The Dell Company A Strategic Analysis

Seminar paper from the year 2005 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, Pforzheim University, course: Management Seminar SS 2005, language: English, abstract: "No other technology company listens to customers, collaborates with partners, adds its own significant layer of innovation and delivers relevant technology more efficiently and effectively than Dell." These words from Michael Dell point out more than anything else how the Dell company managed to advance to the worldwide number one in the computer industry. From a little company founded by an undergraduate student at the University of Texas, Dell Inc., headquartered in Round Rock, Texas, has developed into a huge corporation with more than 55,200 employees today and an annual turnover of nearly $50 billion. This report aims to analyse how the Dell company performs in the competitive environment of the computer industry, which factors are essential for success and how Dell successfully takes advantage of its business structure. Furthermore, an internal analysis will be conducted and the resulting strengths and weaknesses will be presented. The future developments of the computer industry in general and of the Dell company in particular, will be examined at the end of this paper.

Research Paper (postgraduate) from the year 2010 in the subject Business economics - Business Management, Corporate Governance, grade: 5/5, Chalmers University of Technology Foundation Göteborg, language: English, abstract: This research project is based on a study made on Dell Computer Corporation. The task given is to assume the role of advisors to the CEO. The first step to take is to analyze the market situation for the company and also investigate the competition. Afterwards in order to understand the organizational characteristics and capabilities SWOT and TOWS analysis are implemented. Based on the above tools the key problem area which Dell Inc is facing is recognized. Mostly based on TOWS analysis the possible strategic alternatives are connected to the problem areas.Furthermore with using company’s vision, mission and tools such as Scenario planning and Ranking options the highest priority strategy is chosen.

Research Paper (postgraduate) from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: A, St. Mary's University San Antonio, Texas, language: English, abstract: Dell was founded in 1984 by Michael Dell on a simple concept: by selling computer systems directly to customers. Its corporate headquarters are located in Round Rock, Texas, and it conduct operations worldwide through subsidiaries. The company’s core business strategy is built around its direct customer model and highly efficient manufacturing and logistics. Nowadays they are expanding that core strategy by adding new distribution channels to reach even more commercial customers and individual consumers not only in the USA but around the world. Recently, company also has begun to pursue a targeted acquisition strategy designed to augment select areas of its business with more products, services, and technology. Dell’s goal today is to provide the best possible customer experience by offering superior value; high-quality, relevant technology; customized systems and services; superior service and support; and differentiated products and services that are easy to buy and use [1]. But what pursued Dell to change its strategy and to reevaluate its direct model?

Research Paper (undergraduate) from the year 2006 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1.0, Western Carolina University, course: Marketing Management & Mature Consumers, language: English, abstract: Michael Dell founded Dell Computer in 1984. At the time he was only 19 years old, and in his first year of studies at the University of Texas in Austin. Michael Dell had a simple but powerful vision: that personal computers could be built to order and sold directly to customers. This followed from his belief that the PC, made up of little more than software from Microsoft and chips from Intel, was rapidly becoming a commodity product. Dell's new approach to the PC business had two advantages: (1) bypassing distributors and retail dealers reduced marketing and sales costs by eliminating the markups of resellers, and (2) building to order greatly reduced the costs and risks associated with carrying large volumes of both and finished goods. Michael Dell started his company with only US$ 1,000 of capital. DellComputer experienced its share of difficulties in the first few years, to the point where some family members and friends wondered whether it had been wise for Michael to drop out of university. Several times it had to refine its strategy even as it was implementing it. The company started off by using the direct sales model for upgraded versions of IBM-compatible PCs. However, within a year it was selling its own brands of PCs. Most of Dell's customers in the 1980s were hobbyists and experienced PC consumers. Not surprisingly, Dell Computer was an early and enthusiastic convert to the Internet. It gained a first-mover advantage by setting up its first Web site in 1994, a year in which its total revenues were US$ 3.5 billion. By 1998, its Internet sales accounted for more than half of the firm's total revenues, which by then had surged to more than US$ 20 billion. At that point, Michael Dell had joined Bill Gates of Microsoft and Larry Ellison of Oracle among those who had become high-technology billionaires after dropping out of university. Michael Dell believes that his biggest challenge now is to have his company's direct business model as widely accepted outside the United States as it is across Dell's home market. He sees a need for aggressive marketing activities to develop customer trust and some modification of the basic model to account for institutional weaknesses and cultural differences in places like China and India. Michael Dell does not seem to be particularly concerned about the efforts of competitors to duplicate his build-to-order business model: [...]

The must-read summary of Michael Dell and Catherine Fredman's book: "Direct from Dell: Strategies That Revolutionized an Industry". This complete summary of the ideas from Michael Dell and Catherine Fredman's book "Direct from Dell" tells the story of how Dell grew from a start-up company in 1984 to become the second largest manufacturer and marketer of computers in the world. In their book, the authors explain how Dell's success is due to its ability to approach things differently from everyone else in the same industry. By reading this summary, you can learn from one of the world's biggest companies and adapt their strategies to ensure the success of your own business. Added-value of this summary: • Save time • Understand key principles • Expand your knowledge To learn more, read "Direct from Dell" and find out about the secrets behind the success of one of the world's biggest computer manufacturers.

Seminar paper from the year 2009 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,2, , language: English, abstract: 1. Introduction In 1984, Michael Dell, a student from the University of Texas has found his own company selling computers build together from stock parts. With the philosophy of offering customers customized PC’s and selling these directly to them Dell’s company became the biggest PC seller in the United States in 2000.1 Since in 1996 Dell started to market his business predominantly over the internet. With this paper the author wants to analysis the main company homepage, www.dell.com, from an effectiveness perspective. On the following pages the reader will receive information about the business objective, Dell’s business models, the audience profile, the web evaluation and a competitor analysis. At the end the findings will be summed up in an overall assessment and a conclusion with a recommendation will be given. [...]

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Wissenschaftliche Studie aus dem Jahr 2009 im Fachbereich BWL - Unternehmensführung, Management, Organisation, Hochschule Ludwigshafen am Rhein, Sprache: Deutsch, Abstract: In 1984, after generating $80.000 revenue per month from upgrading and selling computers out of his dorm room, 18-year-old Michael Dell dropped out of College and founded Dell Computer Corporation. The start-up company was faced to established industry giants like International Business Machines, Compaq and Hewlett Packard. To be competitive, Dell implemented an innovative business model which made the company grow and achieve the status of the one No. 1 PC provider in the U.S. (www.dell.com). Between 1994 and 1998, Dell Corporations revenue increased from $3.5 billion to $18.2 billion, its profit from $149 million to $1.5 billion and its stock price by 5.600%. This meant a twice as fast growth as Dell’s major competitors and a triplications of its market share (Rivkin/Porter 1999, exhibit 11). This paper deals with the questions how Dell Corporation was able to enter the PC market, managed to get that successful and which actions should be undertaken to improve its position in the future. After this brief introduction, the PC industry will be analyzed. The third part deals with Dell’s business model and the resulting competitive advantage. Followed by that the reactions of Dell’s competitors due to Dell’s business models will be discussed and finally some recommendations to ensure and improve Dell’s position in the PC market will be given.

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Academic Paper from the year 2020 in the subject Business economics - Supply, Production, Logistics, Open University Malaysia, language: English, abstract: This report generates substantial idea about how Dell has introduced understanding of its value chain analysis and how it administers a better supply chain scenario using the global supply matrix. Dell technology is termed to be an end to end provider of technology and has a comprehensive portfolio. It is a US multinational organization dealing in development, selling and repairing of different aspects of computers. The company was initially known as PC’s Limited and the company was initially run from a dormitory room. It started business by providing different forms of updates for PCs. The founder of Dell was Michael Dell in the year 1984 and he was from University of Texas in Austin. The latest revenue collection of Dell is $ 23.8 million as per the reports of fourth quarter GAAP. In accordance to Brand Finance, Dell is listed in 92nd position among all the 500 companies enlisted in Brand Finance Global list. It is also enlisted at 68th position in the Global Rep Trak 100 position. Dell has worked with the aspect of corporate development in the recent year. It has incorporated focus on innovation by the Dell capital. This is going to include Strategic Development, Complex Transaction Structuring, Mergers and Acquisitions and Market Intelligence. In 2017, it has achieved in bringing in transparency in its supply chain.