its all about DELL.... Have study hard............

1. “It’s amazing to me that our competitors
think the customer is the dealer.”
-Michael Dell
BE DIRECT: DELL
Presented by Rahul Kumar
Wednesday, December 1
14, 2011

2. PROFILE
Dell Computer Corporation became official in May 1984.
Dell is the industry leader in direct sale of personal
computers to consumers.
Since its start Dell has looked to over simplify its business for
its customers. Offering a huge range of products and services,
which can all be accessed by the consumers from home or
from the office very easily.
It was founded on the Direct Business-to-Consumer Model.
It is the fastest growing among all major computer systems
companies worldwide. In July 1999, Dell became the #1 PC
Vendor to businesses in the US
Wednesday, December 2
14, 2011

3. Dell has seen its stock increase by 400 times over
the last decade.
Company’s innovations are driven by customer
needs, cutting edge solutions and strategic
partnerships:
Listen  Solve  Impact
Dell helps drive the course of future industry
innovation through a time-tested process that puts
customer needs first.
Wednesday, December 3
14, 2011

4. Dell Executive Leadership Team
Michael S. Dell - Chairman of the
Board and Chief Executive Officer.
Paul D. Bell - Senior Vice President
and President, Americas.
Michael R. Cannon - President,
Global Operations.
Donald J. Carty - Vice Chairman and
Chief Financial Officer.
Wednesday, December 4
14, 2011

5. Dell Executive Leadership Team
 Ronald G. Garriques - President, Global
Consumer Group.
 Mark Jarvis - Chief Marketing Officer.
 Stephen F. Schuckenbrock - Senior Vice
President and President, Global Services, and
Chief Information Officer.
 Lawrence P. Tu - Senior Vice President,
General Counsel
Wednesday, December 5
14, 2011

6. ORGANIZATION STRUCTURE
Michael Dell
SVP Business VP VP Government
Development Educational Services Relations
Mid-Level Mid-Level
Mid-Level
Lower-Level Lower-Level Lower-Level
Wednesday, December 6
14, 2011

7. HISTORY
1984 - Michael Dell founds Dell Computer Corporation.
1985 - Company introduces the first computer system of its own
design; the Turbo, featuring Intel 8088 processor.
1987 - Dell is first computer systems company to offer next-day,
on-site product service. International expansion begins with
opening of subsidiary in United Kingdom
1988 - Dell conducts initial public offering of company stock, 3.5
million shares at $8.50 each
1990 - Manufacturing center in Limerick, Ireland, opened to
serve European, Middle Eastern and African markets
1991 - Introduces its first Latitude notebook computer
1992 - Dell included for first time among Fortune 500 roster of
world's largest companies
1993 - Subsidiaries in Australia and Japan are company's first
entries into Asia-Pacific region
Wednesday, December 7
14, 2011

8. HISTORY
1995 - $8.50 shares of Dell stock worth $100 on
presplit basis
1996 - Customers begin buying Dell computers via
Internet at www.dell.com.
1997 - Dell joins ranks of the top-five computer
system makers worldwide. Dell ships its 10-
millionth computer system. Per-share value of
common stock reaches $1,000 on presplit basis.
1998 - Dell opens a production and customer
center in Xiamen, China.
1999 - Dell opens manufacturing facility in
Eldorado do Sul, Brazil, to serve Latin America.
Dell introduces "E-Support Direct from Dell" online
Wednesday, December 8
14, 2011

9. HISTORY
 2000 - Company sales via Internet reach $50
million per day. For the first time, Dell is No. 1 in
worldwide workstation shipments. Dell ships its
one millionth Power Edge server.
 2001 - For the first time, Dell ranks No. 1 in
global market share. Dell is No. 1 in the United
States for standard Intel architecture server
shipments.
 2002 - Consumers choose Dell as their No. 1
computer systems provider.
Wednesday, December 9
14, 2011

10. HISTORY
 2003 - Dell introduces printers for businesses and
consumers. Dell launches Dell Recycling to enable
customers to recycle or donate to charity computer
equipment from any manufacturer. The name change to
Dell Inc. is official, reflecting the evolution of the company
to a diverse supplier of technology products and services.
 2005 - Dell tops list of "America's Most Admired
Companies" in Fortune Magazine. Opens third major U.S.
manufacturing location in Winston-Salem, North Carolina.
 2006 - Dell ships more than 10 million systems in a single
quarter (Q4, FY06) for the first time in its history.
 2007 - Michael Dell returns as Chief Executive Officer. Dell
opens manufacturing facility in Chennai, India.
Wednesday, December 10
14, 2011

11. Mission
Wednesday, December 11
14, 2011

12. GROWTH
Wednesday, December 12
14, 2011

13. Wednesday, December 13
14, 2011

14. Financial situation
Wednesday, December 14
14, 2011

15. Financial situation
Wednesday, December 15
14, 2011

16. DELL – The Success Secret
Internet coupled with Direct Business Model
- sell directly to end customers instead of
intermediate distributors, resellers.
Virtual Integration
- using sophisticated CRM, SCM systems at
respective ends as well their integration
- already integrated with 38 procurement and
ERP systems across all its clients
- vendors – Ariba, SAP, PeopleSoft, J.D.
Edwards – Dell integrated with their ERP (Source: Rob
Rosenthal, Dell’s B2B web site strategy, October 2003, IDC #30202 )
Wednesday, December 16
14, 2011

17. DELL – The Success Secret
Selling Points
- Internet, B2B (Premier Pages), Phone-calls, Mass catalog
mailings
Do not Just sell Products – sell Values
- client asked to put tags on their computers
- proactive in solving clients pain points – preloaded software
Dell’s model is based on build-to-order process, where
company builds each PC on demand.
Wednesday, December 17
14, 2011

18. Dell and direct sales
Dell started the direct-sales approach, eschewing
the then-dominant indirect model that interposes
a network of distributions, value-added resellers,
and retailers between PC makers and PC buyers.
Selling direct lowered dell costs by 25-40%
compared to competitors.
Dell passed these savings to customers.
Dell believed that this could help best understand
customers’ needs and provide the most effective
computing solutions to meet these needs.
Wednesday, December
14, 2011 18

19. Dell and direct sales
 Customers can choose what
components they want for their
computer, Dell then assemble the
order and ships it.
 This strategy improves customer
satisfaction and reduces costs and risks
to the company.
Wednesday, December 19
14, 2011

20. Benefits of direct sales method
 Direct sales in conjunction with build-to-order is a
powerful model for both Dell and its customers.
 Customers get what they want, rather than be
forced to choose among a fixed set of options.
 Dell wins because by developing and building only
those systems that customers want, Dell
eliminates the excess cost of buying too many
components, having high storage and inventory
costs, and having to sell the surplus at a loss.
 Dell can use savings in other areas such as web
site improvement, marketing and distribution.
Wednesday, December 20
14, 2011

21. Goals and strategies
 Dell’s emphasis on tech-savvy PC buyers made
online selling a natural, because high-end PC
buyers were obvious users of internet and early
adopters of e-commerce.
 By 2000, online sales were running at $50 million
per day and made up more than half of all Dell
product sales.
Wednesday, December 21
14, 2011

22. SWOT ANALYSIS
 What does SWOT analysis reveal about
Dell’s situation?
Wednesday, December 22
14, 2011

23. SWOT ANALYSIS:- Business to consumer
STRENGHTS OPPORTUNITIES
Customization Server Market
Price International strategy
Customer Focused Product extensions
Technical Knowledge
Market Diversification
Strong Brand/Positioning
Media Savvy
Direct Marketing Model
Tangibility Competition across markets
TechnologyMarket Commodity pricing
Commoditization (shrinking margins)
Inventory Complexity of Mgmt.
Growth exceeding productivity
Wednesday, December 23
WEAKNESSES
14, 2011 THREATS

24. SWOT ANALYSIS:- B TO B
STRENGTHS OPPORTUNITIES
Customization Server Market
Price International strategy
Customer Focused Additional markets
Technical Knowledge Product extensions
Market Diversification Strategic partnerships
Strong Brand/Positioning
Media Savvy
Direct Marketing Model
Technology Market Competition across markets
Inventory Commodity pricing
(shrinking margins)
Complexity of Mgmt.
Growth exceeding productivity
24
WEAKNESSES THREATS

25. CONCLUDE
 DELL is to the computer industry what
Dominos is to the pizza business.
TIME magazine
 Three Golden Rules of DELL:
1. Disdain inventory
2. Always listen to the customer
3. Never sell indirect.
Wednesday, December 25
14, 2011

26. CONCLUDE
 Dell is competing against 50 different
manufacturers, looking to be category killer
in flat-screen, digital market. #10 in US in
2005 with 2.4% share.
 Dell uses same suppliers.
 The convergence of entertainment and
computing or birth of “digital home” should
only help Dell.
 “In past ten years our sales are up 15
times and earnings and stock price are
up 20 times.”
Wednesday, December 26
14, 2011

27.  Developing Dell Direct stores, and kiosks in
malls. Places to touch, see and browse.
 Dell believes its low-cost, direct sales
approach will allow it to torpedo prices in
many markets, with emphasis on printers.
 Just like in your own businesses, windows
of opportunities open and close.
 Successful companies see the opportunities
sooner.
Wednesday, December 27
14, 2011

28.  “When a market is ready to explode,
Dell moves in.”
Wednesday, December 28
14, 2011

29.  THANKU
Wednesday, December 29
14, 2011