Dell Case Study Solution

Dell Inc. Case Analysis

  • Length: 1028 words (2.9 double-spaced pages)
  • Rating: Excellent
Open Document

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - More ↓
Part I: Introduction/Background Summary

In 1984, Michael Dell invested $1,000 in start-up capital to register his business as Dell Computer Corporation, which was known as PC's Limited. The company becomes the first in the industry to sell directly to end-users by passing the dominant system of using computers resellers to sell mass-produced computers. Dell Computer also pioneers the industry first thirty-day money back guarantee. It became the cornerstone of Dell's commitment to expand its service offerings, superior customer satisfaction, and the industries first on site service program. It also established its first international subsidiary in the United Kingdom, and raised $30 million in its initial public offering.

Part II: Problem Identification
The problem with Dell Inc. was the rapid growth within the company in their beginning stages.

Part III: Researching Internal and External Factors

Dell's strengths were oriented around listening to the customers, responding to the customers, and delivering what the customer wanted. The direct relationship was first through telephone calls, then through face-to-face interactions, and now through the internet. It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers.
Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired. First, they are left without internet access. Second, the time it reaches Austin, Texas, have it repaired, and shipped back can take days. The company opportunities were the Dell U.K. that open business in 1987 and in that country it was a lot of companies selling cheap computers. Dell Inc. strides on loyalty among customers and employees, and that could only be derived from having the highest level of service and performing products. Segmentation within the company enables them to measure the efficiency of the business in terms of assets use. Dell Inc. evaluates their return on invested capital in each segment, compare it with other segments, and target what the performance of each should be.
It became a great way to identify what needed to happen for them to reach their full potential in each business.

How to Cite this Page

MLA Citation:
"Dell Inc. Case Analysis." 13 Mar 2018

LengthColor Rating 
Dell SWOT Essay - Dell INC Executive summary Is the dell's direct model working. Last year, the company gave up the PC market share lead to Hewlett-Packard. Dell was the only top computer company to lose worldwide PC market share. This analysis identified Dell's problems and provided strategic moves for the PC maker firm. Company Background The company was founded in 1984 by Michael Dell, now the company is one of the world's largest suppliers of personal computers and related products. It designs, develops, manufactures, markets, and services personal computers, servers, printers and other products....   [tags: Dell Inc Swot Analysis Case Study Computers]1718 words
(4.9 pages)
Strong Essays[preview]
Dell Case Study Essay - The company that I chose to do my case analysis on is Dell computers. Many companies start out as very aggressive but get crashed either by its competitor or by poor strategic management. Dell Computer's entered the market with strong strategic vision and stronger strategic management. One of the biggest strengths that Dell has is its simple business concept which is building personal computers built to order and selling it directly to its customers. This simple notion gives Dell several competitive advantages over its competitor....   [tags: Business Analysis Dell Computers]1512 words
(4.3 pages)
Powerful Essays[preview]
Essay on Strategic Management: Apple Inc. Case Study - Unit 1 Case Analysis: Apple Inc. GB520 Strategic Human Resource Management About “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment” (Lamb, 1984: ix)....   [tags: Business Management, human resources, business mod]
:: 2 Works Cited
1106 words
(3.2 pages)
Strong Essays[preview]
Apple Computer Case Essay - Apple Computer, Inc. Case Description: This case basically walks you through the ups and downs in the history of the Apple Company. Steve Jobs and Steve Wozniak started the company in 1976 with the Apple I. In 1984, the company expanded with the Macintosh, which was the first affordable computer. After the introduction of the Macintosh, the company continued to grow and introduced the Mac II, Powerbook, iMac, and most recently the iPod line. Apple was the market leader up until the mid 1980's when IBM was introduced to the public....   [tags: Business, Case Study, solution]1171 words
(3.3 pages)
Strong Essays[preview]
Case Analysis of Apple Incorporation Essay - Case Analysis of Apple Incorporation Executive Summary Apple Computers started the movement into the personal computing arena in 1977 but through changes in management and differences of opinion together with missed opportunities it lost its competitive advantage to companies like Microsoft, Dell, and Gateway. Apple operates in various lines of the computer and music industry today and its operations include not only the designing but also the manufacturing of its computers and software....   [tags: Papers]15687 words
(44.8 pages)
Strong Essays[preview]
Essay about Dell, Inc. Case Study - 1. Introduction of Dell lnc. Dell Inc. is a privately owned multinational technological company, which develops, sells repairs and supports computers and relates products and services. Dell Computer has a fully Internet-enabled supply chains, which is constructed by the extranet to automate interactions with suppliers, service partners and customers . Dell has rolled out custom Websites to 30 of its large suppliers, which include Intel for microprocessors, Seagate and Quantum for disk drives, and Sony for monitors....   [tags: Dell Supply Chain Management]
:: 8 Works Cited
2139 words
(6.1 pages)
Strong Essays[preview]
Fonality, Inc. Open Model Profile Essay - Fonality is a business-class Voice Over Internet Protocol (VOIP) service provider. Founded in 2003, the company's original goal was to provide VOIP home service, much like Vonage and Skype do today. In the process of setting up the office for the company, a quote was requested for a Private Branch Exchange (PBX) system. PBX systems are the standard for business-class phone systems. They allow for extensions, transfers, individual voicemail boxes, and the numerous other features found on business phone systems....   [tags: Business Analysis]1663 words
(4.8 pages)
Powerful Essays[preview]
Environmental Analysis Of Dell Organization Essay - Environmental Analysis of Dell Organization Industry Environment Competitive Rivalry The competitors to Dell are as follows: Hewlett-Packard, IBM, and Sun Microsystems (Hoovers). HP and IBM pose the biggest threat in competition. Dell's sales overview has increased each year except for 2001 to 2004. In 2001 the annual sales in millions were $31,888 and a major increase in sales in 2004 at $41,444.0. (Hoovers). In terms of Entry Barriers, Dells direct to consumers sales approach has increased their sales each year and they will soon be among their top competitors....   [tags: Computer Technology Market Analysis Dell]1021 words
(2.9 pages)
Strong Essays[preview]
Analysis of Dell's Strategy Essay - Dell’s advantage is primarily due to cost drivers rather than differentiation drivers. Dell’s cost advantage in 1996 was estimated at 13% of revenues and was derived primarily through lower component prices, lower carrying costs and reduced distribution costs all linked to shorter cycle times. Per Exhibit 11, Dell’s S&A of 10% was appreciably lower than rivals Compaq (16%), IBM (20%), HP (17%) and Gateway (14%) due to their direct sales model. Approximately 70% of the firm’s revenues were attributable to large corporate purchases in which Dell could maintain a negative cash conversion cycle....   [tags: Dell pc Business Market Analysis]1035 words
(3 pages)
Strong Essays[preview]
Dell Inc. Essay - Dell Inc. is one of the successful companies in the computers and technology field. The success of this company comes from understanding and meeting customer needs. However, Dell is faced with the inherent differences in customer segments - segmentation represents a balance between the marketing ideal and the production ideal, this can defined as: Segments must have certain characteristics; however, Dell costumer segments characteristics can be faced as follows as following: We can note that there are two levels of segmentation....   [tags: computer technology, business analysis]
:: 7 Works Cited
1607 words
(4.6 pages)
Powerful Essays[preview]

The threat within the company started with selling indirect to retail channels like Comp USA, Price Club, and Sam's. Dell Inc.
didn't have an idea as to whether or not they actually were making money on those companies. Inventory was also a threat because it depressed their earnings.

Part III: SWOT Analysis
• Direct Sales
• Built-to-order
• Designing own products
• Target large companies
• Efficient and flexible manufacturing operations
• Great customer service and tech support
• High quality computers
• Low prices
• Long term partnership
• Complete Care Accidental Damage Service
• Id tags in new computers

• Sending your computer back to Dell Inc in Austin, Texas
• Cell manufacturing
• Unopened products from partnerships
• Handle tech support over the phone

• Global expansion
• Direct store kiosks
• R&D organizations
• Speaking directly to customers
• Expansion in difficult products
• External storage devices
• E-commerce technology
• White-box segment (unbranded)
• Segmentation
• Server business
• Printer market
• Adverting
• Website
• Premier pages

• New technology
• Inventory
• Sell indirect
• Rapid expansion
• Notebook computer
• Wi-Fi networking technology

Part III:
Researching Internal and External Factors

In fiscal 2006, worldwide Dell Inc. reached 40.7 billion and the sales were stronger outside the United States. They ended the fiscal 2006 with $11.7 billion in cash and investments. Dell moved ahead of IBM into second place during 1998 and became the world leader in 2003 to 2005. Their competitors are Hewlett Packard, IBM/Lenovo, and Gateway. Dell Inc. has conquered success in global countries like Japan, Latin, and China. It's was very important to Dell Inc. that they became the leading market in China because of competitor Lenovo. The R&D focus of Dell Inc. was to find out new technology coming into the market. Dell Inc. also cares about the customer needs and problem so their products can be more cost effective. The also take pride in their customer service and technical support teams because it makes the customer feel their inquiries or difficulties were important. Advertisements through big name computers magazines, newsletters, and via internet boost their business.
It gave existing and new customer knowledge and interest in purchasing their products. Dell Inc. has competition with HP because they have an advantage with their printers. IBM customer service and technical support has better performance then Dell Inc. They also have an advantage because IBM global market acquired Lenovo, which is the number one computer maker in China. Gateway markets in the Mexican retail. The new entrant within the industry would be the wireless mouse and modem. The computers that are unbranded are less expensive for the customers who can't afford Dell computers. Customers also have friends and family that can build computers from scratch. Gateway has stores locally where customer can have their computers repaired.
There are Dell knock-off brands that are sold for a lower price on E-bay or internet websites. Instead of purchasing computers customer are purchasing TiVo and machines that can be attach to the television for internet access. Dell Inc. has a four day supply inventory average. Some customers and companies need their products right away. The partnerships with some suppliers may ruin Dell name because some products are not inspected. The downfall of HP reselling their printers to Dell Inc. was they decided to take over the printer market and increase their sales.

Part V: Possible Solutions
1. The solution to their rapid growth is to reduce cost, build sales, and increase cash flows within the company.
2. They need to detailed each business unit and learn valuable facts and data in managing a complex business.
3. They also need to take each goal slow and gradually.

Part VI: Best Solution Recommendation
The best solution for the problem is to reduce the cost and build sales within the company so it can serves the interest of the customers, shareholders, and the company as a whole.


2 |



Individual assignment By: Kabiru Ahmed Shahir SCM-013621

Question 1

How did Dell put the customer in control of the buying process? How does the Internet help in

this feature of Dell’s business?


The term buying process can be defined as a step by step procedure that businesses andindividuals go thru when purchasing a product or service it involves an interacting structure of people ,equipment ,methods and controls (Ulric & Richard, 2009)the decision on WHEN,WHAT, WHERE and HOW MUCH is that which is the leading or key component of aneffective inventory management because a purchasing system manages all A purchasing systemmanages the entire buying process from requisition down to purchase order and till payment isbeing done (Investopidea, 2012)This study will be on the consumer buying process online under the dell company how dell putits customer in control of the buying process Dell makes its order for computers ,workstationsand servers based on orders from customers ,dell never kept inventory or stock of any computer

, they put the customers in power because every customer’s computer was made to his own order 

and according to the type of machine they want either a desktop or a personal PC (laptop) theconfiguration they want how fast (RAM)it should be how powerful it should be ?(Processor ) thehard-disk capacity which CD-ROM drive ,down to their preferred speakers and accessories.(Malviya, Nair, & Aniket, 2010)Another aspect that Dell used was the Upwards communication upward meaning from thecustomer to the company, allowing

something close to pepper’s idea one

-to-one scenario.Secondly the zero stock structure eliminated a whole series of costs which fell out of the supplychain, allowing lower cost to be transferred to the customer improving company competitivenessas well. (Saini, 2010) . Dell had operated its assembly lines in traditional fashion, with workerseach performing a single operation but few years later dell shifted to "cell manufacturing"techniques whereby a team of workers operating at a group workstation (or cell) assembled anentire PC according to customer specifications. The shift to cell manufacturing reduced


assembly times by 75 percent and doubled productivity per square foot of assembly space. Anorder form accompanied each metal chassis across the production floor; drives, chips, andancillary items were installed to match customer specifications. (Malviya, Nair, & Aniket, 2010)

0 Replies to “Dell Case Study Solution”

Lascia un Commento

L'indirizzo email non verrà pubblicato. I campi obbligatori sono contrassegnati *