Dell- New Horizons

Submitted by:-

Harsh jangidSushant VermaPooja kumari Garima Pulok

INTRODUCTION

“Our business is about technology, yes. But it's also about operations and customer relationships”—Michael Dell

Video 1

VISION, MISSION & GOAL

• Vision: Dell Computer to become one of the world’s top three PC companies

• Mission: “To be the most successful computer Company in the world at delivering the best customer experience in the markets we serve”

• Goal: To achieve “virtual integration” (how Michael Dell call it – stitching together of Dell’s business with its supply partners and customers in real time

INTERESTING FACTS• Preferred desktop and laptop provider of enterprises

in U.S• Ships about 140000 systems per day- that’s more than

one every second.• The 10 largest US companies run on DELL.• The top 5 US commercial banks run on DELL.• DELL is the only computer company offering free

computer recycling to consumers worldwide.• 14 of the top supercomputers run on DELL.

DELL Inc - TIMELINE1983-- Michael Dell started business of pre-formatting IBM PC HD’s on weekends

1985-- $6 million sales, upgrading IBM compatibles for local businesses1986-- $70 million sales; focus on assembling own line of PC’s

1990-- $500 million sales; with an extensive line of products

1996-- Dell goes online; $1 million per day in online sales; $5.3B in annual sales1997-- Dell online sales at $3 million per day; 50% growth rate for 3rd consecutive year

2005-- $49.2B in sales

2011-- $61.6B in sales

REASONS FOR DELL’S SUCCESS

• Internet coupled with Direct Business Model

• Virtual Integration

• Do not Just sell Products – Sell Values

• Selling Points

Dell’s Direct Approach:A Fundamentally Different Model

COMPETITOR MODEL

•SUPPLIERS

•OUTSOURCING

•COMPETITORS

•CHANNEL

•CUSTOMERS

Types of customer segmented by DELL

• Transactional Customer• Relationship Customer

Relationship Business Small & Medium Business Consumer Business

Video 3

Segmenting at Dell

Relationship Businesswhats is it?

drawback

(focus here on industrial markets)

Small and medium Business

potential customer base

PAD n BSD...what is that...uses

Consumer business

wht was the consumer behavior present...what they neededdelivery time management in comparision to competitors

MAJOR CUSTOMER

• Large corporations,

• Government agencies • Medical and educational institutions • Small business • Individuals

Competitors

• Compaq• Hewlett Packard• Apple• IBM• GATEWAY

STRENGTH• Quality product and service• Brand name • Direct sell

model=customization + fast + delivery + low cost

• Product design + after sales service

• First mover advantage• Cost efficiency • No inventory buildup

• Occasional product recall. Eg. In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires.

• No physical presence of service centers.

• slow in introducing fancy features

WEAKNESS

OPPORTUNITIES

• Developing nations market • Growth in business, education

and government markets• Globalization• Low costs and growing

advanced technology• Global wide access to

customers and market

• Competition • Currency fluctuation in

countries outside the US • Political instability • Tariff trade barriers• Recession

THREATS

Value

• Costs do cost a lot• Customer need satisfaction• Moving

New Future Horizons

• Well crafted Dell Marketing and selling model• Lofty returns to shareholders• Aggressive growth and share gains• Future Strategic acquisitions(Like HP and Compaq)• Expanding to the global market• relying forever on principles like Low cost, superior customer

value, and virtual integration

Video clip 3

Should DELL go with Retail chain & change its strategy????????????

Questions