Matching Dell 1. Analyzing Dell’s value chain and competitive strategy‚ explain how Dell was able to succeed (build competitive advantage) in the low profitable situation of the PC market. “Value Chain Analysis” is a tool for analyzing the value creation system of competitors. Objective is to develop a value creating system with competitive advantage. A value chain is a chain of activities. Products pass all activities of the chain in order and at each activity the product gains some value. The
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future. Lastly‚ the threat of substitutes was low but growing. Consumers were becoming reliant on PC’s as they became commodities but new technologies such as laptops‚ PDA’s‚ and smartphones among others were slowly emerging. Business Model Although Dell sold to a diverse range of customer segments‚ they generally targeted the
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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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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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Case: Dell Computers (A): Field Service for Corporate Clients [HBS 9-603-067] 1. What are the key challenges DELL should be concerned with as it enters the large scale server market? Support service in server market is more critical than in personal computer market‚ especially when the server is a large scale one‚ since a problem in server even for a short time could cause serious problem in the customer’s business. Having realized the importance‚ competitors such as Hewlett-Packard and IBM
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Matching Dell Case Analysis a. How and why the PC industry has such a low average profitability? The PC industry has started to develop fast in the 80’s when IBM launched its first PC series and later on when numerous small companies entered the market. PC is a new product and companies had to create the demand to it from the scratch. We shall apply the Porter’s 5 Forces model to examine the PC market and see how forces of competition influence the profitability of the market players. Entrance
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Dell Computer Case Study Nova Southeastern University Dell’s Success Michael Dell at the age of 19 founded Dell in 1984‚ a company best known for selling affordable personal computers and laptops. As a pre-med freshman at the University of Texas at Austin‚ Michael starts a new computer business under the name of PC’s Limited. His vision carried over to Dell with the idea of customer experience as a differentiator with risk-free returns and next-day‚ at-home product assistance. Dell a very successful
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briefly look at two techniques for finding objects in images. First‚ we look at segmentation of a given image into a small number of regions based on a distance threshold. Then we look at a matched filtering approach to detecting objects‚ called template matching. Object Segmentation We can extend the region-growing algorithm to detect objects in color images. The basic algorithm must be modified to compute distance on the YUV or Lab coordinates. In addition‚ a raster scan of the pixels can detect undefined
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HKU575 ALI FARHOOMAND DELL: OVERCOMING ROADBLOCKS TO GROWTH You don’t get a big result if you don’t challenge people with big goals. - Kevin Rollins‚ president and CEO‚ Dell1 In spring 2005‚ Dell‚ Inc. (“Dell”)‚ the world’s largest personal computer (PC) maker‚ announced a new goal: to reach US$80 billion in annual sales by 2009. The goal was fairly ambitious for Dell‚ which at the time had revenues of about US$49 billion.2 In an effort to meet its goals‚ Dell had woven together a broad
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however‚ that the question requires broad discussion and is surprisingly difficult. To answer it‚ Ford needs to think about relationships not only with suppliers but also with dealers and customers. As Supply Chain Systems staff members study the Dell model in particular‚ they come to appreciate that “virtual integration” must include design of fulfillment‚ forecasting‚ purchasing‚ and a variety of other functions that had long been considered separately within the Ford hierarchy. The question is
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