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Industry Studies 1 
Seminar: 
Dell’s distribution departure 
Topic Number: 4
Overview 
In the 1990s Dell was one of the most successful computer 
companies in the world, with an annual turnover of $30 billion. It 
was a pioneer in its distribution capability and sold its products 
directly to consumers. In addition, their supply chain drove 
further efficiencies like none other in the industry. 
However, Dell has seen a massive declines in recent years, so 
much so, that Michael Dell has recently bought the company back 
to try and regain their entrepreneurial spirit. 
In this seminar, we will initially explore their direct distribution 
model and what made them successful. Thereafter, we will look at 
their supply chain and how they were able to meet customer 
needs more effectively then competitors. 
Thereafter, we will look at what has changed in the environment 
that has caused their decline and determine the outlook for the 
future of Dell.
3 
Learning outcomes of this seminar 
• Be able to identify key aspects of the original Dell 
distribution model that led to their tremendous success 
• Critically evaluate and describe the Dell supply chain to 
understand what was unique about it that gave them a 
competitive advantage 
• Determine and describe key environmental changes that 
led to Dell’s decline 
• Be able to articulate what the outlook is for the future
Agenda for this seminar 
Describe Dell’s original distribution model 
Critically evaluate Dell’s push-pull supply chain strategy 
Evaluate and describe the environmental factors that led to Dell’s 
decline 
Determine what the outlook is for the future
Structure for the session 
You will have 
15 minutes to 
discuss each 
question 
We will have a 
de-brief at the 
end of each 15 
minutes to hear 
your thoughts 
on each area 
Feel free to ask 
questions but 
please do not 
have separate 
conversations 
‘we are all in 
this together’!
The importance of operations 
Our business is about 
technology, yes. But it’s also 
about operations and 
customer relationships 
Michael Dell
The background to Dell 
Michael Dell started trading in the belief 
that by selling personal computer 
systems directly to customers, PC's 
Limited could better understand 
customers' needs and provide the most 
effective computing solutions to meet 
those needs. Michael Dell dropped out 
of school in order to focus full-time on 
his fledgling business, after getting 
about $300,000 in expansion-capital 
from his family.
Disrupting an industry in 1984 
View video: https://www.youtube.com/watch?v=M29wyyk2RkI
Describe Dell’s 
original distribution 
model
Discuss
Critically evaluate 
Dell’s push-pull 
supply chain 
strategy
Discuss
Evaluate and 
describe the 
environmental 
factors that led to 
Dell’s decline
Discuss
Outlook 
for Dell?
Discuss
End of Seminar 
Note: This recording is for your 
personal use only and not for further 
distribution or wider review. 
© Pearson College 2013
Seminar   is4 dell pre student

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Seminar is4 dell pre student

  • 1. Industry Studies 1 Seminar: Dell’s distribution departure Topic Number: 4
  • 2. Overview In the 1990s Dell was one of the most successful computer companies in the world, with an annual turnover of $30 billion. It was a pioneer in its distribution capability and sold its products directly to consumers. In addition, their supply chain drove further efficiencies like none other in the industry. However, Dell has seen a massive declines in recent years, so much so, that Michael Dell has recently bought the company back to try and regain their entrepreneurial spirit. In this seminar, we will initially explore their direct distribution model and what made them successful. Thereafter, we will look at their supply chain and how they were able to meet customer needs more effectively then competitors. Thereafter, we will look at what has changed in the environment that has caused their decline and determine the outlook for the future of Dell.
  • 3. 3 Learning outcomes of this seminar • Be able to identify key aspects of the original Dell distribution model that led to their tremendous success • Critically evaluate and describe the Dell supply chain to understand what was unique about it that gave them a competitive advantage • Determine and describe key environmental changes that led to Dell’s decline • Be able to articulate what the outlook is for the future
  • 4. Agenda for this seminar Describe Dell’s original distribution model Critically evaluate Dell’s push-pull supply chain strategy Evaluate and describe the environmental factors that led to Dell’s decline Determine what the outlook is for the future
  • 5. Structure for the session You will have 15 minutes to discuss each question We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area Feel free to ask questions but please do not have separate conversations ‘we are all in this together’!
  • 6. The importance of operations Our business is about technology, yes. But it’s also about operations and customer relationships Michael Dell
  • 7. The background to Dell Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family.
  • 8. Disrupting an industry in 1984 View video: https://www.youtube.com/watch?v=M29wyyk2RkI
  • 9. Describe Dell’s original distribution model
  • 11. Critically evaluate Dell’s push-pull supply chain strategy
  • 13. Evaluate and describe the environmental factors that led to Dell’s decline
  • 17. End of Seminar Note: This recording is for your personal use only and not for further distribution or wider review. © Pearson College 2013

Editor's Notes

  1. Question 1
  2. Go through the first question
  3. Question 2
  4. Go through the first question
  5. Question 3
  6. Go through the first question
  7. Final question
  8. Go through the first question