Living In Dell Time Essay

1703 words - 7 pages

1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from this case.

Product Innovation (the development of an improved product)

Dell is the only computer company which offers its customers the built-to-order model. The customers can choose which components they want to have in their computer and can adapt it to their needs.

Process Innovation (the development of a new manufacturing process)
Dell has brought a maniacal focus to shaving minutes off the time to assemble and ship a computer. By studying videotapes of "the build," as they call it, factory managers have slashed in half the ...view middle of the document...

Production Innovation (just-in-time manufacturing system)

Dell used to carry 20 to 25 days of inventory in a sprawling network of warehouses. Today, it has no warehouses. And though it assembles nearly 80,000 computers every 24 hours, it carries no more than two hours of inventory in its factories and a maximum of just 72 hours across its entire operation. It pulls the parts directly from its suppliers and builds and ships the product within four days and their suppliers are tightly integrated into the rhythm of the factory. Dell holds inventory only for the six to eight hours it travels across the assembly line and for the 18 hours it takes for the completed CPU to be trucked to a merge center in Reno, Nevada, where the unit is bundled with a monitor and shipped to the customer. The total inventory time is just two or three days.

2. What is competitive advantage? What is Dell’s competitive advantages? Identify and describe all the competitive advantaged possessed by Dell.

An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support.

Competitive Advantages of Dell:

Dell’s foremost competitive weapon is their unrelenting sense of urgency and speed. They have transformed the back end of their operation, their assembly lines and supply chain, into one of the fastest, most hyper-efficient organizations on the planet. As they have abolished their warehouse, they have to have these skills. They managed it, that they have no more than two hours of inventory in their factories and a maximum of just 72 hours across their entire operation, which allows them to offer their products to a competitive price, because of the missing inventory costs. So although they have the built-to-order principle (a service offered by a manufacturer where a product is manufactured and configured to an individual's specific requirement), which is also a competitive advantage, they can offer their customers a PC, adapted to their requirements, to an affordable price. This increases the customer’s satisfaction because they don’t need to make any more compromises. As Dell saves the money from the missing inventory, they have more money to invest in new technology they need to improve their production or to make the production faster. Additionally, the customers have to make the payment with the order so that Dell has the money before they start to produce the products. As Dell don’t produces for stock, they also don’t have to be scared, that they can’t sell their products which they already produced because they missed an innovation or a new technology. They are swift to react and it’s easier for them to take up new technologies in their assortment than for other producer. Finally, Dell keeps a massive database...

Other Essays Like Living in Dell Time

Transforming The Computer Industry: Michael Dell

1488 words - 6 pages Introduction Michael Dell, the founder of Dell Computers, started his scheme towards transforming the computer industry in 1980. In that year, Dell bought his first computer and took it apart to understand how it was designed and made (Dell & Fredman, 1999). In 1981, when IBM introduced the PC, Dell saw this as a possible opportunity. Michael Dell’s pastime was to take computers apart, rebuild them with different parts, and then sell them

Dell Inventory and Procurement Essay

1849 words - 8 pages end technological assets are used in their production. Furthermore, Dell has made it clear to its partners that they very strongly believe in using their assets very quickly in order to maintain a competitive edge. As information is always readily available throughout their network, it is in-fact possible for their suppliers to provide rapid asset utilization as well as high-end technology. This method of rapid asset utilization and information sharing has left Dell ahead of its competitors because they are able to meet quick demands from their customers and at the same time provide the highest-end technology available.

Supply Chain Dell

1665 words - 7 pages leveraged JIT principle to make its manufacturing process success. Dell’s approach to JIT is different in that they leverage their suppliers to achieve the JIT goal. They are also unique in that Dell is able to provide exceptionally short lead times to their customers by forcing their suppliers to carry inventory instead of carrying it themselves and then demanding (and receiving) short lead time on components so that products can be simply assembled by

Resource Based and Market Based View of Strategy

2795 words - 12 pages on customer needs, which will vary around the globe. While, Dell continued to partner with third-party services firms, it should also bulk up on its own services capabilities so it can provide customers with more competitive broad services offerings. Dell needs to realize that it would have to expand its services capability significantly in order to be taken seriously in the industry (Breen, Bill, 2004, living in Dell Time. Fast Company). Dell

Dell's Supply Chain

2666 words - 11 pages completed this project report. I wholeheartedly thank him for giving his valuable time & attention & for providing me a systematic way for completing our project report in time. THANK YOU. CONTENTS Index | Page No. | Introduction | 4 | Supply Chain | 8 | Channel Strategy | 10 | Market Perspective | 11 | Cycle of Order | 12 | Information | 13 | Conclusion | 14 | INTRODUCTION DELL Computers, a leading PC supplier to corporate

Dell Swot Analysis

733 words - 3 pages is also slowing down. Today, Dell has the biggest share of the market. If the demand slows down, the competition will become stiffer in the process. Dell has to work doubly hard to differentiate itself from its substitutes to be able to continue holding a significant market share. Technological advancement is a double-edge sword. It is an opportunity but at the same time a threat. Low-cost leadership strategy is no longer an issue to computer companies therefore it is important for Dell to stand out from the rest.

Dell Direct and Not-so-Direct

805 words - 4 pages MARKETING 5000 Dell Direct and Not-So-Direct Case Summary When Dell started selling its computers in 1984 the company decided to sell its products directly to consumers through catalogs and phone orders cutting out the traditional middle men (wholesalers and retailers) the company handles all the interaction with customers. The company was very successful in using that business model and in 1997 they were generating around $1 million a day

Dell Case Study

1001 words - 5 pages built a company with annual revenues in excess of $40bn entirely around a vision whereby manufacturing of an individual item does not begin until it has been ordered by a customer. Every single Dell product has an end user’s name on it before it even leaves the factory. Visiting a Dell factory gives you an idea of just how effective Michael Dell has been in executing this supply chain management philosophy. At the company’s Irish factory near

Case 2.2 Dell Computer Corp

5933 words - 24 pages . 1994 Dell enters the server market. 1996 Dell becomes one of the pioneers in internet sales, earning approximately $1 million per day. 1998 Dell opens integrated sales and manufacturing center in Xiamen China. 1999 Dell opens manufacturing center in Eldorado do Sul, Brazil. 2000 Dell introduces built-in Wi-Fi in its notebook computers 2000 Dell’s online sales reach $50 million per day. 2001 For the first time, Dell ranks No. 1 in global

Giving Credit Where Credit Is Due

919 words - 4 pages did not come without some major resistance. For instance, “Dell experimented with an indirect model – a product sold through computer stores; but the effort failed” (Krames, 2003, p. 59). This failure in strategy can be attributed to the company’s lack of capital at the time which was necessary for its full implementation. The failure of Olympic is another major challenged faced by Dell. This reaffirmed the company’s signature strategy of not

Dell Harvard Case

2281 words - 10 pages concept, selling direct to the consumer (Appendix. 1), and built a business model that, quite simply, outclassed his competitors. By selling to the customer direct, eliminating the traditional dealer channel and using a just-in-time (JIT) production procedure, Dell has created unparalleled efficiencies in operations. This allows us to provide high quality products at a lower price than our competitors. In addition we have leveraged supplier

Related Papers

Dell Case Study

944 words - 4 pages Horizons. Bell,Marie; Rangan Kasturi. Case No. 9-502-022. Revised October 10, 2002. Harvard Business School Publishing, (25 pages). Company timeline. (n.d.). Retrieved from Michael dell tells investors compan'ys competitive position is better than at any time in its history; dell shareholders re-elect four directors, approve long-term incentive plan. Business Wire, Retrieved from Michael Dell Tells Investors Compan'ys Competitive Position is Better Than At Any Time in Its History; Dell Shareholders Re-Elect Four Directors, Approve Long-Term Incentive Plan

Dell's Value Chain Essay

980 words - 4 pages with customers and suppliers allow Dell to know what it can supply in real time and quickly and precisely meet customers’ demands while maintaining low inventory. 2. How has Dell exploited the direct sales model to improve operations performance? Dell's biggest advantage as compare to its competitors is its manufacturing operations and just in time inventory control. Dell builds PC only after it receives order from customer via web or call

Marketing Essay

2606 words - 11 pages moment he was the chairman of the board of directors and chief executive officer of dell. He was the founder of the dell Inc in 1992. “Technology has always been about enabling human potential.” (Michael S. Dell, 2010) After analyzing all this information we can clearly say that Michael Dell is a born leader because Dell showed early on his life that he could be the good leaders in future. And according to changing the time he changed his personal

Dell Ensayo Essay

678 words - 3 pages In recent times logistics and supply chain management have become the most vital issue for Organizations; Dell has realized this from initial and so by putting more emphasis on its logistics, supply chain management and direct sales strategies it has become one of the most successful PC companies in the world. A little bit of history, Dell was founded on November 4, 1984 in Austin Texas, by Mr. Michael Dell when he was a student at university