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Dell is an innovative provider of Information technology; it deals directly to its customers. Dell also covers a wide range of products and services. Dell's outstanding commitment to its customer's value is evident from its innovative customized based build system using internet technology. If you surf the twenty years of Dell's history, the company has a diversified range of customers including individual customers to large enterprises and retailers.
The Dell's strategy to remove the middle man and to deal with customers one-on-one made it as a market leader; it also made many other companies to follow its management model.
Dell also carefully sustained its strategy till today.
Dell is one of the leading multinational technology firms across the globe. Dell provides innovative technology and services worldwide. Dell provides an extensive varities of products like mobility products, personal computers, software and peripherals, business solutions and much more. Dell delivers innovative technology and service to its customer. In 2010 Dell has been placed in the 38th position in the fortune 500 list. Innovation in supply chain management and electronic commerce made Dell to reach the pinnacle of the world market. Dell has 96,000 employees worldwide and with revenues of $52.9 billion for the fiscal year 2010.
History of Dell
Dell was found by Mr. Michael Dell, initially during 1984 when he was student at University of Austin, he framed a build to order business for building personal computers with available parts. Slowly his business got developed and the company got its name as "Dell Computer Corporation" when the first product offering of the company took place during 1988 and its first PC was named, Turbo. Michael Dell believed in selling PC's directly to customer to meet their requirement perfectly. This was a huge success. The company grew steadily. In 1989 Dell introduced its first notebook PC.A manufacturing centre was opened by Dell in Limerick Ireland during 1990. This helped Dell to expand its market to Europe, Middle East and Africa. In 1993 Dell expanded gradually across the globe by opening new subsidiaries. In 1996, Dell stepped into e-business and started to sell computers through its websites, which was a huge success and made Dell to expand globally and also made Dell to lead the market worldwide. Following this Dell introduced its workstation systems. During 1999, to enhance the supply of required technologies Dell made its first acquisition by buying ConvergeNet Technologies. In 2000 Dell came out with its PowerApp appliance servers. In 2003 Dell Computer Corporation became Dell. This was done to diversify its products. Dell expanded its product line by manufacturing digital audio players, printers and televisions.
During 2007 Mr. Michael Dell stepped out and Mr. Kevin Rollins took over the CEO of Dell Inc. In this period Dell acquired Alienware, this made Dell to bring out AMD microprocessors and various other products. Later Mr. Michael Dell took over charges again and various reform measures to increase product offerings and diversifying. In 2008 Dell stepped into storage market by acquiring EaualLogic. During 2009 Perot Systems was acquired by Dell, this ensured Dell to strengthen its business in technology services and Outsourcing Sector.
Dell's Product and offerings
Under Dell there are seven major product and services, they are
Desktop Personal Computers-Dell manufactures four different desktop computers for different sectors and customers. For example Inspiron 560 for home users which is designed for the entertainment needs and productivity of the home users. In the similar way Dell have different products for small and medium business, for public sector and for large enterprise. This segmentation helps Dell to target its customer more effectively.
Servers and NetworkingÂ -Dell again has many varieties of server for different customers and market which includes highly efficient Power Edge Rack, blade, and tower servers large enterprise customer. The PowerEdge Servers from Dell are for high performance, reliability, and scalability. For small business, networks and remote office Dell provides lower priced tower servers.
Mobility- Dell manufactures produces Studio, Latitude, Vostro variants of laptops and notebooks which combines sleek looks, durability and advanced wireless connectivity, along with high performance gaming and entertainment experience.
Storage- Dell through its Storage devices helps its customers to Securely organize, store and back up your valuable data. Dell manufactures various storage devices for various purposes like Removable disk backup, disk backup systems, direct attached storage and storage area networks.
Electronics and Software-Dell offers lot of electronic devices like mobile phone, printers, televisions, notebook accessories, digital cameras, scanners, power adapters and other products. Dell develops software for office, business, education, finance and accounting. They also provide Anti-virus, web development and sever application software.
Services- Dell's global services provide solutions to improve performance and efficiency for their customers. Dell's services lower the cost and maximize the return on investment to the customers. Dell's services includes: IT consulting, configuration and deployment services, financial services, outsourcing and managed services, Asset and data protection services.
Solutions-Dell provides solutions to its customers by simplifying the activities and tasks performed using latest technologies. Solutions provided by Dell are Systems management, data storage and management, mobile computing and security.
The wide dispersion of Dell around the global provides an edge against its competitors. The corporate headquarters of Dell is located in the company's birthplace which is Round Rock, Texas, near Austin, United States of America. Dell has its regional headquarters in Bracknell, England, for Europe, the Middle East and Africa; in Hong Kong, to provide service for Asia-Pacific; and in Kawasaki, Japan. The company's manufacturing plants to produce computer system are located in six places worldwide and Dell has its offices in 34 countries around the world to sells its products and Services.
Dell follows an innovative strategy to cut the middle man and provide products directly to the customers. Dell has a wide range of customers from large corporate to individual consumers. It also offers product and services to government and organization.
Dell's has six divisions in its products and services they are, mobility products like smart phones, notebook computers, laptops; desktop personal computers; servers and networking services and storage products ;software and peripherals. Dell also stepped into financing services sector. The major competitors of Dell are Apple Computer, Compaq, IBM, Gateway,
Hewlett-Packard, Silicon Graphics and Micron Electronics
Dell involves in designing, developing, manufacturing, marketing, selling and providing after sale support for information technology system and services. In recent years the company has started to sells through its website to enhance its business through e-commerce. In those websites customer can customize their own products. Here Dell has implemented Just-in time manufacturing system that is, the process of manufacturing takes place only when the product is customized and ordered by the customer. Just-in time manufacturing system helped Dell to lower its production cost, this allowed Dell to under price its products by 10% to 15% than its rivals. It has enabled the Dell to grow at rapid phase than its rivals.
Dell also provides support and help on its website which made things much easier for customer and the company. E-business and technology was effectively used by Dell, through e-marketing it was able to reach customers directly and also attracted a lot of customer. It also helped to enhance its customer relationship management.E-Procurment helped to manage its supply chain more effectively.
Dell enjoys a strong brand value which also supports its growth. Dell is one among the world's top 100 brands. Since Dell enjoys a good brand image it started to sell its products indirectly, mainly through leading retail stores. This strategic move was taken to sustain in the global market and to increase the sales of Dell's product to the customer in the retail place. According to this Dell made a strategic relationship with various major retailers like Wal-Mart, Best Buy in the US; Carphone Warehouse, Carrefour, Tesco and DSGi in EMEA region; and HiMart, Courts and Bic Camera in Asia Pacific region
Dell by entering into indirect sales channel, cross selling opportunity and market penetration capability can be enhanced.
Unique business model of Dell
Dell developed a business model based on Just-in Time manufacturing, which was initially originated in Toyota. The traditional manufacturing strategy was followed by most of the companies in the world, in which they forecasted the demand for their product in the market and then they tried to continually manufacture to meet the forecasted demand. To maximize efficiency everyone involved in the production process was kept busy, Continuous production took place to meet the forecasted demands. The finished products were pushed into the market. This strategy lead to large inventories, long production time, more defects rate, high cost and production obsolescence. Toyota's production system was very effective and came out without these limitations in manufacturing.
Dell was the first technological firm to implement Toyota's manufacturing system. Dell called this process as "pull to order". At Dell this process was based on Internet and website, a customer need to visit Dell's website to customize their notebooks and place the order. As soon as an order is received the suppliers are notified about necessary components, then the product is customized and manufactured according to the specific customer's request, after the product is shipped to the desired customer location. Dell eliminated the warehouses and increased the production line in the pace available; this has also increased the Dell's production by two times. Before Dell took 5 days to deliver its finished products to the customers and but now using more extensive Web-based collaborative technologies Dell promises to manufacture and ship products within 24 hours.
"Pull to order" mechanism helps Dell to improve its efficiency and Dell was also able reach the customer worldwide across boundaries. Dell also provided online customer help and service. This was a further step to implement Dell's strategy to sell its products directly to its customers. Just-in Time manufacturing helped Dell to attain virtual integration with supplier, it also helped to reduce inventory and streamlined the distribution channel. Using "pull to order" resulted in saving of cost. Improved customer satisfaction, reduced wastage, and proper supply chain management. These all resulted Dell to attain higher revenue. Overall this strategy gained competitive advantage for Dell and made it as the market leader.