Dell Inc


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Dell Inc

  2. 3. Topic DELL
  3. 4. HISTORY <ul><li>Founded by Mr. Michael Dell, a 18 year boy </li></ul><ul><li>Established in 1984 at Texas </li></ul><ul><li>Registered as PC’s Limited </li></ul><ul><li>With a little fund only </li></ul><ul><li>Launched its 1 st Pc (Turbo Pc) in 1985 </li></ul><ul><li>In 1996,it became a one million dollar company </li></ul>
  4. 5. Key person at Dell <ul><li>Michael Dell: </li></ul><ul><li>Founder of the Dell computer </li></ul><ul><li>Youngest CEO in the world </li></ul><ul><li>Left college to focus on his business in 1985 </li></ul><ul><li>Now CEO and Chairman of Dell </li></ul><ul><li>Pursuing his degree in medicine </li></ul><ul><li>Have a hobby of building computers </li></ul>
  5. 6. <ul><li>Michael Dell started his business with the simple concept of built-to-order personal computers sold directly to customers , having two advantages. </li></ul>
  6. 7. Direct selling advantages to Michael Dell <ul><li>1 st Advantage: </li></ul><ul><li>In bypassing distributors and retailers, he eliminated the markups of resellers and improve his profit. </li></ul><ul><li>2 nd Advantage: </li></ul><ul><li>By building computers only when ordered ,he greatly reduced the costs and risks associated with carrying large stocks of parts,components and finished goods. </li></ul>
  7. 8. <ul><li>Dell initially started sales through mail and phone orders, </li></ul><ul><li>In 1994 Dell became the first company to list a Wed site with listed price and product information. </li></ul><ul><li>Dell earn a lot through direct selling and by 1999 Dell computer was the largest retailer then on the Internet. </li></ul>
  8. 9. Direct selling advantages over competitors <ul><li>Companies such as Compaq , IBM and HP manufacture personal computers in large volume and keep their distributors and retailers stocked with large inventories </li></ul><ul><li>Dell eliminated finished product inventories and greatly reduced the need to warehouse both finished product and component parts. </li></ul>
  9. 10. Vision Statement <ul><li>It’s the way we do business, It’s the way we interact with the community. It’s the way we interpret the world around us , our customers’ needs, the future of technology, and the global business climate. Whatever changes the future may bring, our vision _ Dell Vision_ </li></ul><ul><li>will be our guiding force. </li></ul>
  10. 11. Mission Statement <ul><li>Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, will meet customer expectations of. </li></ul><ul><li>Highest quality </li></ul><ul><li>Leading technology </li></ul><ul><li>Competitive pricing </li></ul><ul><li>Individual and company accountability </li></ul><ul><li>Best-in-class service and support </li></ul><ul><li>Financial stability </li></ul>
  11. 12. Organizational Structure <ul><li>Michael Dell is the chairman of the board of directors for Dell inc. </li></ul><ul><li>In july 2004, Kevin Rollins assumed the titles of president and chief officer. </li></ul><ul><li>Headquarter in Round Rock ,Texas </li></ul><ul><li>Dell Inc managed on three geographic basis, </li></ul><ul><li>Americas, Europe, and Asia-Pacific </li></ul>
  12. 13. Organizational Structure <ul><li>Dell Inc . maintain more than 7 million square of office, research, manufacturing and distribution space in United States. </li></ul><ul><li>The Americas segment based in Round Rock, Texas, covers the United States, Canada, South America, and Latin America. </li></ul><ul><li>The Asia-Pacific segment, based in Singapore, covers the Pacific Rim, including Japan, Australia, and New Zealand. </li></ul>
  13. 14. SWOT analysis of Dell Computer Strengths <ul><li>Biggest PC maker in the world </li></ul><ul><li>They deal directly with the customers with no use of a middle man. </li></ul><ul><li>They are the number one PC provider for medium and small businesses across the US for 10 straight years. </li></ul><ul><li>They ship around one hundred and forty thousand computers in a day. </li></ul><ul><li>They have very good branding and are one of the most known computers in the world. </li></ul>
  14. 15. SWOT analysis of Dell Computer: Weakneses <ul><li>Dealing with a large amount of supplies from many different countries can cause a large issue when products are recalled. </li></ul><ul><li>They build computers, not develop them. </li></ul><ul><li>Their supply orders are so large that they become limited to dealing with a small few supplies that can handle the volume </li></ul><ul><li>They have weak business relationships with many computer retailers. </li></ul><ul><li>They do not have unique technologies to offer the market </li></ul>
  15. 16. SWOT analysis of Dell Computer: Opportunities <ul><li>Continuing to market on the internet to gain larger market bases </li></ul><ul><li>Broadening their scopes in Europe, India and China. </li></ul><ul><li>Expand into government and education markets </li></ul><ul><li>Branding their lower cost, lower priced computers that are sold anonymously </li></ul>
  16. 17. SWOT analysis of Dell Computer: Threats <ul><li>Competition can basically create the same computers since Dell builds computers, not designs them </li></ul><ul><li>Tariff trade barriers affecting their positions in multiple countries </li></ul><ul><li>due to the integration of components in Dell's organization structure, Dell compete not only compete at the final product level but also at the suppliers level. </li></ul>
  17. 18. Dell inc’s Geographic Area Information (mil $) 2003 2004 2005 America 25047 28603 32940 Europe 6912 8495 10787 Asia 3445 4346 5748
  18. 19. Total Revenue and Net-Income ( mil. $) 2003 2004 2005 T.Revenue 35404 41444 49205 Net income 2122 2645 3043
  19. 20. Manufacturing <ul><li>Dell manufactures its components in the following locations : </li></ul><ul><li>Austin, Texas; Nashville, Tennessee; El dorado do sul, Brazil; Ireland (Europe, Middle East, and Africa); Malaysia and China. </li></ul><ul><li>Parts, components and subassemblies purchased from suppliers are tested and held to quality standard. </li></ul>
  20. 21. Marketing <ul><li>Dell divides its customers into three groups </li></ul><ul><li>1 st :Relationship: The customers includes large corporations; governmental, healthcare, and educational institutions </li></ul><ul><li>2 nd :Transactional: The customers include small to midsize business and individuals. </li></ul><ul><li>3 rd : Internet: The customers can access a wide range of information about Dell product and services offerings , and purchase system online. </li></ul>
  21. 22. Competitors <ul><li>The chief competitors are HP and IBM. </li></ul><ul><li>Gateway computer and Apple computers also compete with Dell for their place in the PC market. </li></ul><ul><li>Competition is on the basis of Price, Technology, Performance, Quality, Reliability, Service and Support. </li></ul>
  22. 23. Comparison with HP <ul><li>HP is the closest competitor </li></ul><ul><li>In 2003 share of the global personal computer market of Dell is 16.7 percent and of Hp 16.2 percent. </li></ul><ul><li>While currently is 18.3 percent of Dell and 15.7 percent of Hp. </li></ul><ul><li>Dell’s profit margin is 8.8 percent while of Hp is 0.9 percent. </li></ul><ul><li>on may3,2002,HP merged with compaq and created a large company with total revenue in 2004 of $79,905 million while of Dell is $49,205. </li></ul><ul><li>HP net income in 2004 of $3,497 million while of Dell’s $3,043. </li></ul>
  23. 24. Comparison with Gateway <ul><li>Gateway opened a 264 Gateway stores in which customers could view Gateway’s systems and receive assistance in ordering Gateway system </li></ul><ul><li>however the store failed to be profitable and were shut down in April 2004 </li></ul><ul><li>In March 2004,Gateway completed its acquisition of eMachines. </li></ul><ul><li>The combined company commands only about 6% of the U.S market, compared to Dell’s 29 % and HP 18 %. </li></ul>
  24. 25. Comparison with Apple Computer <ul><li>Apple has introduced innovative designs for its brand of personal computers. The use of color, styling , and commitment to its own operating system means that Apple clearly has a unique product line. </li></ul><ul><li>In 2004 iPod sales reached $1419 million, this was 279 % increase from 2003. </li></ul><ul><li>Sales through iTunes increased 672 % from 2003, reaching $278 million in 2004. </li></ul><ul><li>Apple’s total revenue of $8279 million in 2004 while of Dell’s $49,205 . </li></ul><ul><li>Apple’s net income in 2004 $ 276 million while of Dell’s $3,043 million. </li></ul><ul><li>In US market share is 5% and international market less </li></ul><ul><li>3% </li></ul>
  25. 26. Recommendations <ul><li>To improve their printer market as HP </li></ul><ul><li>HP revenue from printer market is 43 million and dell only 3 million. </li></ul><ul><li>IBM spends $1 billion a year on R/D and server market and provide new complex technology and software to that market. Bud dell has stopped it. </li></ul><ul><li>lack of retail stores in Asia which become hindrance in the way of selling to Dell. </li></ul>
  26. 27. Thank you for your attention <ul><li>Any Question regarding the topic </li></ul>