Preview

Summary of Dell Computers Value Chain Analysis

Good Essays
Open Document
Open Document
1949 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Summary of Dell Computers Value Chain Analysis
Summary of Dell Computers Value Chain Analysis
Primary Activities
Inbound Logistics
Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organization. Dell relies mostly on its highly reliable supplier, where Dell streamlines its operation and relies on its computer monitor supplier to ship directly to the customer. As long as its supplier retains its leadership position, Dell would collaborate with it to achieve mutual success.
Operations
This is where goods are manufactured or assembled. Every Dell system is built to order. Customers get exactly what they want. Dell uses knowledge gained from direct customer contact before and after the sale to provide award-winning reliability and tailored customer service.
Outbound Logistics
When Dell introduced the direct model, its competitors were selling computers to end consumers via distributors. Dell, on the other hand, sells directly to consumers and is continuously communicating with them and benefiting, especially in two areas, seeing sales trends and learning about unmet customer needs. The company also relies on customers’ knowledge of what they want to purchase and when they want to complete the transaction to drive the direct business model. Dell leverages this source of customer knowledge by making it as easy as possible for a customer to place a customized order electronically.
Marketing and Sales
Dells direct to customer model solve the problem for additional capital for marketing and sales. By selling directly to consumer it eliminated retailers along the way. One advantage of this kind of system is that the firm is continuously in contact with its customers and they are benefiting in two areas concerning sales and marketing, seeing sales trends and learning about unmet costumer demands.
Service
Dell spent dollars training well-educated business segment managers provide state-of-the art advice to customers. The

You May Also Find These Documents Helpful

  • Good Essays

    Dell implemented a Voice of the Customer or "end-to-end” flow of distribution, fully embracing the entire supply chain. Dell has aligned its supply chain people, processes and technology to meet customer needs at each step, but here is the critical point: Dell recognized those answers and capabilities were different for its different customer segments and hence the need to build multiple supply chains (e.g., customer direct versus retail). Dell has over looked one major opportunity; though they refer to their supply chain as “end-to-end” they have not incorporated their own suppliers. By doing this, they would be able to take their already advanced supply chain to the next level, enforcing the difficulty of reproducing their supply chain for their competition. Additionally this would allow Dell to implement a planning, forecasting and replenishment (CPFR) system this would help provide more information to the supply and demand so that it can be better matched. Some of the other benefits that can be realised by implementing a CPFR system can include;…

    • 598 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    This interaction with customers gives to Dell the possibility to improve and adjust theirs products and services.…

    • 1799 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Senior Project Manager

    • 1071 Words
    • 5 Pages

    The direct supply chain model operating at Dell provides a large variety of computer configurations while keeping low levels of component inventory (Chopra, 2012, Pg. 6). Dell structured the direct model supply chain to not include the distribution and retail functions which lowered costs. Additionally, lower inventory and no warehouses in the supply chain structure lowers costs in the supply chain model. Dell uses the direct model for customers to purchase personal computers and business enterprise computer solutions. The company operates six manufacturing facilities across the globe that complies to ISO 9001 - 2000 year certification. Dell utilizes tailored standards based solutions and communicates with customers via phone, email, or in person (Dell, 2009).…

    • 1071 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    When the Texas-based Dell computer company started in 1984, its creator Michael Dell was interested in having a completely different distribution approach from his competitors. In order to keep costs low, minimize inventory costs and cater to customer needs, Dell sold directly to customers. By 1997, Dell’s distribution model was working extremely well for the company and brining in $1 million a day in sales. Based on the model and the success of direct distribution for consumers, Dell expanded its target audience to large companies, small businesses and government agencies. Dell’s competitors were interested in the same markets, but unlike Dell used both direct and indirect distribution methods.…

    • 1374 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    International Expansion

    • 327 Words
    • 2 Pages

    The Dell Corporation has plenty of the experience in both the local community and local markets as well as the international market place. Selling directly to the public has had its benefits. One of those benefits is the direct link to the internet for the purpose of marketing Dell computers to the general public, as well as selling, promoting, and making good strategic decisions. The Dell corporation is just but one of the many corporations which have been able to make the exclusive direct sales to the customer a valued expertise in promoting a international corporation.…

    • 327 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Ford Motor Co. Case Report

    • 2314 Words
    • 10 Pages

    Dell’s direct business model used information and technology to revolutionize the PC industry; it focused on developing effective supplier partnerships and JIT manufacturing becoming a highly horizontal or “virtual integrated” company. Dell skipped the intermediate retailers, selling to customers directly eliminating the reseller’s markup and the cost and risk associated with carrying large inventories. All this combined gave Dell a leading position in a very competitive market in only a 13 year period time.…

    • 2314 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Analysis of Dell Online

    • 700 Words
    • 3 Pages

    * Dell Direct Model was a very efficient “made-to-made order” high velocity, low cost distribution system & products & services targeted at specific market segments.…

    • 700 Words
    • 3 Pages
    Powerful Essays
  • Powerful Essays

    Dell was founded in 1984. It was the first computer company which sold its computers systems directly to end customers, bypassing distributors and retailers (resellers). The company was one of the first to introduce a configure-to-order (CTO) model where customers could have millions of configurations to customize their PCs according to their requirements. Through the direct sales approach, Dell builds systems to order, which helped the company to introduce new products and technologies faster than its competitors. Dell’s unique model helped the company in estimating customer requirements, forecasting demand, and providing low-cost PCs to customers. Dell 's supply chain basically consisted of three stages— the suppliers, the manufacturer (Dell), and end users. ("Supply chain management (SCM) of Dell Computer Corporation", 2011)…

    • 1436 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Dell Leadership Strategy

    • 320 Words
    • 2 Pages

    On-line and telephone sales and support can also be attributed to Dell's superb direct model. Through on-line custom system sales the customer can configure a system with assistance. By using this method Dell has managed to help keep internal costs low, increase value to the customer and provide increased returns to their shareholders.…

    • 320 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    First of all, information technology and information systems are everywhere in business and can be an important enabler of business success and innovation. Thanks to these information technology and systems, Dell.com allows people to customize their computers by using online strategic information system which definitely enhance its differentiation strategy. Therefore, they know their customers better than anyone else in the market; they are perfectly aware of their “customer profiles” thanks to data mining. Eventually, customers could then receive personalized emails that will automatically design a promotion or information for them, with all the recorded information in the system. This differentiation strategy creates a significant competitive advantage for Dell.com Company and builds stronger customer loyalty and satisfaction over time. In the customers’ minds, they are “part” of the brand, the company actually knows them and a strong relationship is created. Thanks to information technology and systems, their differentiation strategy offer a customer perceived uniqueness in the marketplace that seems to be better than or different from the products of the competition such as Cisco Systems, Compaq and IBM. Moreover, the idea of selling computer systems directly to customers was that could better understand customer needs, and…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Dell Inc. in 2009

    • 1687 Words
    • 7 Pages

    Dell’s Direct-to-consumer model allowed customers to order products through phone call or internet. Dell was able to meet customers’ specification, based on the product customization strategy. This enabled Dell to have an agile supply chain that could cope with volatile demand and avoid bull-whip effect effectively, as well as save the logistical costs.…

    • 1687 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Dell's direct business model has much strength. By not manufacturing any computer components, it relieves Dell of the burden of owning assets, research and development risks, and managing a large number of employees. Their virtual integration allows them to meet customers' needs faster and more efficiently then any other model. It allows Dell to be efficient and responsive to change at the same time. Also, it allows all members of the supply quicker access to information.…

    • 504 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Dell Corporate Strategy

    • 1515 Words
    • 7 Pages

    Since its foundation, the company has been based on the Direct Model, i.e. Dell has always tried and managed to create direct relationships with its customers, by selling products directly and without the participation of intermediaries. The sale has always taken place through a telephone service or via the Internet.…

    • 1515 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Dell Inventory Management

    • 2990 Words
    • 12 Pages

    In order for Dell to achieve $7.8 billion from sales in the late 90's, it had to skip over the traditional channels of using retail or value-added resellers (VARs) to sell directly to the consumers. The "direct-model "or as Michael Dell comments on how his new employees call it "The model" is not that all powerful system. It is simply a way for Dell to cut on the standard supply chain cycle and deliver goods directly from the manufacturer to the customer. They created partnerships with several suppliers such…

    • 2990 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Dell Procurement Strategy

    • 559 Words
    • 9 Pages

    This is when dell began to introduce a new business model. It converted its operation to built-to-order process, eliminated its inventories through a just-in-time system, and sold its products directly to consumers shown in figure above. Dell attempted to develop a supply chain model that went beyond the pursuit of efficiency and asset productivity. It was attempting to displace the current model with one that made supply chain more efficient and delivered more value…

    • 559 Words
    • 9 Pages
    Satisfactory Essays

Related Topics