Executive Summary Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years. The products of Dell are known for their quality‚ service & on time delivery
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DELL LOGISTICS NETWORK: DELL LOGISTICS NETWORK Dell’s new and improved design for a channel distribution model: Order processing Pre-production Accessories ready Configuration Test Boxing Distribution preparations Shiping (transportation) TRANSPORTATION SYSTEM DESIGN: TRANSPORTATION SYSTEM DESIGN Optimize inbound and outbound transportation networks Collaborate with the best logistics and transportation providers Mode of transportation – By Ship By Rail By Air “GREEN” INITIATIVES Transport
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which firm exists in and explain convincingly why your team believes so. Dell market structure is monopolistic competition. Why? This is because Dell has many competitors such as Toshiba‚ Acer‚ Sony‚ Lenovo‚ Asus‚ Hp‚ Apple‚ and Sharp .The existence of these firms makes Dell not the only single computers firm in the market. This have let Dell met the conditions which is many sellers in monopolistic competition. Thus‚ Dell pricing decisions will not affect the market outcome. Even though there
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opened a new market. All other competitors all followed its step to innovate high-density energy-saving server‚ and want to gain some shares in this market. At this time‚ Dell entered to the market with its own low-priced‚ customized servers to compete with SGI. Along with the time passed‚ more and more companies‚ especially Dell‚ targeted SGI’s customer and provided them low-price products that SGI cannot compete with them anymore. In May 2009‚ Rackable Systems that is the former SGI merged with
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Dell (DELL) Analysis – At the close of ’07 (results reported in January of ’08)‚ Dell had an outstanding ROE of 76.97%; however things started to change in ’08-‘09 when ROE dropped down to 58.02%. This was caused by a decrease in Net Income which reduced the profit margin‚ as well as a decrease in Total Assets which reduced the equity multiplier. Due to further decrease in Net Income (58% decline) in ’09‚ the profit margin was cut in half. At the same time the sales decreased from $61‚101 to
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Dell Distribution Network I. Direct sales model Dell current distribution network is direct sales model‚ this online sale refer to the fact that Dell does not use the retails channel‚ but sells its personal computers (PCs) directly to customers through its website www.dell.com. Dell does not make sales through any integrators or resellers‚ nor does it utilize any channel service profit margins. Sales are made by the collaborative efforts of the Dell’s task force and by means of advertisement. Customers
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opportunities‚ and defending against the threats to its well being. The SWOT analysis for Dell is summarized below. Strengths Direct to customer business model. Uses latest technology. Dell is the market leader in personal computers. For the last couple of years it has held its position as market leader (it took it from rivals Hewlett-Packard). Dell’s brand is one of the best known in the world. Dell has a remarkably low operating cost relative to revenue because it cuts out the retailer
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Dell’s Value Chain Dell Computer‚ with close supplier relationships‚ encourages sup-pliers to focus on their individual technological capabilities to sustain leadership in their components. Research and development costs are too high and technological changes are too rapid for any one company to sustain leadership in every component. Suppliers are also pressed to drive down lead times‚ lot sizes‚ and inventories. Dell‚ in turn‚ keeps its research customer- focused and leverages that research to
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a large market share from existing competitors in the market. By using the direct model strategy‚ Dell is using a different approach to woo the Chinese consumers. Dell ’s Just-In-Time (J-I-T) inventory keeps inventory costs to a minimum. Companies like China ’s market leader Legend (local Chinese PC)‚ Lenova ‚ recently purchased IBM Hardware Business outside China ‚ they are beginning to move to Dell ’s J-I-T model‚ selling direct to their corporate customers. A barrier to entry in China is dealing
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context The year 1999 will be used as the base year for Dell Computer Corporation to resolve the challenges they are facing. II. Point of View The point of view of Mr. Keith Maxwell‚ Senior Vice President for Worldwide Operation of Dell Computer Corporation will be used in the study since his decision would be the basis for the first location plant of the corporation in Latin America. III. Statement of the problem Should Dell decide to put up its location plant in Rio Grande do Sul
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