Dell Case Study Summary Company Profile Dell Essay

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Dell Case Study Summary

Company Profile

Dell Computer Corporation (DELL:NASDAQ) was founded in 1984 by Michael Dell, who defined a unique business model at the time of purchasing IBM PC components, assembling them to his customers' unique requirements, and selling the complete system at a profit. Originally founded as PC Limited, Michael Dell and the founders changed the name to Dell Computer Corporation in 1987, went public with an Initial Public Offering (IPO) on the NASDAQ stock exchange, and generated $73M in Sales. Dell was the first to revolutionize the high tech industry supply chain (Kopczak, Johnson, 2003) which led to the company's successful launch of their online business in 1996. Since that decision to go online, Dell has expanded their product categories to sell MP3 players, printers, servers, data storage, networking equipment, software, computer peripherals, cameras, HDTV (High Definition Television) and entire storage networks.

In 2003, the company changed it name from Dell Computers Inc. To Dell Inc. And started selling through retail stores including BestBuy, Costco, OfficeMax, Wal-Mart and Tesco in Europe. The company also expanded globally throughout the Pacific Rim with major distribution agreements signed in Asia, Australia and throughout India. This global reach of the company ensured its position as a leading provider of personal computers and electronics, which eventually earned them the ranking of the 38th largest company in the world.

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1.2 Product Profile

The product profile of Dell is best defined by its extensive build-to-order production capability and quickness in responding to customers' needs (Kopczak, Johnson, 2003). The Dell Inspiron is a case in point, which is sold in up to thirty different configuration with 15 different colors and eight major configurations. Dell can produce this model and ship it to custom specifications within 72 hours, delivering it anywhere in the world the customer is.

2. Internal Environment

2.1 Current Marketing Plan

Dell is a leader in electronic commerce and has also continues to generate the majority of its revenues through multichannel retailing and selling with partners as diverse as Wal-Mart to higher-end retailers including BestBuy. The decision to sell through Wal-Mart led the company to create a specific series of models that can meet the price and margin requirements of this global retailer. The Inspiron's low-end models were designed to meet the price and margin requirements of low-end retailers while Dell sells the high-end units through their distribution channels.

2.2 Organizational Resources

Dell is a global leader in technology sales and profitability with $19.6B in current assets and the ability to reliably produce up to 140,000 PCs any given day of their production runs. The company also has extensive investments in supply chains with printer provider Lexmark, which is the printer manufacturer.....

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