Michael Dell founded Dell in 1984 with $1,000 and started by selling computer systems directly to customers. Dell's objectives included maintaining a direct relationship with customers and offering custom-built products at affordable prices through a low-cost structure. Dell's competitive advantages included its direct sales model, technology expertise, short delivery times, and superior customer service. Dell's vision was to continue delivering the best customer experience by directly selling computer products and services online and through catalogs.

1. Strategic Management (SM3027)DELLMembers:KhaiSimIzwanMwanaFarhan

2. History of DELLMichael Dell: Chairman of the BOD and Chief Executive Officer of DellFounded in 1984 with $1,000Started with a simple concept: selling computer systems directly to customersIn 1992, Mr Dell is the youngest CEO to earn a rank in the Fortune 500

3. DELL: ObjectivesFive tenets to superior customer value:A direct relationship: the most efficient path to the customersCustom built products and custom-tailored service: the most effective way to meet customer needsStandardised technologies: best value to customersLow-cost structure: cost savings passed to customers in form of lower pricesDeliver added value to customers: customers able to obtain highest return on their investment in IT products and services

4. Competitive AdvantagesDirect model successTechnology and ITShort delivery time Affordable pricesSuperior customer serviceExpansion into new productsCustomer-driven research and development

5. DELL: Vision Concept: Direct Customer Contact -> Made DELL a successful companyDelivering the best possible customer experience -> By directly selling com products and services online and through catalogs.

6. Internal Capabilities1. Cost-Efficient Build-To-Order Manufacturing - None were produced for inventory - Unlike competitors, DELL does not apply the traditional value chain model2. DELL’s Direct Sales Strategy and Marketing Efforts - DELL’s ability to respond quickly gave it a significant advantage - Direct sales approach = Customer- driven system

7. Internal Capabilities3. Customer Service and Technical Support - Is a feature of DELL since 1986. - Online technical support tools to reduce cost of telephone support calls

8. Internal Capabilities4. Expansion into New Products - Diversify the company’s product base5. Entry into the White-Box PC Segment - Cheaper to reach many small businesses through the white-box dealers

9. External Relationships1. DELL and Its Customers - Focuses on customers’ needs and wants towards the products. - DELL’s R&D was customer-driven.2. Partnership with Suppliers - Best suppliers were picked - Partnership remains as long as their performance, cost, quality and leadership in technology is maintained

10. Issues in DELL & the RecommendationsIn April, 2010. DELL did not disclose proper information in its advertising (ie. No shipping charges mentioned). - Brian, New York - Customers have rights to know about what they purchase. - DELL should inform every cost available in its products. Hidden costs are not a good function in businesses.

11. Issues in DELL & the RecommendationsOrders got messed up through phone-ordering services. Customer service was bad over the phone.- Kenneth, New Jersey - Despite having an efficient online customer service, DELL should not forgo its customer service in other dimensions (ie. phone). - Certain customers still do not prefer being served online.

12. Thank You!