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8/3/2019 Dream Company Dell
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PRESENTED BY-
SUSHIL CHAUDHARY(116)
VIJAY CHAVAN-PATIL(120)
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NAVNEET AARYA (121)
SANTESHWAR
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y Before Michael Dell, innovation was about well-schooled engineers in R&D labs inventing high-margin products and technologies.
y Dell instead trained his eye on finding the mostefficient way to get tech products into the handsof the consumers.
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y Perfected the credo Cut out themiddleman.
y DELL eliminated the need for inventory ormiddlemen and gave itself a built-in priceadvantage, which it in part keeps as profit and inpart passes on to customers.
Fortune 28/11/2005
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y Michael Dell created PCs ltd. while a student at theUniversity Of Texas at Austin.
y In 1985 the company produced the first computer of its
own design, The Turbo PC, which sold for US $795.y The company changed its name to DELL COMPUTER
CORPORATION in 1988.
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In 1984, Michael Dell founded the company
In 1985, company produced the first computer on itsown
It develops, manufactures, sells, and supportpersonalcomputers and computer related products
Employs more than 77000 people as of 2009
The company is one of the largest technologicalcorporations in the world, employing more than103300people worldwide
In 1996, Dell began selling computer via web
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y Dell is an American multinational informationtechnology corporation
y The name of its founder is MICHAEL DELL.
y Dell is listed at #41 in the fortune 500.y Michael Dell is the chairman of the Board of
Directors of Dell, the company he founded in 84for $1,000.
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Customization
Price
Customer Focused
Technical Knowledge
MarketDiversification
StrongBrand/Positioning
Media Savvy
Direct MarketingModel
Non-myopic strategy
Server Market
International strategy
Product extensions
TangibilityTechnology Market
Commoditization
Inventory
Competition acrossmarkets
Commodity pricing
(shrinking margins)
Complexity of Mgmt.
Growth exceedingproductivity
Customization
Price
Customer Focused
Technical Knowledge
Market Diversification
Strong
Brand/PositioningMedia Savvy
Direct MarketingModel
Non-myopic strategy
Server Market
International strategy
Additional markets
Product extensions
Strategic partnerships
Technology MarketInventory
Competition acrossmarkets
Commodity pricing
(shrinking margins)
Complexity of Mgmt.
Growth exceedingproductivity
Business to Consumer Business to Business
Strengths Opportunities Strengths
Weaknesses Threats Weaknesses Threats
Opportunities
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y 2000, Dell was #6 in computer, with a marketshare of 6%.
y 2003, it was #1 with a 30% share. #3 consumerbrand.
y Sales in 00: $25.2 Billiony Sales in 02: $35.2 Billiony Sales in 03: $40.8 Billiony Sales in 04: $41.4 Billiony Sales in 05: $49.2 Billiony Sales in 06: $55.9 Billion
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0
1E-08
2E-08
3E-08
4E-08
5E-08
6E-08
Jan/00 Jan/01 Jan/02 Jan/03 Jan/04 Jan/05
B i l l i o n s
Series 1
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y Three Golden Rules of DELL:1. Disdain inventory
2. Always listen to the customer3. Never sell indirect.
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yBuild-to-Order Manufacturing andMass Customization
Dell built its computers and other products to order, none were produced for inventory.
Dell customers can customize their PC¶s based on their needsof their applications.
This sell-direct strategy means that Dell had no in-house stock of finished goods inventories and that unlike competitor usingtraditional value of chain model
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y Traditional PCs Industry Value Chain (Utilized by Compaq, IBM, HP and MostOther)
y Build-to-Order/Direct Sales Value Chain (Employed by: Dell)
Manufacturing of PCs Component
By
Suppliers
Assembly of PC by PC Makers (toFill order from
Suppliers)
Manufacturing of PCs Component
By Suppliers
PurchaseBy
PC Users
Service andsupport activitiesProvided to PC
Users
Sales andMarketing
Activities of Reseller to self Inventories of PCs on hand
Service andSupport activities
Provided to PCUsers
PurchaseBy
PC users
Customized Assembly of PCs
By PC Makers