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Khai Sim, Izwan, Farhan, Mwana

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  • custom made com systems that provide the highest performance and the latest relevant tech to the customers
  • Dell

    1. 1. Strategic Management (SM3027)<br />DELL<br />Members:<br />KhaiSim<br />Izwan<br />Mwana<br />Farhan<br />
    2. 2. History of DELL<br />Michael Dell: Chairman of the BOD and Chief Executive Officer of Dell<br />Founded in 1984 with $1,000<br />Started with a simple concept: selling computer systems directly to customers<br />In 1992, Mr Dell is the youngest CEO to earn a rank in the Fortune 500<br />
    3. 3. DELL: Objectives<br />Five tenets to superior customer value:<br />A direct relationship: the most efficient path to the customers<br />Custom built products and custom-tailored service: the most effective way to meet customer needs<br />Standardised technologies: best value to customers<br />Low-cost structure: cost savings passed to customers in form of lower prices<br />Deliver added value to customers: <br /> customers able to obtain highest return on <br /> their investment in IT products and <br /> services<br />
    4. 4. Competitive Advantages<br />Direct model success<br />Technology and IT<br />Short delivery time <br />Affordable prices<br />Superior customer service<br />Expansion into new products<br />Customer-driven research and <br />development<br />
    5. 5. DELL: Vision <br />Concept: Direct Customer Contact <br /> -> Made DELL a successful company<br />Delivering the best possible customer experience <br /> -> By directly selling com products and services online and through catalogs.<br />
    6. 6. Internal Capabilities<br />1. Cost-Efficient Build-To-Order Manufacturing<br /> - None were produced for inventory<br /> - Unlike competitors, DELL does not apply the<br /> traditional value chain model<br />2. DELL’s Direct Sales Strategy and Marketing <br /> Efforts<br /> - DELL’s ability to respond quickly gave it a <br /> significant advantage<br /> - Direct sales approach = Customer-<br /> driven system<br />
    7. 7. Internal Capabilities<br />3. Customer Service and Technical Support<br /> - Is a feature of DELL since 1986.<br /> - Online technical support tools to reduce <br /> cost of telephone support calls <br />
    8. 8. Internal Capabilities<br />4. Expansion into New Products<br /> - Diversify the company’s product base<br />5. Entry into the White-Box PC Segment<br /> - Cheaper to reach many small businesses through the white-box dealers<br />
    9. 9. External Relationships<br />1. DELL and Its Customers<br /> - Focuses on customers’ needs and wants towards the products.<br /> - DELL’s R&D was customer-driven.<br />2. Partnership with Suppliers<br /> - Best suppliers were picked <br /> - Partnership remains as long as their performance, cost, quality and <br /> leadership in technology is <br /> maintained<br />
    10. 10. Issues in DELL & the Recommendations<br />In April, 2010. DELL did not disclose proper information in its advertising (ie. No shipping charges mentioned).<br /> - Brian, New York<br /> - Customers have rights to know about what they purchase. <br /> - DELL should inform every cost available in <br /> its products. Hidden costs are not a good <br /> function in businesses.<br />
    11. 11. Issues in DELL & the Recommendations<br />Orders got messed up through phone-ordering services. Customer service was bad over the phone.<br />- Kenneth, New Jersey<br /> - Despite having an efficient online customer service, DELL should not forgo its customer service in other dimensions (ie. phone).<br /> - Certain customers still do not prefer <br /> being served online.<br />
    12. 12. Thank You!<br />