ISM Assignment

Defending Report
Virtual Integration of DELL

Submitted by
Defending Team-11
Pavan Dasari-215118013
Kota Krishna Teja-215118023
Sai Srinivas-215118024
Mohan Kumar-215118028
Sanjay Sankar Pydi-215118036
Thota Pavan Raj-215118056

Submitted to
Dr. P. Sridevi
Head of Department
Department of Management Studies
National Institute of Technology, Trichy
 The Power of Virtual Integration - An Interview With Dell
• Dell was listed in Fortune 500 in the year 1992 and still it is in the list and that’s a strength to the
company.
• Dell was the first company to sell the computers and accessories through online using its website.
• But the release of Apple’s iPad pulled Dell and similar companies as the customers switched away
from PC’s and Laptops to tablets.
• Dell failed to capture the segment of products like HDTV’s, cameras and MP3 players rather they
confined only to the PC’s and Laptops.
• Dell 2.0 might have affected the goodwill of the company as it reduced its employees and also
eliminated the bonuses. It closed one of its biggest Canadian call-center consisting of 1100
employees.
• Dell announced on February 5, 2013 that it had struck a $24.4 billion leveraged buyout deal which is
the largest leveraged buyout backed by private equity since the 2007 financial crisis.
• The powerful structure of Dell includes the Client Solutions Group (CSG), Infrastructure Solutions
Group (ISG), VMware and the Dell Financial Services (DFS).
• After that Dell changed it business model to Direct Business Model which contained elements like
build-to-order model, direct to sell and inventory management. This reduced the cost and time of the
company’s processes.
• Virtual Integration is also implemented in the company to basically stitch together the business with
partners that are treated as if they’re inside the company.
• Another advantage of Dell is that the company focuses on B2B and B2C commerce to satisfy their
business and individual customers.
• To achieve their supply chain superiority, Dell uses solutions from i2 Supply Chain Management
which streamlines the supply chain by providing component suppliers and Dell planners with global
views of product demand and material requirements.
• Porter’s five force analysis showed that the level of Industry Rivalry is high. The top players include
HP, Lenovo, Dell, Asus, Apple and Acer. All the brands are focusing on delivering innovative
products with features better than their competitors.
• From SWOT analysis the opportunities for Dell were found to be like
• Obtain more patents through acquisitions
• Expansion of services and enterprise solutions businesses
• Strengthen their presence in emerging markets
• Tablet market growth
• Dell’s direct-to-customer business model is the key to the company’s dramatic growth and success
and has focused on selling directly to customers.
• In its three decades of operation, the Texas Headquartered Company has acquired a number of
technology companies which turned Dell Inc. to Dell Technologies.