Assignment of Strategic Plan on Dell Computer
Michael Dell inaugurated the company in 1984 with the ground-breaking idea to sell custom built computers unswerving to the customer. As one of the world's leading providers of computer products and services, Dell now designs and manufactures all-inclusive family of desktop solutions for virtually every computing need. Within the last five years, Dell has grown from $7 billion in revenues to more than $35,4 billion, and the company continues to expand in its current products and regions, and also into new markets. This formulates Dell to the second largest seller of Computers and Computer products after Best Buy. As consequence of Dell's direct business model, Dell became most important seller of computer systems worldwide and the market leader in all customer segments of the United States.
The success of Dell's direct selling strategy is reflected by an increase of almost 100% in net revenues over the past five years.
The key principles of Dell's business strategy are: (1) a direct relationship to its customers that provides a constant flow of information about customers acute; plans and requirements and enable Dell to continually improve its product offerings; (2) Customers can purchase custom-build products and custom-tailored services, which contributes to the efficiency in meeting the customers acute; needs and reduces inventory levels by a faster inventory turnover; (3) Dell is the low-cost leader, enabled by a highly sufficient supply chain management and manufacturing organization; (4) Dell provides a single-point of accountability for its customers by offering an arrangement of services designed to make available customers the ability to maximize return on investment, system performance and efficiency ; (5) Dell supposes that standards-based technologies deliver the greatest value to customers because it provides flexibility and choice while allowing the purchase decisions to be based on performance, cost and customer service.
On January 31, 2006, Dell had approximately 39,100 regular employees, with about 21,200 located in the United States. Dell has the providence of never having faced a work stoppage due to labor difficulties and the organization beliefs that its employee relation is good.
In this study research, we analyze Dell's Desktop PC's in the US market. The US accounts for 35% to 40% of global unit PC demand. Dell offers a wide range of computer systems (desktop computer systems.
Servers, storage, networking products, workstations, notebook computers, software and peripheral products), of which we focus on desktop computers. Dell offers two different desktop computer systems. The OptiPlex reg; version is for the corporate and institutional customer segment that demands highly- reliable, stable, manageable and easily serviced systems. The Dimension reg; products target small businesses and home users with a need for fast technology turns and high-performance computing.