Analyze Dell case study using Porter’s Five Forces model. Contents 1.Abstract 2 2.Introduction 3 3.Brief summary of case study 4 4.Porter’s Five Forces and their application to case study 5 5.Threat of substitutes 5 6.Bargaining power of buyers 6 7.Competitive rivalry 6 8.Barriers to new entrants 7 9Bargaining power of suppliers 8 10.Conclusion 9 11.References..............
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main objective of Dell is to produce the low price and profitable notebook for the customer. For Dell Company‚ all the prices that they sell are posed to the internet and they usually based on the e-commerce market. The main reason for successful pricing strategy is having a reasonably accurate idea of supply and demand. Too high a price and demand fall as less buyers purchase the product. Too low a price can increase volume of sales but reduce margins profit. So‚ Dell has aimed for the
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Dell Distribution Network I. Direct sales model Dell current distribution network is direct sales model‚ this online sale refer to the fact that Dell does not use the retails channel‚ but sells its personal computers (PCs) directly to customers through its website www.dell.com. Dell does not make sales through any integrators or resellers‚ nor does it utilize any channel service profit margins. Sales are made by the collaborative efforts of the Dell’s task force and by means of advertisement. Customers
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DELL COMPUTER CORPORATION CASES Latar Belakang Dell Computer Corporation (Dell) adalah perusahaan yang didirikan oleh Michael Dell pada tahun 1984 yang bermarkas di Austin‚ Texas. Dell merupakan perusahaan penjualan langsung komputer paling besar di dunia‚ dengan memiliki 34.800 karyawan di lebih dari 30 negara dan pelanggan di lebih dari 170 negara. Dell Computer Corporation menjual desktop komputer pribadi‚ komputer notebook‚ server jaringan‚ dan berbagai peripheral komputer dan perangkat lunak
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opportunities‚ and defending against the threats to its well being. The SWOT analysis for Dell is summarized below. Strengths Direct to customer business model. Uses latest technology. Dell is the market leader in personal computers. For the last couple of years it has held its position as market leader (it took it from rivals Hewlett-Packard). Dell’s brand is one of the best known in the world. Dell has a remarkably low operating cost relative to revenue because it cuts out the retailer
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Dell’s Value Chain Dell Computer‚ with close supplier relationships‚ encourages sup-pliers to focus on their individual technological capabilities to sustain leadership in their components. Research and development costs are too high and technological changes are too rapid for any one company to sustain leadership in every component. Suppliers are also pressed to drive down lead times‚ lot sizes‚ and inventories. Dell‚ in turn‚ keeps its research customer- focused and leverages that research to
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a large market share from existing competitors in the market. By using the direct model strategy‚ Dell is using a different approach to woo the Chinese consumers. Dell ’s Just-In-Time (J-I-T) inventory keeps inventory costs to a minimum. Companies like China ’s market leader Legend (local Chinese PC)‚ Lenova ‚ recently purchased IBM Hardware Business outside China ‚ they are beginning to move to Dell ’s J-I-T model‚ selling direct to their corporate customers. A barrier to entry in China is dealing
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opened a new market. All other competitors all followed its step to innovate high-density energy-saving server‚ and want to gain some shares in this market. At this time‚ Dell entered to the market with its own low-priced‚ customized servers to compete with SGI. Along with the time passed‚ more and more companies‚ especially Dell‚ targeted SGI’s customer and provided them low-price products that SGI cannot compete with them anymore. In May 2009‚ Rackable Systems that is the former SGI merged with
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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
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Dell Case Study The case study gives an outlook at Dell’s management and operation procedures which are used to operate and structure the company efficiently. The key points are: • Dell’s business plan was to sell good quality hardware at a low cost directly to the customer‚ allowing them to have a tailored Desktop that met their personal requirements; this was done by allowing customers to choose options from a list of components and specification which were then assembled to order
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