dream company dell

8/3/2019 Dream Company Dell

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PRESENTED BY-

SUSHIL CHAUDHARY(116)

VIJAY CHAVAN-PATIL(120)



NAVNEET AARYA (121)

SANTESHWAR



y Before Michael Dell, innovation was about well-schooled engineers in R&D labs inventing high-margin products and technologies.

y Dell instead trained his eye on finding the mostefficient way to get tech products into the handsof the consumers.



y Perfected the credo Cut out themiddleman.

y DELL eliminated the need for inventory ormiddlemen and gave itself a built-in priceadvantage, which it in part keeps as profit and inpart passes on to customers.

Fortune 28/11/2005



y Michael Dell created PCs ltd. while a student at theUniversity Of Texas at Austin.

y In 1985 the company produced the first computer of its

own design, The Turbo PC, which sold for US $795.y The company changed its name to DELL COMPUTER

CORPORATION in 1988.



In 1984, Michael Dell founded the company

In 1985, company produced the first computer on itsown

It develops, manufactures, sells, and supportpersonalcomputers and computer related products

Employs more than 77000 people as of 2009

The company is one of the largest technologicalcorporations in the world, employing more than103300people worldwide

In 1996, Dell began selling computer via web



y Dell is an American multinational informationtechnology corporation

y The name of its founder is MICHAEL DELL.

y Dell is listed at #41 in the fortune 500.y Michael Dell is the chairman of the Board of

Directors of Dell, the company he founded in 84for $1,000.



Customization

Price

Customer Focused

Technical Knowledge

MarketDiversification

StrongBrand/Positioning

Media Savvy

Direct MarketingModel

Non-myopic strategy

Server Market

International strategy

Product extensions

TangibilityTechnology Market

Commoditization

Inventory

Competition acrossmarkets

Commodity pricing

(shrinking margins)

Complexity of Mgmt.

Growth exceedingproductivity

Customization

Price

Customer Focused

Technical Knowledge

Market Diversification

Strong

Brand/PositioningMedia Savvy

Direct MarketingModel

Non-myopic strategy

Server Market

International strategy

Additional markets

Product extensions

Strategic partnerships

Technology MarketInventory

Competition acrossmarkets

Commodity pricing

(shrinking margins)

Complexity of Mgmt.

Growth exceedingproductivity

Business to Consumer Business to Business

Strengths Opportunities Strengths

Weaknesses Threats Weaknesses Threats

Opportunities



y 2000, Dell was #6 in computer, with a marketshare of 6%.

y 2003, it was #1 with a 30% share. #3 consumerbrand.

y Sales in 00: $25.2 Billiony Sales in 02: $35.2 Billiony Sales in 03: $40.8 Billiony Sales in 04: $41.4 Billiony Sales in 05: $49.2 Billiony Sales in 06: $55.9 Billion



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B i l l i o n s

Series 1



y Three Golden Rules of DELL:1. Disdain inventory

2. Always listen to the customer3. Never sell indirect.



yBuild-to-Order Manufacturing andMass Customization

Dell built its computers and other products to order, none were produced for inventory.

Dell customers can customize their PC¶s based on their needsof their applications.

This sell-direct strategy means that Dell had no in-house stock of finished goods inventories and that unlike competitor usingtraditional value of chain model



y Traditional PCs Industry Value Chain (Utilized by Compaq, IBM, HP and MostOther)

y Build-to-Order/Direct Sales Value Chain (Employed by: Dell)

Manufacturing of PCs Component

By

Suppliers

Assembly of PC by PC Makers (toFill order from

Suppliers)

Manufacturing of PCs Component

By Suppliers

PurchaseBy

PC Users

Service andsupport activitiesProvided to PC

Users

Sales andMarketing

Activities of Reseller to self Inventories of PCs on hand

Service andSupport activities

Provided to PCUsers

PurchaseBy

PC users

Customized Assembly of PCs

By PC Makers

dream company dell

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