Dell 2.0
Revenue (In Billions)
56
• Deep customer relationships
Dell 1.0 • Differentiated tech and value
• Customize experience
• Emerging country growth
• Broader service offerings
• Industry leading growth,
• Direct relationships profit and cash returns
• Build to order products
• Technology at best price
• Efficient supply & logistics
• Respected brand
• Superior ROTC & Cash Flow
FY’96 98 00 02 04 06
Source: IDC

Customer Experience
Service &
Procurement
Sales
Design R&D Pricing Marketing
& Manufacturing Support
Online
DELL 1.0
• Best • Featured price • Product quality
• Direct
• Performance • Everything in • Efficient,
customer
customer & promotion • Good service for
& Cost house virtual, JIT
value
relationships (transactional) the price
supply chain
• US centric
delivered
• POS model • Featured
• Centralized • Service tied to
through
delivered mostly box
manufacturing box
lowest price
greatest
• Use of
leverage
promos &
deals
DELL 2.0
• Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
• Outsource
• Industrial
experience internet services
focus/ pricing
selective
Design & • New plants
over price
Lifetime • Best experience
products &
usability near growth
Value • Feature in industry
components markets
broader
• Outsourcing at • Solutions & • High value/
• Global
product set
Domain relationship
low end
& services
expertise services

Enterprise Enterprise Consumer & Home
Server Client Small Business Entertainment
“Aviator” “Wrap” “Stratosphere”
“Laminar”
“conservative” “aggressive”

Customer Experience
Service &
Procurement
Sales
Design R&D Pricing Marketing
& Manufacturing Support
Online
DELL 1.0
• Best • Featured price • Product quality
• Direct
• Performance • Everything in • Efficient,
customer
customer & promotion • Good service for
& Cost house virtual, JIT
value
relationships (transactional) the price
supply chain
• US centric
delivered
• POS model • Featured
• Centralized • Service tied to
through
delivered mostly box
manufacturing box
lowest price
greatest
• Use of
leverage
promos &
deals
DELL 2.0
• Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
• Outsource
• Industrial
experience internet services
pricing
selective focus/
Design & • New plants
over price • Best experience
products & Lifetime
usability near growth
• Feature in industry
components Value
markets
broader • High value/
• Global • Outsourcing at • Solutions &
product set relationship
Domain
low end
& services services
expertise

Customer Experience
Service &
Procurement
Sales
Design R&D Pricing
Marketing
& Manufacturing Support
Online
DELL 1.0
• Best • Featured price • Product quality
• Direct
• Performance • Everything in • Efficient,
customer
customer & promotion • Good service for
& Cost house virtual, JIT
value
relationships (transactional) the price
supply chain
• US centric
delivered
• POS model • Featured
• Centralized • Service tied to
through
delivered mostly box
manufacturing box
lowest price
greatest
• Use of
leverage
promos &
deals
DELL 2.0
• Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
• Outsource
• Industrial
experience internet services
focus/ pricing
selective • New plants
Design &
over price
Lifetime • Best experience
products & near growth
usability
Value • Feature in industry
components markets
broader
• Outsourcing at • Solutions & • High value/
• Global
product set
Domain relationship
low end
& services
expertise services

1ST Half 2006 2nd Half 2006 and Beyond
2005 and Prior
• “Purely You” integration
• Promo focus • Cleaned up look
• Strong product benefits
• Lowest SAPP • Product Hero as focus
• Solutions focus
• No product benefits • No photos of B series
• Price/Offer in support
• Very busy creative • Still no product benefits
position
• Cluttered look • Promos less prominent

Customer Experience
Service &
Procurement
Sales
Design R&D Pricing Marketing
& Manufacturing Support
Online
DELL 1.0
• Best • Featured price • Product quality
• Direct
• Performance • Everything in • Efficient,
customer
customer & promotion • Good service for
& Cost house virtual, JIT
value
relationships (transactional) the price
supply chain
• US centric
delivered
• POS model • Featured
• Centralized • Service tied to
through
delivered mostly box
manufacturing box
lowest price
greatest
• Use of
leverage
promos &
deals
DELL 2.0
• Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
• Outsource
• Industrial
experience internet services
focus/ pricing
selective • New plants
Design &
over price
Lifetime • Best experience
products & near growth
usability
Value • Feature in industry
components markets
broader
• Outsourcing at • Solutions & • High value/
• Global
product set
Domain relationship
low end
& services
expertise services

Investor’s Business Daily survey shows Dell
remains most preferred manufacturer in US
If you were to buy a
computer today, which
manufacturer would
you buy?
July 2006