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  • 1. Dept., RVCE ITBY, SIDDHARTH DC (1RV09IT043)
  • 2. OUTLINE Brief history Business Model USP Dept., RVCE Dell as Brand Conclusion IT
  • 3. History Dept., RVCE  In 1983 Michael Dell a freshman at the University of Texas, Austin started upgrading IT IBM compatible personal computers door to door for local business  Started with the idea to sell directly to consumers…..
  • 4. …… 1985 ◦ Released the “Turbo”, Dell’s first computer. 1989 ◦ Dell released its first notebook computer. 1993 ◦ Dell shifts business over seas to try to gain market share ◦ Europe Dept., RVCE ◦ Middle-east ◦ Japan ◦ Australia IT 1996 ◦ Started selling products on its website.
  • 5. Business Model Direct to customer business model. Dell is not a manufacturer. Components are made by supplier and Dell assembles the computer Dept., RVCE using cheap labor IT Markets its direct sales model.  No intermediaries  No warehousing  No physical store presence……
  • 6. ……….. Dell maintained a month’s worth of component inventory but it suppliers generally carried supplemental buffer stock that could be immediately shipped Dept., RVCE Tailoring their computers to their customers specification and selling the item directly to their customers is what makes Dell’s IT business model superior
  • 7. USP’s  Dell eliminated the need for central warehousing as well as the need for a physical store presence. Instead Dell attracts customers to its site and then builds bonds with them there rather than investing in a Dept., RVCE physical relationship.  Reduced price IT ◦ The money saved from selling products directly to the customers is then passed on to them. ◦ By selling directly to the customer Dell removes all the cost that they would have
  • 8. …. Total customization of their personal computers. ◦ Dell offers a totally hands on experience when its comes to purchasing your next computer Higher level of communication between customer and company. Dept., RVCE ◦ Dell is free to collect customer information directly from there customers rather than an having intermediary try to do this. IT This allows Dell to not only track its customers but also helps to retain them.
  • 9. … A 24-hour telephone support system comprising well-trained technical representative provided the first post-shipment level of support. Dept., RVCE Dell serviced its customers with combination of IT home based telephone representative and field based representative.
  • 10. Dell as Brand 1997 ◦ Recorded 1 million in sales generated from the internet. 2000 ◦ Dell was ranked 1 world wide in shipment of Dept., RVCE Workstations 2003 ◦ Dell is made the official name of the IT company ◦ Continually expanding overseas….
  • 11. ….. Dell is the industry leader in direct sale of personal computers to consumers Global PC Market Share by Units, Percent Dept., RVCE RANK 2008 2009 2010 01 HP-18.4 HP-19.3 HP-17.9 02 DELL-14.3 ACER-13 DELL-12.9 IT 03 ACER- DELL-12.2 ACER- 11.1 11.3
  • 12. Conclusion Theres always an opportunity to make a difference.. Michael Dell Dept., RVCE IT
  • 13. IT Dept., RVCE