Case DELL—USING E-COMMERCE FOR SUCCESS The Problem/Opportunity Founded in 1985 by Michael Dell‚ Dell Computer Corp. (now known as Dell) was the first company to offer personal computers (PCs) via mail order. Dell designed its own PC system (with an Intel 8088 processor running at 8 MHz) and allowed customers to configure their own customized systems using the build-to-order concept (see Chapter 2‚ Appendix 2A). This concept was‚ and is still‚ Dell’s cornerstone business model. By 1993‚ Dell had become
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Case 7-5: Dell Computer Corporation Discussion questions 1. What is Dell’s strategy? Dell’s strategy was based on: • Market leadership as a result of a persistent focus on delivering the best possible customer experience. Direct selling‚ from manufacturing to consumer‚ was a key component of its strategy. • Its reputation as one of the world’s most preferred computer systems companies and a premier provider of products and services that customers worldwide needed to build
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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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the company? Dell uses a just in time order fulfillment policy and accurate forecasting of sales to minimize inventories. This allowed Dell to hold inventory of finished products far below levels of their competitors (10-20% compared to 50-70% industry level) and furthermore allowed them to quickly implement changes to their product lines as new technologies became available. This quick inventory turnover also allowed Dell to retain more capital. Finally‚ this policy enabled Dell to respond immediately
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Dell had expanded beyond PCs to servers‚ storage‚ and communications equipment Because of the softening of the global economy and the events of September 11‚ demand for PCs was down sharply Dell responded with an aggressive price strategy and reduced costs through workforce reductions and facility consolidations Dell bases its success on its build-to-order‚ direct sales model Because of the tariff-free provisions of Mercosur and the close proximity of Dell’s manufacturing facilities in the
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Technical Report Writing – Summer 2011 Horizontal‚ Vertical and Internal Communication in an Organization Research Paper submitted to: Professor Pacelli Eugenio Renory L. Bilugan 5/29/2011 Table of Contents: Page I. Introduction 2 II. Body of the Report 3 a. Vertical and Horizontal Communication b. Internal Communication 1. Memos a. Definition of a Memo b. Purpose of a Memo c. Audience Analysis d. General Format e. Common Types of Memos
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Question 1 How has Dell used its direct sales and build-to-order model to develop an exceptional supply chain? The many challenges in order to improve the supply chains usually come with the unidentified. Many companies produce products they think their consumer will want. After that‚ they ship their products to retail stores. Then‚ these stores try to sell the products to the customers. Here‚ the supply chains slows down as they are figuring out what to build next. Then‚ these companies deal
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successful in that field such as dell or ebay. In this essay‚ the reasons that make Dell‚ in particular‚ become successful will be fully discussed. According to “What-is-dell” (2007)‚ Dell‚ is a computer hardware manufacturer and distributor and other services related. The company is one of the world’s biggest computer distributors in terms of both quantity of units sold and gross income‚ and one of the United States’ largest corporations. From 1999 until 2006 Dell delivered more complete computer
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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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Management and organizational behavior The Dell Company has made choices using the systems and contingency approaches to management of the company. Firstly‚ the company’s strategy of having the customer of the product design it himself is a systematic in that the company builds a machine that is precise to the consumer’s needs thus reducing the overall time and cost of the process. The specified designs also means very little resources in primary research as the consumers can choose exactly what
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