March 4‚ 2011 Case-Revitalizing Dell I. Diagnosis Question 1: The most critical shifts in Dell’s contextual factors‚ including industry dynamics‚ trends‚ technology changes and shift of the competitive landscape are following: The industry has changed significantly over the last 20 years. The traditional business model in the PC industry was inside-out‚ supplying machines based on orders from distribution‚ resell and retail channels‚ thus following the indirect selling concept. Dell’s direct
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Situation Statement Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s‚ Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently‚ the PC industry is facing inconceivable worldwide competition‚ and Dell is gradually losing their competitive advantages by using its direct model in critical business segments
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BUSI 410 Business Analytics Module 22: Revitalizing Dell 1 Last lecture • Home Depot revenue (forecasting) • Using correlation to choose lag • Using Durbin-Watson statistic to test missing drivers • Out-of-sample model validation 2 Dell’s success strategies • Direct model (marketing) – “Cut out the middlemen.” – NC born Harlem drug lord Frank Lucas • Mass customization (design) – Modularity – Component commonality – Postponement • Lean manufacturing (operations) – Just-in-time
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INTRODUCTION Dell Computers was started by Michael Dell in 1984. Dell’s primary differentiator was its business model. It sold primarily on the B2C market and custom built personal computers on demand. Therefore‚ it had very low inventory by comparison to its competitors. As a result of this‚ Dell was able to operate quite efficiently and profitably in its niche market. By the late 1980’s – early 1990’s‚ Dell noticed that its market share was only 1% of total and that industry amalgamations
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A.D. Machuca Reprint R0411G This document is authorized for use only in PGDM / Operations and Supply Chain Management by Dr. Sourabh Bhattacharya at Institute of Management Technology‚ Hyderabad (IMT‚HYD) from November 2013 to March 2014. HBR Spotlight The 21st Century Supply Chain COPYRIGHT © 2004 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. Managing the modern supply chain is a job that involves specialists in manufacturing‚ purchasing‚ and distribution
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HBR Case Study BY EDWARD E. LAWLER III COMMENTARY BY ANNA PRINGLE‚ F. LEIGH BRANHAM‚ JIM CORNELIUS‚ AND JEAN MARTIN Why Are We Losing All Our Good People? Sambian Partners has prided itself on being a great place to work‚ but now talented employees are leaving. What’s going on? MARY DONILLO‚ the head of human resources at Sambian Partners‚ motioned Tom Forsythe‚ Sambian’s assistant director of commercial design‚ to a comfortable chair in her office. It was late on a Thursday afternoon‚ and the
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------------------------------------------------- MGMT 5303 ------------------------------------------------- CORPORATE & BUSINESS STRATEGY ------------------------------------------------- CASE STUDY 1– APPLE ------------------------------------------------- dUE: monday‚ JANUARY 23‚ 2012 “Apple Inc. 2010” By Group 5: Gautam Pangaonkar David Mead Mark Deveny Lindsey Liotta Apple’s Performance Glance at the history: Apple in 2001 had to go through hardships
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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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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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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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