Identification of Customers, Markets, Products, CompetitorsEssay Preview: Identification of Customers, Markets, Products, CompetitorsReport this essayIdentification of Customers, Markets, Products, CompetitorsDell Computer Corporation was established in 1984 and today ranks among the worlds largest computer systems companies. Dell pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service. The company designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software (Thompson, Strickland, Gale).
Dells complete range of high-performance computer systems include: Dell Dimension and OptiPlex desktop computers, Latitude notebook computers, and Power Edge network servers. The company s products and services are sold in more than 140 countries and territories to customers extending from major corporations, government agencies and medical and educational institutions to small businesses and individuals. The company employs approximately 11,000 people. Headquarters are located in Round Rock, Texas, with manufacturing facilities in Austin, Texas; Limerick, Ireland; and Penang, Malaysia (Dell).
The company was plagued by management changes during the mid-1980s. Renamed Dell Computer, it added international sales offices in 1987. A year later it started selling to government agencies and added a sales-force to serve larger customers. That year Dell went public in a 34.2 million offering (Hoovers).
Dell tripped in 1990, reporting a 64 drop in profits. Sales were growing, but so were costs, mostly because of Dells efforts to design a PC using proprietary components and RISC chips. Also, the companys warehouses were oversupplied. Within a year Dell turned itself around by cutting inventories and coming out with eight new products.
Dell entered the retail arena by letting Soft Warehouse Superstores now CompUSA in 1990 and office supply chain Staples in 1991 sell its PCs at mail-order prices. Also in 1991 Dell opened a plant in Limerick, Ireland.
In 1992 Xerox agreed to sell Dell machines in 19 Latin American countries. That year Dell sold a new line of PCs through the Price Club . Dell opened subsidiaries in Japan and Austria in 1993 and began selling PCs through Best Buy stores in 16 US states.
The computer maker abandoned retail stores in 1994 to refocus on its mail-order origins. The company took a 40 million charge to retool its troubled notebook computer line and later that year released its Latitude notebook to general acclaim. The company also introduced a line of servers (NPR).
In 1995 the firm offered Pentium-based notebooks, and hastened the interest in its desktops by cutting prices and releasing a dual-processor PC. The following year Dell ramped up its efforts in the Asian computer market with new mail-order service in Hong Kong, Japan, and Singapore; a new Asia Pacific Customer Center in Malaysia; and direct-sales operations in South Korea and Taiwan.
In 1997 Dell and Toronto-based Newcourt Credit Group formed Dell Financial Services, a joint venture that will provide financing for Dell customers. That year Dell also announced plans to enter the market for engineering, analysis, and design computers called workstations. Dell built up its consumer business in 1997 by separating that operation from its small-business unit and beginning a leasing program for individuals (Wikipedia).
The CEO of Dell Computer Corp. is of course Michael Dell. He started the company with a mere 1000 and has turned it into a multi-billion dollar computer giant. Mr. Dell attended The University of Texas at Austin. In 1999, Mr. Dell wrote the bestselling book Direct from Dell: Strategies That Revolutionized an Industry, his story of the rise of Dell Computer Corporation and the strategies he has refined that apply to all businesses. He is a member of the Board of Directors of the United States Chamber of Commerce, the World Economic Forum, and the Computerworld Smithsonian Awards. Mr. Dell serves on the nominating committee for the National Technology Medal of Honor, and is a member of The Business Council. He is also a member of the Computer Systems Policy Project (Thompson, Strickland, Gale).
Dell began selling a $999 PC in 1999. (Dell phased out the WebPC line after just seven months due to slow sales.) That year the company made its first acquisition — storage area network equipment maker ConvergeNet and opened a plant in Brazil. In 2000 Dell broadened its high-end network servers and Internet-related services offerings, and formed a division for its storage operations.
Faced with slumping PC sales in early 2001, the company eliminated 1,700 jobs about 4% of its workforce. Soon after it announced it would cut as many as 4,000 additional positions. Late that year it expanded its storage offerings when it agreed to resell systems from EMC.
Looking to grow its services unit, Dell acquired Microsoft software support specialist Plural in 2002. The following year the company shortened its name to simply Dell Inc.
The top six competitors to Dell are Compaq Computer Corp., Gateway Inc., Apple Computer Inc., Micron Electronics Inc., Bitwise Designs Inc., Paravant Inc., and Hertz Technology Group. Dell Computer Corp. is worth about four times the amount of its closest competitor, Compaq Computer Corp.
Strategic GoalsContinue to offer first class customer service and tech support.Continue to expand into other IT products and services.Continue expansion of server and storage products to capture a greater share of the market.Continued expansion of Printer and multifunction units to capture a lager share of the market.Continue refining and streamlining the direct approach to manufacturing, selling and servicing personal-computing systems.Market new products to existing customer base.Produce products with better profit margins.Analyze the benefits of strategic partnerships and outsourcing non-core functions.Continued commitment of resources to Research & Development to stay on the cutting edge of Information Technology.Performance AnalysisDell Computers business strategy is centered around its direct business model and customer-focused initiative aimed at delivering the best
Razer.com CEO Alen Li.
CEO
Razer .com CEO Alen Li.
The business model, which has led to high success for its business model and customer-based initiatives, aims to make it easier for customers to access, pay for and maintain their equipment. The aim is to bring business to the next level and to drive demand for such services and technologies through business strategic partnerships.
The technology and operations plans have to be integrated into business-critical processes to deliver the best value for customers and to deliver customers well. To be competitive, these processes must be as cost-effective as possible by incorporating both new technology and new manufacturing processes to meet the potential customer needs.
To reduce the need for additional time spent in business and reduce the amount of time the company will devote to preparing business and customer support,
Razer expects to have to accelerate by about 25% a year, with some cost savings due in the future.
Dell Computers’ product development and marketing leadership is focused on the full-scale execution of its business plans in business areas. The following strategies are part of Dell’s Business Plan.
• Dell’s direct business model has focused specifically on research, development, distribution operations for Dell (NASDAQ:DL.DL) with multiple focus areas that include:
• Global Marketing.Dell has developed a number of strategic partners around the world to develop and deliver an innovative worldwide brand, including Dell Inc.’s (NASDAQ:DAL.DL), Amazon and Apple.
• Data, Analytics, and Marketing. Dell has been a leader in data acquisition and Analytics and Marketing solutions such as F2.0, Mobile and Business Analytics and Business Management solutions for more than 20 years.
• Business Process.In his role as CEO, Dell will continue to focus on making business-critical decisions for the future so as to make the most financially viable business for Dell in the digital business to compete in the e-commerce and telecommunications space.
• Advanced Technology and Systems. Dell is increasingly exploring the possibilities and possibilities with its Advanced Integrated Product Development and Technology (IAPT) program. The program brings together the three major segments of Advanced IT Management with a mission to provide more than 30 different industry-class solutions to consumers with the opportunity to create new technology and systems tailored to their personal needs.
• Dell has been one of the first and largest employers in the e-mail industry when it came to digital digital communications, including the integrated technologies such as eMail, iPrint, FaceTime, Gmail, ePrint, SMS, AOL and more.
• Dell’s core product development initiatives include a range of research, development and product marketing initiatives, as well as the development of innovative products like the Integrated Salesforce Marketing Suite and the integrated services to make business smarter in the digital world.These initiatives will enable Dell to drive new innovation in its product development efforts, create high-quality products and create an end-to-end solutions ecosystem that brings Dell’s products, services and expertise to customers within its business.
• Increased focus on delivering differentiated IT services and a significant investment in the ability to develop and deliver the high-quality products offered to customers around the world and further increase the value and capabilities of Dell’s Business Plan that will be utilized in line with Dell’s strategic goals.
Dell Computers’ financial statements have been prepared by its auditors, including the GAAP.
The following data sets are provided in response to a request for information from