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Background
 DELL
 Founded In 1984 by Michael Dell, with just $1000
Customer-focused: By eliminating middlemen, the direct approach was used to
forge direct relationships with consumers
Unique manufacturing procedures for inventory reduction and tight engagement
with suppliers for effective logistics
By eliminating inventory and middlemen, Dell gained a price advantage, which it
maintains as profit and passes on to customers in part
Dell is a global player, currently markets all over the world having production
facilities available in US, Ireland, Malaysia and Austin
Background
 INDUSTRY
 Evolution:
1975 - 81 - Start-up
1981 - 86 - early explosive growth, Entry of IBM in 1981
1990 - 95 - Crest because of economy but prices keep falling
1995 - 99 – Maturity Stage (late-growth)
 Products: Standard Products, wide range of configurations, highly competitive market for
components except Wintel (Processing & OS)
Production: low entry barriers, Asian manufacturers capacity
 Customers: Small Businesses, Consumer, Education, Government
 Channel: Direct, Distributors, Retail which is followed by small resellers, integrated resellers

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Dell Case analyssis.pptx

  • 1. Background  DELL  Founded In 1984 by Michael Dell, with just $1000 Customer-focused: By eliminating middlemen, the direct approach was used to forge direct relationships with consumers Unique manufacturing procedures for inventory reduction and tight engagement with suppliers for effective logistics By eliminating inventory and middlemen, Dell gained a price advantage, which it maintains as profit and passes on to customers in part Dell is a global player, currently markets all over the world having production facilities available in US, Ireland, Malaysia and Austin
  • 2. Background  INDUSTRY  Evolution: 1975 - 81 - Start-up 1981 - 86 - early explosive growth, Entry of IBM in 1981 1990 - 95 - Crest because of economy but prices keep falling 1995 - 99 – Maturity Stage (late-growth)  Products: Standard Products, wide range of configurations, highly competitive market for components except Wintel (Processing & OS) Production: low entry barriers, Asian manufacturers capacity  Customers: Small Businesses, Consumer, Education, Government  Channel: Direct, Distributors, Retail which is followed by small resellers, integrated resellers