Essay Preview: Dell
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Dell computers in the late eighties after a few years of starting up and collecting capital began strategic planning in order to make the company grow and expand in its market. They looked at ways of keeping up with technology, reaching broader groups of consumers, lowering costs, implementing fast service, and developing outside of the pc industry. Dells vision was to be the most successful computer company in the world at delivering the best customer experience in markets they serve.
Dell recognized that its strength was selling directly to consumers and keeping its costs lower than those of other hardware vendors. Identifying opportunities was an easier task. Dell looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase. Dell also saw the Internet as a powerful marketing tool. On the threats side, Dell realized that competitors like IBM, HP, and Compaq Computer Corp. had stronger brand names, which put Dell in a weaker position with dealers.
Dell put together a business strategy that included mass customization and just-in-time manufacturing (letting customers design their own computers and custom-building systems). This allowed them to keep smaller inventories and costs down at the same time. Dell also stuck with its direct sales plan and offered sales on the Internet. Internet sales were a way of keeping up with technology, and brought convenience to the consumers. The companys Web receives 25 million hits per quarter.
Dells big strengths are that they design and customize products and services to the requirements of the organizations and individuals purchasing them, and sell an extensive selection of less-expensive hardware and computing software. Nearly two-thirds of Dells sales are to large corporations, government agencies and educational institutions, not to mention the sale of pcs to homes. Dells way of differentiating the company from competitors was by pricing for performance, they had the industrys most efficient development, manufacturing, and distribution process.
Dell offers its customers powerful, slick systems at competitive prices. Dells customization 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 reliability and personalized customer service.
Dells up to date technology introduces the latest significant technology much more quickly than companies with slow-moving indirect distribution channels. Dell turns over inventory very quickly with