Strategy Analysis

SHENYANG AEROSPACE UNIVERSITY

“DELL Inc.”

Roni Bhowmik
Master’s Program

Department of Economics & Management


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TABLE OF CONTENTS

Title Page No.

Introduction 04

Company Background 05

Company Profile at a Glance 08

Key Milestones 09

Management Hierarchy 11

Mission, Vision, & Objectives 12

Macro Environment (PESTLE) 14

Micro Environment (SWOT) 18

Industry Analysis 21

Strategy & Tactics (Ten Years) 27

Findings of the Report (Risk, Problem) 41

Recommendation of the Report (Solution, Advise) 44

Conclusion 47

References 48

1Prepared by Roni Bhowmik


Introduction:
―No other technology company listens
to customers, collaborates with partners,
adds its own significant layer of innovation
and delivers relevant technology more
efficiently and effectively than Dell.‖

These words from Michael Dell point out more than anything else how the Dell Company
managed to advance to the worldwide number one in the computer industry. From a little
company founded by an undergraduate student at the University of Texas, Dell Inc.,
headquartered in Round Rock, Texas, has developed into a huge corporation with more than
103,300 employees today and an annual turnover of nearly $61.49 billion.

Dell Inc, which was ranked the 25th largest company on the Fortune 500 list by Forbes
magazine, began its cosmic rise in 1984 when Michael Dell used a mere $1000 dollars to
found PC’s Limited. It is the second largest non-oil company in Texas and the largest
company in the Austin area.

Dell traces its origins to 1984, when Michael Dell created PCs Limited while a student at the
University of Texas at Austin. The dorm-room headquartered company sold IBM PC
compatible computers built from stock components. Michael Dell started trading in the belief
that by selling personal computer systems directly to customers, PCs Limited could better
understand customers' needs and provide the most effective computing solutions to meet
those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling
business, after getting about $300,000 in expansion-capital from his family.

Long the world's largest direct-sale computer vendor, Dell Inc. is now also the leading seller
of computer systems in the world, capturing a global market share of more than 15 percent.
Dell markets desktop personal computers, notebook computers, network servers,
workstations, handheld computers, monitors, printers, high-end storage products, and a
variety of computer peripherals and software. The firm also has moved into the consumer
electronics arena, offering LCD televisions, projectors, and other products. Dell manufactures
most of the products it sells, maintaining six production facilities worldwide, located in
Austin, Texas; Nashville, Tennessee; Eldorado do Sul, Brazil; Limerick, Ireland; Penang,



Malaysia; and Xiamen, China. About two-thirds of revenues are generated in the Americas,
with 22 percent originating in Europe, the Middle East, and Africa and with the Asia-Pacific
region accounting for the remaining 11 percent. Dell sells its equipment directly to consumers,
small to large businesses, government agencies, and healthcare and educational institutions
through dedicated sales representatives, telephone-based sales, and online via the company
web site. Founder Michael Dell holds 12 percent of the company and will remain chairman of
the company after stepping down as CEO in July 2004.

Company Background:
Dell Computer Corporation is not the largest personal
computer company but it is the fastest growing. Dell’s focus
is being ―first to volume, not first to market.‖ Dell traces its
origins to 1984, when Michael Dell created PCs
Limited while a student at the University of Texas at Austin.
The dorm-room headquartered company sold IBM PC compatible computers built from stock
components. Michael Dell started trading in the belief that by selling personal computer
systems directly to customers, PCs Limited could better understand customers' needs and
provide the most effective computing solutions to meet those needs.

The company vision was to produce computers that could easily be fitted with individual
components to build a computer system to accommodate individual requirements. The goal
was to give the customer exactly what they needed or wanted. The computers were built from
stock parts as they were ordered. In 1985, the founder dropped out of school, got a family
loan for $300,000 dollars and began to give his full attention to the new company.

Later the same year the company introduced its first company designed computer, the Turbo
PC. The computer boasted an Intel 8088 processor that ran at an impressive speed of 8MHz.
And it sold in the United States for $795 dollars. The computer systems, which were
advertised in computer magazines nationally, were purchased through direct sales. Given a
list of options, the customers choose the components they wanted and the computers were
built as they were ordered. By ordering the components wholesale, the company was able to
provide great pricing, which proved to be much lower than their competitors’. The



company’s business formula proved to be a great success and the first year of trading they
grossed more than $73 million dollars.

Ireland welcomed the new company in 1987, and became the first of many international
operations. 1988 ushered in the new company name, Dell Computer Corporation and this
company with humble beginnings grew from a $30 million dollar company to a company
worth $90 million dollars. Although the company attempted to market their computers via
warehouse club stores and superstores, the public, now used to having the ability
to choose and build as they wanted, did not respond as hoped and the company returned to
direct sales.

Dell’s 10th anniversary was celebrated in 1994 with the release of a brand new logo. And
1996 found the company selling the popular computer systems direct to the customer on
Dell’s own internet website. When the company acquired Compaq in 1999 they became
known as the top seller of personal computer systems in the United States.

2002 became the year of company expansion as Dell began to also provide such products as
televisions, digital audio players and computer printers. The following year, 2003 the
company became known as Dell Inc. in an effort to acknowledge the company’s expansion
into other products. The year 2004 saw a new manufacturing assembly plant near Winston-
Salem, North Carolina and Michael Dell while deciding to appoint Kevin Rollins as new
CEO, decided to retain the position of Chairman of the Board. In 2007 CEO Kevin Rollins
resigned and Michael Dell resumed his position as CEO. Dell is also one of the largest
suppliers of dedicated servers to web hosting companies.Company currently manufactures
computer systems in the following locations:

Austin, Texas; Nashville, Tennessee; Miami, Florida; and Winston-Salem, North
Carolina in the U.S.
Chennai, India
Hortolândia, Brazil
Limerick and Athlone, Ireland
Łódź, Poland
Penang, Malaysia
Xiamen, China



Dell World conversation map:

While true that Dell Inc. has experienced some trouble spots in the past few years, the
company continues to be one of the largest computer manufacturers due mainly to the long
record of customer satisfaction. While others have adopted the model of direct sales, Dell Inc.
continues to be the most successful and the most popular.

Founder Michael Dell with hisPCs Limited (the precursor to Dell Inc.) prototype, which is
now housed at the Smithsonian Institution.

This is the first designed computer Turbo PC by Dell
Inc. in 1984.



Company Profile at a Glance:

Items Description
Company Name Dell Inc.

Company logo

Company type Public Ltd.
Traded as NASDAQ: DELL, NASDAQ-100 Component, S & P
500 Component
Computer Systems, Computer Peripherals, Computer
Industry Software, IT consulting, IT services
Founded Austin, Texas
November 4, 1984
Founder(s) Michael Dell
Headquarters 1 Dell Way
Round Rock, Texas, U.S.
Area served Worldwide
Key people Michael Dell
(Chairman & CEO)
Products Desktops, Servers, Notebooks, Netbooks, Peripherals,
Printers, Televisions, Scanners, Storage, Smart Phones
Revenue US$ 61.49 billion (FY 2011)
Operating income US$ 3.43 billion (FY 2011)
Net income US$ 2.63 billion (FY 2011)
Total assets US$ 38.59 billion (FY 2011)
Total equity US$ 5.64 billion (FY 2011)
Employees 103,300 (January 2011)
Subsidiaries Dell Services
Alienware
First designed computer Turbo PC
First designed computer sold United States
First computer sold price $795 U.S dollars
Website Dell.com



Key Milestones:
1984: Michael Dell founds Dell Computer Corporation.

1988: The Company goes public with 3.5 million shares of
company stock.

1991: Dell introduces its first notebook PC.

1993: Dell establishes subsidiaries in Australia and Japan.

1996: Dell is added to Standard & Poor’s 500 stock index. Company begins selling over the
Internet.

1997: Dell introduces a line of workstations.

1999: Dell opens a plant in Nashville, Tenn.

2001: The Company gains the leading share of the global PC market.

2003: Reflecting its widening interests, the company changes its name to Dell Inc.

June 2004: Speculation begins about the possibility of a Dell expansion in the Piedmont.

July 2004: Michael Dell announces he will step down as CEO but remain chairman.

Nov. 4, 2004: A bundle of tax incentives, worth at least $242.5 million over 15 years, clears
the N.C. legislature.

Nov. 9, 2004: Dell chooses the Triad as the location for its third U.S. factory. Guilford and
Forsyth counties are possible sites, with 1,500 workers employed within five years. Gov.
Mike Easley and Rollins shake hands to seal the deal. Local governments begin to craft
incentives.

Nov. 19, 2004: Guilford lays out its offer of $7.1 million in incentives.



Dec. 7, 2004: The Greensboro City Council votes to offer $5.3 million in cash grants and
other incentives.

Dec. 13, 2004: Forsyth County passes largest economic incentives package in county history,
offering $14.8 million in cash and services.

Dec. 14, 2004: Davidson County approves a $23.1 million incentives package.

Dec. 20, 2004: The Winston-Salem City Council approves an $18.9 million package.
Combined with the Forsyth County offer and free land, the total package is $37.2 million.

Dec. 22, 2004: Dell selects Forsyth County site for the plant. Dell receives an incentive
package from the N.C. General Assembly with up to $225 million in tax credits spanning 15
years. In return, the company is expected to create at least 1,500 jobs and invest $100 million
over five years. Total incentive deal from local and state is more than $300 million.

June 2005: Robert Orr, a former N.C. Supreme Court justice and the head of non-profit N.C.
Institute for Constitutional Law, files a lawsuit challenging the $242 million in incentives
approved by the N.C. General Assembly and the $37 million offered by Winston-Salem and
Forsyth County.

May 10, 2006: Wake Superior Court Judge Robert Hobgood dismisses incentives lawsuit.

March 2008: Dell introduced the first consumer desktop that meets ENERGY STAR 4.0
requirement.

January 2009: Dell agrees to a legal settlement with states that said the computer company
made misleading financing and service offers to PC buyers. Dell agrees to pay $3.85 million
to North Carolina and at least 44 other states participating in the settlement. A portion of the
money will be used to reimburse states for legal costs, including $75,000 for North Carolina.

February 2009: Dell announces plans to cut $4 billion in annual costs by the end of fiscal
2011, $1 billion more than its earlier goal. Layoffs are announced for the computer assembly
plant in Forsyth County, but Dell officials declined to describe the positions or say how many
people would be laid off.



April 2, 2009: Dell announces additional layoffs at its Forsyth County computer assembly
plant but refuses to say how many people lost their jobs.

May 11, 2009: Frank Miller, Dell’s vice president for operations in the Americas, tells the
Winston-Salem City Council that Dell now employs 1,140 people, 260 fewer than it did in
January.

Oct 7, 2009: Dell announces plans to close its manufacturing plant in Winston-Salem by
January 2010.

Management Hierarchy:
A board of directors of nine people runs the company. Michael Dell, the founder of the
company, serves on the board. Other board members include Don Carty, William Gray, Judy
Lewent, Klaus Luft, Alex Mandl, Michael A. Miles, and Sam Nunn.

Don Carty

William Gray
Michael Dell
Judy Lewent

Sam Nunn

Klaus Luft

Alex Mandl

Michael A. Miles

Shareholders elect the nine board members at meetings, and those board members who do not
get a majority of votes must submit a resignation to the board, which will subsequently
choose whether or not to accept the resignation. The board of directors usually sets up five
committees having oversight over specific matters. These committees include the Audit
Committee, which handles accounting issues, including auditing and reporting; the
Compensation Committee, which approves compensation for the CEO and other employees
of the company; the Finance Committee, which handles financial matters such as proposed



mergers and acquisitions; the Governance and Nominating Committee, which handles
various corporate matters (including nomination of the board); and the Antitrust Compliance
Committee, which attempts to prevent company practices from violating antitrust laws.

The corporate structure and management of Dell extends beyond the board of directors. The
Dell Global Executive Management Committee sets strategic directions. Dell has regional
senior vice-presidents for countries other than the United States, including David Marmonti
for EMEA and Stephen J. Felice for Asia/Japan. As of 2007, other officers included Martin
Garvin (senior vice president for worldwide procurement) and Susan E. Sheskey (vice
president and Chief Information Officer).

Mission, Vision, Objective:

Starting with the core of the business, Dell’s vision, mission, and values are clearly defined
and posted on the company web site. Dell’s focus is being ―first to volume, not first to
market.‖ In other words, their priority is to be innovative in mass production and sales of
computers, not necessarily to be innovative in the technology itself. The company has
developed strong relationships with its customers and suppliers that allow it to leverage
information gained to develop insight into the marketplace and the future needs of customers
which aids in strategic planning and forecasting.

Vision Statement:

It’s the way we do business. It's the way we interact with the
community. It's the way we interpret the world around us
our customer’s needs, the future of
technology, and the global business climate. Whatever
changes the future may
bring our vision Dell Vision will be our guiding force.
So Dell needs full customer satisfaction. In order to become the most successfulcomputer
company, they need the newest technology and loyal customers.

Mission Statement:

Dell's mission is to be the most successful Computer



Company in the world at

delivering the best customer experience in markets we serve.The mission statement of Dell

has been divided into three parts customer satisfaction that states ―We are an established

company striving to satisfy customers by meeting their demands of quality, responsiveness,

and competitive pricing. Each customer is #1‖ , team satisfaction that states, ―Management

and employees are committed to cooperating as a team for the purpose of profitability and

gratification of a job well done‖ and community satisfaction ―We will provide jobs in a clean,

safe, environmentally sound atmosphere and be an active participant in community affairs‖

(Dell, 2010).

In doing so, Dell will meet customer expectations of:

Highest quality.
Leading technology.
Competitive pricing.
Individual and company accountability.
Best-in-class service and support.
Flexible customization capability Superior.
Team satisfaction for the purpose of profitability and gratification of a job well done.
Community satisfaction of the world base.
Our response time to our customer’s inquires and requirements shall meet our
customer’s needs

Objective:

The main objectives of their company are to
make sure that-

Dell shall maintain sufficient profits,
The products that Dell produce shall
meet all customer requirements,
Dell response time to time their customer’s inquires and requirements shall meet their
customer’s needs.



Macro Environment (PESTLE):
Dell’s environment consists of uncontrollable forces that directly or indirectly influence an

organization’s ability to achieve a desired result. In the words of Kotler and Armstrong

―marketing environment consists of the actors and forces outside marketing that affect

marketing management’s ability to build and maintain successful relationships with target

customers‖ (Kotler & Armstrong, 2003). These influences create both opportunities and

threats for a manager. I use the PESTLE analysis for determining the Dell macro

environment analysis.

Political Factors:

State and local government leaders are tasked with serving and

protecting citizens, delivering state-of-the-art government

services and maintaining a high level of transparency. Yet,

meeting these objectives in the face of decreasing budgets is

challenging, forcing government leaders to root out inefficiencies in all areas,

including IT. Dell’s IT transformation strategy provides solutions that help IT

leaders simplify, modernize and innovated their infrastructures so that IT is a tool

that moves the government forward. The political environment of the business has

pivotal effects on the performance of the business in the quest of achieving its strategic goals.

The political instability started after the 9/11 has affected the market conditions all over the

world. Most of the computer manufacturers belong to US and the country government is



taking huge efforts to facilitate the business. This offers exciting opportunities across the

world to manufacturer like Dell, HP, Acer, Toshiba, and IBM etc. In order to capitalize the

growing needs of the market the government of US has strengthen its ties with China in order

to exploit the comparative advantage of the country in the form of low labor and

technological cost.

Economic Factors:

The economic environment has gone through tremendous

changes after the advent of 9/11. In fact the event has

completely changed the economic conditions of the world. Companies that were considered

as giant in the market are now myths of the history. The condition stabilize relative in year

2006 and 2007 but after insolvency of Lehman Brothers and other giants of the US the

economic condition all the world suffered. The interest rates are not stable due to huge

fluctuation that arises from the instability in the financial situations. Inflation all over the

world has surged to all time high. Due to huge expenditure on war terror fought in Iraq,

Afghanistan and other parts of the world the GDP of various countries have shown a very low

growth that have resulted in almost stagnant per capita income.

Socio-cultural Factors:

The values across the continents are changing with the passage

of time, and now a global culture is arising meaning the presence

of universal segment having the same values, likes and dislikes

and other norms across the world. The national demand for computers is dependent on the

educational level prevailing in a specific country. The higher the educational standard, the

higher is the demand. Furthermore, computers get more and more involved in daily life.



Today, children already get familiar with the use of computers at a very young age,

representing a generation that will hardly live and work without a computer in the future.

Additionally, the brand image of a computer and lifestyle trends get more and more decisive

for the purchasing decision. The computer industry adapts to this trend, e. g. by offering a

wider range of notebooks and by trying to create a strong brand name. This translates into

various economies, and low fixed costs, meaning change in attitude towards foreign brand.

Technological Factors:

Due to advent of the information technology the world has

condensed to global village. The computing technology is

leading the change from the front by offering exciting

opportunities for advancement in technology. Technology has enabled the various

manufacturers to enjoy low cost advantage and better quality. Manufacturer across the

industry are trying their level best to offer innovative products at competitive prices.

Moreover the demands for the industry offerings are increasing with the passage of time due

to extensive use of Internet and World Wide Web.

Legal Factors:

Dell has nonqualified deferred compensation plan for the benefit

of certain management employees and nonemployees directors.

The Deferred Compensation Plan permits the deferral of base salary and annual incentive

bonus. Dell delivers multiple programs that help employees keep themselves and their

families healthy. They monitor their programs for effectiveness and compliance. Global

benefits and Environmental Health and Safety (EHS) teams engage employees through

voluntary, on-site programs that offer medical screenings, vision checks, immunizations,


smoking cessation and stress management programs and events. The base internationally

recognized product safety standard for Information Technology Equipment (ITE), such as

computer systems, printers and monitors, IEC 60950 provides design and testing

requirements for safe use of the equipment. Dell was fined for fraudulent and deceptive

advertising within the consumer complaints forum, part of the Business and Finance Law

category. But in this time Dell maintain all rules and regulations.

Environmental Factors:

Dell interest in the environment goes beyond the mandates

of governmental regulation. Dell vision is to create a culture

in which environmental excellence is second nature. Dell operations will place a high priority

on waste minimization, recycling, reuse programs and pollution prevention. Dell will

continuously improve the environmental friendliness of their products and procedures so that

they meet or exceed industry standards and applicable regulations.



Micro Environment (SWOT):
A situation analysis is a technique for matching organizational strength
and weakness with environmental opportunities and threats to
determine the organizations right which is known as SWOT analysis
(strengths, weakness, opportunity and threat). Every organization
should be able to identify the purpose for which it is best suited.
Strategies are faced not with snapshots of the environment and the
organization but with a movie of rapidly changing events. Strategic planners, whether top
managers, key operating managers or staff planning specialist, have many way to scan the
environment for opportunities and threats. They can study tell-tales shifts in the economy,
recent innovations, growth and movement among competitors, market trends, labor
availability and demographic shifts. One needs to store out environment opportunities and
threats carefully. A perceived threat may turn out to be an opportunity or vice versa. Step can
be taken to turn negatives into positive.

On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United
States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil
company in Texas (behind AT&T) and the largest company in the Austin area.

This facilitates the comparison of the internal analysis - strengths and weaknesses, and its

external analysis - opportunities and threats.I use the SWOT analysis for determining the

Dell micro environment analysis.

Strengths:

Ranked as the 2nd largest PC
maker globally (2010)
Dellis the biggest PC maker in the world - economies of scale



Strong brand recognition
Customer oriented marketing strategies
Ranked as 38 in Fortune 500 (2010)
Ranked as 5 in Fortune 500, Most Admired Companies in the computer
industry (2010)
Cuts out the retailer
Lean supply chain; relatively cheap labor
Online capabilities to customize products
24X7 customer support
They use JIT (Just In Time) approach
Strong service reputation
Manufacturing excellence allows diverse products and bespoke orders
Experienced top management
Dell has nine of manufacturing plants
Global experienced
They ship around one hundred and forty thousand computes in a day
Strong market share
Good profitability and strong solvency
Wide distribution of network
Dell is PC maker, not PC manufacturer

Weakness:

Door to door delivery
problem in emergent
countries
Some quality concerns from customers
Huge range of products and components from many suppliers from various
countries
Commoditization
Dell not able to attract the students of schools and colleges, this segment earn
only 5% of total revenues
They have weak business relationship with many computer retailers
Dell is dependent on its suppliers Inventory



Closure of Dell’s biggest call center in April, 2003 terminating 1100
employees
Customers view the products as "not state of the art"
Leadership and management revolve around only one person, CEO power
only simple
Decreasing trend of market share
Elimination of bonuses in 2006 to increase the company financial performance
They build computers, not develop them

Opportunities:

Maintaining the
excellent lead that was
taken by the founder, Michael Dell will be challenging
Diversification strategy by introducing many new products to its range
Making and selling low-cost, unbranded low-price computers to PC retailers
in the United States
Cost reduction in latest technology
It should also propose its business regarding the students due to the high level
of reliability of students on PC’s in the modern technological era
Growing income
Maintaining and expanding the one stop shopping abilities that are offered to
their customers
Increase the world government and education market
Broadening their scopes in Europe, India, Bangladesh, Pakistan, and China

Threats:

Competitive rivalry that exists in the PC market globally
New entrants to the market pose potential threats



Exposed to fluctuations in the World currency markets (i.e., changes in
exchange rates)
Substitute products (ipadetc)
High cost of discovering new products and fewer discoveries
The industry is highly competitive
Tariff trade barriers affecting their positions in multiple countries
Increasingly lower prices for products amount their competitors
High bargaining power of the suppliers
Strong competitors like Hewlett Packard, Acer, Intel, IBM
Aggressive marketing by competitors

Industry Analysis:

The economic structure of an
industry is not an accident. Its
complexities are the result of long-
term social trends and economic forces. But its effects on everyone as a business manager
are immediate because it determines the competitive rules and strategies.

Michael Porter has identified five forces that are widely used to assess the structure of
any industry. In analysing an industry future prospect industry analysis is very important
in which the industry is competing because the profitability of various industries differs
over time. Porter’s five forces are the:



Rivalry
among
the Exiting
firm

Bargaining Threats of
power of new
Supplier Porter’s Entrants
5
Forces

Bargaining Threat of
power of Substitute
Buyers product

» Rivalry among the exiting firm: Computer industry or IT sectors has huge

competition, because in this sector very important in this time. Every person one

of the main basic need to in this timetechnology use, in this situations overall

world very vital is computer industry. In this global market computer industry

place risky position, because in the Dell not rich company. As this situation, Dell

computer can’t establish world class product. The personal computer industry

from the beginning is inclined toward consolidation, as the market type can rightly

be cited as oligopoly. The industry contains players like Dell, IBM, HP, Toshiba,



Gateway etc. The competition in the market is based on price and competitive

advantage.

Highly competitive: Ready for action if any chances take in this competitive open

market. Any company go to market create any country and in this time rich company

capture to the market. In this situation local industry losses there market, not only

local but also international market. Example of this situation Intel and IBM capture to

the world market, most of the country computer market capture to theirproduct.

High fixed cost and high working capital: Computer company establish very

expensive to fixed cost, because her mechanism high costly. In her production

instrument cost also high, there are required highly qualified persons. And mechanism

maintained cost need huge working capital.

Strong Pressure: It is information technology time, in this time small to big every

business sector run strong pressure and competition. Dell always runs pressure

because China computer industry very strong, so they are ready to capture market.

Globally open market: In this time world is create a global village market opportunity

to the information technology. So one company easily go to global market and sell

their product world-wide. Though computer industry have some rules and regulation

in global market. In this situation if any company sell their product cheap rate and

good quality, then this company easily capture market. As like Bangladeshi company

Daffodil computer sell there some PC UK, South Africa, and Middle East country

because there good quality.

High switching cost: Computer industry switching cost very high, so because there

fixed cost high. In this situation investor can’t interest computer industry.

Low customer loyalty: Low customer loyalty in Computer Company, because some

time computer company produce low quality PC. As like some time



ago1990DellCompany produces low quality PC and many orders next time cancel. In

this situation Dell Company lost loyalty in general people.

» Threats of new entrants: Strong Pressure to new entrants because computer

industry is much competitive in the market. There were many strong rival existed

in the market. That’s why it was much difficult to enter in the market for new

computer Company.Every player tries its utmost to beat and outperform

competitors by producing the latest technology and then price them competitively.

This probably the reason that new firms find it very hard to enter the market and

the existing competitors trying their level best to either maintain their market.

Very low barriers to entry: Computer industry very low barriers to new entry, in this

time new investor encourage investing in this sector. But new investor done this work

not trouble-free because much competitive in the market in existing company. In this

situation many country newly entry invest this sector and it is one kind of threat in

Dell company.

Economies of scale exist: In existing company use the economies of scale to take the

market position. Existing company produce the product extent level and they are

benefited to cost. Dell histories not mature in this position other Company uses this

opportunity.

» Threat of substitute product: Low Pressure in substitute because USA computer
position very high, Dell is one of them famous. In our Asian country India and is
very strong in IT or computer industry, so it is threat in Dell. In this time computer
is very important every sector or every work.Usually the availability of substitute
does affect the sales and profitability of the computer and its various components
to huge extent. Traditionally the threat of substitutes is very high for Dell. The
computer industry has traditionally experienced similar products produced by the
different manufacturer with a very little distinction between a computers produced
by one manufacture with that of other. The competition between the rivals can be



rightly cited as oligopoly because almost all the major producer manufactures
identical products.

» Bargaining power of buyers: Low pressurebecause Dellcomputer is very much
responsible about their customer. They offer competitive price as like as
competitors offers their customer but maintaining quality. In the personal
computer industry the bargaining power of the buyer is very high due to the fact
that there is very less amount of brand loyalty in the market because most of the
manufacturer produced identical products. In additional to absence of brand
loyalty, the switching cost is very low in the industry because most of the systems
are based on the Intel processor. Moreover, customer also feels comfortable with
backward integration and building their own system through selecting the
individual components manufactured by different producers.

Brand identity exists and is in the hands of influencer: Dell computer has already
brand identity exists and is in the hands of influencer but people some time avoid Dell
company. Because some timeDell can’t maintain to their quality, in this situation they
need to more use influencer.
End consumers do not have bargaining power: Final consumers do not have enough
bargaining power in the world. Because they can’t take enough substitute computer as
like cheap price.
» Bargaining power of supplier: Low pressuretheyhave much ability to compete
with other supplier in computer industry. Dell has enough bargaining power to
supplier; they are shift any time to their necessary raw material supplier.
Traditionally the bargaining power of suppliers is also very high in the computer
market. This is due to the fact that there are very few suppliers who supply the
major components of the computer. For example the major suppliers of
microprocessor are Intel and AMD. They are almost having the monopoly over
the market. Moreover the organization will bear significant switching if the
decided to change the component part suppliers.
Volume benefits occur: Dell purchase there important raw material large volume, in
this situation they take volume benefit. If the supplier bargaining to their products
then they are shift supplier, sometimes it is difficult because computer industries
necessary raw material seller only some company.


Numerous suppliers- switching cost low: When the Dell demand to low price then
many suppliers sometimes switching cost low.
Raw material cost constitute major portion of total expenses: We know computer
industries raw material cost constitute major portion of total expenses. In this situation
Dell try to their cost minimize bargaining when purchase raw material.

Degree of actual and potential competition depends on first 3 forces and a rest 2 force
determines the relative bargaining power in input and output markets.



Strategy and Tactics (Ten Years):

Strategy, a word of company origin, refers to a plan of action designed to achieve a
particular goal."Strategy is
the direction and scope of an organisation over
the long-term: which achieves advantage for the
organisation through its configuration
of resources within a challenging environment,
to meet the needs ofmarkets and to
fulfil stakeholder expectations".Another side,
Tactics are the meat and bread of the strategy.
They are the ―doing‖ aspect that follows the
planning. Tactics refer specifically to
action.While strategy tends to involve the higher ups of an organization, tactics tend to
involve all members of the organization. Following the Dell ten years Strategy and Tactics:

Strategy:

2011

Dell is committed to a capital allocation strategy that includes investments in
developing and acquiring new intellectual property, enhancing their sales capabilities
and in theiron-going stock-repurchase program. Dell announced in April that it plans to
invest $1bn (£613m) in new datacentres and technologies during its current fiscal year,
offering both private and public cloud services.Dell Cloud Services can help you develop a
successful strategy that achieves your unique business goals.Dell's plans to move away from
low-cost hardware and into the cloud space highlight the market momentum behind so-called
"as-a-service" offerings. In April, Dell announced a $1 Billion investin technology
solutions and services. These investments will result in building out next-generation
cloud data centers, and the expansion of Dell Global Solution Centers to help
customers architect, validate and build solutions that power their businesses. Earlier
this week, Dell opened their first Solution Center in Limerick, Ireland.



2010

Dell focused on improving their core business, shifting portfolio to higher-margin and
recurring revenue streams over time, and maintaining a balance of liquidity, profitability, and
growth. Dell consistently focuses on generating strong cash flow returns, allowing expanding
their capabilities and acquiring new ones. Dell seeks to grow revenue over the long term
while improving operating income and cash flow growth.Dell Disclosed that in 2010 Part
ofthe Strategic Plan to Increase Investment in China.

2009

Dell’s vision is to create a company culture where environmental excellence is second nature.
Their mission is to fully integrate environmental stewardship into the business of providing
quality products, best-in-class services, and the best customer experience at the best
value.Their goal is to increase computational processing useful work performed as energy
requirements drop.

Meaningful difference: Dell must continue to build trust with customers and
stakeholders by demonstrating their positive impact on society and the planet
developing meaningful measures for reporting their progress.
Design for Energy Efficiency:Grow portfolio of energy-efficient product and
services.
Packaging solution: Dell continuous work to the packaging.
Climate Leadership: Reduce operational carbon intensity 15% by 2012 based on
2007 levels. Further Dell worldwide facilities GHG emissions 40% by 2015.
Suppliers: Increase supplier audits, increase transparency and build supplier
capability.
Positive Work Environments: Work with socially responsible entities that comply
with all applicable laws and regulations.

2008

Michael Dell’s letter describes our strategic initiatives andpriorities across the environment
and supply chain and in corporate governance for year 2008. These include Dellcommitments
to:



Be the greenest technology company on the planet and the first computer company to
achieve carbon-neutral operations by the end of 2008
Continue leadership with their climate strategy and global recycling programs
Partner with their customers in energy-efficiency and climate-protection initiatives
Broaden their Global Citizenship commitment
Recommit their efforts to improve sustainability governance

The following information highlights some of the commitments Dell has made after listening
to internal and external perspectives and how they areprogressed toward meeting those
commitments. Not every goal can be achieved in one year. Therefore, Dell will continue to
report some multiyear efforts in the next several years.

2007

Dell businessstrategy is evolving as they combine their direct customer model with relevant
technologies and solutions, highly efficient manufacturing and logistics, and new distribution
channels to reach commercial customers and individual consumers around the world.
Accordingly, the Board and the Chief Executive Officer have defined the following four
multi-year strategic corporate priorities:

Globalization —Focus on accelerating profitable revenue growth in developing areas
of the world;
Product Leadership — Design and innovate around non-proprietary standards-based
technologies to offer customers what they want, when they want it, and at a level of
value they consider to be unparalleled;
Customer Experience —Focus on product quality and customer service to instill
customer satisfaction, trust, and loyalty; and
Winning Culture —Recruit and develop a diverse workforce globally and provide a
positive work environment, including recognition based on merit, a focus on customer
commitment, the highest standards of integrity and ethical behavior, and community
leadership.



2006

The priorities resulting from Del customer-focused approach are defined by Dell’s four,
multi-year strategic corporate initiatives: driving Global Growth, achieving Product
Leadership, enhancing the Customer Experience and developing our Winning Culture.

2005

―No other technology company listens to customers, collaborates with partners, adds its own
significant layer of innovation and delivers relevant technology more efficiently and
effectively than Dell.‖Dell has been a leader in educating customers about the existence and
severity of computer security risks, including software viruses and Internet spyware, and
developed services that help protect systems from unwanted software and ―clean‖ computers
already infected.

2004

Dell’s business strategy combines its direct customer model with a highly efficient
manufacturing and supply chain management organization and an emphasis on standards-
based technologies. The key tenets of Dell’s business strategy are:

A direct relationship is the most efficient path to the customer.
Customers can purchase custom-built products and custom-tailored services.
Standards-based technologies deliver the best value to customers. Dell believes that
standards-based technologies are critical to providing customers with relevant, high-
value products and services.

2003

Dell setup their goal to increase shipments, revenue and per share increases used their direct
model.Dellexpects to deliver value for all their constituents theircustomers, investors and
other stakeholders regardless of market conditions.Dell always known that volume and
market-share numbers are expressions of customer experience and satisfaction. Dell regularly
assess their selves against a broad range of customer focused measures, including the
timeliness with which Dell deliver built-to-order systems, the reliability with which they
perform, and the speed and quality of service and support.Dell, constantly challenges



theirselves to accept individual responsibility: for creating customer loyalty, for doing
business with the highest ethics, for achieving operating targets and for fixing problems when
they see them.

2002

Dell industry-leading growth occurred even as theirstabilized then began to improve, try to
their operating profitability.By profitably winning business in the midst of industry softness,
Dell positioned their selvesexceptionally well for global economic improvement and
increased demand for informationtechnology. And Dell try to retain customers is
noteworthy.Dell work tremendous in three areas of strategic emphasis: enhancing operating
efficiencies to deliver greater customer value, winning in high-growth products and services,
and expanding their business in key geographic markets.

2001

Dell initiated another price war, adding aggressive advertising and cost cutting to the
strategy.The Company’s business strategy is based on its direct business model. The
Company’s business model seeks to deliver a superior customer experience through direct,
comprehensive customer relationships, cooperative research and development with
technology partners, computer systems custom-built to customer specifications and service
and support programs tailored to customer needs.

Tactics:

2011
Dell celebrates with saving up to 25% off plus free shipping on select laptops and
desktops. We launchedvStart, which allows us to deliver fully pre-configured virtual
machines. Dell-owned intellectual property (IP) from storage technology
includingCompellent, EqualLogic, PowerVault, and DX Object Storage grew revenue 11%
year over year. Moving forward, they will continue efforts to drive even more revenue
through Dell-owned IP.

2010



Dell refers to as Large Enterprise, Public, and Small and Medium Business (―SMB‖). Their
global Consumer business unit remained the same. This alignment creates a clear customer
centric focus, which they believe allows serving customers with faster innovation and greater
responsiveness, and enables us to better understand and address their challenges. Dell four
global business segments are:
Large Enterprise — Dell Large Enterprise customers include large global and
national corporate businesses. Dell believe that a single large-enterprise unit enhances
their knowledge of their customers and thus furthers their advantage in delivering
globally consistent and cost-effective solutions and services to many of the world’s
largest IT users. Dell seeks to continue improving their global leadership and
relationships with these customers.
Public — Dell Public customers, which include educational institutions, government,
health care, and law enforcement agencies, operate in communities. Their missions
are aligned with their constituents’ needs.
Small and Medium Business — Dell SMB segment is focused on providing small and
medium-sized businesses with the simplest and most complete standards-based IT
solutions and services, customized for their needs. Dell SMB organization seeks to
accelerate the creation and delivery of specific solutions and technology to small and
medium-sized businesses worldwide in an effort to help their customers improve and
grow their businesses.
Consumer —Dell recently announced Global Communications Solutions business is
part of their focus on innovative products and designs for mobile devices. Their focus
is on delivering mobile communications solutions for wireless operators and their
dedicated customers.
Dell as a global technology solution provider – but what is it like inside of Dell’s
internal IT shop? With over 90,000 employees and a fast-moving global business
focused on technology solutions, Dell internal IT has its hands full.
Dell will work with Microsoft to develop a Windows Azure platform appliance for
large enterprise, public and hosting customers to deploy in their own datacenters. The
appliance will leverage infrastructure from Dell combined with the Windows Azure
platform.
The Dell management plug-in for VMware vCenter. This plug-in allows their
customers to manage Dell hardware from the vCenter management console with a
level of integration not seen in any other plug-in. Dell says that, we’re not the ones


saying that, our customers and virtualization industry insiders are. The launch was
very successful, with our breakout session so full that they were turning people away
at the door.

2009

Design for Energy Efficiency: Offered for six Dell Inspiron and four Studio Energy
Star configurations. Dell offered to the five Energy Star workstation systems. Added
41monitors and offered a total of 89 Energy Star monitors, 12 multi-function devices
and 14 Energy Star printers.
Packaging: Reduce product packing and shipping materials 20 million pounds for
desktops and 10 million pounds for notebooks by 2012. Dell achieved 9.5 million
pound reduction in product packaging.
Climate Leadership: Increased green electricity purchases in Dell operations to
19.8%. Completed 88 projects to reduce or avoid 4300 tons of annualized GHG
emission. Continue making energy efficiency improvements to equipment and
buildings.

Transportation and Logistics: Continued to use SmartWay-certified partners and
other partners to provide timely and damage-free deliveries.
Forest Stewardship: Dell achieved an average of 30% PCW for copy paper in the
U.S.; in January 2008 began using 100% PCW copy paper at all Austin, Texas, and
Nashville, Tennssee,Campuses.
Engagement: Launched new ReGeneration Web site.
Suppliers: Hired additional SER staff in China for supplier audits and to build
supplier capability. Dell conducted workshops for suppliers in labor, environment,
and health and safety. Dell Billion Dollar Roundtable status with more than $1 billion
spends with diverse suppliers.
Positive Work Environment: Expanded non-discrimination policy to include gender
identity, pregnancy and HIV status. Dell improved working conditions at suppliers
through audit process.



2008

Employee Relations: Conducted Tell Dell employee survey and developed action
plans from feedback 89% of employees participated. Lu
Employee Sustainability Engagement: Lunched Employee Storm, an informal
employee idea generation tool, engaging more than 25% of worldwide employees in
first six months.
Employee Volunteerism: Attained more than 30% employee participation in
volunteer events.
Healthy, Literate, and Connected Communities: Improve employee awareness of
health and workplace safety in all regions.

Governance and Public Policy: Published public policy online. Updated non-
discrimination policy in Dell Code of Conduct.
Stakeholder Dialogue: Held five stakeholder meetings.
Supplier Diversity: 80% of Tler 1 suppliers signed letter of commitment. Presented
two capability building workshops in China for suppliers.

Design for the Environment: Offered 15 Energy Star desktop configurations
including one consumer system and one workstation. Offered 9 Energy Star notebook
systems, including one workstation. Offered 5 Energy Star workstation systems.
Chemical Policy and Use: Achieved 90% of reduction goal for lead and 94% of
reduction goal for BFRs as of the end of Fiscal year 2008. Reduced packing by 5440
tons.
Climate Protection: Increased green electricity purchases in North American
operations. Opened two new plants India, Poland to manufacture computers closer to
customers, optimizing shipping routes and reducing shipping emissions.
Product Recovery and Recycling: Recycled and reused more than 95% of non-
hazardous waste from manufacturing operation.
Forest Stewardship: Reduced U.S. paper use in offices and manufacturing by 26 %
over two years. Obtained approximately 29% of catalog and insert fiber from FSC
certified sources globally.
Dell acquired Equal Logic, which is a provider of high-performance storage area network
solution.


2007
Beginning in 2007, Dell began forming partnerships with large retailers across the U.S.,
Europe and Asia. Notable among these are Wal-Mart Stores, Best Bay (BBY), Costco
Wholesale (COST), Staples, Carrefour and Suning and Gome, China's largest electronics
store. These partnerships represent a drastic departure from Dell's previous strategy which
purposely excluded any relationships with retailers. As a result, in addition to its traditional
mail order distribution system, Dell has nearly 24,000 retail locations worldwide.

Dell was the first major systems provider that joined a cooperation project between
Microsoft and Novell.
Dell launched its Direct 2 Dell corporate blog as well as the customer idea engine
Idea Strom and various online forums for business clients.
The committee seeks to increase shareholder value by rewarding performance with
cost-effective compensation.
Dell managing fixed costs by combining a conservative approach to base salaries and
benefits, with more aggressive performance-dependent short- and long-term
incentives.
Del start at Home Service for technical support service at home or work, Express
Tech Support for priority access to Dell’s technical support team, and home
installation services.
Increased pressure from competitors combined with poor execution led to an erosion
of market share and ultimately culminated in a change of leadership.
The key elements of the compensation program for our executive officers are base
salary, annual incentive bonus, long-term incentives, and benefits and perquisites.
Dell designed to keep the salary close to the market median. The committee
determined that the key component of his compensation was performance-based
bonus.
Dell has separated its basic and extended warranty accounting! And what a surprise it
contains. It turns out that basic warranty expenses are much smaller, and extended
warranty revenues are much larger, than anyone outside the company ever imagined.
The PC industry’s increasing maturity pushed Dell to shift its longstanding direct
sales model.



Dell has announced retail relationships with Wal-Mart and Sam's Club in the
U.S., Carphone Warehouse in Europe and Bic Camera in Japan.
In December 2007, Dell partnered with WPP (after withdrawing its advertising
responsibilities from over 800 different agencies worldwide) which launched its own
specialist unit Enfatico with Dell as its only customer.
Dell appears to be a company of the future; they’re opening the lines of
communication using the web to build better products and services.

2006

To demonstrate Dell confided to their direct model as the blueprint for success
whenever they do business and commitment to continued growth. Dell opened new
facilities in Germany, Scotland, Ireland, India, EI Salvador, Canada, China, the
Philippines and the U.S.
Dell is poised for break-out growth in China, a country that is rapidly embracing the
direct model as internet usage continues to boom.
Dell designing and innovating around standards and simplifying enterprise offerings
such as network servers, storage systems and enhanced services, Dell made it easier to
acquire deploy and manage information technology.
Shipments of Dell PowerEdge servers increased 24 percent, and their set an industry
record for x86 servers shipped annually in the U.S. Innovations resulting from their
four-year collaborative relationship with EMC have driven networked-storage costs
down by 91 percent.
Including a decline in the rate of service contacts measured against systems under
warranty.
Dell enhanced products and services, reduced organizational complexity and made
substantial investments in capacity, technology and people — from new customer
contact centers and an innovative remote software tool called TechConnect to 2,500
additional Dell on Call service professionals.
Dell committed to empower employees to do their job right the first time, and to take
personal ownership for being the reason customers choose and come back to Dell.
More than 10,000 new team members joined the company.Dell further developed its
online help and support service by starting an initiative called ―Dell Connect‖.



Dell becomes one of the first computer producers integrating Blu-Ray Disc
technology into its notebook computers.

2005

―Dell growth in printing and imaging represents the most successful new-product
entry in Dell history, and is the latest example of how prices drop and customer value
increases when we enter a product segment.‖
Customers increasingly rely on us for an extensive range of products and services to
improve their businesses and personal lives.
Dell growth in printing and imaging represents the most successful new-product entry
in Dell history, and is the latest example of how prices drop and customer value
increases when we enter a product segment.
Provide quality products and services, resolve issues when they arise, and show
customers how highly they’re valued at Dell. For each of those areas, we persistently
track and act in response to how customers say we’re performing against a variety of
specific standards.
Dell is encouraging personal accountability for customer satisfaction and company
performance. Dell is maintaining a higher standard of integrity and ethical behaviour,
and building and developing a workforce that is diverse in background, skill, thought
and potential.
With strong double-digit increases in all Dell product categories and regions of the
world, the feedback loop we listen to—and innovate based on—grows larger every
day.
Dell redesigning their systems for the environment, reducing the volume and original
content of supplies used in manufacturing and distribution, and recycling paper,
plastic and other resources in Dell operations worldwide.

2004

Dell is building on programs that allow consumers in the United States to ship
unwanted computers—or have them picked up and delivered—to recycling centers at
very low costs.



Dell provides online diversity and multicultural training, networking groups,
mentoring, career coaching and work/life effectiveness programs to ensure Dell
recruits and retains the best and brightest talent in the industry.
Dell it has office and manufacturing space in approximately 41 countries.
By applying the direct model to its services business, Dell seeks to simplify customers’
computing experience by offering a full range of flexible, tailored solutions. Dell
offers a portfolio of services that help maximize information technology (―IT‖),
rapidly deploy systems, and educate IT professionals and consumers.
The Dimension product line typically features the latest high-performance
components.
Dell’s supply chain management decreases Dell’s exposure to the risk of declining
inventory values, allows Dell to quickly incorporate new technologies or components
into its product offerings and allows Dell to rapidly pass component cost savings
directly to customers.
Dell’s online training programs feature over 1,200 courses for consumer, business,
and IT professionals.
Dell provides a limited warranty for all computer systems for a period generally
ranging from 90 days to three years and offers 24 hour telephone and online technical
support.

2003

Dell introduced multifunction flat panel TVs, DJ music player, an online music
download service, digital music player, and projectors. And Dell may release an MP3
player like the iPod.
Dell started its ―Dell Recycling‖ program, which encourage its customers to either
recycle their old computers and components or donating them to charity. In 2006, the
program has even been extended in this way that Dell offered all its clients to recycle
all Dell products for free.
The traditional supply chain had two fundamental differences: disintermediation and
real-time production. Dell sold directly to its customers cutting out the middlemen.
Dell announced a new Enterprise Command Center (ECC) to provide high-level,
7x24x365 support for sever and storage customers in the Americas. The ECC was
based on crisis management best practices of 911 and related crisis centers.



Dell never focused on new product development. It spends a little on R&D and
doesn’t even pretend to be a technology innovator.
Dell had the lowest operating expenses in the industry owing to this direct business
model helped it sell its products cheaper than its competitors.

2002

Dell launched ―Quick Ship‖ program. Under the program, customers could choose
from a range of select PCs and Dell would build their system and ship it in 48 hours.
Dell climbed to market leadership by directly selling computing products and services
based on industry-standard technology. And Dell introduces Power Connection
network switches.
Dell began to sell both inkjet and laser printers, and within three it managed to grab
20% of the U.S. inkjet printer market.
Use JIT formula sales increase China is expected to more than triple.

2001

Dell’s supply chain system, i2, went live with more than 120Intel based servers. i2
helped Dell to integrate forecasting, planning and execution capabilities with
complete visibility across the supply chain.
Dell extended its product portfolio to the consumer electronics market by launching
network switches.
Dell introduces Power App appliance server. Dell ships its one millionth Power Edge
servers.
More than a ―first-mover‖, Dell became a ―first-prover‖. The ―manufacturer-direct‖
business model became the largest single method of buying PCs, with 23% of the
purchases, passing consumer electronics stores, which sold 19% of the PCs.
Dell restructured earlier than the competition, reducing the company’s workforce by
seventeen hundred. And another three thousand jobs later that year.
Taking advantage of the atmosphere of uncertainty surrounding the merger between
Compaq and Hewlett-Packard, Dell cut price and captured market share. When
Hewlett-Packard implied possible price increases to offset low profit in 2003, Dell cut
prices again and captured market share.



Dell Inc. different products-



Findings of the Report:
Major’s findings of the report are as follows-

Risk: Dell believed that its business was exposed to
various risks:

General economic and business conditions;
Weakening global economic conditions and
instability in Financial markets
Strong competition
Political instability, unexpected regulatory changes
Disruptions in component or product availability
Unfavorable results of legal proceedings
Loss of Government contracts
Employee jobs not safe
Changing environmental laws
Trade protection measures, tax laws, copyright levies
Information technology and manufacturing infrastructure disruptions or breaches of
data security
Unfavorable outcomes in tax audits and other compliance and matters
Disruptions in component or product availability
The level of demand for the company's products and services
Armed hostilities, acts of terrorism or other conflicts
The level and intensity of competition in the technology industry
Periodic product transitions
Inability of the company to develop new products based on new or evolving
technology and the market's acceptance of those products
Inability of the company to manage its inventory levels to minimize excess inventory,
declining inventory values and obsolescence
The product, customer and geographic sales mix of any particular period

Every business regulatory environments become more and more complex, risk management
is increasingly critical to Dell. Follow this-

Risk Compliance for Capital Markets



Digital Strategy and Risk Assessment
Email Security and Continuity
Enterprise Compliance
Efficient Data Center and Lowers Costs
IT’s Part of the Corporate Risk P
The Business Risk of a Lost Laptop
Technology Risk
Marketing Risk
Operational Risk
Liquidity Management Risk
Intellectual Property Risk
Financial Risk
Foreign Currency Risk
Reputation Risk
Accounting and Governance Risk

Problem:

Financial Trouble: 38% of the time financial
trouble due to its business fails.
Power Supply Problem with Dell Dimension 4600
Dishonour of warranty and complete cover
Customer service are poor
Problem with dell monitor
Problems with Desktop Monitor or Laptop Screen
Screen, Icon, or Font size too small or too big
The problem at Dell wasn't the CEO. It's the commodity R&D
Fuzzy, Blurry, or Color Problems
Brightness, Contrast, or Geometrical problems
Dell to keep cutting prices to gain market share
Dual Monitor Setup problem
Webcam Central software and integrated webcam
Dell Refuses Blame for OptiPlex Problem
Admit Hardware Problems Could Spell Big Trouble



Wireless Firmware missing problem for dell Inspiron 1564 model
Black ink problem with dell 920 all in one printer
Problem with Dell Bluetooth keyboard and/or USB ports
Dell's Exploding Computer and Other Image Problems
Problem with Dell Streak touchscreen
Problem with Dell New Studio Laptop
Vista boot problem on Dell laptop
Ps2interface problem with Dell 5150
Online order system some problem strongly



Recommendation of the Report:

It is not easy to recommend some suggestion to
enhance the performance level of the organization
during three weeks read. I have observed some
shortcoming regarding operational and other aspects.
On the basis of my observation I would like to
present the following recommendations:

Solution:

Dell believed that any general economic, business or industry conditions that caused
customers or potential customers to reduce or delay their investments in computer
systems could have an impact on the company's business. During fiscal 2002,
worldwide economic conditions had a negative impact on the demand for Dell's
products and resulted in declining revenues and earnings compared to the previous
year. Dell believed that worldwide economic conditions would improve. Economic
conditions continued to worsen, or if they did not improve as rapidly as expected, the
company's revenues and earnings could be negatively affected. So Dell must be
improving their products.
Dell's manufacturing process consisted of assembly, functional testing and quality
control of computer systems. Testing and quality control processes were also applied
to components, parts and sub-assemblies obtained from suppliers.
In February 2002, Dell held a portfolio of approximately 730 US patents and 535
pending US patent applications. Dell also had a large number of related foreign
patents and patent applications pending. Dell's US patents expired in years 2003
through 2020. Dell was developing a portfolio of patents that might be of value in
negotiating intellectual property rights with others in the industry.
Dell was exposed to a variety of financial risks, including foreign currency, interest
rate and stock market fluctuations. Dell had clearly defined policies and procedures to
manage these risks.
Foreign currency fluctuations could have a negative impact on earnings and cash
flows. Dell utilized option contracts and forward contracts to hedge foreign currency
exposures. The principal currencies hedged during fiscal 2002 were the British pound,



Japanese yen, Euro and Canadian dollar. Dell monitored its foreign currency
exposures to ensure the overall effectiveness of its foreign currency hedge positions.
Dell leverages extensive domain experience to ensure that you are well-positioned to
comply with the required local and global regulations.
Gain insight into your organization's existing processes and technologies and know
which additional technologies carry the greatest potential to generate the results you
seek with Dell Digital Strategy & Risk Assessment.
Dell leverages extensive domain experience to ensure that you are well positioned to
fulfil with the required local and global regulations.
Downtime and data loss are two of the greatest concerns in business communications.
Dell must works with their consumers to assess and manage these and other risks to
help prevent the unthinkable.
Dell Secure Works has the services and flexibility to address the requirements of
every consumer particular security challenge.
The computer industry underwent continuous technology improvements. This resulted
in the frequent introduction of new products, short product life cycles and continual
improvement in product price/performance characteristics in Dell.
Customer terminations of or pricing changes in services contracts, or our failure to
perform as we anticipate at the time we enter into services contracts.
Dell knows that employee first then customer, but Dell has some employee rules
problem, in this situation employee tensed their jobs safe or not.

Advice:

Three words to remember: sincerity, transparency, and consistency.
Monitor your online reputation as often as your email
Extended warranty for desktops
Build your Google reputation now, not later
Send blogger’s love letters, not PR pitches
Tech support phone
Know your Achilles heel, no seriously so you give this chance your consumer
Extended warranty for laptops
Assume everything will make its way to the web
Tech support web site



Create a great online impression; dress to impress
Choose your blog voice carefully
Hangout at the right social network
Ostriches are not great role-models
Learn more Social Media Marketing best practices
Warranty Repairs
Small business is better than home and home office
Keep cutting prices to gain market share



Conclusion:

As one of the largest computer manufacturers in the world, Dell Computer Corporation has
grown tremendously since its incorporation in 1984. Dell’s Direct Model, which is largely
responsible for the success of the company, provides a fast, cost-efficient, and customer
friendly means of production and distribution.

Dell is no significant decline in economic conditions generally or demand growth specifically,
no significant change in product mix patterns, Dell’s ability to realize its pipeline
opportunities, no supply chain disruptions, and no significant adverse component pricing or
supply movements. Dell events in future periods may differ materially from those expressed
or implied by these forward-looking statements because of a number of risks, uncertainties
and other factors, including: intense competition; Dell’s cost-cutting measures; Dell’s ability
to effectively manage the growth of its distribution capabilities and add to its product and
services offerings; Dell’s ability to effectively manage periodic product and services
transitions; weak global economic conditions and instability in financial markets; Dell’s
ability to generate substantial non-U.S. net revenue; weak economic conditions and
additional regulation affecting Dell’s financial services activities; Dell’s ability to achieve
favorable pricing from its vendors; Dell’s ability to deliver consistent quality products and
services; Dell’s reliance on third-party suppliers for product components, including reliance
on several single-sourced or limited-sourced suppliers; successful implementation of Dell’s
acquisition strategy.

Moreover the company should re-consider its outsourcing strategy. Traditionally the
company outsourced its various components parts from other organization in order to provide
competitive prices to the customer. The strategy was once a very successful, but keeping in
view the present market conditions, this eliminates the company differentiation, because the
outsourced firm provides the same component part to other competitors as like Lenovo.

The current market trends in the personal computer industry are being driven by ever
changing consumer needs, wants, and demands. As a result, companies like Dell Computer
Corporation are forced into a constant state of adaptation in order to satisfy their customers.



References:
» Annual Report 2000-2010
» Dell Magazine
» Dell Google Book
» Business Week (Global Business Power Plays)
» Power point Lecture sheet by Mr KE WANG
» www.ces.purdue.edu
» Finance.yahoo.com
» www.dell.com
» www.suport.dell.com
» en.wikipedia.co.uk
» networkComputing.com
» www.entrepreneurslife.com/entry/dell-marketing-strategies
» manonamission.blogspot.com/2005/dells-dell-mission
» www.soopertutorials.com
» www.quality-assurance-soluations.com/swot-analysis
» www.wikiswot.com
» www.pinegars.com
» www.maketing91.comDell. (2009).
» Dell Computer Corporate Global Strategies. Retrieved March 28, 2010, from Dell
Computer Inc: http://www.dell.com/html/us/corporate/brochure/global.htm
» Dell. (2010). Dell Mission Statement. Retrieved March 27, 2010, from Dell.com:
http://www.dellmfg.com/mission.htm
» mba-lectures.com/swot
» www.nishanw.org
» www.scribd.com


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