PPT On Dell

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its all about DELL....
Have study hard............

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PPT On Dell

  1. 1. “It’s amazing to me that our competitors think the customer is the dealer.” -Michael Dell BE DIRECT: DELL Presented by Rahul KumarWednesday, December 114, 2011
  2. 2. 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 USWednesday, December 214, 2011
  3. 3. 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  Impact Dell helps drive the course of future industry innovation through a time-tested process that puts customer needs first.Wednesday, December 314, 2011
  4. 4. 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.Wednesday, December 414, 2011
  5. 5. 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 Wednesday, December 5 14, 2011
  6. 6. ORGANIZATION STRUCTURE Michael Dell SVP Business VP VP Government Development Educational Services Relations Mid-Level Mid-Level Mid-Level Lower-Level Lower-Level Lower-LevelWednesday, December 614, 2011
  7. 7. HISTORY 1984 - 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 Kingdom 1988 - Dell conducts initial public offering of company stock, 3.5 million shares at $8.50 each 1990 - Manufacturing center in Limerick, Ireland, opened to serve European, Middle Eastern and African markets 1991 - Introduces its first Latitude notebook computer 1992 - Dell included for first time among Fortune 500 roster of worlds largest companies 1993 - Subsidiaries in Australia and Japan are companys first entries into Asia-Pacific regionWednesday, December 714, 2011
  8. 8. HISTORY 1995 - $8.50 shares of Dell stock worth $100 on presplit basis 1996 - 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" onlineWednesday, December 814, 2011
  9. 9. 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.Wednesday, December 914, 2011
  10. 10. 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 "Americas 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.Wednesday, December 1014, 2011
  11. 11. MissionWednesday, December 1114, 2011
  12. 12. GROWTHWednesday, December 1214, 2011
  13. 13. Wednesday, December 1314, 2011
  14. 14. Financial situationWednesday, December 1414, 2011
  15. 15. Financial situationWednesday, December 1514, 2011
  16. 16. 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 )Wednesday, December 1614, 2011
  17. 17. DELL – The Success Secret Selling Points - Internet, B2B (Premier Pages), Phone-calls, Mass catalog mailings Do not Just sell Products – sell Values - client asked to put tags on their computers - proactive in solving clients pain points – preloaded software Dell’s model is based on build-to-order process, where company builds each PC on demand.Wednesday, December 1714, 2011
  18. 18. 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.Wednesday, December14, 2011 18
  19. 19. 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.Wednesday, December 1914, 2011
  20. 20. 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.Wednesday, December 2014, 2011
  21. 21. 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.Wednesday, December 2114, 2011
  22. 22. SWOT ANALYSIS What does SWOT analysis reveal about Dell’s situation?Wednesday, December 2214, 2011
  23. 23. SWOT ANALYSIS:- Business to consumer STRENGHTS OPPORTUNITIES Customization Server Market Price International strategy Customer Focused Product extensions Technical Knowledge Market Diversification Strong Brand/Positioning Media Savvy Direct Marketing Model Tangibility Competition across markets TechnologyMarket Commodity pricing Commoditization (shrinking margins) Inventory Complexity of Mgmt. Growth exceeding productivity Wednesday, December 23 WEAKNESSES 14, 2011 THREATS
  24. 24. SWOT ANALYSIS:- B TO BSTRENGTHS OPPORTUNITIESCustomization Server MarketPrice International strategyCustomer Focused Additional marketsTechnical Knowledge Product extensionsMarket Diversification Strategic partnershipsStrong Brand/PositioningMedia SavvyDirect Marketing ModelTechnology Market Competition across marketsInventory Commodity pricing (shrinking margins) Complexity of Mgmt. Growth exceeding productivity 24WEAKNESSES THREATS
  25. 25. CONCLUDE DELL is to the computer industry what Dominos is to the pizza business. TIME magazine Three Golden Rules of DELL: 1. Disdain inventory 2. Always listen to the customer 3. Never sell indirect.Wednesday, December 2514, 2011
  26. 26. 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.”Wednesday, December 2614, 2011
  27. 27.  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.Wednesday, December 2714, 2011
  28. 28.  “When a market is ready to explode, Dell moves in.”Wednesday, December 2814, 2011
  29. 29.  THANKU Wednesday, December 29 14, 2011

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