Dell vs. Ford

Good Essays
Dell Computers
Issue Identified in the Scenario that is also Facing the Company
When Michael Dell started Dell Computer in 1984, he believed that by selling personal computer systems directly to customers, his company could better understand customers' needs and provide the most effective computing solutions to meet those needs. During that period, competing computer makers experienced poor supply-chain management strategies that usually involved assembling in advance and sending to distribution centers around the world. In the technology industry this is relatively expensive because it involves inventoried items that have associated costs. Apple, for example, pre-built computers and notoriously held onto too much inventory as newer technologies were introduced and hardware costs decreased.
Another challenge most computer makers faced during the 1980's were logistics. Computer companies were growing and could no longer be assembled in garages or corporate warehouses. It also became a risk to manage expensive components and personnel.
How the Company Responded to the Issue
Dell skips the distribution and retail steps typical of a manufacturing company's supply chain operations. The company sold its computers through catalogs and phone orders since its incorporation (Chase et al, 2005). With the emergence of the internet and ecommerce, in 1996 Dell began selling computers through its website.
Dell has reduced internal costs by outsourcing some of its logistics and assembly production. Quanta Computer Inc. assembles some of Dell's products (BusinessWeek, 2005) By outsourcing the non-core activities, Dell has been able to shed balance sheet assets, and boost their return on capital by using third-party service vendors (Chase et al, 2005). In 2005 Dell selected World Wide Technology for supply-chain management of components used in computer systems manufactured at Dell's new facility in Winston-Salem, N.C. (ExpansionManagement.com, 2007)
The company's latest

You May Also Find These Documents Helpful

  • Good Essays

    Ford vs Dell

    • 713 Words
    • 3 Pages

    From: XXXXX To: XXXXX Subject: Ford Motor Company vs. Dell Computer Corp: Supply Chain Strategy Date: March 17, 2007 Summary: As per our meeting earlier this week, here is the information you requested regarding the supply chain strategy of the Ford Motor Company. I have also included a quick comparison to the strategy used by Dell Computers in attaining my final recommendation. Ford 's Dilemma: The director of supply chain systems at Ford has two options to consider before implementing…

    • 713 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Issue Identification Ford continues to face increased completion from foreign competitors while operating in an industry that is experiencing significant over-capacity. In the face of the challenges presented to us, we must determine if Ford should embrace the direct business model which utilizes “virtual integration” that has driven Dell to become a clear leader in their industry. Further, if we chose to utilize “virtual integration” based on the Dell model, we will need to develop and implement…

    • 2890 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Executive Summary: After carefully analyzing Ford’s existing supply chain, I realized the main issues that Ford have are its large base of suppliers, suppliers does not have enough IT capability to support the requirements of Ford and it appears that Ford and their dealers have not too much communication in obtaining the accurate forecast. Meanwhile I am also aware of its highly complex nature of auto manufacturing comparing with computer industry. It would be applicable for the customers to place…

    • 1974 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Ford Motor Case Table of Contents Executive Summary 3 Issue Identification and Root Case Analysis 4 Alternatives and Options 7 Recommendations 8 Implementation Plan 9 Monitor and Control…

    • 2230 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Apple vs Dell

    • 1634 Words
    • 7 Pages

    dominated due to Microsoft’s Windows operating system[ii]. The domination of the market is largely due to the flexibility of Windows. Microsoft developed their operating system to be compatible with any hardware created by any computer company such as Dell, HP, Sony, IBM, etc. Consequently, Apple’s operating system only worked with Apple’s proprietary hardware. With the release of Apple’s iPod in 2001, the iPhone in 2007, and most recently the iPad in 2010 the company is headed to be a worldwide competitor…

    • 1634 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    hp vs dell

    • 1007 Words
    • 5 Pages

    Introduction Computer/Technology Industry The computer/technology industry has many key players with two of the major competitors being Dell and HP. The computer industry has come a long way since its first inception with the invention of Electronic Numerical Integrator and Computer in 1946. This industry is comprised of many items such as computers, monitors, printers, scanners, mainframes, servers, electronic computer components, networking and workstations to name a few. The industry started…

    • 1007 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Dell vs Lenovo

    • 804 Words
    • 4 Pages

    Dell vs Lenovo Dell’s direct sales model has restricted the company’s growth in China even as domestic competitors such as Lenovo have raced ahead making the most of China’s still rapidly growing PC market. According to data from industry body IDC, Dell had a market share of 9 % of the total PC shipments in China in the second quarter of 2010, narrowly beating out rival HP for the first time. But both foreign manufacturers lagged market leader Lenovo by a big margin. Lenovo had cornered nearly…

    • 804 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Dell vs Mac

    • 706 Words
    • 3 Pages

    MacBook VS Dell Inspiron Why MacBook is better than Dell Notebook? There's a lot of rumors said that MacBook is better because they are expensive compare to Dell Inspiron notebook.Actually, its not like that. Basically, it's depends on the buyers because MacBook and Dell Inspiron notebook are designed for different function and purposes. It has a lot of different from many aspects such as graphic, processor, application, security measurement, price, physical appearance, and specific target…

    • 706 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Dell vs Hp

    • 2102 Words
    • 9 Pages

    Dell Case Study - Harvard Business Pregunta 1: Capital de trabajo ventaja competitiva de Dell- Una de las mayores ventajas que tiene Dell es su ventaja competitiva en no tener que gastar tanto capital en su inventario y almacenamiento. Dell construye sistemas informáticos después de que la compañía recibe órdenes de compras de sus clientes. Como resultado de esta práctica prudente, el trabajo de Dell, en el proceso (Wip) y el inventario de producto terminado como un porcentaje del…

    • 2102 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Dell vs. Apple

    • 4546 Words
    • 19 Pages

    Michael Dell founded Dell in 1984 at the age of 19. Steve Jobs and Steve Wozniak designed Apple Computer on April 1, 1976. As both companies continue to grow they have contributed to a wide impact on competiveness and efficiency towards strategic goals. Dell Computer Corporation is one of the most visible success stories in the computer market. By selling personal computers directly to customers over the Internet, offering a build-to-order sales system, and then linking suppliers, workers, managers…

    • 4546 Words
    • 19 Pages
    Powerful Essays