9. Dell is expanding its market share in European countries because its direct-sales model is more effective than the business model used by its European rivals: Further exploitation of distinctive competencies…
Question: Do research on the web to find an example of a major IT-related project in which the actions of the business managers made a major difference (either favorable or unfavorable) in the outcome. Document what you think were the key actions taken by managers, and the key missed opportunities to take action.…
The most critical shifts in Dell’s contextual factors, including industry dynamics, trends, technology changes and shift of the competitive landscape are following: The industry has changed significantly over the last 20 years. The traditional business model in the PC industry was inside-out, supplying machines based on orders from distribution, resell and retail channels, thus following the indirect selling concept. Dell’s direct model was at this time a new, challenging concept, taking orders directly from the end-consumer, and thereby, eliminating the middleman, costs and time. This was the initial crucial shift away from the traditional schema, allowing Dell’s quick and tremendous growth.…
With the return of Michael Dell to the helm of Dell Computers in 2007, the company has been making a record turnaround. It has gone from stagnant sales and losing money in the PC business to such companies as Hewlett Packard, to a new and improved company with new directions. Michael Dell has been “making sweeping changes in everything from personnel and partnerships to acquisitions and distribution” (Edwards, 2009).…
When the Texas-based Dell computer company started in 1984, its creator Michael Dell was interested in having a completely different distribution approach from his competitors. In order to keep costs low, minimize inventory costs and cater to customer needs, Dell sold directly to customers. By 1997, Dell’s distribution model was working extremely well for the company and brining in $1 million a day in sales. Based on the model and the success of direct distribution for consumers, Dell expanded its target audience to large companies, small businesses and government agencies. Dell’s competitors were interested in the same markets, but unlike Dell used both direct and indirect distribution methods.…
The Dell Corporation has plenty of the experience in both the local community and local markets as well as the international market place. Selling directly to the public has had its benefits. One of those benefits is the direct link to the internet for the purpose of marketing Dell computers to the general public, as well as selling, promoting, and making good strategic decisions. The Dell corporation is just but one of the many corporations which have been able to make the exclusive direct sales to the customer a valued expertise in promoting a international corporation.…
Dell was founded in 1984. It was the first computer company which sold its computers systems directly to end customers, bypassing distributors and retailers (resellers). The company was one of the first to introduce a configure-to-order (CTO) model where customers could have millions of configurations to customize their PCs according to their requirements. Through the direct sales approach, Dell builds systems to order, which helped the company to introduce new products and technologies faster than its competitors. Dell’s unique model helped the company in estimating customer requirements, forecasting demand, and providing low-cost PCs to customers. Dell 's supply chain basically consisted of three stages— the suppliers, the manufacturer (Dell), and end users. ("Supply chain management (SCM) of Dell Computer Corporation", 2011)…
Dell is a multinational computer company which managed to stay in the first place of computer system sales for over a decade. Its strong and revolutionized strategy of direct selling computers to the customers increased its success in the computer companies’ field providing it with a competitive advantage. However, the last year the revenue trend shows a significant decrease while other competitors’ share of the market has become threatening. This case study presents the economic situation Dell faces from the year it was founded according to real financial findings. It researches the benefits from its direct selling strategy as well as possible problems it may face if it continues to follow this strategy. Recommendations are made in order to improve the volume of sales and lead to greater success and higher customer satisfaction.…
The key to Dell’s success is its direct model. Simple to describe but hard to reproduce, this model is about low cost, direct customer relationship and virtual integration. The direct model is customer friendly and provide very low cost to customers. The strategies that Michael Dell has in his business have contributed to the company’s success. Dell continues to grow and innovate with keeping the customer in mind and delivering superior customer value.…
* The most important components of a PC are supplied by companies with a near monopoly, these suppliers Microsoft for their Windows OS and Intel for their Microprocessors.…
The changes that were involved in the political and economic environment, which allowed Telefonica to start expanding globally, were privatization and deregulation. In addition economic growth, removal of many restrictions on FDI and programs that opened to foreign investors made some countries more attractive to Telefonica for expansion. Spain’s Telefonica was established in the 1920s being a state-owned national telecommunications monopoly. Soon, the Spanish government privatized it, as well as deregulated the market for Spanish telecommunications. Due to these changes, Telefonica has a reduction in workforce, rapid adoption of new technology and began to focus on the increasing profits. Telefonica began to grow and expand globally. Hence a general shift towards democratic political institutions and free market economies encourages Telefonica to invest in different nations especially in developing nations such as countries in Latin America.…
First of all, information technology and information systems are everywhere in business and can be an important enabler of business success and innovation. Thanks to these information technology and systems, Dell.com allows people to customize their computers by using online strategic information system which definitely enhance its differentiation strategy. Therefore, they know their customers better than anyone else in the market; they are perfectly aware of their “customer profiles” thanks to data mining. Eventually, customers could then receive personalized emails that will automatically design a promotion or information for them, with all the recorded information in the system. This differentiation strategy creates a significant competitive advantage for Dell.com Company and builds stronger customer loyalty and satisfaction over time. In the customers’ minds, they are “part” of the brand, the company actually knows them and a strong relationship is created. Thanks to information technology and systems, their differentiation strategy offer a customer perceived uniqueness in the marketplace that seems to be better than or different from the products of the competition such as Cisco Systems, Compaq and IBM. Moreover, the idea of selling computer systems directly to customers was that could better understand customer needs, and…
In 1984, a freshman named Michael Dell, with the concept of direct marketing and a thousand dollars, founded the Dell Computer Corporation. From then, Dell has proven to be the global computer industry's fastest-growing company over the past decade. Dell’s success was primarily attributed to three key factors, the direct sale model, the built-to-order system and the just in time system. However, in 2006, Dell confronted severe underperformance and dropped sales, a sequence of reactions took place then.…
As detailed in the case Dell’s direct sales model was a misfit in China where customers relied on touching and trying out products before buying them. In the US., Dell has done well by providing consumers with a way to avoid the hassles of driving to the mall. But Chinese consumers have a favourable attitude towards shopping and many view PCs as a crucial purchase.…
Dell Inc. was founded in 1984 by Michael Dell. The company sold personal computers directly to customers (Dell, 2011). Since the internet was evolving from confined networks to growing multi-networking capabilities in the 80’s, Michael Dell had the perfect opportunity to enter an emerging computer market. By 1985, Internet was already well established as a technology supporting a broad community of researchers and developers, and was beginning to be used by other communities for daily computer communications (Leiner et al, 2013). Internet usage exploded in the late 80’s with over 10,000 different networks increasing to over 50,000 in the mid 90’s (Leiner et al, 2013) inevitably driving demand for personal computers and software programing. In 1981 Bill Gate’s Microsoft Co. provided IBM with a software programing, (Windows), the software that manages, or runs, the computer hardware and also serves to bridge the gap between the computer hardware and programs, such as a word processor. It’s the foundation on which computer programs can run. They name their new operating system "MS‑DOS." (2013), this new Microsoft Disk Operating System…