Term Paper: Dell Inc. The Head Office

Pages: 15 (6698 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Business  ·  Buy This Paper

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[. . .] To me, it is the unified approach of the distribution system employed, the total absence of middlemen, and the efficient use of the Internet, which makes Dell such a revolutionary in the "sunrise industry." The achievement of Dell's business model has been an example for others to follow the path of growth, aiming to emulate the booming revenues by Dell. The company Gateway endeavored to tread Dell's path, with a novelty. Dell has totally metamorphosed the concept of selling computers in a big way. (Brief Description of the Product/Service)

The company takes online orders that is sent to a central warehouse and delivered to the buyer through the logistics support of Federal Express or simply through the mail. The main benefits are that a single warehouse can cater throughout a country or can distribute worldwide. There is a directly linkage with the suppliers through the Internet hence they can employ the Just in Time - JIT inventory. Dell through the use of a present infrastructure, a worldwide service provider, removes a majority of the logistical non-value added components out of the value chain. Stated in an unambiguous manner, Dell uses FedEx or the U.S. mail to its benefit, as it employs the Internet to its optimum use. Undoubtedly, other companies always view Dell as an ideal quintessence of success. (Brief Description of the Product/Service)

Promotions

The managers at Dell indicated that sales of their products commanding increased profits are on a continual path of increase. Earnings from the sale of servers, storage items, workstations and Notebook PCs also went up. There was a 100% increase in the sales of storage items. The company was contributing to 40% of the worldwide industry growth in servers and mentioned that it added in excess of three points of the global market share and five complete share points in the United States. The managers at Dell chalked up a blueprint under which they mentioned that they would concentrate increasingly on products like servers, laptop computers and storage products as an initiative to give a fillip to profits. The company in making their product assortment to the top end has done a remarkable advancement. According to Barry Jarulski, a market analyst with Booz Allen & Hamilton in New York, who stated that bringing in variety, explained the impressive achievement of Dell. (Dell's 1Q surprises Street)

Dell manages all types of sales campaigns. Dell can manage any requirements of a customer including installation of an advanced free DVD when he buys a laptop. They issue coupons that can be used when a sale of Latitude takes place and they permit discounts too. They also participate in commercial exhibitions and offer unique price if order is placed during the exhibitions. Dell is utilizing all kinds of sales advertisements that are available in order to ensure that their products are fully known to the customers and are getting sold. (Brief Description of the Product/Service)

Dell's product portfolio strategy

In keeping with the rising sales volume, Dell has grown a mechanized production system that is able to take care of its quickly intensifying business needs. In the opinion of Wilson, the system accepts the requirement details of the customer from the company's order entry system. He said that "In case of every order, we prepare a customized software graphic that includes every application the client has stipulated as also applications built by the client. We employ our Novell® NetWare® network to fix and download these customized graphics to every system soon after it arrives from the assembly line. NetWare has been contributing a great deal in the production system." (Success Story: Dell Computer Corporation) The significant part of business concerned with the production system was formed under NetWare and leverages its forte. With the advancement of NetWare, Dell has progressed to recent releases to take the advantage of new networking technologies. For instance, Dell progressed to NetWare 4.11 to take the benefit of Novel Directory Services® - NDS™, the foremost international directory. (Success Story: Dell Computer Corporation)

NDS makes the network administration easier and lowers networking costs by extending centralized and integrated management of the total network. To support its enhanced capacity of production process, Dell's Netware network has persistently extended the dependability and scalability necessary. This is important since any disruption of service might impinge on the company's capability to ensure delivery promises to the customer. Hence the NetWare network aids Dell in fulfilling its obligations for customer fulfillment. "One of the Dell's main ingenuity for 1999 concentrates on providing an enhanced customer experience." (Success Story: Dell Computer Corporation) According to Wilson, "A significant portion of that is leveraging business relationship in a manner that facilitates us to extend enhanced customer service." (Success Story: Dell Computer Corporation) Dell and Novel have pooled their technical proficiencies to allow Dell to bring customized turnkey Netware server solutions straightaway. To sum up, Dell considers technology as a significant part in pulling off a competitive edge through doling out improved service to the customers. They concentrate on guaranteeing excellence in customer experience from the period products are ordered, during the course of the production process to the deliverance of superior quality products. In order that the customer is guaranteed an enhanced experience, Dell hopes to persist on leveraging the appropriate technologies. (Success Story: Dell Computer Corporation)

Target market strategy

In order to comprehend customers' wants and to supply high quality computer products and services adapted to satisfy those wants, the Company builds and uses direct customer relationships. The customers who buy the products and services of Dell include huge corporate, government, healthcare and education customers, small-to-medium businesses and individuals. With regard to small-to-medium businesses and individuals, the Company maintains direct relationships with the help of account representatives, telephone sales representatives or Internet connection. A steady stream of information giving needs and strategies of customers received through these direct customer relationships helps the Company to understand the requirements of its customers and to match them with upcoming technologies. As an element of business agenda, at Western Michigan they have incorporated a plan with Dell letting business students to get the Dell products. They have aimed at the young students and have presently embarked on building a customer relationship with the greater part of the Western Michigan University business students. Consequently, this service to WMU business students is nowadays generating a plenty of customers faithful to Dell brand. (Brief Description of the Product/Service) Similarly, there are programs being initiated by Dell to target the market.

Market penetration strategy

Recent products launched by Dell in 2003 comprises: the Dell Music Store, a newly started service to sell downloaded music; an integrated, HDTV-compatible, 17-inch flat-screen TV and computer monitor with unified speakers; and the Media Experience that is a software application which comes with every Dell Dimension PCs for handling digital media, like photographs, music, video and DVDs. Apart from these collection of devices, Dell launched a new handheld computer, the Axim X3, with extra 802.11b wireless connectivity facilities to choose from, and an added new desktop, the Dimension XP3, devised for 3D gaming and premium multimedia applications. A new projector for the home segment was also introduced by Dell, which is 2200MP that will show breathtaking pictures of sporting events, video games or DVDs on a wall or screen in 2003. (Dell Pulls Wraps off Consumer Electronics Products Strategy)

Dell's recent concentration in consumer electronics is not at all a cause of concern for keen competitor Gateway. "The share of profits is more, and there is a rapid growth of markets," announced by Brad Williams, the Director of Gateway communications. Williams clarified that making forays in some areas of consumer electronics is not that too difficult for PC manufacturers as they can capitalize their associations with the current production partners. "When you see at an LCD TV, it has a resemblance to an LCD screen of a computer," he stated. (Michael Dell spells out strategy for market defiance)

It was stated by Dell that the company in order to embark upon a wider sphere of consumer electronics market comes a normal competence for the company. Business analysts, producers and consumers are lying in wait for the PC and consumer electronics to assemble for certain time, and the latest explosion of digital media, is partly accounted for the dropping of prices of products using which digital content can be recorded and played which is encouraging a lot of companies to gear up in their pursuits. A lot anticipate Dell to be a major power in the consumer electronics market due to its renowned direct business model, that have a propensity to force down profits and costs, to the advantage of consumers, however to the disadvantage of rivals. Dell mentioned about the company's proposals to reduce costs in the consumer electronics market, indicating about the "incompetence" in the retail business model and consumer electronics business. (Michael Dell spells out strategy for market defiance)

The launching of TV from the Dell stable is a… [END OF PREVIEW]

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