STID Group Assignment Dell

1.
DELLS COMPANY BACKGROUND AND ITS CORE BUSINESS

Dell Incorporated is an American privately owned multinational
computer technology company based in Round Rock, Texas and United

States that supports computer system plus its associated merchandise and
services. The founder is Michael S.Dell and it is founded on 1st February
1984. Dells company empowers countries, communities, customers and
people everywhere to utilize technology to understand their aspirations.
Customer trust Dell to deliver technology solutions that help them to do and
achieve more things, whether they are at home, work or school.
Dell seeks to profitably grow the desktop and mobility job. In
summation, it heightens the online buying experience for clients. Dell has
improved its competitiveness through cost savings initiatives, which focused
on improving design, supply chain, logistics and operating expenses just for
adjusting to the changing dynamics of the industry. They also created a costefficient way to sell their computers by cutting out the middle man and
selling their computers directly to the customers. Dell has a strategies of
direct sales and build to order production that have proven successful in
minimizing inventory and bringing new products to the market quickly,
enabling it to increase its market share and achieve high returns on
investment.
2.0
DELLS MAJOR COMPETITOR

Dells major competitor is HP (Hewlett-Packard). HP is a multinational
information technology (IT) company that sells hardware, software, and

related business services. It founded in 1939 by Stanford University
Engineering graduates William R. Hewlett and David Packard. The product
lines include PCs and other computing devices, enterprise and industry
standard servers like storage devices, software, printing machines and
scanners. The company introduces handheld calculators that are the first
commercially distributed data processing system.
HP discovered that it can run for 24 hours beating out its competitor
that is Dells company which can make the Latitude line of laptops that
feature only in 19 hours of battery life. HP redesigned their laptop line a year
ago for the consumer dv series, the design was received well and is popular
with consumers. The glossy finish lid and eye catching imprint finish gives a
cool and classy look. HP stuck with essentially the same design for the
dv6500t as the proceeding dv6000t, except changed the imprint finish
slightly. The dv6500t has what is called a "Radiance" imprint finish. The
imprint is part of the plastic casing that can be sure it will never scratch or
wear off like paint sometimes does from laptop lids. This features is beat
Dells product.
According to research firms, PC shipments in the third quarter went
along their growth spurt with higher than expected figures and HP narowed
top PC vendor Dells lead. The resolutions of the quarter also showed that HP
has closed unit sells gap with Dell. In the second quarter, HP trailed Dell by
400 000 units. While in the third quarter the difference was only 62 000
units. HP performed best in the United States, though it was growing well in
other regions. Dell also did well in all regions, while IBM though it saw good
results in Europe and Asia struggled in the United States market.
3.0
AFFECT OF INTERNET TO DELLS COMPETITIVE FORCES MODEL

The best-known framework for analyzing competitiveness is Michael Porters
competitive forces model. Dell Computer Corporation use Porters model to develop strategies
to increase their competitive edge. Porters model also demonstrates how Internet can make Dell
more competitive.
First of all, the competitive forces include the threat of entry of new competitors. For
Dell, the Internet increases the threat that new competitors will enter the market by reducing
traditional barriers to entry. Frequently, competitors need only to set up a Web site to enter a
market. The Internet can also increase barriers to entry, as when customers come to expect a
nontrivial capability from their suppliers.
Beside that, the bargaining power of suppliers also the one of competitive forces. The
Internet enables Dells buyers to find alternative suppliers and to compare prices more easily,
thereby reducing suppliers bargaining power. From a different perspective, as Dell use the
Internet to intergrate it supply chains, participating suppliers can lock in customers, thereby
increasing suppliers bargaining power.
Furthermore, the bargaining power of customers or buyers also be classified as
competitive forces. The Internet provides customers with incredible amounts of choices for
products, as well as information about those choices. As a result, the Internet increases buyer
power. However, Dell can implement loyalty programs where they can use Internet to monitor
the activities of millions of customers. Such programs reduce buyer power.
Other than that, the threat of substitute products also be defined as one of the competitive
forces.
New technologies create substitute products very rapidly and the Internet makes
information about these products available almost instantly. As a result, Dell are in great danger
from substitutes. However, the Internet also can enable Dell to build in switching costs, which
will result in costing customers time and money to switch from Dell to other competitor
company.
Lastly, the competitive forces also include the rivalry among existing firms in the
industry. In the past, proprietary information systems provided strategic advantage for Dell in
highly competitive industries.
The visibility of Internet applications on the Web make
proprietary systems more difficult to keep secret.
Therefore, the Internet makes strategic
advantage more short lived.

4.0
DELLS COMPUTER BASED INFORMATION SYSTEMS (CBIS) CONTRIBUTE

DELLS COMPETITIVE STRATEGY
As a multinational enterprise, Dell Computer Corporation is very competent in executing
its global strategy and provided it with an initial competitive advantage that was unrivaled in the
first half of the 2000s. It is a major manufacturer of personal computers, computer peripherals
and software.
Among the leading producers of computers in the worls, Dell sells its products directly to
customers through the Internet and mail-order catalogs rather than through retail outlets. By
using this direct business model, Michael Dell belived that Dell could best understand customers
needs and efficiently provide the most effective computing solutions to meet those needs. Dell
ables to retailers that add unnecessary time and cost, or can dimish Dells understanding of
customer expectations.
Dells website provides customers with information on the different products they offer
and that are available to them. Their existing website offers products for homes and the business
sector. The website is also available in different languages to make it easier to customers. They
also need to have a system that once a order is placed, it will provide the customer with order
status updates automatically.
Beside that, the inventory control systems also used by Dell in process to sell products
directly to customers. This systems is up to date and reliable to prevent problems to arise. The
inventory system of Dell makes sure that anything the consumer need will be available to them at
any given time. It is also what the company uses to know if certain products are still available or
misuse of the inventory system may cost problems to the company.
Through this information systems, Dells corporation has been able to create effective
cost leadership and differentiation strategies as mechanisms to obtain a competitive advantage
over its competitors. Through cost leadership strategies, the corporation is concerned with cost
reduction related with value chain activities and also through the decrease in the total amount of
the resources used in the production of its products. Dell has been able to employ differentiation
strategies by differentiating its operations through engagement of higher quality production. To
achieve high quality products, Dell has been able to conduct its value chain activities better than
its competitors.

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1.

DELLS COMPANY BACKGROUND AND ITS CORE BUSINESS

computer technology company based in Round Rock, Texas and United

DELLS MAJOR COMPETITOR

information technology (IT) company that sells hardware, software, and

AFFECT OF INTERNET TO DELLS COMPETITIVE FORCES MODEL

The visibility of Internet applications on the Web make

proprietary systems more difficult to keep secret.

Therefore, the Internet makes strategic

advantage more short lived.

DELLS COMPUTER BASED INFORMATION SYSTEMS (CBIS) CONTRIBUTE

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