GROUP MEMBERS

ZAI U REHMAN 37M.ZAHID 14ZAKIR 25HUSSAIN AHMAD 08

JANSHER 44

Topic

DELL

HISTORY

Founded by Mr. Michael Dell, a 18 year boy Established in 1984 at TexasRegistered as PC’s LimitedWith a little fund onlyLaunched its 1st Pc (Turbo Pc) in 1985In 1996,it became a one million dollar

company

Key person at Dell

Michael Dell: Founder of the Dell computerYoungest CEO in the worldLeft college to focus on his business in 1985Now CEO and Chairman of DellPursuing his degree in medicineHave a hobby of building computers

Michael Dell started his business with the simple concept of built-to-order personal computers sold directly to customers , having two advantages.

Direct selling advantages to Michael Dell

1st Advantage:In bypassing distributors and retailers, he

eliminated the markups of resellers and improve his profit.

2nd Advantage:By building computers only when ordered ,he

greatly reduced the costs and risks associated with carrying large stocks of parts,components and finished goods.

Dell initially started sales through mail and phone orders,

In 1994 Dell became the first company to list a Wed site with listed price and product information.

Dell earn a lot through direct selling and by 1999 Dell computer was the largest retailer then on the Internet.

Direct selling advantages over competitors

Companies such as Compaq , IBM and HP manufacture personal computers in large volume and keep their distributors and retailers stocked with large inventories

Dell eliminated finished product inventories and greatly reduced the need to warehouse both finished product and component parts.

Vision Statement

It’s the way we do business, It’s the way we interact with the community. It’s the way we interpret the world around us , our customers’ needs, the future of technology, and the global business climate. Whatever changes the future may bring, our vision _ Dell Vision_

will be our guiding force.

Mission Statement

Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, will meet customer expectations of.

Highest quality Leading technology Competitive pricing Individual and company accountability Best-in-class service and support Financial stability

Organizational Structure

Michael Dell is the chairman of the board of directors for Dell inc.

In july 2004, Kevin Rollins assumed the titles of president and chief officer.

Headquarter in Round Rock ,TexasDell Inc managed on three geographic basis, Americas, Europe, and Asia-Pacific

Organizational Structure

Dell Inc . maintain more than 7 million square of office, research, manufacturing and distribution space in United States.

The Americas segment based in Round Rock, Texas, covers the United States, Canada, South America, and Latin America.

The Asia-Pacific segment, based in Singapore, covers the Pacific Rim, including Japan, Australia, and New Zealand.

SWOT analysis of Dell ComputerStrengths

Biggest PC maker in the worldThey deal directly with the customers with no

use of a middle man.They are the number one PC provider for

medium and small businesses across the US for 10 straight years.

They ship around one hundred and forty thousand computers in a day.

They have very good branding and are one of the most known computers in the world.

SWOT analysis of Dell Computer: Weakneses

Dealing with a large amount of supplies from many different countries can cause a large issue when products are recalled.

They build computers, not develop them.Their supply orders are so large that they

become limited to dealing with a small few supplies that can handle the volume

They have weak business relationships with many computer retailers.

They do not have unique technologies to offer the market

SWOT analysis of Dell Computer: Opportunities

Continuing to market on the internet to gain larger market bases

Broadening their scopes in Europe, India and China.

Expand into government and education markets

Branding their lower cost, lower priced computers that are sold anonymously

SWOT analysis of Dell Computer: Threats

Competition can basically create the same computers since Dell builds computers, not designs them

Tariff trade barriers affecting their positions in multiple countries

due to the integration of components in Dell's organization structure, Dell compete not only compete at the final product level but also at the suppliers level.

Dell inc’s Geographic Area Information (mil $)

2003 2004 2005America 25047 28603 32940Europe 6912 8495 10787Asia 3445 4346 5748

Total Revenue and Net-Income (mil. $)

2003 2004 2005T.Revenue 35404 41444 49205Net income 2122 2645 3043

Manufacturing

Dell manufactures its components in the following locations :

Austin, Texas; Nashville, Tennessee; El dorado do sul, Brazil; Ireland (Europe, Middle East, and Africa); Malaysia and China.

Parts, components and subassemblies purchased from suppliers are tested and held to quality standard.

Marketing

Dell divides its customers into three groups1st :Relationship: The customers includes

large corporations; governmental, healthcare, and educational institutions

2nd :Transactional: The customers include small to midsize business and individuals.

3rd : Internet: The customers can access a wide range of information about Dell product and services offerings , and purchase system online.

Competitors

The chief competitors are HP and IBM.Gateway computer and Apple computers also

compete with Dell for their place in the PC market.

Competition is on the basis of Price, Technology, Performance, Quality, Reliability, Service and Support.

Comparison with HP

HP is the closest competitorIn 2003 share of the global personal computer

market of Dell is 16.7 percent and of Hp 16.2 percent.

While currently is 18.3 percent of Dell and 15.7 percent of Hp.

Dell’s profit margin is 8.8 percent while of Hp is 0.9 percent.

on may3,2002,HP merged with compaq and created a large company with total revenue in 2004 of $79,905 million while of Dell is $49,205.

HP net income in 2004 of $3,497 million while of Dell’s $3,043.

Comparison with Gateway

Gateway opened a 264 Gateway stores in which customers could view Gateway’s systems and receive assistance in ordering Gateway system

however the store failed to be profitable and were shut down in April 2004

In March 2004,Gateway completed its acquisition of eMachines.

The combined company commands only about 6% of the U.S market, compared to Dell’s 29 % and HP 18 %.

Comparison with Apple Computer

Apple has introduced innovative designs for its brand of personal computers. The use of color, styling , and commitment to its own operating system means that Apple clearly has a unique product line.

In 2004 iPod sales reached $1419 million, this was 279 % increase from 2003.

Sales through iTunes increased 672 % from 2003, reaching $278 million in 2004.

Apple’s total revenue of $8279 million in 2004 while of Dell’s $49,205 .

Apple’s net income in 2004 $ 276 million while of Dell’s $3,043 million.

In US market share is 5% and international market less 3%

Recommendations

To improve their printer market as HPHP revenue from printer market is 43 million

and dell only 3 million. IBM spends $1 billion a year on R/D and

server market and provide new complex technology and software to that market. Bud dell has stopped it.

lack of retail stores in Asia which become hindrance in the way of selling to Dell.

Thank you for your attention

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