Dell Corporation Case Analysis
Strategic Profile and Case Analysis Purpose Dell Corporation has strived to become a premier provider of products and service for customers worldwide. Dell has also strived to build their information-technology and Internet infrastructures (Daag1). The Founder Michael Dell utilized the direct business model by selling computers directly to the customer (C. ... In order to maximize growth, innovation, competitiveness and customer satisfaction worldwide, Dell relies on the diversity of its personnel, suppliers and customer communities (Dsd). ... Worldwide Premier Provider Dell Computer Corporation is a computer systems company and a provider of computing products and services. ... The Dell line of high-performance computer systems includes PowerEdge servers, PowerApp server appliances, PowerVault storage products, PowerConnect networking products, Dell Precision workstations, Latitude and Inspiron notebook computers and OptiPlex, Dimension and SmartStep desktop computers. The Company also markets and sells Dell/EMC storage products under a long-term strategic relationship with EMC Corporation. ... Dell Computer Corporation with its $38. ... Dell’s global success has been obtained by their understanding the customers’ needs, and by efficiently providing the most effective computing solutions to meet their needs (Daag1). By harnessing the Internet and applying it to the entire business, Dell has heightened and expanded the primal competitive advantages of direct sales (Daag1) Information-Technology and Internet Infrastructures According to Michael Dell, the Internet has massive market potential. He expressed this valid point at Dell’s global customer conference, urging businesses to “better understand and exploit the enormous benefits of the Internet throughout their operations” (Mdol). Dell is used as a model of how “the Internet will be the business”. ... Dell’s success in harnessing the Internet is increasingly profitable. During the second week of October, Dell announced that Internet sales had topped $30 million every day, or an $11 billion annual run rate (Mdol). With the plan to link with its customers on the Internet, Dell launched www.dell. ... Customers could also configure and order a computer through Dell’s website. With the launching of the website, dell became the first computer company to provide a comprehensive on-line purchasing tool (C. ... Technical support, order status information and on-line downloading of software also became part of Dell’s Internet strategy. ... The Direct Business Model Dell was founded on the concept of selling computers directly to the customers (C. ... The Direct Model has allowed Dell to offer customers superb value, high-quality, relevant technology, customized systems, superior service and support. ... There are five tenants of the model that “sets Dell apart”, and that grants the customer a “revolutionary experience” (Dm). ... Dell recognizes that many customers aren’t able to comprehend the complex challenges. For this reason Dell has made the single point of accountability so that resources needed by the customer can be placed in support of the complex challenges (Dm). ... Build-to-order decreases inventory and provides Dell’s customers with the best prices and latest technology for features they really want (Dm). ... This is accomplished due to Dell’s highly efficient supply chain, and the overall dedication to cost reduction through business process improvements (Dm). ... Customers also receive the benefit of research and development provided by Dell during their focus on standards (Dm). Diversity Dell demonstrates a strong commitment to diversity. ... Woodard, Vice President for Global Diversity for Dell, states: “The Company wants access to the best talent, however it’s packaged. ... Dell’s mission is as follows: “Succeed in the marketplace by fostering a winning culture where Dell employees are highly talented, committed, and reflective of our global customers and recognized as our greatest strength” (D). According to Thurman there are four guidelines that drive the Dell diversity vision: to get access to the best talent, however packaged; to minimize unproductive tensions in a diverse workforce; to meet government requirements for workforce diversity and relationships to small businesses; and to support diversity in a global context as Dell expands its business base worldwide (Dia). Dell also recognizes that there is more success in companies that diversify the workplace and supply bases, which gives access to multicultural markets. The mission of Dell Supplier Diversity is: “to deliver superior supplier performance through highly-qualified minority, women and small businesses that enhance the overall Dell Customer Experience, support continued economic growth in our diverse communities and increase global market share” (Dsd). During 2003, Dell awarded more than $278 million in new contracts to diverse suppliers. Dell plans to mentor suppliers and conduct quarterly business reviews. By implementing these plans, Dell will enhance the relationship with diverse suppliers, impact continuous improvement, and grow their capabilities (D). Dell In China China has become a very important market for Dell. ... John Legere, President of Dell Asia-Pacific, says: “by going direct, the company will give Chinese customers a new and simple way to buy computers directly from a company that designs and builds relevant, leading-edge systems” (Dic). The corporate accounts segment of Dell’s customer groups is where the company saw repeat buyers. Dell uses a “relationship sales strategy in order to be more effective with business deals. Methods of completing this task include: Maximizing fact-to-face contact, establishing good customer relations, and Promoting the Dell brand name on a personal level. As trust became established, Dell was soon able to provide less face-to-face contact. ... To solve this problem, Dell chose Xiamen as an ideal location for a new facility made for the establishment of the China Customer Center, or CCC. ... The CCC allowed for Dell’s implementation of the Direct Model, and passes the benefits to its Chinese customers.