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Dell Computers

DELL COMPANY STRATEGY

Dell’s strategy has several core elements, built to order manufacturing, partnerships with suppliers, direct sales, customer service, are some of the elements that Dell computer implore. These core elements set them aside from their competitors.

BUILD TO ORDER MANUFACTURING
Dell build their products to the customers satisfaction, as the order is being place the customer tells a Dell representative want they want their computer to accomplish and from there their personal computer is custom made exactly for the customer. After the orders were taken then the orders were routed to the factory. The computers were tested and were shipped to the customer within five to six days.

PARTNERSHIPS WITH SUPPLIERS
Michael Dell believed that it made better sense for Dell Computer to partner with a reputable suppliers of PC parts and components rather than to integrate backward and get into parts and components manufacturing on their on. He stated, “If you’ve got a race with 20 players all vying to make the fastest graphics chip in the world, do you want to be the 21st horse, or do you want to evaluate the field of 20 and pick the best one.” [1]

Management believed long term partnership with suppliers is beneficial to the company for the following reasons: using name brand components for their monitors, speakers, and disk drives made their computers better than the competitors. Another benefit was by partnering with suppliers they were able to guarantee delivering of supplies. Dell was able to partner with experts building their components meanwhile freeing up Dell Computers to concentrate on continuing to establish a world class computer company.

Dell Computers inventory is as needed basis, therefore, not having a large inventory is beneficial because the computer industry changes every few months with newer and better systems. By keeping no inventory Dell Computers are able to compete without having to discount their inventory...