Dell- New Horizons

Submitted by:Harsh jangid Sushant Verma Pooja kumari Garima Pulok

INTRODUCTION
Our business is about technology, yes. But it's also about operations and customer relationships Michael Dell

Video 1

VISION, MISSION & GOAL

Vision: Dell Computer to become one of the world s top three PC companies Mission: To be the most successful computer Company in the world at delivering the best customer experience in the markets we serve Goal: To achieve virtual integration (how Michael Dell call it stitching together of Dell s business with its supply partners and customers in real time

INTERESTING FACTS
Preferred desktop and laptop provider of enterprises in U.S Ships about 140000 systems per day- thats more than one every second. The 10 largest US companies run on DELL. The top 5 US commercial banks run on DELL. DELL is the only computer company offering free computer recycling to consumers worldwide. 14 of the top supercomputers run on DELL.

DELL Inc - TIMELINE

1983-1985-1986-Michael Dell started business of pre-formatting IBM PC HD s on weekends $6 million sales, upgrading IBM compatibles for local businesses $70 million sales; focus on assembling own line of PC s

1990--

$500 million sales; with an extensive line of products

1996-1997--

Dell goes online; $1 million per day in online sales; $5.3B in annual sales Dell online sales at $3 million per day; 50% growth rate for 3rd consecutive year

2005-2011--

$49.2B in sales $61.6B in sales

REASONS FOR DELLS SUCCESS

Internet coupled with Direct Business Model Virtual Integration Do not Just sell Products Sell Values Selling Points

Dells Direct Approach: A Fundamentally Different Model

COMPETITOR MODEL

SUPPLIERS OUTSOURCING COMPETITORS CHANNEL CUSTOMERS

Types of customer segmented by DELL

Transactional Customer Relationship Customer
 Relationship Business  Small & Medium Business  Consumer Business

Video 3

Segmenting at Dell
Relationship Business whats is it? Small and medium Business

drawback

potential customer base

(focus here on industrial markets) Consumer business

PAD n BSD...what is that...uses

wht was the consumer behavior present... what they needed delivery time management in comparision to competitors

MAJOR CUSTOMER
Large corporations, Government agencies Medical and educational institutions Small business Individuals

Competitors
Compaq Hewlett Packard Apple IBM GATEWAY

STRENGTH
Quality product and service Brand name Direct sell model=customization + fast + delivery + low cost Product design + after sales service First mover advantage Cost efficiency No inventory buildup

WEAKNESS
Occasional product recall. Eg. In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires. No physical presence of service centers. slow in introducing fancy features

OPPORTUNITIES
Developing nations market Growth in business, education and government markets Globalization Low costs and growing advanced technology Global wide access to customers and market

THREATS
Competition Currency fluctuation in countries outside the US Political instability Tariff trade barriers Recession

Value
Costs do cost a lot Customer need satisfaction Moving

New Future Horizons

Well crafted Dell Marketing and selling model Lofty returns to shareholders Aggressive growth and share gains Future Strategic acquisitions(Like HP and Compaq) Expanding to the global market relying forever on principles like Low cost, superior customer value, and virtual integration

Video clip 3

Should DELL go with Retail chain & change its strategy????????????

Questions