DELL INDIA

BY:YASH GANDHI

SMARIKA JAIN

SHREYA VIRANI

RIKIN PATWARI

ASHUTOSH VERMA

MICHAEL DELL

“India is a great place to be in. It is growing faster than China for us.”“We’re in 180 countries and I don’t track all of them because that can make you a bit dizzy. But I do follow our top 10 markets. India is in the top 10. In fact, it’s the fastest growing market of our top 10, ahead of everybody, including China. There are plenty of opportunities in India and we couldn’t be more excited.”-Michael Dell in 2010

NEW YORK CITY: US computer giant Dell announced Tuesday it had completed the deal to go private in a $24.9 billion buyout led by company founder Michael Dell.

"Today, Dell enters an exciting new chapter as a private enterprise," Michael Dell said in a statement.

"Our 1,10,000 team members worldwide are 100 percent focused on our customers and aggressively executing our long-term strategy for their benefit.“

Dell stockholders will receive $13.75 in cash for each share plus a special dividend of 13 cents per share.

source: economic times.28oct 2013

INTRODUCTION

Dell produced its first pc in 1985 as a “turbo” model.

Dell is a privately owned multinational company who’s headquarters is situated in Round rock, texas, united states.

this company is one of the largest technological corporations in the world and it provides employment to more than 1,10,000 employees.

Dell sells personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players and it also has software integration and outsourcing unit.

Dell has a big share in china and India.

About 90% of the dell computers are manufactured in china.

Dell’s brand name is valued at 7.5 billion dollars.

DELL INDIA

Dell entered the Indian market in 2001.

In 2001,dell opened its first customer contact center in banglore and the second one in 2003 in Hyderabad. And now after the united states, dell india is the second largest center of dell with over 13000 employees.

In july 2007 a new manufacturing plant for dell desktops was introduced at chennai which was the third manufacturing plant in asia-pacific and eighth in the whole world.in the initial stage it was estimated that the capacity of the plant would be 4,00,000 units of desktops per year when the manufacturing unit was planned in 2006. but since then it has doubled the production from 4,00,000 to 1million units of desktop per year In 2007 and many units were sold to Infosys one of the most largest customers of dell in india as it was tagged as “made in india”.

DELL

In march 2007 dell was approximately half a billion dollar company in India and it crossed 1 billion dollar mark after 3 years.

Dell was holding 7.6% market share which was ranked third in India in 2008 from 4% in 2006.

In 2008, Dell had a 16% share in the Notebooks segment and 6% share in Desktops segment as compared to 8% and 4.5% share in, 2007 respectively.

in 2009, 75 lakh PCs were sold. In 2010, the expected PC sales are 90 lakh. For the first six months ended June 2010, sales totaled about 45 lakh. [Note:PCs include desktops and notebooks..]

In 2006-2010 hp replaced dell as the market leader and there was a tuff competition between dell and Acer for the second position.

ACHIEVEMENT OVER HP

According to IDC, since 2005, HP was held the number one position in the Indian PC market for six years(2004-2010). However, in the April-June, 2010, Dell replaced HP for the first time with a 15.2 percent share. HP followed at 14.3 percent and Acer at 11.5 percent, though HP still led in the desktop segment. Dell was helped by strong marketing and its channel partners base.

share holding

dell 15.2

hp 14.3

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14.3

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MARKET SITUATION OF INDIA

HP is leading the PC market — desktop, notebook and tablets — in India with 25.4 percent share in the second quarter of 2013. Lenovo is in the second position with 8.2 percent PC market share.

According to Canalys PC market estimates, HP increased its market share to 25.4 percent in 2013 from 10.9 percent in 2012.

HP recently won several notebook deals from government.

Market share of Lenovo, Acer, Dell and Apple declined in 2013.

Out of this, shipments of Lenovo and Apple increased in 2013 than 2012.

Lenovo’s PC market share decreased to 8.2 percent from 9.7 percent.

PC market share of Acer decreased to 8 percent from 10.8 percent in India.

Dell’s PC market share declined to 7.3 percent from 10.9 percent. The major set back was for Dell.

Apple’s market share in the Indian PC market dipped to 3.8 percent from 4.1 percent.

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Current market situation

hp lenovo acer dell

WHY INDIA?

Dell’s channel strategy is to make technology more available to small and medium businesses (SMBs). Dell’s channel partners contribute 22% to its total revenue globally. Out of 10 million SMB customers across the globe, Dell caters to 12,000 SMB customers in India. As per estimates, SMB market in India has over 7 to 13 million customers. Among the U.S., India is ranked second for the number of SMBs.

India is one of the most important emerging markets in the world. For years, selling PCs in Asia largely meant China . However, PC makers have recognized the importance of the giant Indian market , its booming economy and annual growth at more than 9%.

CORPORATE SOCIAL RESPONSIBILITYRed Cross Digital Operations Center — March 2012Dell and Red Cross created the Red Cross Digital Operations Center powered by Dell, the first social media command center of its kind devoted to humanitarian aid. It enables the American Red Cross to track and monitor disaster emergencies as they happen via social networks.

DELL’S CODE OF CONDUCTOur ethical principles are:

We are honest. What we say is true and forthcoming — not just technically correct. We are open and transparent in our communications with each other and about our business performance.

We are trustworthy. Our word is good. We keep our commitments to each other and to our stakeholders. We do the right thing without compromise. We avoid even the appearance of impropriety.

We treat others with respect. We value their contributions and listen to their point of view. We maintain fairness in all relationships.

We are courageous. We speak up for what is right. We report wrongdoing when we see it.

We use good judgment. We think before we act. We use our purpose, values and ethical principles as decision filters to guide our behavior.

We are responsible. We accept the consequences of our actions. We admit our mistakes and quickly correct them. We don't retaliate against those who try to do the right thing by asking questions or raising concerns. Source:dell.com

CHILDREN’S CANCER CARE INITIATIVE

1. Our multimillion dollar, multiyear commitment: By applying our technology, expertise, donations and employee volunteerism, we hope to open new possibilities for children fighting cancer.

2. Dell cloud technology provides the power to do more for personalized medicine: We are developing and donating cloud technology that will provide needed computing power to empower researchers and ultimately allow patients quicker access to better treatment. Researchers are now able to analyze a patient’s molecular data — a process that used to take 10 days — in six hours.

3. Support for families: We support the needs of families and children affected by pediatric cancer through a variety of nonprofit partners around the world.

DISASTER RELIEF

Giving to the communities in their time of need has been a priority for Dell since the start of the company. Disaster relief is one of the four key focus areas of Dell’s Giving Program and with the experience dell has worked to sharpen its disaster relief support. As an information technology solutions leader, Dell uses its unique capabilities to provide the communication and technology assistance critical to effective disaster response.it helped the communities in the following events:

1) Japan earthquake — March 2011Researchers used Dell technology to predict aftershocks and coordinate relief efforts following the Japan earthquake in March 2011. Dell Japan team members also responded in various ways to this devastating event — from cleaning streets to assembling supplies for school children.

2) Haiti earthquake — January 2010The Haiti Ministry of Education was able to begin school on time, thanks in part to the communication center established by a collaborative effort between Dell and other information and communication technology companies post this disaster in January 2010.

CHRISTEL HOUSE IN INDIA-WITH DELLSince 2006, Dell has worked with the India Christel House in support of its mission to make a lasting difference for the country’s impoverished children.

Focused on a holistic approach, the Christel House provides a very innovative teaching staff to insert the quality of self dependence in its students.

The India Christel House, with Dell’s help, has been able to organize programs such as the Culver Summer School and Camp. In 2008, the India Christel House was selected for one of the inaugural Dell Youth Learning grants addressing the technology gap. This unique program offers 9- to 17-year-olds a supportive and challenging learning environment. They are taught self-discipline, personal responsibility, diversity appreciation, and respect for oneself and others — improving confidence and enabling personal growth, leading to productive and self-sufficient lives.

The Christel House has embraced the demand for its programs around the world, and has grown to operate five learning centers — in Mexico, India, South Africa, Venezuela and the United States —serving more than 3,000 students and their families and communities.

TECHNOLOGICAL INITIATIVES

Dell's worldwide technology recycling options:-dell helps reduce e-waste and protect the environment with Dell technology recycling, offered around the globe. From dell’s free and convenient residential options to asset resale and recycling services for businesses, you can rest assured that dell will recycle your equipment responsibly. dell is the first computer manufacturer to ban e-waste export to developing countries.

INNOVATIONS AT DELL- SOCIAL THINK TANK

The Dell Think Tank program brings together industry leaders who are particularly vocal in social media to discuss trending topics impacted by technology. The goal is to create an open and honest forum that fosters collaboration and reveals unique community needs and opportunities for technology to play a larger role.

For Dell and its partners, the social think tanks are an opportunity to listen firsthand, discuss business needs and foster relationships with participants and their respective communities. It also gives Dell and co-hosts an opportunity to capture meaningful feedback to better serve our various audiences. Since 2011, we have held think tanks on topics including education, healthcare, entrepreneurship and the changing mobile workforce. Events are in person and extended online for virtual participation on Twitter and via Livestream.

USES AN ECO FRIENDLY PACKAGING SOLUTION -BAMBOO

It's Renewable, Local and Biodegradable

Paper and plastic may be the most common packaging options, but they’re not the only ones. Dell pioneered the use of bamboo to protect certain devices. This giant member of the grass family, found in everything from food to flooring, is now also a sustainable packaging solution. dell uses it to cushion many of our lightweight products, including all laptops produced in China

WHY BAMBOO?Bamboo packaging helps promote a healthier planet.

It’s local — The bamboo used for our packaging grows close to the facilities that manufacture our products. This reduces our packaging-related carbon footprint.

It grows quickly — Bamboo is the fastest growing woody plant in the world. It can grow up to 24" (nearly 61 cm) a day. It can be harvested in just three to seven years — much faster than hardwoods.

It’s strong and durable — Like steel, bamboo can withstand lots of stress while being stretched. Because it’s so tough, dell knows it can protect your technology equipment effectively.

It’s a friend of the environment — Bamboo helps promote healthy soil. The plant’s deep root systems protect against soil erosion.

OTHER ACHIEVEMENTS OF DELL

Ranked No. 1 in Newsweek’s 2010 U.S. 500 Green Rankings.

First to achieve 80 PLUS Gold energy efficiency.

Eight campuses in the U.S. and Europe powered by 100 percent renewable energy.

2010 recipient of InfoWorld Green 15 Award.

First tech company to offer carbon offsets to customers.

Ranked No. 1 in the Corporate Sustainability Index benchmark report released by TBR in 2009.

Rated the leading green brand among IT buyers in Green Factors study

THE RETAIL STRATEGY-DIRECT SALES MODEL

This process was used by dell india before the mid-2000’s which included the direct selling of the pcs through phone or online.

THE NEW RETAIL STRATEGY

Dell’s innovative direct- sales model with good sales growth had been successful until the mid-2000s when the company’s profits and share prices began dropping. Dell was selling PCs directly to customers by phone and online. On May 24, 2007 Dell disclosed its plans to sell PCs in the US, Canada, and Puerto Rico through Wal-Mart and Sam’s Club retail stores.

In India, as part of the retail initiative, Dell tied up with Tata Croma (the Tata-owned electronics retail chain) in July 2008 and with selected Staples stores. By the end of 2008, Dell planned to increase its presence to100 Indian cities by increasing its channel partners. In October 2008, Dell announced the opening of the first Dell exclusive stores in India at New Delhi and Coimbatore. Dell also tied up with 600 systems integrators all over the country who could take orders on its behalf.

SERVICES

Since the beginning of 2013, Dell has taken initiatives like launching the Dell’s Engineer’s Club (train channel partners), Enterprise Master Tool (to close deals faster) and the Partner Advisory Council (to augment sales). These initiatives are launched to support its channel partners in India. Dell has more than 2,000 partners in its Global Commercial Channel (GCC) partner program in India.

Premium Phone Support service: In July 2012, Dell announced Premium Phone Support service. The 24×7 phone, chat, and e-mail support service is for its consumer line of products. The service is unique as it caters to both hardware and software

COMPETITION.

The major competitors of dell world wide :

HP

APPLE

IBM

SONY

SAMSUNG

TOSHIBA

LENOVO

DELL’S SET BACK EVENTS

Due to the introduction of the tablet technology in April 2010 the pc notebook sales went down by 25%.

Dell tried to counter the apple’s ipad by launching a tablet computer named “streak” in may 2010 but failed to generate enough sales.

Dell purchased “perot” an it service company, in 2009.even after this it accounted for only 13% increase in the sales.

In 2010,dell attempted to buy “2par” a data storage firm, but was outbid by hp.

CORPORATE GOVERNANCE

the Board of Directors of Dell (the "Board") has established a Governance and Nominating Committee (the "Committee")

Most Of the Top Management were assembled and integrated of experienced executives from companies like Motorola, Hewlett-Packard, and Apple.

July 2004, Kevin Rollins replaced Michael Dell as Chief Executive Officer, allowing the founder to focus on being Chairman of the Board. This situation did not last long.

Michael Dell owned 11.7% out of the org shares , however all the other members owned 1% only.

RESEARCH AND DEVELOPMENT

Dell India R&D Center is Dell’s second largest product development center. Founded in 2001, the R&D Center focuses on software development, Enterprise solutions, international product support, test engineering, and documentation.

The R&D Center has steadily grown over the past five years. By 2002, the design center participated in DellTM OpenManageTM software development, as well as product, system, and operating system (OS) testing. In 2003, the Center took on additional activities, including storage testing; online diagnostics; and Dell Server Assistant, IT Assistant, and Connections development.

The R&D Center moved from its original location to new premises in 2004 and graduated from a remote pool of engineers to a major design and development center. In 2005, it provided engineering contributions to all block releases and supported many platform releases.

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W weakness

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Strengths

-low labor costs in India.

Weaknesses

-competitive markets

-tax structure

-Brand portfolio

Opportunities

-new markets

-new technologies

-Venture capital

-growth and economy

-markets of other countries

Threats

-financial capacity

-Rising cost of raw materials

-technological problems

-Government regulations

THANK YOU….