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  • 1. Yours is here. Wednesday, October 24, 2012 1
  • 2. Dell•Dell is listed at number 41 in the Fortune 500 list.•It is the third largest PC vendor in the world after HP and Lenovo.•Dell has grown by both increasing its customer base and through acquisitions sinceits inception; notable mergers and acquisitions including Alienware (2006) andPerot Systems (2009).•Notable Acquisitions: - 2006 - Alienware 2009 - Perot Systems 2010 - KACE Networks 2010 - SaaS 2012 - Sonic Wall 2012 - Wyse 2
  • 3. Dell’s StrategyDell’s success is a combination of : - •Direct Sales •Build-to-order •Supplier integration Together these allow for maximum effectiveness with minimum cost 3
  • 4. L5 L5 Vs L6 MB Integrated 5 Weeks Dell Manufacturing Supplier Logistics Customers CenterChassis L6 3 party integrator (managed by equipment manufacturers) L5 Additional cost 1 Week MB Supplier Logistics Dell Center Manufacturing Customers 5 Weeks Chassis
  • 5. Manufacturing, Materials Sales & Marketing Supply & R&DChannels of Distribution Sales representatives Manufacturing Telephone-based sales Build-to-order manufacturing process Online sales through Process consists of assembly, software installation,Marketing programs for specific customer groups functional testing and quality control Locations: USA, Brazil, Ireland, Malaysia, ChinaLarge business & institutional customersSmall-to-medium business & consumers Materials Supply Advertising on television, Internet, print media Large number of suppliers and by mailing publications Intel Corporation as a sole source supplier of Dell Direct Stores: view Dell products in person processors and Microsoft sole source supplier for and purchase with assistance various operating systems and application software products R&D Very low expenses: $464m (0.94% of Revenue) HP (4.3%), IBM (5.9%), Sun (16.3%) Company uses partners (e.g. Intel, Microsoft, EMC, Lexmark) to develop technology 5
  • 6. Dell’s Business Model 6
  • 7. Business Strategy – key tenetsDirect relationship is the most efficient way to the customer Dell‘s „direct business model“ eliminates wholesale and retail dealers No expenditures associated with the retail channel constant flow of information about customers’ plans and requirements enable Dell to continually refine its product offeringsCustom-built products and custom-tailored services Build-to-order manufacturing process Turn over inventory every 4 days on average and reduce inventory levels Rapidly introduce the latest relevant technology Rapidly pass on component cost savings directly to customersLow-cost leader Efficient supply chain management and manufacturing organization Concentration on standards-based technologies Direct business model Pass those savings to its customersStandards-based technologies deliver the best value to customers Provide customers with flexibility and choice Benefit of extensive research and development 7
  • 8. Strategic Implementation General Perspective 8