in every activity in the value chain. Ideally‚ low cost strategy is centered on the capability of Dell to produce and deliver products of competitive quality at lower costs. Cost leadership strategy is much more than cost reduction initiatives that get lot of prominence in strategic planning and review session of Dell as a means to improve the bottom line of a company by improving its efficiency. Dell uses efficient cost structures to protect their markets from the competitors by responding to competitors’
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offered by Dell to consumers include printers‚ corporate desktops‚ notebook and workstation systems‚ software and peripheral products‚ and consumer desktop and notebook systems. The company carries various types of printers ranging from all-in-one printers for consumers to multi-function and color lasers for corporate workgroups. Its printer product line comes with a number of features that focuses on lowering the total cost of printing for customers. Some of these features include the Dell Ink Management
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Dell’s Value Chain Dell Computer‚ with close supplier relationships‚ encourages sup-pliers to focus on their individual technological capabilities to sustain leadership in their components. Research and development costs are too high and technological changes are too rapid for any one company to sustain leadership in every component. Suppliers are also pressed to drive down lead times‚ lot sizes‚ and inventories. Dell‚ in turn‚ keeps its research customer- focused and leverages that research to
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Prices as Low as Dell By: Student Name Date: January 17‚ 2012 1a. Which pricing objectives is Dell Inc. pursuing? Dell’s pricing strategy is to ensure profit maximization. In the case‚ we see that Dell is seeking to sell as many products as they can in order to achieve high revenues. Their main objective is to maximize long term profitability through the increase in market share and lowering costs as much as possible. Dell was aware of IBM’s dominance of the market‚ and therefore Dell came up with
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players with two of the major competitors being Dell and HP. The computer industry has come a long way since its first inception with the invention of Electronic Numerical Integrator and Computer in 1946. This industry is comprised of many items such as computers‚ monitors‚ printers‚ scanners‚ mainframes‚ servers‚ electronic computer components‚ networking and workstations to name a few. The industry started a major growth phase in the 1980’s with the production of the personal computer and
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DELL’s Working Capital 1. How was Dell’s working capital policy a competitive advantage? Dell has achieved low working capital by keeping its work-in-process and finished goods inventory very low. The competitive advantage Dell achieves from this is that its inventory is significantly lower than its competitors‚ it does not require large warehouses for stocking the inventories and Dell is also able to adapt the fastest to technology changes in the components. The competitors would find it
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Dell Computer Case Questions Please provide a detailed answer to each of the following six questions for the Dell Computer case. 1. What has made Dell Succeed to date? 2. What is Dell’s position in the industry to date? 3. An August 12‚ 2002 Business Week article‚ indicated that by 2007 Dell intended to double revenues to $60 billion. How should Dell go about building the nearly $6 billion annual sales growth needed to achieve that target? 4. What are the implications
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[pic] [pic][pic] DELL INC. Michael Dell founded Dell based on a simple concept of selling computers directly to their customers. Figure below showed Michael Dell has the founder‚ CEO and Chairman of Dell Inc.:- [pic] Figure 1: The founder‚ CEO and Chairman of Dell Inc He holds the record of being the longest tenured chief executive officer of the company. His concept eliminates retailers that consume time plus added cost. His concept also helps Dell to understand the needs
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main objective of Dell is to produce the low price and profitable notebook for the customer. For Dell Company‚ all the prices that they sell are posed to the internet and they usually based on the e-commerce market. The main reason for successful pricing strategy is having a reasonably accurate idea of supply and demand. Too high a price and demand fall as less buyers purchase the product. Too low a price can increase volume of sales but reduce margins profit. So‚ Dell has aimed for the
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Executive Summary Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years. The products of Dell are known for their quality‚ service & on time delivery
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