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Dell Inc. (DELL)

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Dell Inc. (stylized as DELL) was an American privately owned multinational computer technology company based in Round Rock, Texas, United States, that developed, sold, repaired, and supported computers and related products and services. Eponymously named after its founder, Michael Dell, the company was one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell sold personal computers (PCs), servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players, and electronics built by other manufacturers.

The company was well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its “build-to-order” or “configure to order” approach to manufacturing—delivering individual PCs configured to customer specifications. Dell was a pure hardware vendor for much of its existence, but with the acquisition in 2009 of Perot Systems, Dell entered the market for IT services. The company has since made additional acquisitions in storage and networking systems, with the aim of expanding their portfolio from offering computers only to delivering complete solutions for enterprise customers. Revenue US$54.9 billion (2016), Owner Michael Dell (75%), Silver Lake Partners (25%),Number of employees 101,800 (2016)

Description on the types of the business of DELL

Dell Inc. is a premier provider of computing products and services. As a result of its direct business model, Dell was the leading seller of computer systems worldwide and the number one seller in all customer segments in the United States. Dell was founded in 1984 by Michael Dell on a simple concept: by selling computer systems directly to customers, it could best understand customer needs and efficiently provide the most effective computing solutions to meet those needs. Dell’s climb to market leadership is the result of a relentless focus on delivering the best customer experience by selling computer systems and services directly to customers.

Dell’s business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use.

The key tenets of Dell’s business strategy are:

  • A direct relationship is the most efficient path to the customer. Direct customer relationships provide a constant flow of information about customers’ plans and requirements and enable Dell to continually refine its product offerings. The direct model also eliminates the need to support an extensive network of wholesale and retail dealers. As a result, Dell reduces customers’ prices by avoiding expenditures associated with the retail channel, such as higher inventory carrying costs, obsolescence associated with technology products, and retail mark-ups.
  • Customers can purchase custom-built products and custom-tailored services. Dell believes the direct model is the most effective business model for providing solutions that truly address customer needs. In addition, Dell’s flexible, build-to-order manufacturing process enables Dell to achieve faster inventory turnover and reduced inventory levels. This allows Dell to rapidly incorporate new technologies and components into its product offerings and to rapidly pass on component cost savings directly to its customers.
  • Dell is the low-cost leader. Dell’s highly efficient supply chain management and manufacturing organization, efficient direct-to-customer model, and concentration on standards-based technologies allow Dell to maintain the lowest cost structure in the industry and pass on those savings to its customers. Dell’s relentless focus on reducing its costs allows it to consistently provide customers with a superior value.
  • Dell provides a single point of accountability for its customers. Dell recognizes that as technology needs become more complex, it becomes more challenging for customers to efficiently address their computing needs. Dell therefore strives to be the single point of accountability for customers with complex technological challenges. Dell offers an array of services designed to provide customers the ability to maximize system performance, efficiency, and return on investment.
  • Standards-based technologies deliver the best value to customers. Dell believes that standards-based technologies are critical to providing customers with relevant, high-value products and services. Focusing on standards gives customers the benefit of extensive research and development from Dell and its entire supply chain, rather than a single company. Unlike proprietary technologies, standards provide customers with flexibility and choice while allowing their purchasing decisions to be based on performance, cost, and customer service.

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GradesFixer. (2018). Dell Inc. (DELL). Retrived from https://gradesfixer.com/free-essay-examples/dell-inc-dell/
GradesFixer. "Dell Inc. (DELL)." GradesFixer, 03 Dec. 2018, https://gradesfixer.com/free-essay-examples/dell-inc-dell/
GradesFixer, 2018. Dell Inc. (DELL). [online] Available at: <https://gradesfixer.com/free-essay-examples/dell-inc-dell/> [Accessed 10 August 2020].
GradesFixer. Dell Inc. (DELL) [Internet]. GradesFixer; 2018 [cited 2018 December 03]. Available from: https://gradesfixer.com/free-essay-examples/dell-inc-dell/
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