2. Dell 2.0
Revenue (In Billions)
56
• Deep customer relationships
Dell 1.0 •
•
Differentiated tech and value
Customize experience
• Emerging country growth
• Broader service offerings
• Industry leading growth,
• Direct relationships profit and cash returns
• Build to order products
• Technology at best price
• Efficient supply & logistics
• Respected brand
• Superior ROTC & Cash Flow
FY’96 98 00 02 04 06
Source: IDC
3. Customer Experience
Procurement Service &
Design R&D & Manufacturing Sales Pricing Marketing
Support
Online
DELL 1.0
• Performance • Everything in • Efficient, • Direct • Best • Featured price • Product quality
& Cost house virtual, JIT customer customer & promotion • Good service for
supply chain relationships value (transactional) the price
• US centric
• POS model delivered • Featured
• Centralized • Service tied to
delivered through mostly box
manufacturing box
greatest lowest price
leverage • Use of
promos &
deals
DELL 2.0
• Industrial • Outsource • Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
Design & selective • New plants focus/ pricing experience internet services
usability products & near growth Lifetime over price • Best experience
components markets Value • Feature in industry
• Global • Outsourcing at • Solutions & broader • High value/
low end Domain product set relationship
expertise & services services
4. Enterprise Enterprise Consumer & Home
Server Client Small Business Entertainment
“Aviator” “Laminar” “Wrap” “Stratosphere”
“conservative” “aggressive”
5. Customer Experience
Procurement Service &
Design R&D & Manufacturing Sales Pricing Marketing
Support
Online
DELL 1.0
• Performance • Everything in • Efficient, • Direct • Best • Featured price • Product quality
& Cost house virtual, JIT customer customer & promotion • Good service for
supply chain relationships value (transactional) the price
• US centric
• POS model delivered • Featured
• Centralized • Service tied to
delivered through mostly box
manufacturing box
greatest lowest price
leverage • Use of
promos &
deals
DELL 2.0
• Industrial • Outsource • Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
Design & selective focus/ pricing experience internet services
• New plants
usability products & Lifetime over price • Best experience
near growth
components markets Value • Feature in industry
• Global broader • High value/
• Outsourcing at • Solutions &
Domain product set relationship
low end
expertise & services services
6. Customer Experience
Procurement Service &
Design R&D & Manufacturing Sales Marketing Pricing Support
Online
DELL 1.0
• Performance • Everything in • Efficient, • Direct • Best • Featured price • Product quality
& Cost house virtual, JIT customer customer & promotion • Good service for
supply chain relationships value (transactional) the price
• US centric
• POS model delivered • Featured
• Centralized • Service tied to
delivered through mostly box
manufacturing box
greatest lowest price
leverage • Use of
promos &
deals
DELL 2.0
• Industrial • Outsource • Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
Design & selective • New plants focus/ pricing experience internet services
usability products & near growth Lifetime over price • Best experience
components markets Value • Feature in industry
• Global • Outsourcing at • Solutions & broader • High value/
low end Domain product set relationship
expertise & services services
7.
8. 2005 and Prior 1ST Half 2006 2nd Half 2006 and Beyond
• Promo focus • Cleaned up look • “Purely You” integration
• Lowest SAPP • Product Hero as focus • Strong product benefits
• No product benefits • No photos of B series • Solutions focus
• Very busy creative • Still no product benefits • Price/Offer in support
• Cluttered look • Promos less prominent position
9. Customer Experience
Procurement Service &
Design R&D & Manufacturing Sales Pricing Marketing
Support
Online
DELL 1.0
• Performance • Everything in • Efficient, • Direct • Best • Featured price • Product quality
& Cost house virtual, JIT customer customer & promotion • Good service for
supply chain relationships value (transactional) the price
• US centric
• POS model delivered • Featured
• Centralized • Service tied to
delivered through mostly box
manufacturing box
greatest lowest price
leverage • Use of
promos &
deals
DELL 2.0
• Industrial • Outsource • Introduce AMD • Relationship • Everyday low • Emphasize • DellConnect/
Design & selective • New plants focus/ pricing experience internet services
usability products & near growth Lifetime over price • Best experience
components markets Value • Feature in industry
• Global • Outsourcing at • Solutions & broader • High value/
low end Domain product set relationship
expertise & services services
10. Investor’s Business Daily survey shows Dell
remains most preferred manufacturer in US
If you were to buy a
computer today, which
manufacturer would
you buy?
July 2006
