Dell Inc.: An Innovation and its Strategic Plan Strategic Management of Technology Vikas A. Patel Sunil Samanta Tables of Contents Summary……………………………………………………………………………………3 History……………………………………………………………………………………….3 Strategy……………………………………………………………………………………...4 Industry Dynamics…………………………………………………………………………5 Source and Internal Innovation of Technology…………………………………………8 Product Development Technology……………………………………………………..10 Strategy to Protect Innovations…………………………………………………………12
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DELL COMPUTERS TO BECOME A PRIVATE COMPANY IN AN EFFORT TO AVOID BANKRUPTCY Michael the CEO of Dell became a business man when he was really young. He believed if you had an idea‚ worked hard and treated customers with special care you can make money and sometimes a lot of it. Michael started the company with a bare $1000. In 1984 where he started a company that custom made person computers. In 1988 is company grew into what’s known as Dell incorporation. And issued over 3.5 million shares to the
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reading. Derivation of the Demand Curve in Terms of Utility Analysis: Dr. Alfred Marshal was of the view that the law of demand and so the demand curve can be derived with the help of utility analysis. Continue reading. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a vast
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specification. However with several 10 thousand dollars’ car‚ the customers would prefer to go to dealership to do test drive. Thirdly‚ I also realized it is an urgent need to modify their supply chain to make it more cost effective and more profitable. Therefore my decision is the partial implementation and execution of the virtual integration direct business model that has been used by Dell. Through this model‚ Ford will use the emerging information technologies and internet as well as new ideas from
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Strength 1) Dell ’s Direct Business Model which consist of the five principles: Most efficient path to the customer - through direct relationship with no intermediaries to add cost and confusion Single Point of accountability - so that resources necessary to meet customer needs can be easily marshaled in support of complex challenges. Build-to-Order - provide customers exactly what they want in their computer systems through easy custom configuration and ordering. Thus eliminates the maintenance
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distribution channels‚ and Part 2 relates the findings of a case study of the computer industry. The first section of the case study explores Dell’s use of direct channels and Compaq’s use of indirect channels in Canada. We will see how Dell uses the direct model to easily allow the customization of computers for consumers‚ and how the direct model allows Dell to operate with very little inventory through the use of a just-in-time inventory system. Compaq uses indirect channels to utilize the ability of
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Opportunities‚ Threats‚ Strengths‚ Weaknesses and SWOT Strategies HEWLETT PACKARD Opportunities 1. The worldwide personal computer industry posted its fourth consecutive year of double digit expansion in 2006‚ recording 10 percent unit growth. 2. PC shipments in the Asia-Pacific region expanded by an estimated 17.6 percent in 2006 on a unit basis. 3. IDC’s “rest of the world” category‚ which includes Eastern Europe‚ Latin America‚ and the Middle East rose 22 percent on
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Dell was the first mover with its business-to-customer model and internet sales and services since Dell reinvented the value chain for PC industry. Although China would become the second largest PC market after US‚ Dell’s decision of positioning in this market was very crucial. Direct selling of business-to-customer model through the Internet! Does this create competitive advantage in China like it did in USA and Europe? If not what should Dell do to expand Chinese operations? If so what should Dell
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S&S Air‚ Inc. 2009 Income Statement Sales COGS Other Expenses Depreciation EBIT Interest Taxable Income Taxes (40%) Net Income $20‚077‚000 $14‚985‚000.00 $2‚399‚000.00 $655‚000.00 $2‚038‚000.00 $362‚000.00 $1‚676‚000.00 $670‚400.00 $1‚005‚600.00 Dividends Add. To RE $205‚000.00 $800‚600.00 2009 Balance Sheet Current Assets Cash AR Inventory Total CA Fixed Assets Net P&E Total Assets 1. Ratios Current Ratio Quick Ratio Current Liabilities $365‚040 $1‚534‚680 $1‚238‚500 $3‚138‚220 AP Notes Payable
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Do you think Dell is well positioned with respect to its competitors? Not yet because Dell still left behind HP and IBM. People who want flexibility in their PCs tend to buy HP brand. For instance‚ HP Power Distribution Rack which controls three-phase power distribution across a row of server racks brings enhanced flexibility to IT personnel who are seeking to place power where it is needed‚ but without over provisioning or otherwise wasting the precious resource. In other hand people who want
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