Michael Dell

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It’s amazing to me that our competitors think the customer is the dealer.” Michael Dell “Sales Leader: Tops in Global Basis.

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Michael Dell

  1. 1. Michael Dell Presented By: Jigisha Dave Submitted To: Prof. Sakunt Jadav
  2. 2. “It’s amazing to me that our competitors think the customer is the dealer.” Michael Dell “Sales Leader: Tops in Global Basis.”
  3. 3. Introduction • Michael Dell: “The only constant thing about business is that every-thing is changing. We have to take advantage of change and not let it take advantage of us.”
  4. 4. Introduction about Michael Dell • Michael Saul Dell (born February 23, 1965) is an American business magnate and the founder, chairman and chief executive officer of Dell Inc. • He is the 44th richest person in the world, with a net worth of US$14.6 billion in 2011.
  5. 5. Introduction • • • Michael Dell is the chairman of the Board of Directors of Dell, the company he founded in ’84 for $1,000. With an unprecedented idea---build relationships directly with consumers (born in February ‘65). Dell’s commitment to consumer value, to the team, to being direct, to operating responsibly and, ultimately to winning. Continues to differentiate Dell from other companies.
  6. 6. Dell Inc.- Company Intro • CEO: Michael Dell • Registered as 'PC's Limited‘ in 1984 • From his condominium in Austin, TX • Capital: $1,000 • Sold IBM PC-compatible computers
  7. 7. • Known for its innovative customer service and product custom configuration • Dell’s collaboration with other computer software companies has allowed it to become a leader in CRM • It is not an inside-out company but outside-in
  8. 8. Mission “To be the most successful computer company in the world at delivering the best customer experience”
  9. 9. Dell Business Strategy • Faster inventory turnover and reduced inventory levels • Incorporate new technologies and components into its product offerings. • Online support to onsite customer-dedicated systems
  10. 10. Highlights for direct model and crm • Contacting with the customer directly & capturing as much information as possible • Eliminating middlemen • Building computers based on customer’s needs. • Engaging with customer on each touch point as productive & efficient as possible.
  11. 11. Dell’s Direct Model • • • • • • Direct relationship, most efficient path Low cost and best value Built to order Customized systems Superior, tailored service and support Highest quality and most relevant technology
  12. 12. Dell’s Value Web Model
  13. 13. Why SCM is so Important in PC business • Material costs • Improving SCM • Changing technology • Rely on market forecasting to drive Production. • Technological breakthroughs cause very short Product life cycles .
  14. 14. Competitors’ Disadvantages vis-à-vis Dell • Need to hold inventory • Have to pay suppliers first • Caught with short supplies • Stuck with excess inventories • Product time to market is critical.
  15. 15. Dell’s Competitive Advantages Dell is having one of the best SCM in the world. • 90% supplies ordered online using integrated websites of supplier and Dell (B2B). • 95% of suppliers situated very close to assembly plant hence coordination is easier. • Dell’s factories have only 7 hrs worth of inventory for most items whereas industry wise it is around 10 days. • 15 suppliers provide almost 85% of all supplies. • Dell gets paid by customers and then pays to its suppliers.
  16. 16. i2 SCM S/W package • i2 serves almost 70% of the SCM market. • Every 20 sec the S/W aggregates orders, analyzes material requirements ,compares Dell’s on-hand inventory with its suppliers’ inventory and then creates a supplier bill of material to meet its order needs . • Instead of forecasting the daily supply needed, Dell receives the exact material every two hours to fulfill actual customer orders. • Tracks backlog numbers, stock status and supplier commitments
  17. 17. RFID applications
  18. 18. Business To Business (B2B) Model • Business model for dealing with large business entities. • Server- to- server communication over internet integrating both supplier & buyer system. • Shopping online with customer’s ERP Procurement Application with simultaneous upgradation. • No duplicate information entry. • Easy process, less cycle time, less errors.
  19. 19. Dell’s Objectives With B2B Integration • To quickly integrate customers who are capable today. • Built a solution to integrate any customer who supports open industry standard of XML,EDI • To help customers built a B2B solution for rapid deployment & connectivity. • Providing hardware, software & consultation to help build a system which not only connects to Dell but even to other suppliers.
  20. 20. DELL’S CRM STRATEGY Make segmentation and identify customers Listen to their customers Learn from customers Each member is a student who is responsible of learning from the customers.
  21. 21. Customer Relationship Management Techniques
  22. 22. Pre-Sales customer support
  23. 23. Post-Sales customer support
  24. 24. Online support:
  25. 25. Sales force CRM Media presence
  26. 26. Marketing Strategy
  27. 27. Segmentation • Backbone of Dell computers • Based on segmentation, company takes its positioning and modifies its offerings for each segment’s customers. “An Important element of virtual integration with customers is segmentation. The finer the segmentation, the better able Dell is to forecast what customers are going to need and when. Then coordination of flow of strategic information comes to stage all the way back to suppliers, effectively substituting information for inventory”
  28. 28. • Focusing on Personal Users – In the early 2000s, Dell attempted to diversify its business by targeting personal consumers, such as families and students that needed to purchase computers • Dell's Retail Strategy – In the fall of 2007, Dell announced partnerships with major computer retailers, including WalMart, Best Buy and Officeworks
  29. 29. Marketing Mix • • • • Product - Customization Price - Reasonable Place - location strategy Promotion - "Be Direct"
  30. 30. Ad Agency • In 2007 BBDO to Working Mother Media • Continue Change in Slogan – “Work it Out” – “Yours is here”
  31. 31. Dell Dude • Benjamin Bowmar Curtis • an American actor and former spokesman for Dell Computers. • from 2000 to 2003. • "Dude, you're getting a Dell.“ • The campaign was a huge success and not only helped bring prominence to Dell, but to Curtis as well.
  32. 32. • social media content: You do not own the content you create… your customers do  Producing content via the same social media tools your customers use allows 3 things: 1) Makes your content sharable 2) Gets your content to customers where they are 3) Gives you a reason to connect with fans
  33. 33. SOCIAL WEB STARTING TO EVOLVE How do we reach customers in different social networks? We’re still in the early stages of the social web Shared ID options Dell on other sites Forrester’s Five Eras of the Social Web Jeremiah Owyang
  34. 34. Zero Concept at Dell • • • • • • Zero time organization Zero value-gaps, Zero-learning-gaps, Zero-management-gaps-gaps, Zero-process-gaps, and Zero inclusion-gaps.
  35. 35. CSR - Green initiatives • Establish a product-recycling program. • On February 6, 2007, the National Recycling Coalition award. • Dell Bans E-Waste Exports • Bamboo — Nature's Eco-Friendly Packaging Solution
  36. 36. LESSONS‘ MICHAEL DELL
  37. 37. LESSONS FROM MICHAEL DELL 1. Every customer is important, regardless of size 2. Innovation is incremental and continual 3. Innovators are their own market research departments 4. Collaboration leads to the best ideas 5. Customers want to help their peers 6. Don’t decide alone for your customer
  38. 38. LESSONS FROM MICHAEL DELL 7. Participation is powerful 8. Follow through is the middle name of collaboration 9. Become your own incubator 10. Realize that innovation and collaboration are cousins
  39. 39. Success Mantra – Michael Dell • “When you get a business that changes very quickly, you get some of that naturally.” • “You just have to change. To be successful, what you have to do is have an acceptance of risk and you have to be pretty explicit about that, because if you don’t accept risk, you don’t get any innovation. And that means part of risk is you have to accept failure because not everything works.”
  40. 40. Conclusion “Be willing to take risks and change,” if you want to stay successful

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