This document summarizes a report on Dell presented by Gourav J. It provides an introduction to Dell, outlines its history beginning in 1984, and identifies its current CEO as Michael Dell. The document also describes Dell's vision, mission, direct sales model, supply chain and logistics processes, and concludes that Dell's success stems from its direct sales and build-to-order business model enabled by its use of information technology.
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.
• 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.
• Customization. Every Dell system is built to order. Customers get exactly, and only, what they want.
• Service and Support. Dell uses knowledge gained from direct contact before and after the sale to provide award-winning, tailored customer service.
• 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.
• 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.
This is prepared simply for practicing presentation-skills and understanding “slideshare”’s online platform. All content is simply for the learning purpose. We don’t 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.
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.
• 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.
• Customization. Every Dell system is built to order. Customers get exactly, and only, what they want.
• Service and Support. Dell uses knowledge gained from direct contact before and after the sale to provide award-winning, tailored customer service.
• 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.
• 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.
This is prepared simply for practicing presentation-skills and understanding “slideshare”’s online platform. All content is simply for the learning purpose. We don’t 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.
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
Walmart* have done tremendous work on supply chain management. One of the
keys to Walmart’s effective logistical system is the flexibility that it has when
choosing suppliers.
When Walmart negotiates with suppliers and the suppliers know that Wal-Mart
will only pay the most competitive prices. This is because it is very easy for them
to find another supplier of that particular material with a lower price and very few
logistical problems
Another reason that Walmart's prices are so competitive is because they buy in
such large quantities that transportation from one end of the supply chain to
another is not as costly for additional units. Here they focus on bulk and get profit
out of it
This aspect of the logistical system does not come from skill or expertise it simply
comes from the sheer size of the company, but this is still a factor.
Walmart buys so many supplies from different places throughout the world, that
they have the luxury of using bigger trucks and using less fuel to go back and forth.
Also if by chance they have to use shipping services to transport material from one
location to another, Walmart will give them so much business that they will get
huge discounts.
Prepared By Dharmik
Walmart* have done tremendous work on supply chain management. One of the
keys to Walmart’s effective logistical system is the flexibility that it has when
choosing suppliers.
When Walmart negotiates with suppliers and the suppliers know that Wal-Mart
will only pay the most competitive prices. This is because it is very easy for them
to find another supplier of that particular material with a lower price and very few
logistical problems
Another reason that Walmart's prices are so competitive is because they buy in
such large quantities that transportation from one end of the supply chain to
another is not as costly for additional units. Here they focus on bulk and get profit
out of it
This aspect of the logistical system does not come from skill or expertise it simply
comes from the sheer size of the company, but this is still a factor.
Walmart buys so many supplies from different places throughout the world, that
they have the luxury of using bigger trucks and using less fuel to go back and forth.
Also if by chance they have to use shipping services to transport material from one
location to another, Walmart will give them so much business that they will get
huge discounts.
Prepared By Dharmik
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1. SJB INSTITUTE OF TECHNOLOGY
• Sub with code : Research Methods (14MBA23)
• Topic: DELL
Presented by:
GOURAV J
2nd SEM,’A’ SEC,
Department of MBA
Presented To:
Mr. SANTHOSH
Asso Professor
SJBIT,MBA Dept..
2. Contents
Introduction.
History.
Present CEO.
Dell Vision and Mission.
Dell direct model.
Dell supply chain and logistics.
SWOT Analysis.
Conclusion.
3. Introduction
Dell company was established in 4th November 1984.it is an American
multinational information technology corporation founded by Michael Dell.
Head quarter located at Round Rock Texas , United States.
Dell company is one of the largest technological corporations in the world ,
employing more than 1,03,300 people.
Dell company develops ,sells and supports computers and related products and
services.
Dell-world’s largest direct selling company.
Dell changed the tradition by eliminating retailers.
They ship more than 10,000 systems every day to customer in 180countries.
About 90% of the Dell computers are manufactured in china.
4. History of DELL
• Dell computer corporation became official in may 1984. founded by Michael
S. Dell
• In 1985 company introduces the first computer system of its own design.
• In 1987 Dell is the first computer systems company offer next day, on-site
product service.in 1988 the company changed its name as Dell computer
corporation.
• In 1996,Dell started selling computers over the web ,and his company
launched its services.
• In 2003,changed its named to Dell Inc.
• Dell is the industry leader in direct sale of personal computers to
consumers.it was founded on the direct Business-to-consumer.
• The following year ,Dell computers became world’s largest pc maker.
5. PRESENT CEO
Michael Dell
Michael Saul Dell (born February 23,
1965) is an American business magnate,
investor, philanthropist, and author. He
is the founder and CEO of Dell Inc, one
of the world’s leading sellers
of personal computers (PCs). He was
ranked the 41st richest person in the
world on 2012 Forbes list of
billionaires, with a net worth of
US$22.4 billion as of December 2014.
6. Dell VISION & MISSION
VISION
“It’s the way we interpret the world around us- our customers needs, the
future of technology, and the global business climate”
MISSION
“to be the most successful computer in the world at delivering the best
customer experience in markets we serve”
8. Dell Direct model
• Direct sales from the PC manufacturer to the corporate customer.
• By passing the dealer channel . selling directly to consumer.
• Focused on speed of execution and minimum inventory.
• Reseller customized the pc to customer requirements , installed
components and provided additional service and support.
• Dell operates in B2B and B2C business in 180 country markets.
• Dell utilizes a direct distribution model to sell about $50 million per
day online . half of its sales.
9. • Product and services aimed at specific market segments.
• Use IT to control value chain and achieve a high degree of
coordination.
• Latest technology was introduced faster than indirect channels.
10. Benefits of direct sales method
Customer get what they want , rather than be forced to choose among a fixed
set of options.
Direct sales is a powerful model for both Dell and its customers.
Dell can use savings in other areas such as web site improvement ,
marketing and distribution.
It established direct customer relationship and eliminate cost and risks of
carrying large inventories.
11. Dell supply chain , logistics
o Transportation from suppliers to hubs . this takes approximately
30 days.
o Movement between hubs and dell factory .time taken is about 2-5
days.
o Dell chose i2 technologies for its scm system.
o Instead of forecasting the daily supply needed. dell receives exact
material every two hours to fulfil actual customer orders.
o Every 20 sec they analyses material requirements ,compares dell’s
hand inventory with its suppliers inventory.
12. SWOT Analysis
STRENGTH
Dell cuts out the retailer and suppliers directly to the customers.
It uses information technology and customer relationship management
approaches to capture data and its loyal customers.
Technical knowledge.
Customer focused.
WEAKNESSES
Low investments in R&D.
Weak patents portfolio.
Too few retail locations.
13. OPPORTUNITIES
Expand services and enterprise solutions businesses.
Obtain more patents through acquisition.
Product extensions.
THREATS
Growing demand for smartphones and tablets.
Slowing growth rate of the laptops market.
Intense competition.
14. conclusion
• The key to dell’s success has been its direct sales and build
up order business model.
• Dell’s use of IT plays a vital role in the implementation of its
business model . the company has used IT to coordinate its
build-to-order processes from order taking through
procurement , logistics , production, service and support.