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Khai Sim, Izwan, Farhan, Mwana

Khai Sim, Izwan, Farhan, Mwana

Published in Business , Education
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  • custom made com systems that provide the highest performance and the latest relevant tech to the customers


  • 1. Strategic Management (SM3027)
  • 2. History of DELL
    Michael Dell: Chairman of the BOD and Chief Executive Officer of Dell
    Founded in 1984 with $1,000
    Started with a simple concept: selling computer systems directly to customers
    In 1992, Mr Dell is the youngest CEO to earn a rank in the Fortune 500
  • 3. DELL: Objectives
    Five tenets to superior customer value:
    A direct relationship: the most efficient path to the customers
    Custom built products and custom-tailored service: the most effective way to meet customer needs
    Standardised technologies: best value to customers
    Low-cost structure: cost savings passed to customers in form of lower prices
    Deliver added value to customers:
    customers able to obtain highest return on
    their investment in IT products and
  • 4. Competitive Advantages
    Direct model success
    Technology and IT
    Short delivery time
    Affordable prices
    Superior customer service
    Expansion into new products
    Customer-driven research and
  • 5. DELL: Vision
    Concept: Direct Customer Contact
    -> Made DELL a successful company
    Delivering the best possible customer experience
    -> By directly selling com products and services online and through catalogs.
  • 6. Internal Capabilities
    1. Cost-Efficient Build-To-Order Manufacturing
    - None were produced for inventory
    - Unlike competitors, DELL does not apply the
    traditional value chain model
    2. DELL’s Direct Sales Strategy and Marketing
    - DELL’s ability to respond quickly gave it a
    significant advantage
    - Direct sales approach = Customer-
    driven system
  • 7. Internal Capabilities
    3. Customer Service and Technical Support
    - Is a feature of DELL since 1986.
    - Online technical support tools to reduce
    cost of telephone support calls
  • 8. Internal Capabilities
    4. Expansion into New Products
    - Diversify the company’s product base
    5. Entry into the White-Box PC Segment
    - Cheaper to reach many small businesses through the white-box dealers
  • 9. External Relationships
    1. DELL and Its Customers
    - Focuses on customers’ needs and wants towards the products.
    - DELL’s R&D was customer-driven.
    2. Partnership with Suppliers
    - Best suppliers were picked
    - Partnership remains as long as their performance, cost, quality and
    leadership in technology is
  • 10. Issues in DELL & the Recommendations
    In April, 2010. DELL did not disclose proper information in its advertising (ie. No shipping charges mentioned).
    - Brian, New York
    - Customers have rights to know about what they purchase.
    - DELL should inform every cost available in
    its products. Hidden costs are not a good
    function in businesses.
  • 11. Issues in DELL & the Recommendations
    Orders got messed up through phone-ordering services. Customer service was bad over the phone.
    - Kenneth, New Jersey
    - Despite having an efficient online customer service, DELL should not forgo its customer service in other dimensions (ie. phone).
    - Certain customers still do not prefer
    being served online.
  • 12. Thank You!