ONLINE EASY COMPUTER SHOPPING 

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Dell is one of the famous computer company in the world. It has many different kind of computers. The good thing about Dell is, you can purchase your computer online. You can call DELL and order what you want or you can go online and shop whatever you want. Dell has good offers for their customers. Dell focus on the customer experience instead of saying " we need to increase profit" or "if we deliver an unbelievable customer experience, the revenue and profit will fallow". You can also get a better rate on your Dell computer apparel by buying what you want using Dell Business Coupons. 

Dell is the most aggressive company when it comes to offering discounts. Dell coupons are the most popular coupons available online. They have different kind of promotions like one day deal, Dell coupons, Seasonal deals and day off deals. Dell customers can have an outstanding shopping experience through here. 

BUSINESS STRATEGY

WHICH OF THE THREE STRATEGIC BUSINESS STRATEGIES IS USED? IF DIFFERENTIATION, THEN HOW DO THEY DIFFERENTIATE THEIR SERVICES / PRODUCTS? 

Dell Computer works with overall cost leadership strategy. Dell eliminates wholesale and retail dealers to eliminate unnecessary time and cost. Dell built its computers, servers and workstations according to customers order, not from inventory. Dell customers are able to order custom-built computers, servers and workstations according to their needs. Overall leadership strategy enables Dell Company to provide customers with high quality, relevant technology, customized system, and superior support and service. 

ESTIMATE HOW MUCH POWER OF EACH OF THE 5 FORCES HAS. HOW DO THEY REDUCE THE BUYER AND SUPPLIER POWER? HOW DO THEY CREATE SWITCHING COSTS AND ENTRY BARRIERS? 

Supplier power is the opposite of buyer power. When buyers have many choices then buyer power is high but if buyers do not have many choices then buyer power is low. It is totally opposite for supplier power. If buyers have many choices then supplier power is low but if they do not have many choices then supplier power is high. Companies try to create a competitive advantage to make it more attractive than their competitors. Dell Computers do the same. They use IT enable processing to reduce their buyer power. 

| There are many other computer companies. But Dell Computer based on built to order manufacturing. It is more attractive than the others. Because if you order a computer from Dell, you know that you can customize it according to your needs and you also know that you will get it in few business days. 

WHAT MAJOR BUSINESS INITIATIVES ARE USED OR BEING CONSIDERED? WHAT SOFTWARE IS USED? ARE THEY TOP LINE OR BOTTOM LINE?

Dell Computer’s supply chain management is the envy of this industry. It gives the company an advantage over any competitor while they are still using a traditional model of selling through retailers. Usually computers sit in the warehouses till buyers come and take them. But Dell sells their computers directly to buyers. They do not deal with retail stores or other problems. Skipping retail stores and selling computers directly to the customers reduce unnecessary time and cost. 

Supply chain management system is an IT based system. It supports management activities by automating the tracking of inventory and information among business processes. Supply chain management dominated by ERP softwarer like SSA Global, Oracle, SAP and Microsoft. ERP system is successful in transportation, sales and distribution, production, accounting, manufacturing and financials. 

BUSINESS STRATEGY

What kinds of e-commerce are used? 

Dell uses business-to-consumer e-commerce and business-to-business e-commerce. But primarily uses business-to-consumer e-commerce, which means they sell their products and services to customers who are primarily individuals. Customers are hoping to purchase computers directly interact with Dell. But on the other hand, Dell sells their products and services to customers who are primarily into business. So Dell also uses business-to-business e-commerce.

What kinds of Internet business models are used? 

Dell uses two different kinds of Internet business models; built to order and direct sales. Built to order help Dell to save money, time and inventory. Dell makes its computers according to customer’s order. None of them are made from inventory. For example if a customer wants a custom models or any special style, Dell creates the product according to the customer’s needs and order.

A direct sale means Dell sales its products directly to the customers. Because Dell believes that selling products directly to customers without retailers or dealers would be the best.

What payments systems are used? 

Payment system means ensuring payment security, transaction privacy, customer authentication, and the purchaser’s promise to pay. Dell offers a variety of payment methods to pay for Dell products. Dell accepts PayPal and also accept of paying month to month.

What type of marketing mix does it adopt? 

Dell uses business to consumer e-commerce. In business to consumer e-commerce, marketing mix include registering with search engines, online ads, viral marketing and affiliate programs. Some web search engines guarantee you that your site name will appear at the top. Online ads are small advertisements which appear on other websites. Viral marketing encourages users of a product supplied by business to consumer e-commerce business to encourage friends to join as well. And lastly affiliate program is an arrangement between two different e-commerce websites that directs viewers from one site to the other.

INTRODUCTION

HISTORY OF DELL

You don't ever really know whether you have come up with the right plan until much later...When it either works or it doesn't. What is the right plan? It is the one that helps you identify what you need to to ensure success. It is the one that rallies your employees around a few common goal and motivates them to achieve them. It is the one that involves your customers' goals and your suppliers' goals and bring them altogether in a unified focus. 

-Michael DELL

Dell Computer Company was founded by Michael Dell in 1984 and now it is one of the leader in the personal computer industry through aggressive risk taking and cost lowering strategies. Michael Dell, the founder of Dell Computer, began his venture in 1980. Michael Dell's first computer purchased was Apple II. A year after, in 1981, IBM introduced the personal computer (PC). Michael Dell, saw this new product as a business option and he switched from Apple to IBM PC and began to learn all components. 

In 1983, Michael Dell, 18 years old college student at University of Texas, spent his evening pre-formatting hard disks for IBM compatible PC upgrades. In 1984, Michael Dell started a new computer company with $1000. Michael Dell's mission was to be the most successful computer company at delivering the best customer experience in markets. So he would meet some customer expectations such as highest quality, leading technology, competitive prices, flexible customization capability, best service and support, individual and company accountability, financial stability and superior corporate citizenship.

His cool new idea was to sell personal computers (PCs) directly to consumers from lower prices but offering limited customer support. 

CEO OF DELL : MICHAEL DELL

 

Michael DELL, born in February 1965, is the chairman of the board of directors and chief executive officer of Dell, the company he founded in 1984 with $1000 and an unprecedented idea- to build relationships directly with customers. In 1992, Michael became the youngest CEO ever tho earn a ranking on the Fortune 500. His story of the rise of the company and the strategies he has refined that apply to all business. In 1998, Michael formed MSD Capital and in 1999, he and his wife formed the Michael and Susan Dell foundation to manage the investments and philanthropic efforts, respectively, of the Dell family. Michael serves on the Foundation Board of the World Economic Forum, the executive committee of the International Business Council and is a member of the U.S. Business council. Michael also serves on the technology CEO Council and the governing board of the Indian School of Business in Hyderabad, India. 

STRATEGY 

Dell's differentiation strategy is based on some core elements: direct to the customer, built to order manufacturing which includes desktops, workstations, network servers and laptops, mass customization, just in time components inventories, partnership with suppliers, direct sales, market segmentation, customer service and data & information sharing with both supply partners and customers. Dell also offers a wide range of optional peripherals like monitors, cable, modems, video, and  data storage.  Dell is the leader in direct sales of computers. The idea behind selling computers directly to customers was to better understanding of consumers needs and to provide the most compelling solutions to meet those consumer's needs. According to Michael Dell, PC business had two advantages; first advantage is carrying a large stocks of parts and components and finished goods reduces the costs and risks. And the second advantage is bypassing retail dealers and distributors, selling computers directly to customers help company to eliminate unnecessary time and cost.