Dell Case Study
CASE STUDY ANALYSIS
DELL INC.: TIME TO DISCARD DIRECT SELLING MODEL?
Contents
1. Abstract
2. Introduction
3. Methodology
4. Results / Findings
5. Strengths / Weaknesses / Analysis
6. Recommendations / Conclusion
Appendices:
Appendix A
Appendix B
Appendix C
Abstract
Dell is a multinational computer company which managed to stay in the first place of computer system sales for over a decade. Its strong and revolutionized strategy of direct selling computers to the customers increased its success in the computer companies’ field providing it with a competitive advantage. However, the last year the revenue trend shows a significant decrease while other competitors’ share of the market has become threatening. This case study presents the economic situation Dell faces from the year it was founded according to real financial findings. It researches the benefits from its direct selling strategy as well as possible problems it may face if it continues to follow this strategy. Recommendations are made in order to improve the volume of sales and lead to greater success and higher customer satisfaction.
Background
Dell was founded in 1984 by Michael Dell a 19-year old teenager and it was named as PC’s Limited. Starting with a capital of $1000 and the aim of selling IBM PC-compatible computers he managed to establish Dell as one of the most worldwide successful and profitable companies only after the first years of its function. The first year gross revenues amounted to $6 million. In 1985 Dell introduced the first computer of its own design- the Turbo PC. In 1988 the company made its initial public offering at $8.50 a share and was renamed to Dell Computer Corporation. By 1990 it had been expanded in 12 different countries. Six years later(1996), Dell began selling computers via its web site and offered online technical support at the same time and by the 1997 Dell was one of the top five computer makers in the world. By the end of the
DELL INC.: TIME TO DISCARD DIRECT SELLING MODEL?
Contents
1. Abstract
2. Introduction
3. Methodology
4. Results / Findings
5. Strengths / Weaknesses / Analysis
6. Recommendations / Conclusion
Appendices:
Appendix A
Appendix B
Appendix C
Abstract
Dell is a multinational computer company which managed to stay in the first place of computer system sales for over a decade. Its strong and revolutionized strategy of direct selling computers to the customers increased its success in the computer companies’ field providing it with a competitive advantage. However, the last year the revenue trend shows a significant decrease while other competitors’ share of the market has become threatening. This case study presents the economic situation Dell faces from the year it was founded according to real financial findings. It researches the benefits from its direct selling strategy as well as possible problems it may face if it continues to follow this strategy. Recommendations are made in order to improve the volume of sales and lead to greater success and higher customer satisfaction.
Background
Dell was founded in 1984 by Michael Dell a 19-year old teenager and it was named as PC’s Limited. Starting with a capital of $1000 and the aim of selling IBM PC-compatible computers he managed to establish Dell as one of the most worldwide successful and profitable companies only after the first years of its function. The first year gross revenues amounted to $6 million. In 1985 Dell introduced the first computer of its own design- the Turbo PC. In 1988 the company made its initial public offering at $8.50 a share and was renamed to Dell Computer Corporation. By 1990 it had been expanded in 12 different countries. Six years later(1996), Dell began selling computers via its web site and offered online technical support at the same time and by the 1997 Dell was one of the top five computer makers in the world. By the end of the
References: Beals, T., 2003. Dell case study. CMS Customer Satisfaction Survey : How do vendors rank?[online] PC Market is Expected To Continue Double-Digit Growth Despite Increasing Economic Concerns, According to IDC, 2007: IDC PC Watch 2004 [online] http://pc.watch.impress.co.jp/docs/2004/0628/gyokai98.htm [Accessed 6 September 2008] Spooner.J.G., 2004 http://news.cnet.com/Survey:-Dell-customer-satisfaction-unsatisfactory/2100-1003_3-5250704.html [Accessed 6 September 2008] Syeda, I., 2008