Description
Dell Inc. is an American privately owned multinational computer technology company based in Round Rock, Texas, United States, that develops, sells, repairs and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide.
Dell
Selling Directly, Globally
History
?
Founded in 1983 by Michael Dell at age 18
?
Began selling upgraded PCs and addon
co!ponents "ro! a dor! roo! at the #ni$ersity
o" %e&as
?
'n its 1(
th
year o" operation
?
)an*ed +
nd
in the #S and ,orld,ide PC !ar*et
in 1999
History (continued)
?
'n 198(, Dell ,as a -./+ !illion business
?
'n 199., Dell began its 'nternet approach
?
Dell e&panded to -+1/0 billion in 1999
Dell Profile
?
Dell Co!puter Corporation beca!e o""icial in May 1981/
?
't ,as "ounded on the Direct BusinesstoConsu!er
Model/
?
't is the "astest gro,ing a!ong all !a2or co!puter
syste!s co!panies ,orld,ide/
?
Michael Dell is the youngest C34 o" a Fortune (55
co!pany
?
'n 6uly 1999, Dell beca!e the 71 PC 8endor to
businesses in the #S
General Environment
?
De!ographic
?
%arget Consu!ers9 s!all to !ediu! si:ed
businesses in the #S !ar*et
?
;ocation9 'n the #S, #< and 11 international
subsidiaries by 1999
General Environment
?
Global
?
4perated sales o""ices in 33 countries
?
Ser$ed custo!ers in !ore than 105 countries and territories
around the ,orld
?
%echnological
?
'nternet presented a !ediu! ,hich Dell used to enhance its
direct sales approach
?
+1 hour online technical support, order status in"or!ation,
and do,nloading o" so"t,are
Industry Analysis
?
'ntensity o" ri$alry
?
;egend re!ains 71 in China
?
Product Substitutes
?
;egend is adopting the 2ustinti!e deli$ery !ode
?
Po,er o" Suppliers
?
'BM, =P, and Co!pa> establish plants in China
?
Po,er o" Buyers
?
Chinese ,ere unco!"ortable using credit cards
online thus hurting online sales
Competitive Environment
?
Shipping in #S and ,orld,ide9 Co!pa>, 'BM, =P, and
?3C
?
Co!petition in China@s PC industry in 19999
1/ ;egend
+/ 'BM
3/ =P
1/ Founder
(/ Great Aall
./ B
0/ Dell
SWO Analysis
?
Great Custo!er Ser$ice
?
Custo!ers can call or access Dell@s ,ebsite and
order a custo!i:ed co!puter in less than 15 !inutes/
?
C custo!er then has a nu!ber o" !ethods to
contact Dell@s technical support such as the phone,
online and onsite repairs should a proble! arise/
Strengths
SWO Analysis
?
#n"a!iliarity ,ith the Chinese socioecono!ic
situation
?
%he price o" a PC ,as the e>ui$alent o" t,o years o"
a person@s sa$ings/
?
)etail buyers only accounted "or 15D o" sales/
Weaknesses
SWO Analysis
?
%o increase !ar*et presence in China, the
second largest PC !ar*et in the ,orld
?
China@s PC 'ndustry had seen e&traordinary gro,th
bet,een 1995 and 199./
?
Dell had a good chance o" increasing its
presence in the Chinese !ar*et by introducing
the Direct Model/
Opportunities
SWO Analysis
?
)ed %ape ,ith the Chinese Go$ern!ent
?
China@s nationalistic policies !ade #S co!panies
operating in China $ulnerable to the ups and do,ns o"
SinoC!erican relations/
?
%he Chinese go$ern!ent !ade no secret than
national PC $endors ,ould be pro!oted/
Threats
Capa!ilities
?
Direct sales operations
?
Custo!er ser$ice
?
6ust'n%i!e in$entory usage
Core Competencies
?
%angible )esources
?
'ntangible )esources
Strate"ic Analysis
?
Current Strategies
?
Businessle$el strategy
?
Di""erentiation "ro! co!petitors/
?
Corporatele$el strategy
?
Financial position
Performance Appraisal
?
Success in niche !ar*et
?
Fast ser$ice
?
Current $alue
?
Consistent sales gro,th
Strate"ic Alternatives
?
Direct
?
Direct businesstocusto!er !odel
?
Cutting out the cost o" distribution
?
'ndirect
?
Selling through distributors and adding $alue
resellers
Channels
Strate"ic Alternatives
?
Buildto4rder direct sales approach
?
Dell Inc. is an American privately owned multinational computer technology company based in Round Rock, Texas, United States, that develops, sells, repairs and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide.
Dell
Selling Directly, Globally
History
?
Founded in 1983 by Michael Dell at age 18
?
Began selling upgraded PCs and addon
co!ponents "ro! a dor! roo! at the #ni$ersity
o" %e&as
?
'n its 1(
th
year o" operation
?
)an*ed +
nd
in the #S and ,orld,ide PC !ar*et
in 1999
History (continued)
?
'n 198(, Dell ,as a -./+ !illion business
?
'n 199., Dell began its 'nternet approach
?
Dell e&panded to -+1/0 billion in 1999
Dell Profile
?
Dell Co!puter Corporation beca!e o""icial in May 1981/
?
't ,as "ounded on the Direct BusinesstoConsu!er
Model/
?
't is the "astest gro,ing a!ong all !a2or co!puter
syste!s co!panies ,orld,ide/
?
Michael Dell is the youngest C34 o" a Fortune (55
co!pany
?
'n 6uly 1999, Dell beca!e the 71 PC 8endor to
businesses in the #S
General Environment
?
De!ographic
?
%arget Consu!ers9 s!all to !ediu! si:ed
businesses in the #S !ar*et
?
;ocation9 'n the #S, #< and 11 international
subsidiaries by 1999
General Environment
?
Global
?
4perated sales o""ices in 33 countries
?
Ser$ed custo!ers in !ore than 105 countries and territories
around the ,orld
?
%echnological
?
'nternet presented a !ediu! ,hich Dell used to enhance its
direct sales approach
?
+1 hour online technical support, order status in"or!ation,
and do,nloading o" so"t,are
Industry Analysis
?
'ntensity o" ri$alry
?
;egend re!ains 71 in China
?
Product Substitutes
?
;egend is adopting the 2ustinti!e deli$ery !ode
?
Po,er o" Suppliers
?
'BM, =P, and Co!pa> establish plants in China
?
Po,er o" Buyers
?
Chinese ,ere unco!"ortable using credit cards
online thus hurting online sales
Competitive Environment
?
Shipping in #S and ,orld,ide9 Co!pa>, 'BM, =P, and
?3C
?
Co!petition in China@s PC industry in 19999
1/ ;egend
+/ 'BM
3/ =P
1/ Founder
(/ Great Aall
./ B
0/ Dell
SWO Analysis
?
Great Custo!er Ser$ice
?
Custo!ers can call or access Dell@s ,ebsite and
order a custo!i:ed co!puter in less than 15 !inutes/
?
C custo!er then has a nu!ber o" !ethods to
contact Dell@s technical support such as the phone,
online and onsite repairs should a proble! arise/
Strengths
SWO Analysis
?
#n"a!iliarity ,ith the Chinese socioecono!ic
situation
?
%he price o" a PC ,as the e>ui$alent o" t,o years o"
a person@s sa$ings/
?
)etail buyers only accounted "or 15D o" sales/
Weaknesses
SWO Analysis
?
%o increase !ar*et presence in China, the
second largest PC !ar*et in the ,orld
?
China@s PC 'ndustry had seen e&traordinary gro,th
bet,een 1995 and 199./
?
Dell had a good chance o" increasing its
presence in the Chinese !ar*et by introducing
the Direct Model/
Opportunities
SWO Analysis
?
)ed %ape ,ith the Chinese Go$ern!ent
?
China@s nationalistic policies !ade #S co!panies
operating in China $ulnerable to the ups and do,ns o"
SinoC!erican relations/
?
%he Chinese go$ern!ent !ade no secret than
national PC $endors ,ould be pro!oted/
Threats
Capa!ilities
?
Direct sales operations
?
Custo!er ser$ice
?
6ust'n%i!e in$entory usage
Core Competencies
?
%angible )esources
?
'ntangible )esources
Strate"ic Analysis
?
Current Strategies
?
Businessle$el strategy
?
Di""erentiation "ro! co!petitors/
?
Corporatele$el strategy
?
Financial position
Performance Appraisal
?
Success in niche !ar*et
?
Fast ser$ice
?
Current $alue
?
Consistent sales gro,th
Strate"ic Alternatives
?
Direct
?
Direct businesstocusto!er !odel
?
Cutting out the cost o" distribution
?
'ndirect
?
Selling through distributors and adding $alue
resellers
Channels
Strate"ic Alternatives
?
Buildto4rder direct sales approach
?