Dell Computer Technology
Dell was founded in 1984 by Michael Dell. Dell has a broad product development scope, ranging from home PCs to products for businesses, such as notebooks, network servers and workstations. The market for PCs targeted for all ages such as kids, teenagers, corporate and institutional customers. The company was based on a simple concept that Dell could best understand customers' needs and efficiently provide the most effective computing solutions. The key components of its strategies are quick-moving, direct distribution channels and build to order, customization concept. As far as this particular strategy plan is concerned, Dell will develop and provide various choices for different customers to cater their needs and satisfactions. THE STRATEGIES OF DELL COMPUTER CORPORATIONDell has a number of distinctive competences. Dell was the first PC manufacturer to cut out the middleman and sell PC's direct
Financial measures include ROIC, average selling price, component purchasing cost, selling and administration costs, and margins. The strategy of Dell is using direct sales as the channel of distribution. THE COMPETITIVE ADVANTAGE OF DELLThe competitive advantage of Dell is the ability to bring to the market the computer system that is desired by the customer at the most competitive price. HOW THE DELL'S CONTROL SYSTEMS HELP EXECUTE THE FIRM'S STRATEGYThe control systems that help Dell to execute its strategy are both financial and non-financial measure performances. Dell believes this is the most effective business model for providing solutions that truly address customer needs. This superior design attracted many consumers and also other competitive rivals like (IBM, Compaq and Hewlett Packet. As a result, Dell reduces customers' prices by avoiding expenditures associated with the retail channel, such as higher inventory carrying costs, obsolescence associated with technology products, and retail mark-ups. Dell believes the most efficient path to the customer is through a direct relationship. However, the company is probably as well known for its innovative business model as it is for its products. The non-financial measures include component inventory, finished goods inventory, accounts receivable days, accounts payable days, cash-conversion cycle, stock outs, and accuracy of forecast demand. Direct customer relationships provide a constant flow of information about customers' plans and requirements and enable Dell to continually refine its product offerings. More importantly, Dell is the low price leader in the PC market, Dell can consistently under price rivals by reducing its value chain and also support programs tailored to customer needs such as customization, service and support, and latest technology. Further, Dell's flexible, build-to-order manufacturing process enables them to achieve faster inventory turnover and reduced inventory levels.
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