Dell has not yet touched the smartwatch industry but it can always venture into that untouched segment and with its capability of customization, can deliver a wide range of watches that the upcoming generation wants. It is true that the market of smart watches is not very demanding but through this presentation, I have tried to show that the future of smartwatches is very bright and that's when dell can grasp huge market share of the smartwatch industry through its low price customization capability.

1. Dell Smart Watches
By,
Prasenjit Nath-17F722

2. DELL
• Dell sells personal computers (PCs), servers, data storage devices, network switches, software,
computer peripherals, HDTVs, cameras, printers, MP3 players, and electronics built by other
manufacturers.
• The company is well known for its innovations in supply chain management and electronic
commerce, particularly its direct-sales model and its "build-to-order" or "configure to order"
approach to manufacturing—delivering individual PCs configured to customer specifications.
• Dell was a pure hardware vendor for much of its existence, but with the acquisition in 2009
of Perot Systems, Dell entered the market for IT services. The company has since made
additional acquisitions in storage and networking systems, with the aim of expanding their
portfolio from offering computers only to delivering complete solutions for enterprise
customers.

4. Dell
Customer focus and Customer
Service-Custom build business
model
Supply Chain Management-
Famous direct selling and
build-to-order approach.
Apple
Customer Focus-Own Retail
outlets where products are
demonstrated, purchased, and
serviced
Supply chain management-
Control of —but not
ownership of— supply chain,
based on capitalization of
supplier operations
Samsung
Customers-Product offerings
are suitable to a wide array of
customers.
Supply Chain-Implementation
of Six Sigma, Samsung has 579
suppliers globally ,
manufactures 90% of its
products in-house.

5. DIFFERENTIATING CAPABILITIES
Supply chain management – Direct selling
and build-to-order approach
Customer service
Customization Price

6. VRIO FRAMEWORK
DELL Valuable Rare Imitable Organizational
Customized
Products
   
CRM    
Specialized
Distribution
   
Customer
service
   

7. SMART WATCH INDUSTRY
• Global Smartwatch Market is expected to garner $32.9 billion by 2020, registering a
CAGR of 67.6% during the forecast period 2014 - 2020.
• Out of the total smartwatch shipment in 2013, Samsung held a market leader position,
followed by Garmin.
• As of now, the smartwatch market is purely driven by the leading tech companies such
as Samsung and Apple
• Led by innovations, the smartwatch companies are spending heavily on R&D. Top
players such as Samsung, Pebble and Sony are counting on their R&D investments to
be the dominant strategy to maximize on the respective market shares.

8. SMARTWATCH MARKET KEY SEGMENTATION
By Type Product
• Extension smartwatch
• Classic smartwatch
• Standalone smartwatch
By Application
• PA
• Wellness
• Medical/ Health
• Sports
• Others
By Operating System
• Android
• IOS
• Windows

11. 5F
Threat of New Entrants
• Significant capital
requirements
• Product Differentiation
relatively important
Threat of Substitute
Products
• Are popular and
are gaining
awareness
Bargaining Power of
Customers
• Mobile phone
remain an option
Bargaining Power of
Suppliers
• Widely available
Raw materials
Competitive Rivalry of
Market
• Prices quoted by
Companies have
intensified

12. SWOT ANALYSIS FOR DELL SMART WATCH
STRENGTHS WEAKNESSES
Technology expertise Too few retail locations
Loyal Base of customers Weak patents portfolio
Direct Selling Business Model
OPPURTUNITIES THREATS
Fast- paced Untapped smartwatch industry Intense Competition
Technological advantage, helping expand the
economies of scope

13. Political:
Trouble between U.S and China due to North Korea issue can
hinder the supply chain and distribution networks.
Economic:
The wearable technology market was worth $2.7 billion in
revenue in 2012 and is expected to reach $8.3 billion by 2018,
with an estimated Compound Annual Growth Rate (CAGR) of
17.7%.
Increase in Trade protection measures in countries like U.S.
Social:
Increase in health consciousness among people.
Also, the increased need for connectivity through social
apps.
Technological:
Applications in future will include direct or indirect skin
which will track, monitor, and report health and fitness
activities, body movements, and more.
PEST

14. Political Economical Social Technological
5
4
2
3
1
0
-5
-4
-3
-2
-1
SCORING OF FACTORS

15. Product Differentiator
Cost Leader
Dell
Alienware
Dell
Vostro
Dell
Inspiron
Dell
Latitude
Dell
XPS
Dell USB
Key drives
Dell LCD
televisions
Dell
printers
Dell
monitors
Dell service
and support
COST LEADERSHIP DIAGRAM
IPhone
iMac Pro
Acer
mobiles Acer
laptops
Hp Mobiles
Hp Laptops

16. INNOVATORS
EARLY
ADOPTERS
EARLY
MAJORITY
LATE
MAJORITY
LAGGARDS
TECHNOLOGY ADOPTATION
CYCLE
Product Adoption/Time
Penetration
• Reach
• Acquisition
• Conversion
• Retention
• Loyalty
0-5%
21-90%
5-20% 50%
0%
90-51%
Reduction in
Penetration due to
Introduction of
Holographic
watches

17. Cost and
Differentiation
Vostro
(Cost Leader)
Latitude
(Cost Leader)
Alienware
(Differentiation)
XPS
(Differentiation)
Willing to Pay
Price
Cost of Production
Customer Value
Firm’s Profit
Total Value
For Average Player
Market Penetration

18. 0
10,000
20,000
30,000
40,000
50,000
60,000
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Spain Australia Italy Canada New Zealand US UK France Germany Malaysia South Korea Sweden Japan
COUNTRY
Relation between Wearable adoption and per capita
income WEAERABLE ADOPTION
GDP - PER CAPITA (PPP) $

19. COMPETITIVE PRESENCE
Company Smartwatches Laptops
Apple  
Samsung  
Lenovo  
Asus  
Garmin  
Fitbit  
Dell  
Sony  
Acer  

20. High
Quality
High
Price
Low Quality
Low Price
PERCEPTUAL MAP OF
SMARTWATCH INDUSTRY
We are going to use “Low life time
cost” strategy for our product

21. Smart watch NFC Pay Built-in GPS Heart rate 4G LTE Battery Price
Apple Watch 3 ✔ ✔ ✔ ✔ 18 hours £429 ($596.31)
Samsung Gear
Sport
✔ ✔ ✔ X 3 days £299 ($415.61)
Apple Watch 1 ✔ ✔ ✔ X All day £249 ($346.11)
Fitbit Ionic ✔ ✔ ✔ X Five days £239 ($332.21)
Samsung Gear Fit2
Pro
X ✔ ✔ X Two days £200 ($278)
Fitbit Blaze X X ✔ X Five days £149 ($207.11)
Michael Kors X X X X All day £284 ($394.76)
Huawei Watch 2 X ✔ ✔ X 2 days £199 ($276)
Top Smartwatches and their Prices

23. COST OF MANUFACTURING
ACCORDING TO IHS (IHS), A RESEARCH AND ANALYTICS COMPANY
SPECIALIZING IN GADGET "TEARDOWNS.“
Parts COST (Rs) COST ($)
Watch Strap 462 7.08
Aluminium Housing 659 10.10
NFC Antenna 234 3.59
Wireless Charging Coil 541 8.29
Taptic Engine MOdule 196 2.99
Battery 300 4.61
Display Screen 1139 20.50
Optical Sensor 247 3.79
Speaker 541 8.29
Buttons 214 3.28
Others 985 15.10
Total(approx.) 5517 87.61

25. OUR PRODUCTS
Dell Dazzle Supreme Prime Scintilla Vibrant
Price $250-400 $120 $150-$250 $275-$300
Customer
Segment
Online/Low-
volume
configurations
Retail Online/Popular
configurations
Corporate
clients
Products Configuration
defined by
customers
Small number
of
configurations
Small number of
configurations
Designed for
customer
Batch size One Large Large Large
Production
strategy
Assembly is
driven by
individual
order
Smooth
production to
cut cost
Smooth
production to
cut cost
Quantity and
schedule
defined by
customer
order
Finished Goods
Inventory
No Yes (at retailer) Yes (at Dell) No

26. OUR DISTINCT FEATURES
• Sensors to detect the blood pressure
• Capture and analyze data based on body
movements
• Car Remote Control

27. VALUE CHAIN ANALYSIS
Inbound
Logistics:
Inventory
Control
Mfg. &
Assembly:
Units &
Multiple
locations
Suppliers:
Hardware &
Software
R & D: Systems
Management
Group &
OS Engineering
Design:
Designing of
Components and
Hardware
Support &
Service:
Consulting &
Recovery
Marketing &
Sales: Direct
sales Model &
VARS
Outbound
Logistics:
Warehousing &
Pickup Delivery
•Material
Handling
•Placing
Orders
•Inventory
Control
Hardware
•EMC
•AMD
•NVIDIA
•SEAGATE
•ACBEL
•INTEL
•WESTERN
DIGITAL
•Touchscre
en display
Software
•Microsoft
•Linux
•Microsoft
Office
• The system
management
group
• The
diagnostics
group
• OS
engineering
• Information
Development
• Enterprise
international
product
support
Designing of
specific
components
take place in
these regions-
• Texas
• China
• Indus
• Singapore
• Taiwan
Manufacturin
g units-
• America
• Asia-pacific
• Europe
middle east
and Africa
• Warehousin
g
• Pick up
• Home
delivery
• Direct sales
model
• Dedicated
sales model
• Telephone
based
• Online
• Indirect
sales
• VARS
• Infra
consulting
service
• Repairing
service
• Training
service
• Support
service
• Deployment
Service
• Asset
recovery
service
30% 20% 10% 10% 30%

28. Increase asset
turnover
Align goals with
Customer Strategic
Objectives
Improve gross
margin
Improve workforce
skills in 6-sigma
Research and
Development
Eliminate product
Defects
Align employees
with BSC objectives
Reduce Plant
overhead costs
Develop products
with low costs
Design for high
quality/Innovation
Align company
spending with BSC
Objectives
Reputation as
leading low cost
supplier
Reputation for
standing behind
quality
Improve customer
satisfaction
Company
perceived as high
quality producer
Increase talent in
JIT/ Lean
Improve return on
equity
Increase Sales
STRATEGY MAP FOR LOW LIFETIME COST FOR THE
SMARTWATCHES
Financial
Customer
Internal
process
Learnings
& Growth
Improve durability
of parts produced
Increase talent in
Kaizen

29. CUSTOMER ALLOCATIONS
Customer Price Protection Program $ 3,000,000
Customer Satisfaction Promotion $ 2,000,000
“High Quality” Trade Marketing Campaign $ 1,000,000
“Low Price” Trade Marketing Campaign $ 1,000,000
“No questions asked” Replacement Policy $ 3,000,000
INTERNAL PROCESS ALLOCATIONS
Plant Reduce, Reuse, Recycle Program $ 2,000,000
Supplied Component Quality Monitoring $ 2,000,000
Warranty Data Analysis Program $ 3,000,000
BALANCE SCORECARD
LEARNING & GROWTH ALLOCATIONS
Company wide JIT/LEAN training initiative $ 3,000,000
Company wide Sig-Sigma Training $ 3,000,000
Research and Development $ 2,000,000
Eliminate Product Defects $ 2,000,000
Company wide Kaizen initiative $ 2,000,000
TOTAL ALLOCATION $ 30,000,000

30. THANK YOU !!