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wn design in the year 1985, this was followed by unveiling of the world’s fastest performing computer in 1986 which was to be promoted by the setting up of the first onsite service to compensate for lack of retail in the year 1987. In 1988, the company changed its name to Dell Computer Corporation then tried to change its marketing strategy by selling to retailers in 1990 through warehouse clubs and superstores. However, this strategy did not last owing to dismal performance. They then embarked again on selling custom-built computers online to the customers. In 2000, Dell became number one seller of computers in USA surpassing even the Compaq (123HelpMe.com, 2015).
Dell computers corporations has the mission to be the most successful computer company in the world at delivering the best customer experience in markets we serve. It was created to operate on a direct selling model where customers are to order for their computers online and then the computer is custom-made according to the needs of the customer (Saunders, 2009). Dell’s success is majorly attributed to the better management of its supply chain. Dell applies the best expertise to process customers’ orders and supply it at the fastest speed possible. Where the rivals take weeks, Dell takes only hours to supply the products to its customers.
Dell has adopted as one of its strategies, the shortest supply chain. Dell purpose to minimize the involvement of middle men as a way of minimizing time they take to get products to customers and as a way of getting directly in touch with the customers. The company also ventured into customer relationship management (CRM) as a way of staying close to customers. They hire third party logistics to supply their finished products instead of the middle men.
Supplier of Dell supply raw materials on a just in time basis directly to the production line at shortest time hence contributing to success of the company. Success is in terms reduced costs on setting up a
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The model was very successful in the 1990’s as the company during those years financially outperformed the competition. Around 2007 the company realized that its direct selling system could only take the company so far. The business model the company used successfully in the United States was not very effective in many international locations.
The decline in sales was attributed to many factors that the corporation has long since tried to cope up with. The solutions derived aimed at revitalizing its image and improve on sales. Factors that led to decline in sales are internal and external issues.
has continued to be a leader in the marketplace. Dell's greatest challenge was entering the global marketplace with operations in China. Currently (2004) Dell has 18.2% of the global market share in the computer industry. The company has continued to have increased sales (currently about 8 million).
Therefore the company cannot continue with its business as it has been doing. It needs to come up with a new strategy in the market.
In order to come up with a new strategy in the market, Dell has to take a close look at how it has been performing in all its operation from the production part to the market part of the process.
Thi direct buine model eliminate retailer that add unneceary time and cot, or can diminih Dell' undertanding of cutomer expectation. The direct model allow the company to build every ytem to order and offer cutomer powerful, richly-configured ytem at competitive price.
In 2001 it was assumed that Apple was simply a ninch player with a captive market and that Dell was a mass producer that won market share by outstanding levels of cost competitiveness. How true is this in 2009' Your answer should show an understanding of the recent history of the firms, strategy utilized and the conditions of the market today.
International expansion helps Dell to obtain strong market position and sustain strong growth. A current strategy of Dell includes the determination of the basic long-term goals concerns the conceptualization of coherent and attainable strategic objectives.
The main idea is to find out why the computers of Dell Inc. are so popular among the people of UK. Customer contentment is always related to the quality of the product and the affordability. In case of consumer electronic goods, especially in computer and related products, support and after-sales service is of huge importance.
The CEO of Dell Company was still hopeful that the company was able to increase their profitability from $6 billion in the year 2002 to $60 billion by the end of year 2007 (President and Fellows of Harvard College,
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