Published on


Published in: Education
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  2. 2. SITUATIONAL AUDIT <ul><li>Dell is the #1 computer systems company-Michael Dell </li></ul><ul><li>Company sells build-to-order computer systems directly to customers(consumer as well as corporate) </li></ul><ul><li>In 1993 the company began trying to sell to retailers because everyone else was ,but due to poor retail channel customers were dissatisfied and Dell finally abandoned the retail channel . </li></ul><ul><li>Dell put most of its resources into building relationships with its most profitable customers. </li></ul><ul><li>Dell manages its corporate clients with a top-notch sales team </li></ul><ul><li>Customers can chose what components they want for their computer, Dell assembles the order & ships it. This strategy improves customer satisfaction & reduces costs & risks to the company. </li></ul><ul><li>Through the use of web page, the company has created a 24/7 order – entry system. </li></ul><ul><li>Michael Dell was invited by auto-manufacturers to speak. </li></ul>
  3. 3. <ul><li>SWOT </li></ul><ul><li>ANALYSIS </li></ul><ul><li>“ We have a tremendously clear business model “ kjbjkbk - MICHAEL S DELL </li></ul>
  4. 4. STRENGTHS - <ul><li>PC can be built & sold directly to customers ; by doing this Dell could address their specific needs & provide the best computing solutions to meet those needs leading to :- </li></ul><ul><li>a)Reducing marketing & sales cost by eliminating markups of distributors & retailers </li></ul><ul><li>b)Built-to-order reduces the cost of inventory & risk of retaining excess inventory. </li></ul><ul><li>Price for Performance - Efficient procurement , manufacturing & distribution process – hence powerful systems at low price. </li></ul><ul><li>Customization :– Built-to-order systems to meet specific needs according to customer specifications. </li></ul><ul><li>Reliability , Service & Support:-Direct customer interaction allows Dell to provide top-notch service before & after sale. This strategy improves customer satisfaction & reduces cost & risk to the company. </li></ul><ul><li>The money is received well in advance & hence financial stability is more. </li></ul><ul><li>PremierDell website where all information regarding products can be viewed(Automated 24//7 system built-to-order. </li></ul>
  5. 5. WEAKNESSES <ul><li>People who are not very tech-savvy could not use the order mechanism due to absence of technical know-how. </li></ul><ul><li>In case of massive orders Dell would be unable to produce at that instance due to unavailability of finished products in the inventory. </li></ul><ul><li>People did not get hands on experience on the finished product and hence the concept of trying out different products and then finalizing one did not arise. </li></ul><ul><li>Dell did not put much attention to the non-corporate sector and hence lost out on a major chunk of its prospective users. </li></ul><ul><li>Components are delivered just minutes before the order, hence if the time taken to get the components is more , the process of making the machine is delayed & hence dissatisfaction. </li></ul><ul><li>In spite of being a market leader , Dell acted more as an follower(“In 1993 the company began trying to sell to retailers, mainly because everyone else was”) </li></ul>
  6. 6. Opportunities & Threats: - <ul><li>Opportunity: - </li></ul><ul><li>A) Dell is the market leader in computers and it could well have used this brand image to tap the Non corporate segment. </li></ul><ul><li>B)When Michael Dell was invited by car manufacturers to speak, he could well have use that opportunity to tap a new segment ( eg. Computerized car navigation system ) & hence diversify its Portfolio. </li></ul><ul><li>Threats :- </li></ul><ul><li>Dell’s attitude to just concentrate on the corporate market was a threat as a part of the market segment remained untapped. </li></ul><ul><li>Dell did not have finished products . </li></ul><ul><li>Lack of proper distributor channel. </li></ul><ul><li>Competitors :- </li></ul><ul><li>a)They targeted all segments of the market </li></ul><ul><li>b)Had finished products </li></ul><ul><li>c)Had proper distributor channels. </li></ul>
  7. 7. KEY ISSUES :- <ul><li>Dell did not have a distributor channel & hence the concept of push- selling by retailer was not there. </li></ul><ul><li>Dell mainly targeted the corporate segment & hence a major segment of the market, i.e. non corporate remained unattended to. </li></ul><ul><li>Unavailability of finished products in the inventory could lead to not being able to deliver in time in case of massive orders bound by a strict timeline. </li></ul><ul><li>Dell could have been able to diversify their portfolio and delve into the automotive industry (by laying the foundation for Automated Car Navigation system) </li></ul><ul><li>Dell started retail because everybody was doing so and this very attitude made Dell more of a follower in spite of being a leader in the computer segment. </li></ul><ul><li>The whole build-to-order mechanism was suited for tech-savvy people and hence people not so conversant with computers faced difficulty while placing the order . Also ordering over the internet without seeing or trying out the product might lead to less number of buys. </li></ul>
  8. 8. SOLUTIONS:- <ul><li>First of all, Dell needs to target less tech-savvy people who don’t have good knowledge about computers as well as non-corporate clients. </li></ul><ul><li>Secondly, some stores can be opened wherein specialized personnel would be there , who would resolve all query regarding available components as well as help to decide on the final buy . Also few demo finished products can be there for customers to try hands on. </li></ul><ul><li>Third, add more information about the components so that even low-tech people could understand. </li></ul><ul><li>Fourthly the car market segment can be tapped as Michael Dell was a guest speaker there & they have faith in the brand called Dell & this faith can be used for portfolio diversification. </li></ul><ul><li>Fifth, Kiosks can be placed at strategic positions (eg. City centre or Town hall or Subways ) with option of placing the order as well as with detailed description of the components in simple language for the common people to understand. </li></ul><ul><li>Information workshops can be made for creating awareness. </li></ul>
  9. 9. MEMBERS OF SEC A(GROUP 3 )-- <ul><li>ABHISHEK BHATTACHARYA </li></ul><ul><li>KHUSBOO GOLECHHA </li></ul><ul><li>MD. WASAY ALI CHOWDHURY </li></ul><ul><li>MOHAMMED SHAHID </li></ul><ul><li>OZMA AZMI </li></ul><ul><li>PRIYANKA MULLICK </li></ul><ul><li>RAVI MEHTA </li></ul><ul><li>SNEHA PUTATUNDA </li></ul><ul><li>SOHAM MAJUMDAR </li></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.