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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[pic] Case Study: Dell Computer – Organization of a Global Production Network; using E-Commerce to support its Virtual Company 1.0 Executive Summary Dell’s Direct Model of selling PCs directly to the consumers‚ bypassing the distributors and retailers (resellers) channel‚ has been pioneered and provides distinct advantages over the indirect sales model. Customers have the ability to contact Dell directly and order technologically advanced systems at competitive prices. This direct contact
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Dell Supply chain strategy Dell‚ Inc becomes one of the largest technological company in the world because of their specific supply chain strategy. The traditional supply chain strategy includes five components - supplier‚ manufacturer‚ distributor‚ retailer and customer. Firstly‚ supplier needs to send the raw material to manufacturer. Secondly‚ after the production process in manufacturer‚ manufacturer will send the finished good to distributor. Thirdly‚ distributor will distribute the product
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PC could make sales. In Buying Power‚ consumers have great power. There are a high number of users but consumers have a wide variety of brands to choose from and have put much pressure on companies to make satisfactory products at good prices. Customers also have low switching costs. This force along with high demand was also partly responsible for the “vigorous price war” as many companies cut prices to match one another and satisfy consumers. Supplier power was also high. Intel and Microsoft
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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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Strategic Management: Managing Dell Case 1 Dayna Gibson 100371286 BUSI 4701-003 Word Count:712 Question 1 Bargaining Power of Suppliers- HIGH Although there were many suppliers for computer components‚ “microprocessors were supplied by only a handful of companies.” Pg.3. Microsoft and Intel monopolized the suppliers market as‚ “between 85% and 90% of computers sold conformed to Microsoft/ Intel Standards.”pg.3. With such a high percentage of computers being sold using Microsoft and Intel
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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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1. Synopsis After the emergence of personal computer 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
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of technology and change Andy Grove and Michael Dell pioneered the industry. They were innovators‚ visionaries and industry leaders in their fields. Andy Grove envisioned change to create faster and more productive ways to utilize the way we process information. As an immigrant he passed through the walls of terror in his home country of Hungry which was facing many issues of destruction that the Nazi’s enforced. He fled to the United States in the 1960’s to create a better life and future for himself
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CASE STUDY- DELL INC ASSIGNMENT #2 By: Muhammad Salman ( Syed Ahmed Farooq Wasti ( Kamran Ullah Khan ( References: www.apple.com‚ www.dell.com‚ www.hp.com‚ www.ibm.com Finance.yahoo.com‚ www.gateway.com‚ www.sec.gov/edgar.shtml )_______ )_______ )_______ Introduction • Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas‚ Austin. Initially the name of the company was PCs Ltd in 1984 but later it was changed to Dell Computer in 1987 when
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