Dell Business Case Analysis
...mpany very well and it probably is the most successfully computer company in the world. The “Soul of Dell”, as they call it, is the values that define Dell Computer. This “Soul” has five key elements, which are: Customers, The Dell Team, Direct Relationships, Global Citizenship, and Winning. Their goal is to create loyal customers by giving them a superior experience. The Dell Team is that they believe success lies in teamwork. Direct Relationships, their motto “Be Direct” stems from this value, this is simply where they keep the communication as direct as possible, but not only direct it is also that they perform the communication in a timely and reasonable manner. Global Citizenship is Dell’s promise to act responsibly in the global marketplace. Lastly, winning by excelling in everything they do. Those are the five aspects of the “Soul of Dell,” along with the “Soul” they have a code of conduct, which shows how they will run there business, those aspects of the code of conduct are as follows: trust, integrity, honesty, judgment, respect, courage, and responsibility. Dell’s has many distinctive capabilities. One of them is its drive to “be direct.” By only selling direct to the consumer, Dell cuts out the middle-man expense and markup. Another distinctive capability is Dell’s low on-hand inventory—this allows Dell to quickly adapt to new technology or newer versions of current products. The fact that they have a lot of on-hand cash means that they can do plenty of research and development. They are smart enough not to enter a market that will not produce profits and to withdraw from a market that isn’t making any profits. Lastly, Dell has a tremendous amount of power over their suppliers and they use this to lower the price of the components which lets consumers get computers for lower prices. Strengths • Direct model of business • Waits on standardization of products before entering a market • Small supply of on-hand inventory allows quicker adaptation of new technology • They only enter markets where they can make a profit • If they aren’t doing well in a market, they withdraw • Lots of cash-on-hand • Power over suppliers for l...