Preview

Value Chain Analysis of Dell

Satisfactory Essays
Open Document
Open Document
563 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Value Chain Analysis of Dell
Value Chain

The value chain also chain as value chain analysis is a concept from business management that was first described and populated by Michael Porter in 1985.

A value chain is a chain of activities for activities for a firm operating in a specific industry. The chain of activities gives the products more added values then the sum of added values of all activities and also said that, value chain is an interrelated series of process that produce a service on product to the satisfaction of customer. The concept of value chain also focuses attention on the types of processes in the value chain.

History of DELL: [pic]

➢ Founded by Michael Dell in 1984

➢ The single concept: Selling computer systems directly to customers

➢ Designed and built the first computer system of its own design in 1985

➢ Was one of the first computer companies to send a technician to homes to service personal computers in 1985

➢ Introduced the 316LT, the company’s first notebook computer in 1989

➢ Joined the top-five computer system makers worldwide in 1993

➢ Earning appr. $1 million per day 7 months after the launch of dell.com in 1996

➢ Introduced E-Support, an online tool to provide technical support to customers in 1999

➢ For the first time, Dell achieves No. 1 ranking in global market share in 2001

Activities of DELL:

Primary Activities:

Inbound logistics:

1. All those activities concerned with receiving and strong externally sourced materials.

2. Just in time ordering.

3. Close to suppliers.

Operations:

1. The manufacture of products and services- the way in which resources inputs are converted to outputs.

2. Build-to-order.

3. Customizations options.

Outbound logistics:

1. All those activities associated with getting finished goods and services buyers.

2. Close to customers.

3.

You May Also Find These Documents Helpful

  • Powerful Essays

    11. Value Chain: is the “set of activities through which a product or service is created and delivered to customers.” [1] There are five primary components of the value chain and four supporting components.…

    • 2817 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    MGC1 PRE-ASSESSMENT

    • 1427 Words
    • 6 Pages

    1. A value chain is the sequence of activities that begins with raw materials. What result does a value chain end with? Delivery of products or services…

    • 1427 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market1.…

    • 2789 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Buss1001 Notes

    • 753 Words
    • 4 Pages

    The value chain offers a view of the organization as a cumulative build-up of added value for the customer through the interaction between key operational activities. The key element of the value chain is not just the added…

    • 753 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Test 1 Week 1 TLMT 313

    • 649 Words
    • 7 Pages

    The term value chain means we include the supply chain in our analysis and management with:…

    • 649 Words
    • 7 Pages
    Satisfactory Essays
  • Good Essays

    Gb570 Unit 1

    • 863 Words
    • 4 Pages

    In order for a firm to create competitive advantage, it needs to create a set of activites that can deliver value to the specific product and services it offers to its customers. To start talking about my life as a “value chain”, I may need to compare it to a specific product”. This is going to take precedence both in my personal life and professional life.…

    • 863 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    A value chain model describes the ways that a company tailors its products and services to meet the needs of current and prospective customers. Every business needs to meet the needs of its clients, and companies achieve this objective by creating useful products, providing services that generate savings…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The value chain is the combination of the value-adding activities, the primary activities and the support activities, which converts inputs into outputs and offer the customers a level of value that exceeds the cost of these activities. The customer perceived value “depends on the product's ability to satisfy his or her needs or requirements” (Businessdictionary.com). Starbucks’ value chain can be summarized as shown on the diagram below:…

    • 2080 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Contingency Planning

    • 356 Words
    • 2 Pages

    Dell originated in 1984 when Michael Dell started selling custom built IBM computers out of his University of Texas at Austin dorm room. In 1985, he dropped out of college and formed the company Turbo PC which grossed more than $73 million in the first year of operation.…

    • 356 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Dell Hbr Case Study

    • 2246 Words
    • 9 Pages

    efficiently and profitably in its niche market. By the late 1980’s – early 1990’s, Dell noticed that its…

    • 2246 Words
    • 9 Pages
    Better Essays
  • Good Essays

    Value Chain of H&M

    • 1076 Words
    • 5 Pages

    The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99)…

    • 1076 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Value chain analysis describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization. Therefore, it evaluates which value each particular activity adds to the organizations products or services. This idea was…

    • 1459 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Value chains may be defined in two ways: (1) within a company they describe the various value-added stages from purchasing materials to distributing, selling, and servicing the final product (Porter’s 1985 concept),[3] and (2) they also delineate the value-added…

    • 4793 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    Dell Procurement Strategy

    • 559 Words
    • 9 Pages

    Group 3 The Power to do More Dell Procurement Strategy 2nd October 2014 Indian Institute of Management Kashipur Ankit Bansal | Arnab Kanti | Kunal Delwadia | Prashant Gaur | Supply Chain Model PC Component Supply • •…

    • 559 Words
    • 9 Pages
    Satisfactory Essays
  • Good Essays

    Sales to the first group are classified as business-toconsumer (B2C). Sales to the other three groups are classified as business-to-business (B2B). Consumers…

    • 5805 Words
    • 24 Pages
    Good Essays