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Dell Computer Corporation - Case Study Example

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Dell Computer Corporation is situated in Texas. With a record growth registered so many times like 82% profit increment in the year 1997 when its sales raised to $12.3 millions with a remarkable profit of $944 million, dell deserves to be the 25th1 in the list of fortune 500 companies…
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Dell Computer Corporation

Download file to see previous pages... The year 1986 was a memorable year for Michael Dell and his corporation when Dell entered the European market. By the year 1989, Dell acquired sales of $50 millions. The last four quarters earned revenue around $57.9 millions2. Dell always aims to deliver the innovative technology and services. This company sells the maximum number of systems than any other computer company.
The main principle of Dell is selling computers directly to the customer. In this way, this company can understand the needs of their customers in a much better way. This direct business model3 eliminates the middlemen and hence reducing the cost and time. The strategies of Dell enable it to offer the best possible systems and services at the most reasonable prices. Dell always launches the latest relevant technology much earlier than its competitors.
Dell always has everything to satisfy its customer's needs at the most reasonable price. The direct linking with the customer is the key to success of Dell. The processing time is much better than any other competitors with the use of information system. ...
The direct linking with the customer is the key to success of Dell. The processing time is much better than any other competitors with the use of information system. The customers are getting the advantages of one-step shopping system for all products and services. They can directly contact the company with a phone-call or internet and this company is always ready with an instant response. It is clear that Dell will continue to put its efforts in order to drive the inventory down by increasing its velocity up to the most possible rate.

1.2 Expansion

Dell formed its largest workforce in the year 1998 by recruiting 16,000 employees in central Texas. 4500 employees were hired for its European unit in Ireland. By that time, Dell was ready with its 5 plants, Malaysia, Ireland and three in Texas. Its sixth plant was in China and seventh in Brazil. At present, dell has around 78,700 employees4 in all units.

Chapter 2


2.1 Build-to-Order strategy

The key strategy of Dell was build-to-order. Customer were free to order their PC's directly to the manufacturing floor of the company where various process like assembling and testing were done before shipping the order to the customer. The time taken by the company to deliver the product was just 4-7 days.
Due to this strategy, Dell managed to eliminate the resellers and other middlemen and linked directly to the customer. This profit was returned to the customer in the form of lower costs. Linking directly to the customer ...Download file to see next pagesRead More
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