Dell Corporation
Dell computers
Company Background
Michael Dell is a global icon, especially on his college-based business of building personal computers using available parts, which he used to create a global business. The Dell Computer Company officially became a global corporation in 1984 (Dell, 2009). The priority of Dell Corporation was the build to order strategy, whereby clients ordered computers; their orders routed via credit check, and then the manufacturing followed (Qurechi and Muffech, n.d). Afterwards, the company built the order, tested, and shipped to the client who later received the computer within 5-7 days from the date of placing the order. This approach resulted to beneficial outcomes. First, the company eliminated the use of intermediaries.
In so doing, Dell passed customer's savings in the form of affordable prices, understood the customer's needs and embraced market changes in a quick manner than competitors (Dell, 2009). Another significant benefit is that the company built computers for clients and not for inventory. Therefore, the company did not waste resources in building computers that may not reach a client, employ staff to transport inventory all over the globe, or use lots of time tracking inventory (Qurechi and Muffech, n.d). The company is best recognized for its prioritization of direct marketing for selling and distributing computers. During the ordering process, the customer has a chance to select the features one wanted for their computer. Therefore, the company manufactured systems only after the customer ordered.
The company has a very user-friendly website, whereby most of the sales, technical support and orders take place online. The supply chain and data integration in collaboration with their suppliers has contributed in making Dell one of the most successful computer producers. In addition, the unending advancements in technology and creative approach to manufacturing and assembly have assisted in maintaining the Dell Company the affordable leader in the Computer sector (Qurechi and Muffech, n.d). Additionally, the company has the highest Return on Assets, highest inventory turnover, and highest Return on Invested capital in the Personal Computer industry.
Company History
Michael Dell's vision and business approach guided the upcoming computer company to change with times and cater directly to the exceptional, wants and desires of the customers. One of the creative approaches undertaken by the entrepreneur in the company history was the establishment of a national computer support center that provided technical support, trouble shooting, maintenance and restoration for most of the Dell products. During the time, there was no other computer company, which offered such responsive, customized and customer-based product services (Dell, 2009). The company, which was originally named PC's Limited, changed its brand name in 1988 to Dell Computer Corporation. In the same year, the company went public and sold stock shares for $8.50 each.
In the year 1992, the company made to Fortune Magazine's ranking of the top 500 companies. In the same year, Michael Dell was 27 years of age. Presently, the company has a net worth of around 14 billion dollars and gained a status of among the wealthiest corporations in the globe (Dell, 1999). In the year 2007, some of the products from the Dell Computer Corporation's history were celebrated as national treasures, when the company gave out a collection of original computers to the Smithsonian National Museum. Currently, the company provides a variety of products including notebook PCs, printers, network servers, televisions and many other electronic devices. In addition, the company offers employment to over 77, 000 people in the globe.
Dell Computers: SWOT Analysis
Dell inc., directs its business activities through four worldwide sections, that is, large enterprise, public small and medium business, and consumer. The large enterprise section focuses on providing solutions and services using data centers, cloud-computing solutions to national customers (Kreamer, Dedrick and Yamashiro, 2000). The public section focuses on the wide range of information technology. The small and medium business sections aim at assisting small and medium sized companies work for their technology by providing products, services and solutions (Pinegar, 2002).
Strengths
Weaknesses
Dell is the largest PC manufacturer and brand in the globe
Dell Inc. is a computer assembler, not a computer manufacture; they purchase the parts from manufacturing suppliers globally
The company uses the current technologies and direct marketing to customers
Due to the many suppliers, the company may end up assembling low quality products
The company meets retailers, suppliers directly to the customers
The products assembled are not attractive for college students because it gets a revenue of 5% in the total revenue
The company has a total command over its supply chain. In addition, the company specifies and adds features and items according to the customer's preferences
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