Yarroju Srimannarayana

Roll: 278

Sec: M3

Dell computer was founded by Michael Dell. Dell traces origins to 1984 when Michael dell created PCs limited

The company changed its name to “Dell computer corporation” in 1988 and began expanding globally as a multi national company first in Ireland

In 1992 Fortune magazine included Dell computer corporation in its list of the world’s 500 largest companies. Michael Dell is the youngest CEO of the fortune 500 ever

Dell Inc. is now the 41st among the fortune 500 companies

History of DELL

Headquarter

Company headquartered in Round Rock, Texas, U.S.A.

International market of Dell

• Dell International started in India about by opening a customer contact center at Bangalore in 2001. In 2003, the second contact center was opened at Hyderabad

• After the U.S., Dell India is the second biggest centre with 13,000 employees

• About 90% of dell computers are manufactured in China

PRODUCT LINE

• Desktop computers

• Notebook computers

• Network servers

• Workstations

• Storage products

• Dell offers a total of 1.6 million different possible product configurations for all its product lines

SUPPLIERS

• MICROSOFT - for Windows

• INTEL - for micro processors• NVIDIA - for Graphic chips• SONY - for monitors

DELL Suppliers and Products

Products

• Desktops

• Servers

• Notebooks

• Netbooks

• Peripherals

• Printers

• Televisions

• Scanners

• Pen Drives

• Smart Phones

General Environment

• Target Consumers: small to medium sized businesses in the US market

• Location: In the US, UK and 14 international subsidiaries by 1999

• Operated sales offices in 33 countries

• Served customers in more than 170 countries and territories around the world

• Internet presented a medium which Dell used to enhance its direct sales approach

• 24 hour on-line technical support, order status information, and downloading of software

Dell's major competitors

The Challenges and Evolution of Marketing

SWOT Analysis

CustomizationPriceCustomer FocusedTechnical KnowledgeMarket DiversificationStrong Brand/PositioningMedia SavvyDirect Marketing ModelNon-myopic strategy

Server MarketInternational strategyProduct extensions

TangibilityTechnology MarketCommoditizationInventory

Competition across marketsCommodity pricing(shrinking margins)Complexity of Mgmt.Growth exceeding productivity

CustomizationPriceCustomer FocusedTechnical KnowledgeMarket DiversificationStrong Brand/PositioningMedia SavvyDirect Marketing ModelNon-myopic strategy

Server MarketInternational strategyAdditional marketsProduct extensionsStrategic partnerships

Technology MarketInventory

Competition across marketsCommodity pricing(shrinking margins)Complexity of Mgmt.Growth exceeding productivity

Business to Consumer Business to BusinessStrengths Opportunities Strengths

Weaknesses Threats Weaknesses Threats

Opportunities

Supply chain management of DELL

• Dell revolutionized the way people in the united states buy computers.• Markets its direct sales model.

• No intermediaries• No warehousing• No physical store presence

• Dell eliminated the need for central warehousing as well as the need for a physical store presence. Instead Dell attracts customers to its site and then builds bonds with them there rather than investing in a physical relationship.• Saves money and time.

• Sales• Production• Warehousing

Customer places an Order(By phone or through the Internet on www.dell.com)

Dell processes the order

Financial evaluation

(credit checking)

Configuration evaluations

(checking the feasibility of a specific technical configuration)

Sends the order to assembly

plant (any one in Austin, or any other)

Plants build, test &

package the product

(about eight hours)

Dell typically ship all orders

(no later than five days after receipt)

2-3 days

SUPPLIERS REVOLVERS

CUSTOMERS

Supply Chain Chart

CORE ELEMENTS OF STRATEGY

• Mass customization (end result: Delivers exactly what the customer wants)

• Partnerships with suppliers

• Just-in-time components inventories (Quick Introduction of Latest Technology)

• Direct sales

• Market segmentation

• Customer service

• Extensive data and information sharing with both supply partners and customers