ppt on dell

Monday, April 10, 2023

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“It’s amazing to me that our competitors think the customer is the dealer.” -Michael Dell

BE DIRECT: DELL

Presented by Rahul Kumar


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PROFILE

Dell Computer Corporation became official in May 1984.

Dell is the industry leader in direct sale of personal computers to consumers.

Since its start Dell has looked to over simplify its business for its customers. Offering a huge range of products and services, which can all be accessed by the consumers from home or from the office very easily.

It was founded on the Direct Business-to-Consumer Model.It is the fastest growing among all major computer systems companies worldwide. In July 1999, Dell became the #1 PC Vendor to businesses in the US


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PR0FILE

Dell has seen its stock increase by 400 times over the last decade.Company’s innovations are driven by customer needs, cutting edge solutions and strategic partnerships:Listen Solve ImpactDell helps drive the course of future industry innovation through a time-tested process that puts customer needs first.


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Dell Executive Leadership Team

Michael S. Dell - Chairman of the Board and Chief Executive Officer.

Paul D. Bell - Senior Vice President and President, Americas.

Michael R. Cannon - President, Global Operations.Donald J. Carty - Vice Chairman and

Chief Financial Officer.

http://www.dell.com/content/topics/global.aspx/corp/biographies/en/michael_cannon?c=us&l=en&s=corp

http://www.dell.com/content/topics/global.aspx/corp/biographies/en/donald_carty?c=us&l=en&s=corp

http://www.dell.com/content/topics/global.aspx/corp/biographies/en/paul_bell?c=us&l=en&s=corp


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Dell Executive Leadership Team

Ronald G. Garriques - President, Global Consumer Group.

Mark Jarvis - Chief Marketing Officer.

Stephen F. Schuckenbrock - Senior Vice President and President, Global Services, and Chief Information Officer.

Lawrence P. Tu - Senior Vice President, General Counsel

http://www.dell.com/content/topics/global.aspx/corp/biographies/en/ron_garriques?c=us&l=en&s=corp

http://www.dell.com/content/topics/global.aspx/corp/biographies/en/mark_jarvis?c=us&l=en&s=corp

http://www.dell.com/content/topics/global.aspx/corp/biographies/en/stephen_schuckenbrock?c=us&l=en&s=corp

http://www.dell.com/content/topics/global.aspx/corp/biographies/en/lawrence_tu?c=us&l=en&s=corp


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ORGANIZATION STRUCTURE


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HISTORY1984 - Michael Dell founds Dell Computer Corporation.1985 - Company introduces the first computer system of its own design; the Turbo, featuring Intel 8088 processor.

1987 - Dell is first computer systems company to offer next-day, on-site product service. International expansion begins with opening of subsidiary in United Kingdom1988 - Dell conducts initial public offering of company stock, 3.5 million shares at $8.50 each1990 - Manufacturing center in Limerick, Ireland, opened to serve European, Middle Eastern and African markets1991 - Introduces its first Latitude notebook computer1992 - Dell included for first time among Fortune 500 roster of world's largest companies1993 - Subsidiaries in Australia and Japan are company's first entries into Asia-Pacific region


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HISTORY1995 - $8.50 shares of Dell stock worth $100 on presplit basis1996 - Customers begin buying Dell computers via Internet at www.dell.com. 1997 - Dell joins ranks of the top-five computer system makers worldwide. Dell ships its 10-millionth computer system. Per-share value of common stock reaches $1,000 on presplit basis.1998 - Dell opens a production and customer center in Xiamen, China.1999 - Dell opens manufacturing facility in Eldorado do Sul, Brazil, to serve Latin America. Dell introduces "E-Support Direct from Dell" online


HISTORY

2000 - Company sales via Internet reach $50 million per day. For the first time, Dell is No. 1 in worldwide workstation shipments. Dell ships its one millionth Power Edge server.

2001 - For the first time, Dell ranks No. 1 in global market share. Dell is No. 1 in the United States for standard Intel architecture server shipments.

2002 - Consumers choose Dell as their No. 1 computer systems provider.

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HISTORY 2003 - Dell introduces printers for businesses and

consumers. Dell launches Dell Recycling to enable customers to recycle or donate to charity computer equipment from any manufacturer. The name change to Dell Inc. is official, reflecting the evolution of the company to a diverse supplier of technology products and services.

2005 - Dell tops list of "America's Most Admired Companies" in Fortune Magazine. Opens third major U.S. manufacturing location in Winston-Salem, North Carolina.

2006 - Dell ships more than 10 million systems in a single quarter (Q4, FY06) for the first time in its history.

2007 - Michael Dell returns as Chief Executive Officer. Dell opens manufacturing facility in Chennai, India.


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Mission


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GROWTH


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Financial situation


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Financial situation


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DELL – The Success Secret

Internet coupled with Direct Business Model - sell directly to end customers instead of intermediate distributors, resellers.Virtual Integration - using sophisticated CRM, SCM systems at respective ends as well their integration - already integrated with 38 procurement and ERP systems across all its clients - vendors – Ariba, SAP, PeopleSoft, J.D. Edwards – Dell integrated with their ERP (Source: Rob

Rosenthal, Dell’s B2B web site strategy, October 2003, IDC #30202)


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DELL – The Success Secret

Selling Points - Internet, B2B (Premier Pages), Phone-calls, Mass catalog mailingsDo not Just sell Products – sell Values - client asked to put tags on their computers - proactive in solving clients pain points – preloaded softwareDell’s model is based on build-to-order process, where company builds each PC on demand.

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Dell and direct sales

Dell started the direct-sales approach, eschewing the then-dominant indirect model that interposes a network of distributions, value-added resellers, and retailers between PC makers and PC buyers.Selling direct lowered dell costs by 25-40% compared to competitors.Dell passed these savings to customers.Dell believed that this could help best understand customers’ needs and provide the most effective computing solutions to meet these needs.



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Dell and direct sales Customers can choose what

components they want for their computer, Dell then assemble the order and ships it.

This strategy improves customer satisfaction and reduces costs and risks to the company.


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Benefits of direct sales method Direct sales in conjunction with build-to-

order is a powerful model for both Dell and its customers.

Customers get what they want, rather than be forced to choose among a fixed set of options.

Dell wins because by developing and building only those systems that customers want, Dell eliminates the excess cost of buying too many components, having high storage and inventory costs, and having to sell the surplus at a loss.

Dell can use savings in other areas such as web site improvement, marketing and distribution.


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Goals and strategies Dell’s emphasis on tech-savvy PC buyers

made online selling a natural, because high-end PC buyers were obvious users of internet and early adopters of e-commerce.

By 2000, online sales were running at $50 million per day and made up more than half of all Dell product sales.


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SWOT ANALYSIS

What does SWOT analysis reveal about Dell’s situation?


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SWOT ANALYSIS:- Business to consumer

STRENGHTS OPPORTUNITIESCustomizationPriceCustomer FocusedTechnical KnowledgeMarket DiversificationStrong Brand/PositioningMedia SavvyDirect Marketing Model

Server MarketInternational strategyProduct extensions

TangibilityTechnology MarketCommoditizationInventory

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

WEAKNESSES THREATS

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SWOT ANALYSIS:- B TO BSTRENGTHS OPPORTUNITIESCustomizationPriceCustomer FocusedTechnical KnowledgeMarket DiversificationStrong Brand/PositioningMedia SavvyDirect Marketing Model

Server MarketInternational strategyAdditional marketsProduct extensionsStrategic partnerships

Technology MarketInventory

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

WEAKNESSES THREATS


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CONCLUDE

DELL is to the computer industry what Dominos is to the pizza business. TIME magazine

Three Golden Rules of DELL:1. Disdain inventory2. Always listen to the customer3. Never sell indirect.


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CONCLUDE Dell is competing against 50 different

manufacturers, looking to be category killer in flat-screen, digital market. #10 in US in 2005 with 2.4% share.

Dell uses same suppliers. The convergence of entertainment and

computing or birth of “digital home” should only help Dell.

“In past ten years our sales are up 15 times and earnings and stock price are up 20 times.”


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Developing Dell Direct stores, and kiosks in malls. Places to touch, see and browse.

Dell believes its low-cost, direct sales approach will allow it to torpedo prices in many markets, with emphasis on printers.

Just like in your own businesses, windows of opportunities open and close.

Successful companies see the opportunities sooner.


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“When a market is ready to explode, Dell moves in.”


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THANKU

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