Business Model: Dell Inc. founded by Michael Dell in the 1984 is the world’s largest PC Manufacturer with annual sales of over $54 billion from around 170 countries. The Company was founded on a simple concept; that by selling personal computers directly to customers‚ Dell could best understand their needs and provides the most effective computing solutions to meet those needs. Dell provides computer systems under its enviable "low-cost direct sales model" under which the company maintains full
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Table of contents Case comprehension p. 2 Situation analysis p. 2 Diagnosis p. 4 Alternative choices p. 5 Predicting outcome p. 5 Choice p. 7 Solution outline p. 8 Case comprehension Dell Computer Corporation was founded in 1984 by Michel Dell‚ as a result of a growing demand for his pre-formatted hard-disks and upgraded IBM-compatibles. Within a year‚ Dell introduces its first own-design computer system and in 1989‚ the company introduces its first laptop. The first
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Dell case Based on Ali Farhoomand’s “Dell: Selling Directly‚ Globally (2007) Introduction Dell’s business model has been the key element of Dell’s growth in revenue and reputation. It was innovative‚ cost reducing and effective with customers. Since the foundation Dell grew rapidly and did not appear to look back until 2007 when they lost their spot as the number one computer vendor in the world. This report will identify the key elements of Dell’s strategy and explain why it was a success in
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Case Analysis: Dell Introduction Present CEO and chairman of the board Michael Dell founded Dell in 1984‚ as a leading technology provider that designs‚ develops‚ manufactures‚ and supports PCs‚ software and peripherals‚ storage and servers‚ and associated services. With operations in four geographic areas and additional business centers and manufacturing sites in more than 20 locations around the world‚ Dell is able to reach more than 24‚000 retail locations worldwide. Dell’s ability to process
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Since 1998‚ Dell has faced challenges by competing in an industry that is becoming increasingly commoditized. Decreasing growth in their primary market segment and lost PC sales due to the number of growing substitutes have contributed to Dell’s decreasing profits. In 1997 Dell had a substantial dual advantage over industry leaders‚ but in recent years the wedge between Dell’s costs and consumers’ willingness to pay has been reduced. Loss of industry attractiveness as well as competitive position
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Introduction In 2001‚ Dell Computer became the world’s largest personal computer vendor‚ continuing to gain market share and post profits in an industry struggling with slumping sales and billions of dollars in losses. Dell sells 90% of its PCs directly to the final customer‚ largely bypassing there seller channel that accounts for most of the world’s PC sales. This direct customer relationship is the key to Dell’s business model‚ and provides distinct advantages over the indirect sales model. Dell’s
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in1990‚ Dell emerged as a strong business entity in the computing industry. With the advent of personal computing‚ the major players in the industry were IBM‚ Compaq and HP. Between 1994 and 1998‚ Dell’s growth was faster and twice its major rivals (IBM‚ Compaq‚ Gateway‚ and Hewlett- Packard). It provided high performance PC at a very low price. Through the introduction of Dell’s Direct Model‚ it enjoyed high competitive advantage and earned quite a success. Using the “Direct Model”‚ Dell sold primarily
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model. The traditional model startsed with manufacturers building computers‚ they distributed them to dealers who sellold them. Dell started with selling PCs directly to end users. In China they also used the ‘dual system’ model (using both direct sales and distributors). An important feature necessary for the direct sales model to be successful is an efficient supply chain. Dell had this efficient supply chain‚ you can call this another FSA was its efficient supply-chain.as well. The macro-level requirements
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On April 22‚ 2003 Page 2 2 INDUSTRY ANALYSIS ..............................................................................................................................3 CURRENT STATUS ....................................................................................................................................6 C URRENT S ITUATION ..................................................................................................................................6 Performance.....
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Business Model Dell has managed to become remarkably successful in a short span of time by following a direct "business to customer" model. By selling computers directly to customers‚ they have been able to best understand their needs and provide effective solutions to meet those needs. Dell built PCs to order‚ so customers received only what they wanted. Dell ’s just-in-time inventory system allowed them to order only parts that customers demanded‚ thus keeping the minimal inventories and
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