Dell working capital case Dell’s build to order system created a very different balance sheet. We want to assess their competitive advantage in working capital at the time of the case‚ evaluate how they funded growth at the time (1996) and evaluate potential ways to fund projected sales growth of 50% in 1997 through use of internal funds. 1. Calculate their working capital advantage. To do this calculate days sales of inventory‚ payable days and receivables days to find their cash conversion
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I. Problems/Recommendations In 1995 Dell entered the Chinese computer vendor market. It initially focused at the low-priced end of the PC Market with direct sales. As competition grew and price wars at the low end consumer market began‚ Dell was unable to compete as their low end consumer model cost consumers twice as much as one of its competitors. Dell was also having trouble with their direct sales model‚ which led to complaints about slow delivery‚ service and support. Overall the industry
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“Wintel.” These two suppliers drew profits from all PC companies and minimized differentiation‚ as there were few substitutes and little options of switching to another supplier. The industry’s degree of rivalry reflected its fierce competition. As computers became more common‚ demand rose‚ prices decreased‚ and demand grew stronger‚ boosting competition between manufacturers. This rivalry is essentially what sparked Dell’s competitors to try to emulate their business model and attempt to gain a competitive
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Landmark Square‚ Stamford‚ Connecticut 06901‚ paul_carbonneau@mckinsey.com Robert Moore‚ Bill Reeves Dell Inc.‚ Mail Stop 6363‚ Austin‚ Texas 78682 {robert_a_moore@dell.com‚ bill_reeves@dell.com} The Tauber Manufacturing Institute (TMI) is a partnership between the engineering and business schools at the University of Michigan. In the summer of 1999‚ a TMI team spent 14 weeks at Dell Inc. in Austin‚ Texas‚ and developed an inventory model to identify inventory drivers and quantify target
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direct business model is one in which a company bypasses the dealers in the supply chain and supply directly to the customers. The company following a direct business model treats suppliers and service providers as if they are inside the company. Dell uses this Direct Business Model very efficiently. It buy passes the dealers in the supply chain building each to order. It uses technology to blur the traditional boundaries between users‚ suppliers‚ manufacturers. This model is named virtual Integration
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History of DELL: [pic] ➢ Founded by Michael Dell in 1984 ➢ The single concept: Selling computer systems directly to customers ➢ Designed and built the first computer system of its own design in 1985 ➢ Was one of the first computer companies to send a technician to homes to service personal computers in 1985 ➢ Introduced the 316LT‚ the company’s first notebook computer in 1989 ➢ Joined the top-five computer system makers worldwide
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Computers Computers have made life easier for the human race. Americans today take for granted the great impact the computer has on their lives‚ making things easier‚ faster‚ and more convenient for them. Computers helped the world a lot and helped us take a large step into the future. Almost anything you know is run or made by computers‚ industry‚ cars‚ jets‚ and ect. Computers are the most important innovations in history‚ without computers the world would not be able to function in the
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- Dell profit falls 47 percent - The major key issues for Dell profit falls 47 percent in third quarter is due to Dell’s desktop computers and laptop sales dropped significantly‚ it is because of tablet and Smartphone being popularly‚ mobile devices using mobile operating system from Apple and Google. For the PC market‚ the main competitive products-Smartphone and tablet are raising the demand fastly so it led to a drop in demand of Desktop and laptop. To facing the market needs are changing
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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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PROMOTION DEFINITION:- Promotion involves disseminating information about a product‚ product line‚ brand‚ or company. It is one of the four key aspects of the marketing mix. (The other three elements are product marketing‚ pricing‚ and distribution.)
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