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Dell

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Khai Sim, Izwan, Farhan, Mwana

Khai Sim, Izwan, Farhan, Mwana

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  • custom made com systems that provide the highest performance and the latest relevant tech to the customers
  • Transcript

    • 1. Strategic Management (SM3027)
      DELL
      Members:
      KhaiSim
      Izwan
      Mwana
      Farhan
    • 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
      services
    • 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
      development
    • 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
      Efforts
      - 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
      maintained
    • 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!