Dell

1
Dell

• Rob Rochester

2
Dell

• Dell is the industry leader in direct sale of
  personal computers to consumers.
• Since its start Dell has looked to over simplify
  its business for its customers. Offering a huge
  range of products and services which can all be
  accessed by the consumers from home or from the
  office very easily.

3
Supply chain management

• Dell revolutionized the way people in the united
  states buy computers.
• Markets its direct sales model.
• No intermediaries
• No warehousing
• No physical store presence
• Dell eliminated the need for central warehousing
  as well as the need for a physical store
  presence. Instead Dell attracts customers to its
  site and then builds bonds with them there rather
  than investing in a physical relationship.
• Saves money and time.
• Sales
• Production
• Warehousing

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For customers this means

• Reduced price
• The money saved from selling products directly to
  the customers is then passed on to them.
• By selling directly to the customer Dell removes
  all the cost that they would have incurred during
  the holding and marketing of the products.
• Total customization of their personal computers.
• Dell offers a totally hands on experience when
  its comes to purchasing your next computer.
• Allows customers to pick and choose every little
  thing that will be added to there computer.
• This not only give the customer added value
  because they are getting exactly what they want
  and are not being forced to purchase anything
  extra that they will not be needing.
• Helps dell to get the clearest picture as to what
  there customers are buying.
• Higher level of communication between customer
  and company.
• Dell is free to collect customer information
  directly from there customers rather than having
  an intermediary try to do this.
• This allows Dell to not only track its customers
  but also helps to retain them.

5
History

• 1982
• Dell was created by Michael Dell.
• Started with the idea to sell directly to
  consumers.
• 1985
• Released the Turbo Dells first computer.
• 1989
• Dell released its first notebook computer.
• 1993
• Dell shifts busies over seas to try to gain
  market share.
• Ireland
• Europe
• Middle-East
• African markets
• Australia
• Japan
• 1996
• Started selling products on its website.

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History

• 1997
• Recorded 1 million in sales generated from the
  internet.
• 2000
• Dell was ranked 1 world wide in shipment of
  Workstations
• 2003
• Dell is made the official name of the company
• Continually expanding overseas.
• 2005
• Dell records one of its poorest years in company
  history.
• 2006
• Dell acquires AlienWare

7
U.S. Market

• Dell is struggling to stay on top of its
  competitors.
• The U.S. personal computer market.
• Over-crowed with stiff competition.
• Cannon inc.
• HP
• Sun Microsystems Inc.
• Gateway
• Expansion has slowed considerably.
• Huge losses are normal.
• Commoditized product.

8
International Market

• The international market is in a much different
  stage of growth than the united states.
• Rapid growth stages.
• Similar to our dot.com explosion.

9
Slumping Business

• American computer market has slowed considerably.
• People are still buying computers.
• Refurbished
• Ebay
• ubid

10
The Plan

• By lowering prices even more in 2006 Dell planed
  to capture additional market share and hoped to
  force competition out of business.
• Offered many of its products at much lower than
  market standard as far as price.
• Notebooks for under six-hundred dollars.
• Dell believes that that they can rely on other
  aspects of there business to carry them through
  when other areas are lacking.

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Value Bubble

• Attraction
• Dell uses many different areas to attract people
  to there site.
• Dell uses television adds and magazines to get
  the word out on how easy it is to customize your
  own computer on the dell website.
• Uses B2B customers to attract B2C customers and
  vice versa.
• Customers are also attracted to the site via the
  numerous links that get you there from different
  places on the web.

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Value Bubble

• Engaging
• Having many different tabs seamlessly integrated
  in the main Dell page allows for customers to not
  only access the information they are seeking but
  to do so easily and in most cases under two
  clicks of the mouse.
• Dell Blog
• Used to gather information from the customers
  directly
• Customers can post pretty much anything they want
  at the Dell site using the build in Blog.
• Other areas that engage the customer.
• Search options.
• My Account.

13
Value Bubble

• Retaining
• Dell targets people that are searching for
  customization which they offer at a level that
  is not rivaled by there competition.
• My Account
• Allows customers to further customize there
  shopping experience.
• My Cart
• Allows customers to view and modify the items
  that they are going to be purchasing.
• The Track Order
• Allows customers to track the orders that they
  have made to determine the exact delivery date.

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Value Bubble

• Learn
• This is a very important phase for dell because
  they are constantly changing based on customer
  wants and needs and if they did not gather the
  proper information from there customers they
  would fail.
• They are very good at this phase due to the
  direct sales model which gives them direct
  access to there customers.
• Information is constantly gathered from the site.
• account information
• Click streams
• Blog information
• Suggestion forms
• Customer service representatives.

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Value Bubble

• Relating
• Dell puts the information that they collect from
  various sources into use.
• My Account
• Allows customers to totally customize there
  shopping experience and give Dell the chance to
  show the customer things they might be interested
  in.
• Usability information is constantly being checked
  and updates are constantly being added to the
  site.
• With the only presence being an online one the
  attention paid to the actual site is crucial.

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Conclusion

• Dell started as a market leader and still retains
  that trait in some areas. With there slipping
  sales in the U.S. they are being forced to look
  at alternative ways of brining revenue to the
  company which is a process that they are used
  to. I think that they will continue to gain
  market share and continue to be a large player in
  the personal computer industry for years to come.