Dell's manufacturing sites are located strategically for competitive advantage. Locations include Brazil, China, Malaysia, Ireland and the US, which provide low costs and access to important regional markets. Outsourcing production allows Dell to focus on pricing, customization, and rapid order fulfillment. This gives Dell the lowest inventory levels in the industry through replacing physical inventory with information systems. While other companies attempt to imitate Dell's model, the required managerial skills are difficult to develop. Low costs from efficient operations and supply chain management provide Dell a competitive advantage, though continuous improvement is needed against imitation.
Dell has built their business:
- Build-to-order manufacturing
- Mass customization
- Partnerships with suppliers
- Just-in-time components inventories
- Direct sales
- Market segmentation
- Customer service
- Extensive data and information sharing with both supply partners and customers.
Based on:
The McGraw-Hill Companies. (1997). Dell Computer Corporation Online Case. Retrieved 3 6, 2011, from McGraw Hill Higher Education: http://www.mhhe.com/business/management/thompson/11e/case/dell5.html
Supply Chain of Dell Inc.
Covering the foll. topics:
- Overview
-Value Chain
-Pull/Pull view
-Responsiveness v/s efficiency
-strategic fit
-Drivers of supply chain
-Distribution
Dell Direct Model & Virtual Integration
The Dell Direct Model
Dell's award-winning customer service, industry-leading growth and financial performance continue to differentiate the company from competitors. At the heart of that performance is Dell's unique direct-to-customer business model.
"Direct" refers to the company's relationships with its customers, from home-PC users to the world's largest corporations. There are no retailers or other resellers adding unnecessary time and cost, or diminishing Dell's understanding of customer expectations. Why are computer-systems customers and investors increasingly turning to Dell and its unique direct model?
Dell taking maximum benefits from various competitive strategies to counter act the competitive forces prevalent in the PC market.
โข Price for Performance. By eliminating resellers, retailers and other costly intermediary steps together with the industry's most efficient procurement, manufacturing and distribution process Dell offers its customers more powerful, more richly configured systems for the money than competitors.
โข Customization. Every Dell system is built to order. Customers get exactly, and only, what they want.
โข Service and Support. Dell uses knowledge gained from direct contact before and after the sale to provide award-winning, tailored customer service.
โข Latest Technology. Dell's efficient model means the latest relevant technology is introduced in its product lines much more quickly than through slow-moving indirect distribution channels. Inventory is turned over every 10 or fewer days, on average, keeping related costs low.
โข Superior Shareholder Value. During the last fiscal year, the value of Dell common stocks more than doubled. In 1996 and 1997, Dell was the top-performing stock among the Standard & Poor's 500 and NASDAQ 100, and represented the top-performing U.S. stock on the Dow Jones World Stock Index.
Dell has built their business:
- Build-to-order manufacturing
- Mass customization
- Partnerships with suppliers
- Just-in-time components inventories
- Direct sales
- Market segmentation
- Customer service
- Extensive data and information sharing with both supply partners and customers.
Based on:
The McGraw-Hill Companies. (1997). Dell Computer Corporation Online Case. Retrieved 3 6, 2011, from McGraw Hill Higher Education: http://www.mhhe.com/business/management/thompson/11e/case/dell5.html
Supply Chain of Dell Inc.
Covering the foll. topics:
- Overview
-Value Chain
-Pull/Pull view
-Responsiveness v/s efficiency
-strategic fit
-Drivers of supply chain
-Distribution
Dell Direct Model & Virtual Integration
The Dell Direct Model
Dell's award-winning customer service, industry-leading growth and financial performance continue to differentiate the company from competitors. At the heart of that performance is Dell's unique direct-to-customer business model.
"Direct" refers to the company's relationships with its customers, from home-PC users to the world's largest corporations. There are no retailers or other resellers adding unnecessary time and cost, or diminishing Dell's understanding of customer expectations. Why are computer-systems customers and investors increasingly turning to Dell and its unique direct model?
Dell taking maximum benefits from various competitive strategies to counter act the competitive forces prevalent in the PC market.
โข Price for Performance. By eliminating resellers, retailers and other costly intermediary steps together with the industry's most efficient procurement, manufacturing and distribution process Dell offers its customers more powerful, more richly configured systems for the money than competitors.
โข Customization. Every Dell system is built to order. Customers get exactly, and only, what they want.
โข Service and Support. Dell uses knowledge gained from direct contact before and after the sale to provide award-winning, tailored customer service.
โข Latest Technology. Dell's efficient model means the latest relevant technology is introduced in its product lines much more quickly than through slow-moving indirect distribution channels. Inventory is turned over every 10 or fewer days, on average, keeping related costs low.
โข Superior Shareholder Value. During the last fiscal year, the value of Dell common stocks more than doubled. In 1996 and 1997, Dell was the top-performing stock among the Standard & Poor's 500 and NASDAQ 100, and represented the top-performing U.S. stock on the Dow Jones World Stock Index.
Dellโs supply chain and logistics management Khoon Pyae
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In this presentation, I highlighted upon main focus and model behind Dell's supply chain management. All the references materials are sited inside and hence you can learn more about the topic. Thanks.
This is prepared simply for practicing presentation-skills and understanding โslideshareโโs online platform. All content is simply for the learning purpose. We donโt claim accuracy or complete information. All information is presented just for overview. Any inadvertent use of company name, images are unintentional. & if brought to notice, we will remove them.
Dellโs supply chain and logistics management Khoon Pyae
ย
In this presentation, I highlighted upon main focus and model behind Dell's supply chain management. All the references materials are sited inside and hence you can learn more about the topic. Thanks.
This is prepared simply for practicing presentation-skills and understanding โslideshareโโs online platform. All content is simply for the learning purpose. We donโt claim accuracy or complete information. All information is presented just for overview. Any inadvertent use of company name, images are unintentional. & if brought to notice, we will remove them.
Analyzed Amazon.com Business Structure. EFE Matrix, IFE Matrix, IE Matrix, SWOT Analysis, Quantitative Strategic Planning Matrix, Recommended Strategy, Organizational Structure, Organizational Culture, Product Positioning Map, Target Marget, Strategy Evaluation Report.
I gained knowledge and experience to consult for Strategic Business Management. I am very interested in mergers and acquisitions.
This presentation is based on the case of dell company. This related question of this case have been analyzed and a sum-up of the whole case has been provided in this presentation. Some major questions related with the dell company have been answered in this presentation. I am sharing this file for the students whom background is business. Some answers may not be accurate according to the questions. However, a student can get a brief idea from this and he can utilize the knowledge related with this to maximize his output.
The Design Management elective was one of the highlights of my MBA experience here at Imperial.
Good design = good business. And just like any other business discipline, good design management stems from a systematic, thoughtful and informed approach to design.
For this individual assignment, I chose Dell and I took the role of a design management consultant. I then crafted a strategic plan on how Dell could make a better and more efficient use of design and designers.
Once I identified the Design Management that Dell currently adopts, the strategic plan addressed:
i) how this company can make a (better) strategic use of design, broadly understood in terms of processes, practices, collaborations with design consulting companies etc.;
ii) how design can fit within the companyโs existing business model and activities or how the business model needs to be changed accordingly;
iii) how Dell could concretely implement these changes towards a more effective use of design;
iv) how the implementation of the previous changes will help repositioning the company on the market, and what benefits are expected (e.g. in terms of profits, image, reputation, market share, etc.).
Submitted in partial fulfilment of the requirements of the Imperial MBA degree and the Diploma of Imperial College London. I was awarded a Distinction for this Design Management elective.
An in-depth analysis of major I.T. vendor Dell. The profile includes company history, revenue stream, competitors and customers, products and services, SWAT-analysis, current status and predicted continued strategy.
Here in this study, the supply chain processes that are utilized by DELL will be taken into consideration which is known to be one of the best in the world. DELL s supply chain will be heavily analyzed in the areas of supply chain integration strategies and demand management aspects
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HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
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Case study of Competitive advantage at Dell Inc
1. INTERNATIONAL BUSINESS
CASE STUDY
Competitive advantage at Dell Inc.
Case Discussion Questions
Q#1: Answer
Dellโs manufacturing sites are in Brazil, China, Malaysia, Ireland, and the U.S. Advantages of these
locations are that some of them are low cost (Brazil, China, Malaysia and, relatively, Ireland), they
have educated work forces that are highly productive, and they are near large regional markets.
Advantages
๏ผ Low labor cost
๏ผ High productivity of local workforce
๏ผ Important regional markets
Dell prefers closest regional market to reduce shipping cost and increase the speed of delivery to
customer.
Disadvantages
๏ผ Cultural differences
๏ผ Differences in accent
๏ผ It has to train the un-educated and unskilled lower cost labor in some countries
Q#2: Answer
Dell outsources because it enables Dellโs business model to be successful.
Dellโs comparative advantage is in
๏ผ Pricing
๏ผ customization and
๏ผ rapid order fulfillment
All advantages gained through supply chain management and logistics. By outsourcing, Dell does not
carry risks connected to inventory such as obsolescence. Dell can maintain flexibility in its
manufacturing, and Dell has lower coordination costs than if it were vertically integrated, producing
its own parts. Outsourcing allows Dell to focus on what it does best.
Q#3: Answer
Dell has been able to achieve the lowest inventory levels in the industry.
๏ผ In 2004, that was only three days of inventory on hand, compared to 30, 45, or even 90 daysโ worth at
competitors.
This is a critical advantage in the computer inventory,
BBA-5
1
2. INTERNATIONAL BUSINESS
๏ผ Where component costs account for 75 percent of revenues and typically fall by 1 percent per week
due to rapid obsolescence. Replacing inventory with information has contributed greatly to Dellโs
business model. It is the cornerstone of their cost structure. Reducing inventory also reduces the need
for working capital. In sum, replacing inventory with information boosts profitability.
Q#4: Answer
Yes, Dellโs model can be imitated, but the managerial skills are difficult to build. Other companies
who are trying to replace inventories with information include Wal-Mart, Target, Best Buy, and
Circuit City. Auto manufacturers also have been making strides in this direction.
Q#5: Answer
The chief factor that makes it difficult for other PC firms to adopt Dellโs model has to do with
managerial know-how. Knowing what to do is simple. Knowing how to do it is immensely
complicated.
Dellโs model gives it competitive advantage and other firms find difficult to adopt it as they canโt have such
managerial skills and capabilities and they are working on totally different model from the start.
Q#6: Answer
Low cost is the source of Dellโs competitive advantage. Dell seems to be able to counter competitive
challenges, which evidences management capability. This indicates a relatively secure advantage, but
because it is imitable, it is not tremendously secure.
Q#7 Answer
๏ผ There are many risks associated with Dellโs supply chain management.
๏ผ If the transportation links are disrupted (work stoppages, terrorism), Dellโs approach will be affected.
๏ผ In addition, they are vulnerable to problems their suppliers have. Dell is also vulnerable to IT issues
like hacking, system failures. Their competitors would be facing the same issues, though.
๏ผ The risks that need most to be mitigated are the supplier ones because competitors would not share
them. These can be mitigated by integration with the supplier, and Dell has integrated with the
supplierโs supplier as well.
2
BBA-5