OUTLINE Brief history Business Model USP Dept., RVCE Dell as Brand Conclusion IT
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…..
…… 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.
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……
……….. 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
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
…. 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.
… 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.
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….
….. 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
Conclusion Theres always an opportunity to make a difference.. Michael Dell Dept., RVCE IT