Dell Key Success Factors

Dell Key Success Factors

Dell Key success factors

1. Culture

Dell's winning ways begin and end with its culture.   Dell has created a disciplined culture that relentlessly focuses on optimizing its operational model, responding to its customers' needs and sustaining a self-motivated workforce.

2. Information is a powerful strategic weapon

• Information is king at Dell - it is widely distributed, analyzed and acted upon.   People know where they and their business units stand at any time.  

• According to Dell: "If the folks in our consumer business notice it's 10am and they're not getting enough phone calls, they know they have to do something: run a promotion on the web starting at 10:15, or change their pricing or run more ads.   They can't wait 30 days after the end of the quarter to figure it out."   Rollins adds: "Everybody sees everybody else's numbers and gets to help with suggestions about their businesses. Openness and sharing are part of success at Dell."  

• Dell has made a serious investment in understanding its customers' activity in real time and then uses this information to constructively build its business and its winning culture.

• Companies that rely on distributor for information about how end customers use their products but dell have an advantage as they are the focal point for customers. They can obtain info through their websites.

3. Being a low cost provider creates flexibility and market advantage

Being a low cost provider unlocks market opportunities

4. Product development is customer and shareholder focused
Because they have taken the time to identify and measure the kinds of R&D that help them differentiate their products, they are able to allocate capital offensively, not defensively.
This is a crucial distinction; particularly in fast-moving, ambiguous markets where getting even a quarter's jump on competitors can have huge upside.   This approach rewards both customers and shareholders.
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