
in the third quarter of 2006, HP shipped more
units worldwide than Dell did. Dell's 3.6% growth paled
in comparison to HP's 15% growth during the same
period. The problem got worse in the fourth quarter,
when Gartner estimated that Dell PC shipments declined
8.9% (versus HP's 23.9% growth). As a result, at the end
of 2006 Dell's overall PC market-share stood at 13.9%
(versus HP's 17.4%).
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market at 8.1%, down from 9.5% in the previous year.
This represents an 8.8% loss year-over-year, primarily to
competitors EMC and IBM.
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Reducing excess inventory provided Dell with a
significant cost advantage as component costs
depreciate as much as 1% weekly in the electronics
industry. Direct selling has also allowed Dell to bypass
intermediaries such as wholesalers and retailers,
reducing costs even further. In addition, Dell offered
customizable options that proved to be customer-centric
and attractive.
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Dell conducts its business operations worldwide in many
different foreign markets. One of Dell’s motivations to
internationalize was to secure supplies and gain access
to low-cost factors. Dell situated manufacturing plants
across the world, seeking out location-specific
advantages such as low labour costs and highly
productive workforces.
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Dell Vostro is a line of computers from Dell aimed at the
small businesses. In 2013, this line discontinued on
some Dell websites but continued to be offered in other
markets, such as Malaysia.
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all computers for the home market; regardless of form
factor. One marked difference between the Inspiron line
and the Vostro line is that the Vostro line is cheaper but
comes with shorter technical availability.
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Dell Vostro 15 3546 4th gen Intel Core i3/ 4 GB/1 TB is
a stylish and powerful Mainstream Laptop and is
powered by Intel Core i3 (4th Generation) processor
clocked at a speed of 1.9 GHz and sports a 15.6 inch HD
LED Backlit anti glare Display that comes with a
resolution of 1366 x 768 pixels, so the picture quality is
crisp and detailed. The screen size is big enough for an
enriching gaming, surfing and video watching
experience.
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On the memory front, the laptop is equipped with a
hard drive of 1 TB and a 4 DDR3 RAM, thereby making
it possible to store ample amount of data. All the above
features ensure that you breeze through all your tasks
throughout the day. The connectivity options available
on the device are Wi-Fi, Bluetooth 4.0,2 x USB 2.0, 1 x
USB 3.0, VGA. It supports an optical Drive, comes with
Built in HD Webcam (1 MP), Multi media card reader. It
is loaded with 2W x 2 Stereo speakers and Waves Maxx
Audio for a great audio experience
Strengths
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strengths. Dell Computer's award-winning customer
service, industry-leading growth and consistently strong
financial performance differentiate the company from
competitors for the following reasons: Price for
Performance – Dell boasts a very efficient
procurement, manufacturing and distribution
process allowing it to offer customers powerful
systems at competitive prices. Reliability, Service and
Support – Dell’s direct customer allows it to provide top-
notch customer service before and after the sale.
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Weaknesses
Threats
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sometime daily basis. New software, new hardware
and computer accessories are introduced at a
lightning speed. It is essential for Dell therefore to be
always on the lookout for new things or introduce new
computer systems.The threat to become outmoded is a
pulsating reality in a computer business. Not only that,
companies must produce products that are high in
quality but reasonable in price.
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Since other companies are able to offer computers at
low costs, this could threaten Dell’s price-
conscious growing customer base. With almost
identical prices, price difference is no longer an issue
for a customer. They might choose other brands
instead of waiting for Dell’s customized computers.
The growth rate of the computer industry is also
slowing down.
Opportunities
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most likely avail of Dell’s custom-built computers
because as their knowledge grows, so do their need to
experiment or use some additional computer features.
Demand for laptops is also growing. As a matter of fact,
demand for laptop has overtaken the demand for
desktops. This is another opportunity for Dell to grow in
other segments. The internet also provides Dell with
greater opportunities since all they have to do now is to
visit Dell’s website to place their order or to get
information. Even if a Dell’s retail not available nearby,
the online stores would surely make up for its absence.
It is also more convenient for customers to shop online
than to actually drive and do purchase at a physical
store.
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QUICK SPECIFICATIONS
DISPLAY
Size 15.60-inch
Touch Screen No
PROCESSOR
Cache 3MB
MEMORY
RAM 4GB
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GRAPHICS
STORAGE
SSD No
CONNECTIVITY
Bluetooth version 4
Ethernet 10/100 T
INPUTS
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Pointer Device Touchpad
Speakers 2 Speakers
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From the above study, it is concluded that Dell clearly
knows the factors that drive the success and business.
The company has developed knowledge about the
working of business and ways to serve the customers.
Dell believes in the philosophy of continuous
development and searching for the next boundary of
value, which they can create for their customers.
Therefore, it always focuses on the policy of valuable
interactions. Hence, it’s the company that gets
personally involved with the customers.
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Moreover, the company has fantabulous growth rate and
low costs.
SUGGESTIONS
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Dell is falling behind in following areas and must find
out ways to maintain its position in the market
Commodity Products:
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Due to low spending on R&D Dell hasn’t acquired a
strong portfolio of patents and is now finds it hard to
compete in lucrative smart phones and tablets market.
Low differentiation:
RECOMENDATION
S
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DELL VOSTRO laptop is very user friendly the most
impressive part of the laptop is solid build quality and
performance user friendly, good battery backup, runs 4
to 5 hours after fully charged.
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Got this awesome piece just for Rs. 28, 000 and also got
3 year extended warranty just by paying Rs.1000 as a
ongoing offer.
Service &Support:
User Friendly:
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https://en.wikipedia.org/wiki/Dell
https://en.wikipedia.org/wiki/Dell_Software
https://www.dell.com/learn/us/en/uscorp1/
about-dell
http://www.dell.com/content/topics/global.as
px/corp/en/about_dell?c=us&l=en
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