Done by Group 2

INTRODUCTION
Started by- Michael Dell(19 at that time) in his dorm
room at the University of Texas in 1984 with $1000.
Company headquartered- Round Rock, Texas, USA.
Revenue- around US$63.07 Billion in 2012.
2001- became the No.1 computer systems in the
world.
2013- 3rd largest PC vendor in the world after HP
and Lenovo.

COMPETITION IN PC INDUSTRY
The PC industry is driven by rapid technological

improvements in components, microprocessors,

semi conductor and storage devices.
2 factors came into play in determining the

availability of PC companies to manage

inventory and introduce new products.
Traditional distribution system of PC Industry-

Indirect Model: THE CHANNEL.

COMPETITOR ANALYSIS

Threats
Imitation of products.
Fierce competition by other
companies.
Slowdown in the market.

Online retail stores.

Use of Direct Model to sell
other IT products.
R&D investment.

SWO
Opportunities
T
Strengths

Lack of dell stores.

Overdependence on
suppliers.

Direct Model Approach.

Customization of products.
Strong customer base.
Excellent customer service.

Weaknesses

SWOT ANALYSIS

CORE ELEMENTS OF STRATEGY

Mass customization- End result: meeting customers

needs.
JIT component inventories- quick introduction to latest

technology.
Direct Sales.
Market Segmentation.
Customer relation.
Extensive data and information sharing with both

suppliers and customers.

BUSINESS MODEL

BUSINESS MODEL
Pioneer in Configure to Order approachdelivering individual PCs configured to
customer specifications.
To minimize delays between purchase and
delivery- Dell has a general policy of
manufacturing its products close to its
customers.
Implementation of JIT- which minimizes

MINIMUM INVENTORY- A SUCCESS!

Build to order model.
Direct to Sell.
JIT Inventory Management- 3 days.
Focus on speed of inventory delivery
process.

DELL DIRECT MODEL

Componen
ts
Component
Manufacturer

Products
Customer
s

Dell

Order

Distributor

DELL DIRECT MODEL

The company outsourced all components
but performed assembly.
It eliminated retailers and shipped directly
from its factories to end users.
It took customized orders for hardware and
software over the phone or via the internet.
Designed integrated supply chain.

INTERGRATING THE INTERNET

Delivering online technical support and order
status information.
Designed online retail stores.
Premier Pages-access to only authorized
employees of the specific customers.
The model strengthened Dells efficienciestransaction and relationship.
Dells key suppliers could access Dells internet

CUSTOMER SERVICE
Service became a feature of Dells strategy in

the year 1986.

It provided free on site service for a year after

the sale.
Contracted with local service providers to

handle customer requests and repairs.

Technical support via the phone or the internet.

PRODUCT GROWTH
Personal Computers:
Worlds No. 1 PC maker with largest
share in the PC market

Workstations:
In 2000, the market leader in the U.S.
and in the world in terms of Windows NT
workstations

 Servers:
It was segmented into high end servers,
midrange servers, and entry-level servers.
Entry level server : 2/3rd of its server
sales

Storage:
Shift from Direct Attach source to external
storage.

ANALYSIS & SUGGESTIONS

Analysis
Even during the slowdown, the company is going
strong due to the business model, direct to sales
approach, inventory management, CRM and so on.
Even after the slowdown, continuing with these
activities, Dell can sustain their value in the market
and also have a strong relationship with the
customers and the suppliers.

ANALYSIS & SUGGESTIONS

Suggestions
Invest more in R&D.
Maintain customer
Use of inexpensive ways to connect with
the market segment. For instance- the
internet(growing during that time).

THANK YOU!!!