advanced management
Instruction Dell Computer Corporation was established in 1984 and today ranks among the world’s largest computer systems companies. Dell pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service. The company designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software. Dell’s complete range of high-performance computer systems include: Dell Dimension and OptiPlex desktop computers, Latitude notebook computers, and PowerEdge network servers. The company’s products and services are sold in more than 140 countries and territories to customers extending from major corporations, government agencies and medical and educational institutions to small businesses and individuals. The company employs approximately 11,000 people. Headquarters are located in Round Rock, Texas, with manufacturing facilities in Austin, Texas; Limerick, Ireland; and Penang, Malaysia. Dell began with a simple business concept to build computers to order and to sell directly to customers .Dell has a history of achieving double-digit increases in annual sales. To maintain this growth, Dell is faced with many challenges due to the constant changes in the general environment, in the industry. Dells built to order strategy has enabled them to become a very efficient producer of computers and profitable company. The WebPages for dell computers has enabled dell to be able to reduce expenditures and become more efficient in their overall production and distribution of their products. Dell has been the only company to become an efficient maker of computers using the built-to-order system. Dells stock has become increasingly more valuable to investors over the past five years. Dell’s built-to-order strategy has made them successful in growth, development and stock valuation. mail order system as well as statistics on company sales and growth. The book goes into depth when analyzing Dell’s built-to-order system, and mail order system. The book was written before the WebPages became popular so it talks only about what the company expects from it and not about how the web page has performed. The Charles Shwabb investment web page gave a lot of information, which would suit potential investors on Dell. The web page allowed me to view Dell’s financial statements and analyze just how profitable Dell Computers has been and in which areas they showed the most or least profit. SWOT ANALYSIS Strengths High performance and Low price Direct marketing High sensitivity of the customer needs (because it sells direct and has direct contact with its customers) Custom Configured product Catalog/mail out database of customer Its commitment to sold relative high quality, relative low price products that are custom configured Have the best customer satisfaction in the industry: warranty packages, installation, maintenance, repair services, and user support Service Innovation & Recognition Value added service The second largest PC manufacture in the U.S. market and the third largest PC in the world, rank at 190 position in the Fortune 500 Efficient distribution channel keep the production cost low A substantial cost advantage coming from the reseller’s markup, the costs and risks associated with carrying large inventories of finished goods. Weaknesses Stock Keeping Unit / Inventory Not have so many product lines (2 for desktop, 2 for laptop/notebook and 2 for workstation) Lacked of / neglected laptop computers / Notebook, which is the hottest bit of the PC market Lack of diversifying distribution channel (too much focus on the direct channel) Its stock control and product forecasting systems could not keep up with its growth Dependent too much on the Wintel architecture. Dell Computer is the only manufacture who uses no other brand processor except Intel and the only manufacture who offers an operating system from Microsoft for all of its broad range of product. Opportunities Fastest Growing market in the Notebook segment International Growth opportunity; Japan (Dell is the ninth largest local vendor in Japan), Korea, Europe, Asia, Africa To be the most leading computer industry in terms of efficiency, profit margin, return on equity (ROE) and innovation PC’s is a huge market (Every person buys approximately 3 PCs every 10 years, The U.S.