Dell Computers
The PC industry is one of the strangest in the world. There is probably no other type of product that is so technologically sophisticated, sells for so much money, and yet is sold by so many companies for so little profit. Dell, Gateway, IBM, Compaq and HP (one entity), and Apple are the main rivals in this industry, and the competition is fierce. Dell and Gateway have been the most innovative by including the "just-in-time" manufacturing to meet consumers specific needs, and all of these computers are hard to decipher because of there high compatibility with each other (not Apple). The only thing that really sets them apart is their prices and reputation. The PC industry is a complex network of companies involved in different industry segments, from microprocessors and other components to complete systems to operating systems and applications. Depending upon the industry segment, these firms specialize in different activities, from R&D to design, manufacturing, assembly, logistics, distribution, sales, marketing, service, and Dell Computer Corporation is the focus of the case. The time of the Dell case is from 1994 to 1999. Michael Dell established Dell Computers in 1984, w
SIC 3571 establishments, such as Dell, primarily engage in manufacturing electronic computers. Selling directly on the Internet has accelerated the industry's clock speed by shortening the distance between the PC vendor and end customer. Most of Dell's revenue comes from its dominant business, that is all businesses share many product technologies, knowledge bases, and distribution linkages. There are some key factors in the electronic computer manufacturing industry a company needs to have in order to be successful and remain competitive. Establishments primarily engaged in manufacturing machinery or equipment that incorporates computers or a central processing unit for performing functions such as measuring, displaying, or controlling process variables classify by the manufactured product. " (Dell) Dell's global sales objective is to penetrate the lucrative Chinese market. The personal computer industry because it is a leading-edge user of e-commerce for business and consumer transactions and because it represents the cutting edge of a time-oriented business model that might have implications for other industry sectors. This degree of customization distinctly differentiates Dell from other batch-process manufacturers, but can be a costly system to maintain. This innovative approach capitalized on an already existing resource, its online system, and flexible manufacturing system, to offer tailored hardware to corporate IT departments. In the words of a Taiwanese PC executive, "Even if you manufacture a machine at very low cost in Asia and save 5% on the manufacturing cost, by the time it gets shipped to the U. By streamlining its production procedures by connecting consumers to warehouse assembly workers, Dell has reduced the overhead a flexible manufacturing system can introduce, and it increases customer satisfaction as well as opens new opportunities for new sales. Other companies such as Compaq, IBM, Apple, and Toshiba relied more on in-house production, including motherboard assembly (motherboard production often is the dividing line between manufacturing and simple assembly in PCs). These include changes in the internal organization of firms, helping to link all of the firm's activities and allowing for better communication, sharing of information, and coordination of activities within the firm. Instead, the knowledge about these various products and services is very similar, and workers can transfer it across the corporation.
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