CASE STUDY- DELL INC ASSIGNMENT #2 By: Muhammad Salman ( Syed Ahmed Farooq Wasti ( Kamran Ullah Khan ( References: www.apple.com, www.dell.com, www.hp.com, www.ibm.com Finance.yahoo.com, www.gateway.com, www.sec.gov/edgar.shtml )_______ )_______ )_______ Introduction • Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Initially the name of the company was PCs Ltd in 1984 but later it was changed to Dell Computer in 1987 when company got listed in stock exchange. • The company started with small operations through PCs by buying retailers surplus stocks at cost, then powering them up with graphics cards, hard disks, and memory before reselling them. • Dell’s strategy …show more content…
IBM major strength is complex multiprocessor systems. Dell has limitations in this regard. • Gateway computers are having only 6% US market as compared to 29% of Dell • Apple is having only 5% of US market in PC’s, but due to its philosophy of innovation, experimentation and leading edge design posing threat to Dell in future. Internal Environment Analysis Company Resources • Dell 's principal products/resources includes desktop PCs, notebook computers, workstations, and servers. The company also marketed a number of products made by other manufacturers, including CD-ROM drives, modems, monitors, networking hardware, memory cards, storage devices, speakers, and
Dell Inc. is a multinational organization that manufactures PCs and ropes related products and services. It was established in 1984
Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.
Dell is considered doing well in the market segmentation in order to avoid unnecessary loss. The management carry out analysis and report to find out which part or area can let them make the most profit. They position themselves as a strategic vendor, which is important in the business. From this, they have the competitive advantage in order to compete with other IT big business. Dell is also trying to sell affordable or more cheaper product to the customer. Apple is the top IT business in the world nowadays. As a result, Dell can not compete with them at the moment. Therefore, Dell’s product strategy is more focus on developing one specific product that can satisfy the customer. Dell also provides variety of services to
Fulfilling the client/customer’s requirement Dell perform primary and support activities that produces cost effective and differentiated features. The company provide
Dell 's best competitive advantage is support service. Methods of lowering cost can be mimicked by anyone, but a high quality support service is not. As technology more advances and becomes more complicated, having a well trained and well mannered support service will be very valuable to having loyal and happy customers. Support service is not rare but a high quality support service that is truly helpful is very
Dell Computer Corporation, founded in 1984, designed, manufactured, sold, and serviced high performance personal computers (PC’s). Its core strategy, and advantage over competitors, was selling directly to customers. In 1996, Dell reported an impressive growth in sales of 52%.
Dell used the customer to create products based on the user need. Each approached their core values of business and what works for them to create value and sustainability. Dell had the market share by using the internet to generate sales through machine to machine based sales and conserved his manpower to keep the cost of his product low. Intel spent many hours of research and product development to create new and innovative ground breaking products that led the industry standards.
Dell is one of the leading Computer hardware and software providing company. It offers a broad range of products and services. Products include desktop PCs, servers, networking products, storage, mobility products, software, peripherals and services include technical IT support, IT infrastructure development and consultation. Dell has been a pioneer of e- commerce as it was one of the first leading companies who extensively used internet to interact with its customer, suppliers and partners to build a strong e-commerce
Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in one of his interview, is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to
During the early 1990s, computer industry developed rapidly. With the entrance of Dell, the dynamic structure in the industry changed. Between 1994 and 1998, Dell 's growth was twice as fast as its major rivals (IBM, Compaq, Gateway, and Hewlett-Packard). Dell provides high performance PCs at low prices. Its competitive advantage is mainly established by the innovation of the Direct Model and other firm level strategies that enable Dell to utilize its resources and build up its capabilities more efficiently.
Dell being a predominantly a PC manufacturer need to venture out into new technology sectors and providing users with more flexible ways of accessing shared information.
The founder of Dell Computer Incorporation is Michael Dell in 1984. Dell’s primary products are personal and office computers and business of Dell also engages in other products such as printers and software. A feature that determines PC companies such as Dell to manage their products is through standardization of PCs. The main benefit of standardization is that it helps Dell to reduce the cost of productions. However, when Dell adopted standardization strategy, it made Dell more generic with other PCs companies such as IBM, Compact and Hewlett-Packard since most of PCs companies had access to the same suppliers such as Intel and Microsoft.
Dell is an American Company which own a wide family of a different kind of devices such as computers, Laptops, Tablets, smartphones, printers, scanners and much more for all the needs of IT experts, businesses, industries or home based applications.
Dell breaks its business down into four groups: its core group is End-User Computing (desktop PCs, notebooks and tablets.) More than 60% of the company’s revenues come from PCs (Guglielmo). The newest groups, Enterprise Solutions (servers, networking, and storage,) and Software and Services are the fastest growing and most profitable (Dell) (Guglielmo).