Dell is the third largest PC vendor in the world. It has grown through increasing its customer base and acquisitions like Alienware and Perot Systems. Dell's success comes from its direct sales model, building computers to order, and closely integrating with suppliers. This allows it to be highly effective with low costs.

1. Yours is here.
Wednesday, October 24, 2012
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2. Dell
•Dell is listed at number 41 in the Fortune 500 list.
•It is the third largest PC vendor in the world after HP and Lenovo.
•Dell has grown by both increasing its customer base and through acquisitions since
its inception; notable mergers and acquisitions including Alienware (2006) and
Perot Systems (2009).
•Notable Acquisitions: -
2006 - Alienware
2009 - Perot Systems
2010 - KACE Networks
2010 - SaaS
2012 - Sonic Wall
2012 - Wyse
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3. Dell’s Strategy
Dell’s success is a combination of : -
•Direct Sales
•Build-to-order
•Supplier integration
Together these allow for maximum effectiveness with minimum cost
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4. L5
L5 Vs L6
MB
Integrated 5 Weeks Dell
Manufacturing
Supplier Logistics Customers
Center
Chassis
L6 3 party integrator (managed by
equipment manufacturers)
L5 Additional
cost
1 Week
MB
Supplier Logistics Dell
Center Manufacturing
Customers
5 Weeks
Chassis

5. Manufacturing, Materials
Sales & Marketing
Supply & R&D
Channels of Distribution
Sales representatives Manufacturing
Telephone-based sales Build-to-order manufacturing process
Online sales through www.dell.com Process consists of assembly, software installation,
Marketing programs for specific customer groups functional testing and quality control
Locations: USA, Brazil, Ireland, Malaysia, China
Large business & institutional customers
Small-to-medium business & consumers Materials Supply
Advertising on television, Internet, print media Large number of suppliers
and by mailing publications Intel Corporation as a sole source supplier of
Dell Direct Stores: view Dell products in person processors and Microsoft sole source supplier for
and purchase with assistance various operating systems and application software
products
R&D
Very low expenses: $464m (0.94% of Revenue)
HP (4.3%), IBM (5.9%), Sun (16.3%)
Company uses partners (e.g. Intel, Microsoft,
EMC, Lexmark) to develop technology
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6. Dell’s Business Model
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7. Business Strategy – key tenets
Direct relationship is the most efficient way to the customer
Dell‘s „direct business model“ eliminates wholesale and retail dealers
No expenditures associated with the retail channel
constant flow of information about customers’ plans and requirements
enable Dell to continually refine its product offerings
Custom-built products and custom-tailored services
Build-to-order manufacturing process
Turn over inventory every 4 days on average and reduce inventory levels
Rapidly introduce the latest relevant technology
Rapidly pass on component cost savings directly to customers
Low-cost leader
Efficient supply chain management and manufacturing organization
Concentration on standards-based technologies
Direct business model
Pass those savings to its customers
Standards-based technologies deliver the best value to customers
Provide customers with flexibility and choice
Benefit of extensive research and development
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8. Strategic Implementation
General Perspective
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