The Dell Case Essay

639 words - 3 pages

Executive Summary Presentation 1

This case represents the issue of dell in 2002. At this time HP was having trouble with its computer sales, but was very strong in the sales of its printers, it was the market leader. DELL was doing very well with its sales of its core product which were its computers and netbooks. The issue it faced was whether or not to enter the market for printers. The underlying motives were the very high margins on printers and ink cartridges. if dell would enter the printer market, this could be considered a direct attack on HP, because if it would succeed to steal enough market share from the printer market of HP, it would become very strong in both markets, as HP ...view middle of the document...

Team 1 very well assessed the core competencies of DELL (razor blade business model, outsourcing, modular approach). From what I understood, group 2 explained that there was a slight increase in consumer expenditure. However, both groups could have provided more data on consumer profile. Group 2 explained that if DELL would enter the printer business, it would become very strong and new entrants would be quite unlikely, which I could definitely agree on. Group 1 very well determined three options for dell. 1 would be not to enter at all. Then it would be possible to focus on core business, avoid risk and investment and collaborate instead of compete with incumbents. As dell had already collaborated with HP, which had already ended, this was not a viable option. Option 2 was to focus on low priced hardware, which had high profit margins and then increase shareholder value. Then it would coexist with incumbents. As this would not affect HPs profit pool, this was not considered a good option, which I could agree on. Option 3 entailed exploiting HPs strength as a weakness. HPs profit margins are huge, deflating the printer profit pool would weaken HPs profit in the pc market, hence this was the proposed option...

Other Essays Like The Dell Case

Supply Chain Dell Essay

1665 words - 7 pages 3PL. Because of these aspects DELL has the competitive advantage over others because of several reasons. The level of inventory costs is really low since the case of faster responses to demand changes. It is also visible that customer pays for an order before DELL pays its suppliers for the products components. Thus the most interesting part of DELL and its supply chain is relationship they maintain between the customers which of course lays

Living in Dell Time Essay

1703 words - 7 pages QUESTIONS 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

Matching Dell Report

1857 words - 8 pages based on a direct-sales model approach, using the Internet and networks as distribution channels, ultimately making it easier for customers to contact Dell directly. The company books and receives payment before ordering the goods necessary in order to assemble devices, which allows Dell to have a negative cash conversion cycle. It also uses Just In Time inventory management, avoiding the risks associated with handling large inventories. Computer

Competitive Advantage At Dell Inc

4876 words - 20 pages GROUP ASSIGNMENT- CASE STUDY INTRODUCTION Michael Dell founded the Dell Computers in 1984 in USA and by 2001 the company became the world’s largest personal computer vendor, continuing to gain market share and post profits in an industry struggling with slumping sales and billions of dollars in losses. Dell sells 90% of its PCs directly to the final customer, largely bypassing the reseller channel that accounts for most of the world’s PC

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

1179 words - 5 pages DELL COMPANY Our VisionTo help our clients meet their goals through our people, services and solutionsOur MissionInfosys International Inc. is dedicated to providing the people, services and solutions our clientsneed to meet their information technology challenges and business goals. • Work to understand the needs and requirements of our clients before proposing a solution • Develop responsive proposals that provide cost-effective

Case Analysis - Dell

2813 words - 12 pages | Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the

Dell Case Analysis

4544 words - 19 pages GRADE RETENTION IN HIGH STAKES AND LOW STAKES TESTING YEARS A Thesis Submitted to the Graduate Faculty of the Louisiana State University and Agricultural and Mechanical College In partial fulfillment of the requirements for the degree of Master of Arts In The Department of Psychology by Anna Elizabeth Ball B.S. Texas A&M University, 2002 August, 2007 Acknowledgments I would like to thank Dr. George H. Noell for all of assistance

Dell Case Analysis

545 words - 3 pages Dell Computer Corporation designed, manufactured and sold high performance personal computers. Initially it started by upgrading IBM computers then they began to market and sale its own brand. They followed built-to-order model which enabled Dell to have a much smaller working capital requirement compared with its competitor. It also allowed Dell to offer its products at a very competitive price and introduce the new technology more quickly than

Dell Ensayo

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

Dell Swot

1008 words - 5 pages Group MAX Presentation. Question: What are the elements of Dell Strategy? Which one of the 5 Generic Competitive Strategies is Dell Employing? How well do the different pieces of Dell Strategies Fit together? In what ways is Dell Strategy Evolving? 1. What are the elements of Dell Strategy? (Page C121) a. Build To Order. This concept great reduced cost and risk associated with carrying large stock of parts, components and

Related Papers

Dell Case Study

944 words - 4 pages 1. What has made Dell successful to date? Many factors contributed to Dell’s success to date. One of the factors is the fact that the company is a mail order company. Many corporate companies like the fact that they were able to customize the pc to satisfy their needs. Not only was it convenient for businesses to customize their purchase but also dealing directly with the manufacturer guaranteed best pricing. Despite its 5% loss when Dell

Dell Case Study

1001 words - 5 pages Prelude case Dell Corporation FT What if a manufacturing company didn’t need to have any inventory? Imagine the reduction to cost structure that could be achieved by simply getting rid of the need to carry huge amounts of finished goods on its books – and eliminating the nail-biting stress of waiting until those goods are sold. For Michael Dell, founder and CEO of Austin, Texas-based Dell Corporation, very little imagination is required. He has

Dell Harvard Case Essay

2281 words - 10 pages Dell Online Case Presentation Introduction & Challenge Dell has emerged as one of the biggest sellers in the PC market. From humble beginnings in 1983, when Michael Dell worked out of his campus dorm room, to 1996 when we reached $7.8 billion in sales, the source of our amazing success has been our unwavering focus on the customer, termed the “Dell Direct Model.” The Dell Direct Model was ingenious. Michael Dell took a simple

Case 2.2 Dell Computer Corp Essay

5933 words - 24 pages . ƒDell’s net revenue for fiscal 2008 was $61.1 billion while net income was $2.9 billion. Revenues are normally strongest in the second and third fiscal-year quarters. ƒDell is required to have an annual audit pursuant to the 1934 Securities and Exchange Act. ƒAn assumption stated in the case materials was that there were no material misstatements detected during the prior year audit of Dell’s financial statements (February 1, 2008). USE OF