Dell Computer Corporation

Powerful Essays
Topics: Dell, Marketing, Customer
Case 7-5 Dell Computer Corporation
Measuring and Controlling Assets Employed

Dell, an American computer hardware company based in Round Rock, Texas, develops, manufactures, supports, and markets a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. As of 2006 it employs more than 63,700 people worldwide and manufactures more computers than any other organization in the world. According to the Forbes 500 2005 list, Dell ranks as the 28th-largest company in the United States by revenue. In 2005, Fortune magazine ranked Dell as No. 1 on its annual list of the most-admired companies in the United States, displacing Wal-Mart.12
Dell has shown its ability to adapt to the marketplace and diversified its business to appeal to a variety of market segments over the years. Products range from Dell PowerEdge™ servers, Power Vault™, Dell EMC storage systems as well as PowerConnect™ switches for corporate clients. For individuals and professional customers alike, Dell products give the consumer a broad range of choices, such as Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offers a wide array of ancillary products and services, including printers, projectors, Axim handhelds, and other accessories (Annual Report 2006).1 More recently, to generate recurring revenues, the company has announced intentions to explore printers, LCD television/computer monitors, as well as digital music players. 8 Discussion Questions:
1. What is Dell 's strategy?
2. What is the basis on which Dell builds it competitive advantage?
3. How do Dell 's control systems help execute the firm 's strategy?
Business Strategy
Dell 's business strategy combines direct customer contact with highly efficient manufacturing and effective supply chain management. Dell has emphasized



References: 1. Anthony, R. & Govindarajan, V. (2004) Management Control Systems (11th ed.). New York: McGraw-Hill/Irwin 2. Vinas, T 3. Dell, Inc. 2006 Form 10-K. Retrieved July 25, 2006 from http://www.dell.com/downloads/global/corporate/sec/10k-fy06.htm 4. Goodson, R 7. (2002) Gaining Competitive Advantage Through Product Customization http://www.rtec.executiveboard.com/Images/RD/PDF/RD49957.pdf 10. Finney, R. (2002) Dell Business Strategy Secrety (Part 1). Retrieved July 24, 2006 from http://www.itmweb.com/f070802.htm 11. Moltzen, E (2006) Dell Vows More Price Cuts To Regain Momentum 12. Wikipedia (Dell) Retrieved July 24, 2006 from http://en.wikipedia.org/wiki/Dell,_Inc.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Dell Computer Corporation

    • 329 Words
    • 2 Pages

    multinational Dell Inc. was founded in 1984 by Michael Dell out of his college dorm room under the name of PC’s Limited. Dell wanted to provide personal computers that were built to order. At the time most computers that were available were stock. If someone wanted a custom designed computer they would have to assemble the components themselves. Dell was not the first to pursue the build to order idea, but he was the first to make it successful. In 1988, Pc’s Limited became the Dell Computer Corporation…

    • 329 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Dell Computer Corporation Dell Computer is maintained and increased their competitive advantage. They want to maintain a low cost position to maximize the value passed on to customers, while driving costs lower and lower. They also want to drive aggressive pricing and profitability gain share. Dell wants to always put customers first and remain aggressive about driving improved customer value across all Dell business. Employee support of Product Leadership, Customer Experience, and Globalization…

    • 3173 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Michael Dell It is vey impressive when you are in high school and you make 18,000 dollar selling magazines which is more than what your History and economics teachers make. Michael Dell founded the Dell Computer Corporation on November 4, 1984. He is the founder, chief executive officer and the chairman of the company. Dell is the 44th richest man is the world today according to Forbes.com/wealth/billionaires/list. Michael Dell, at the age of seven bought his first calculator. When Dell was an…

    • 917 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Case 7-5: Dell Computer Corporation Discussion questions 1. What is Dell’s strategy? Dell’s strategy was based on: • Market leadership as a result of a persistent focus on delivering the best possible customer experience. Direct selling, from manufacturing to consumer, was a key component of its strategy. • Its reputation as one of the world’s most preferred computer systems companies and a premier provider of products and services that customers worldwide needed to build…

    • 424 Words
    • 2 Pages
    Good Essays
  • Good Essays

    explosive growth for 10 years, Dell absented from the portable computer market because of its informality in product development. Though delivered several successful products with a free-wheeling development structure in the early nineties, the company suffered from the inconsistent process and the unpredictable result. Several other problems involved the depressing performance in the retail market, the lack of capable senior management and early setback in portable computers also contributed to the sagging…

    • 839 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Dell Computers

    • 2620 Words
    • 11 Pages

    Dell Computer Corporation Embry Riddle Aeronautical University October 6, 2012 Dell Computer Corporation The Dell Computer Corporation was founded in 1984 by Michael Dell from his dorm room at the University of Texas at the age of 19 with $1000. The original name of the company was PC’s Unlimited. The corporation was started with a simple premise as its basic foundation: so that personal computers could be built and sold directly to customers and by doing this, Dell could address their specific…

    • 2620 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Dell computer

    • 1404 Words
    • 6 Pages

    Dell Computers1 Introduction Dell Computers was founded by Michael Dell in 1984 and has its corporate headquarters in Round Rock, Texas. Michael Dell’s winning idea was to sell computer systems directly to customers, allowing him and his company to understand customer needs well and therefore to provide the customer with the most appropriate computing solutions. Dell still practices the direct business model, saving time and cost by bypassing retailers and passing on the cost savings to the…

    • 1404 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    AT DELL COMPUTER CORPORATION Abstract Dell’s Portable Division, headed by Mark Holliday, had reached a decision point in the development of its new laptop computer. Holliday had to decide, or reach consensus on, what kind of battery Dell would put into its new line of laptop computers. It was the second try for Dell in the laptop market. The first attempt had failed due to technical problems, costing the company $20 million in development expenses alone. After the failed earlier attempt, Dell structured…

    • 276 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    BUSINESS RISK EVALUATION FOR DELL COMPUTER CORPORATION OPERATIONAL ANALYSIS: For the fiscal year ending February 2008, Dell's net revenue totaled $61.1 billion, and its net income was $2.9 billion. The company's total assets valued $27.561 billion, with cash and equivalents making up the largest portion, which totaled $7.764 billion. The company's cash flow in operating activities was $3.949 billion, and had approximately 88,200 total employees, including around 82,700 regular employees and 5,500…

    • 1596 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Dell Computer Corporation – Share Repurchase Program Questions: 1. Why do companies use stock options to compensate employees? What are the advantages of stock options relative to cash compensation? What, if any, are their disadvantages? 2. What, if any, risks do Dell’s shareholders face from Dell’s stock option program? Draw terminal payoff diagrams to illustrate the risk. Is this risk something that shareholders of Dell expect to bear when investing in Dell? 3. How does Dell…

    • 1224 Words
    • 5 Pages
    Powerful Essays