Dell Company
...develops, manufactures, sells, and supports personal computers, servers,
data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and certain other products.
The use of E-commerce in each internal operation, B2B, and B2C to maximize its efficiency makes Dell Company be the most dynamic and reliable computer company in the world.
2- Background:
a) Industrial Background
Structural Element Source of power or weakness Relative Power
Suppliers Intel could integrate forward High
Intel has competition from AMD Medium
Microsoft has no real competitors for OS High
Parts suppliers (monitors, chassis, etc) are fragmented Medium
Buyers Fragmented, not organized Low
Very low switching costs High
Competitors ¡°Other¡± has largest market share High
Slowing growth, declining margins, little differentiation High
Barriers to Entry High entry costs in a low margin business Low
Threat of Substitutes Handheld devices currently in early phase Low, but growing
(Source: Relative power in the personal computer manufacturing industry)
b) Company Background
Dell Computer was founded by Michael Dell in 1984, It was founded by only
$1000. The startup aimed to sell IBM-compatible computers built from stock components, and then they began to sell its own brand of PCs in 1985.
From the beginning, Dell operated on the direct sales model, taking orders over
the phone, and building PCs to the customers¡¯ specifications.
In 1989, Dell set up its first on-site-service programs in order to compensate for the lack of local retailers prepared to act as service centers.
In 1996, Dell began selling computers via its web site.
Now, each of the regions has its own regional headquarters, its own manufacturing facilities, assembly...
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