Dell Corporate Strategy

Tags: BRIC, Just in time (business), Emerging markets

Corporate Strategy
The economic activities performed by Dell encompass the development, manufacturing, sale and support of personal computers and computer-related products. Since its foundation, the company has been based on the Direct Model, i.e. Dell has always tried and managed to create direct relationships with its customers, by selling products directly and without the participation of intermediaries. The sale has always taken place through a telephone service or via the Internet. In order to accomplish its goal of being as fast as possible in the delivery of the customized products it supplies, Dell has created an ample network of manufacturing plants around the world. The corporation is present in each continent and in most of the states with national basis. For instance, in Italy Dell has established its Italian department – Dell Italia. What’s more, Dell has forced many of its suppliers to set their plants alongside its own facilities in order to minimize the time of the transactions that occur between them and the company itself. They provide the company with a constant flow of information regarding their inventory levels and, by contrast, the company contributes to the development of their performance and the decrease of their costs of production by providing them with the necessary training to keep reducing costs at a fast pace and meet its strict targets. In fact, suppliers are quarterly met and classified according their levels of reliability, cost, quality and speed, and these are compared to their industry average. Once a supplier meets the targets imposed by Dell, the latter establishes a long-lasting relationship in which even know-how and new achievements are shared so as to enable Dell to meet its financial fundamentals and ensure the highest return on investment to its shareholders. Through these forceful ties with its suppliers, Dell can shift upward those activities that do not contribute to create added value for its products and focus...
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