Preview

Dell Value Chain

Powerful Essays
Open Document
Open Document
1733 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Dell Value Chain
VALUE ADDED CHAIN IN DELL

SUBMITTED BY:
SIDDHARTHA DAS
ROLL NO: 32
BATCH: PGDM (FM) 2010-12
SUBJECT: Project and Infrastructure Management: Financing, Implementation and Control

Table of Contents Sl.No. | Description | Page No. | 1 | VALUE CHAIN ANALYSIS | 3 | 2 | VALUE CHAIN IN DELL | 4 | 3 | DIRECT SELLING STRATEGY OF DELL | 5 | 4 | COMPONENTS OF DIRECT SELLING STRATEGY | 6 | 5 | ADVANTAGES OF VALUE CHAIN OF DELL | 8 | 5.1 | CONCLUSION | 9 |

CHAPTER-1
What is Value Chain analysis?
The value chain of a company is the entire product flow of a company beginning from its suppliers to the customers as well as managing the flow of information so that both the customers derives maximum satisfaction while at the same time the company maximizes the profit. The Value-Chain was conceptualized and popularized by Porter in 1985 through his book, “Competitive Advantage: Creating and Sustaining Superior Performance”. The value-chain management tool recognizes that there are two value-adding activities in an organization, the “primary activity” and the “support activity”. (i) The primary activity includes inbound logistics, production, outbound logistics, sales and marketing, and maintenance. (ii) Support activities include administrative infrastructure management, human resources management, research and development team and procurement
Primary Value-Chain Activities: * Inbound logistics: It is the receiving and warehousing of raw materials, and their subsequent distribution to the processes of manufacturing. * Operations: It is the processes of transforming inputs into finished products and services. * Outbound logistics: It is the warehousing and distribution of finished products. * Marketing and sales: It is the identification of customer needs and the generation of sales. * Service: It is the support given to customers after the products and services are sold to them.
Support Value Chain Activities: * The

You May Also Find These Documents Helpful

  • 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
  • Good Essays

    BUS 401 Chapter 3 MC

    • 1065 Words
    • 14 Pages

    Which of the following is a primary activity? warehousing and inventory control Inbound logistics include 4. baggage handling In assessing its primary activities, an airline would examine 5.…

    • 1065 Words
    • 14 Pages
    Good Essays
  • Powerful Essays

    Managing the Value Chain

    • 1038 Words
    • 4 Pages

    Successful companies are successful because of their ability manage the intrinsic concept which develops and evolves their value chain and competitive advantage. The purpose of this paper is to provide the reader with a compelling argument as to why an effective value chain creates competitive advantage. The author will also discuss and provide an analysis of the following: three critical concepts when thinking about how a value chain creates competitive advantage in relation to the value chain, competitive advantage, and customer delight. The author will also discuss the inter-relationship of these three concepts, provide examples of successful companies, and finally, provide examples of unsuccessful companies.…

    • 1038 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    The Value Chain analysis was created by Porter and published in the book Competitive Advantage, in 1985. In this book, Porter explains the different strategies that a company can adopt in order to gain advantage against its competitors, which can be trough cost reduction or differentiation. The Value Chain is than a tool used to analyse the sources of competitive advantage of an organization, by disaggregating the firm into strategically relevant activities, each one with its own inputs and outputs. The competitive advantage is obtained when a firm can perform these activities either cheaper or better than its competitors.…

    • 1154 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Value Chain divides activities within a firm into two broad categories: primary activities and support activities. It highlights the explorations of internal analysis of a chain of business activities and explores the role and contribution of organization's resources corresponding to primary and support activities in a cost-effective way to gain cost advantage (Lynch, 2000).…

    • 1050 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Dell’s Value Chain Case

    • 492 Words
    • 2 Pages

    1. How has Dell used its direct sales and build-to-order model to develop an exceptional supply chain?…

    • 492 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Gascoyne Gold

    • 1223 Words
    • 5 Pages

    * Outbound logistics: It includes all the activities involved in getting the product to the customers.…

    • 1223 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Focusing on cost leadership has allowed Dell to sustain a competitive advantage in the PC market for the last few years. The primary method Dell uses in order to realize and sustain their competitive advantage is a distinctive, direct to consumer business model. The model is known as Dell Direct, this refers to their relations with their customers as being "direct." This model helps Dell focus on the price for performance, customization, service and support. Additionally, Dell is able to differentiate itself from its competitors with its customized just-in time manufacturing. With this customization, Dell is able to offer customers more value for their money by abolishing intermediaries in their procurement, manufacturing and distribution processes.…

    • 674 Words
    • 3 Pages
    Good 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
  • Satisfactory Essays

    Dell case

    • 532 Words
    • 3 Pages

    The centerpiece of Dell's strategy to gain market share is to be a faster and more flexible options for customers. By focusing on reducing the occasions that can slow down the time it takes from ordering that the customer gets the computer to themselves , they have revolutionized the way how the PC market sales are made . The major competitors such as HP and IBM, are trying to predetermine based on market studies what customers want , and then produces computers for stock, while Dell lets customers decide what components they want in their computer. Customers ordering via the telephone or , increasingly , via the Internet. In doing so, avoid Dell intermediaries becomes more cost carriers. Where competitors more trying to focus on creating services around the product , thereby creating value for the customer , trust Dell more on the customer already has the implementation knowledge required to do a proper , active purchasing choice .…

    • 532 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Dell Jit

    • 2118 Words
    • 9 Pages

    Dell – Supply Chain Management Case Study 1 Case Contents 1. Introduction...................................................................................................... 2 2. Dell – Company Overview ...............................................................................2 3. Dell Products and Services .............................................................................3 4.…

    • 2118 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The internal value chain of an online learning institution consists of all physically and technologically distinct activities within the institution that add value to the learner's experience. The key to analyzing the value chain is understanding the activities within the institution that create a competitive advantage, and then managing those activities better than other institutions in the industry. Porter (1985) suggested that the activities of a business can be grouped under two headings: primary activities, those that are directly involved with the physical creation and delivery of the product or service; and support activities, which feed both into primary activities and into each other. Support activities (e.g., human resource management, technology development) are not directly involved in production, but have the potential to increase effectiveness and efficiency. It is rare for an organization to undertake all primary and support activities. Value chain analysis is thus a means for examining internal processes and identifying which activities are best provided by others. Figure 3-4 presents a generic value chain adapted for an online learning institution.…

    • 838 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Dell Computer Corporation

    • 2948 Words
    • 12 Pages

    Dell 's business strategy combines direct customer contact with highly efficient manufacturing and effective supply chain management. Dell has emphasized…

    • 2948 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Joe & Rachelle Friedman opened their first music store on Park Row in New York City in 1971, where they sold vinyl LPs of the current chart-toppers. Since that time, the business has expanded steadily. J&R now covers a massive city block across from City Hall Park in the heart of Downtown Manhattan. The stores are a “must-see” for many tourists and a “must-shop” for New Yorkers in the know. J&R’s business, too, has expanded. J&R Music & Computer World not only sells an incredible array of CDs and a vast selection of to[ computer goods, but also digital cameras, cell phones, TVs, stereos, MP3 players, DVDs, kitchen appliances and much more. They have developed a loyal base of customers around the world through our catalogues and through JR.com (launched in 1998). In fact, J&R is the only company to receive two separate “Retailor-of-the-Year” awards and, in 2010, Joe and Rachelle were inducted in to the Hall of Fame by the Consumer Electronics Association.…

    • 864 Words
    • 4 Pages
    Good Essays