Assessment of the Dell Multinational Company
|✅ Paper Type: Free Essay||✅ Subject: Business|
|✅ Wordcount: 1297 words||✅ Published: 1st Jan 2015|
Dell Inc. is a multinational company that deals with the production of products and services for computers ad is rated among the largest computer manufacturers in the world. It was established by Michael Dell in November 1984 in Austin Texas. The Turbo PC was first produced in 1985 after Michael Dell dropped out of school in order to concentrate in his business. His belief was that by selling the computer products directly he would have a better understanding on the needs of his customers. The company changed its name to Dell Computer Corporation in 1988 and that marked the beginning of its worldwide expansion. The headquarters of Dell are located in Round Rock in Texas. As of 2010 it currently employs over sixteen thousand people. Dell Company has a global market share of more than 15%. The direct model has been the main core success strategy for Dell Company.
Company name: Dell Computer Corporation
Dell’s mission is to be the leading and the most successful computer company in the world at delivering the best customer experience in the world that we serve. This is achieved through its products that target different people such as the consumer class and the corporate class.
Products, goods and services
Among the products produced by Dell Computer Company include:
Adamo Laptops. These range from high end product laptops and come fitted with extra luxury.
Power-connect- a high end switch product by Dell Company for high performance in switching. It is mainly used by middle enterprises.
N series- this is a computer that is shipped without having the installation of Microsoft windows. Instead, open source operating system or the Linux is installed.
Precision- this is a workstation that is rated very high by the dell computer. It is mainly targeted by graphic professions such as engineering, animation, imaging and product design.
EMC/Dell- this is a Dell and EMC product that is mainly created for backup. It consolidates the storage and thereby creates a seamless automated storage. This goes a long way in catering for data storage.
Studio- this comprises of a given range of desktops and also laptops and include studio 15, studio 17and also studio hybrid.
Vostro- this is a range of affordable computers from the Dell Company though the support hours from the technicians is very little.
Power-vault- these are products from Dell that are usually have storages and networks that are directly connected. However these products are in partnership with EMC Corporation.
In the information and technology industry, there is a lot of competition. Among the rated competitors of Dell Company include the Hewlett Packard and the IBM. Others include Apple, Toshiba, Acer, Gateway, Sony, Lenovo, Samsung, Asus and Sun Microsystems. This is a generalized category of competitors as the Dell Company is a manufacture of different kinds of products. Other products that Dell produces include peripherals such as LCD televisions, USB drives, monitors and also projectors. Lenovo, Acer, Apple, Toshiba, Hewlett Packard and the IBM are in competition with Dell Company in the production of computers both on laptops and desktops though with differing aspects. This is due to different needs of the customers. Sony and Samsung are in competition with Dell in the production of LCD televisions, USB drives, monitors and also projectors
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Position in the market
According to the data gathered as of 2010, it shows that Dell has regained its position among the top three, with the HP and IBM as its main competitors. HP took the second place with 34.1% while Dell was in position one with 35.1%. This was data combined from the share of servers. Revenues from the x86 had an increase of 33.6% with an increase in shipments. Dell had a 51.9% growth from its enterprise and SMB customers.
As a way to have a competitive edge over the competitors in the information and technology industry, the Dell Company has resulted to having mass customization. This means that Dell produces products that are designed for particular customer needs. Mass customization requires that different operating units do not always come together in the same sequence every time a unit is produced. In this way Dell has been able to stay upfront in its game by producing different products that meet the needs of different customers.
In order to ensure that the needs of the customers are met, Dell has employed a strategy of selling direct to its customers. Through the Dell Company website, customers can customize their computers through an array of different software and other computer components.
Another strategy that Dell has used to gain competitive advantage is their low inventory. Compared to its competitors such as the Compaq and IBM, it has an inventory of 8 to 10 days. Compared to the competition, Compaq and IBM have an inventory of three to four weeks. The low inventory helps Dell to react quickly in offering new products and services to the market.
The use of a flexible infrastructure has also played a role in creative a competitive advantage for Dell Company. It has enabled coordination across many boundaries. This has enabled it to achieve new levels of efficiency and productivity. The flexible infrastructure allows fro just in time deliveries which is a great competitive advantage for the company. The just in time deliveries are from a host of suppliers with a highly adaptive manufacturing facility. Dell Company is therefore able to produce hundreds of different computer combinations for customized orders.
Dell has incorporated the strategy of using the sales and distribution channels as a mean of attaining competitive advantage. Dell Company has been known to disrupt the channel used in sales and distribution channels. Dell replaced these sales and distribution channels with telephone based sales and ordering. It has also included that ordering and the sales also through the website. Though the competition has caught up with Dell’s strategy, it remains well structured and strategically placed by the use of this method.
While other competitors struggled with retail channel evolution Dell took a radically different path by finding a means to sell products which normally required both significant customer assistance and local stocking without a dealer or distributor network. Dell created a new channel option by bringing new technology to traditional roles played by the distribution channel. Dell takes orders over the telephone, it allows purchasers to customize products to their own needs, it assembles products largely to order, and it achieves rapid delivery. The combination provides a high degree of customer service at a previously unattainable cost structure. With this distribution change as a major element of its strategy, Dell grew to a profitable $7.8 billion business at the time when many larger computer companies were giving up on the PC market. No other computer company has managed to match Dell’s growth in sales and profits. Dell built a strong overall business model and established its position before others had a chance to copy the model.
Dell has used assurance a main competitive advantage over other competitors. Dell has established a strong sense of trust among its customers, achieved through an understanding of customer expectations and how best to meet those commitments in a timely fashion. Dell earns customer trust through its commitment to customer satisfaction, achieved largely due to Dell’s renowned process refinement abilities.
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