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þ Rahesh Sutariya 103
þ Parag Soni 102
þ Rushabh 90
þ Samir Sejpal 84


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þ °ased in USA Multinational Information Technology Corporation
Founded by Michael Dell on November 4,1984

þCompany is into the business of Computer Systems, Peripherals-

One of the leading PC Manufacture in the world

þProducts: personal computers, servers, data storage devices,

network switches, software and computer peripherals

þ As on January, 2010(Worldwide) :
þ Employees-96000(48% in USA) & Revenue-$52 billion

þ The company is well known for its innovation in Supply Chain

Management, Electronic Commerce & Green Initiatives
þ The single concept: 
     


þ Designed and built the first computer system of its own design in
1985 and the first to send a technician to home services in the same
year

þ In 1996, Dell began selling computers via its web site in 2002

þ Listed at # 38 position by largest company in USA(3 May, 2010)

þCompany has grown by Mergers and Acquisition:

þ Alienware(2006)
þ Parot System(2009)
þ & 
þ Apple
þ HP(Hewlett-Packard)
þ Acer
þToshiba
þ Gateway
þ Sony
þ Lenovo
þ I°M
þ Samsung
þ Sun Microsystems etc.
þ Company has roughly 26-28% market share compared to HP with
24-25% in the worldwide market
þ Company is facing tough competition from HP, I°M and Compaq
þ&  
þ AMD
þ Amtech Group
þ I°M
þ Intel
þ Samsung ElectronicLG
þ LG etc.
þ 
!

þ From its early beginnings, Dell operated as a pioneer in
the 
!    approach to manufacturing ²
delivering individual PCs configured to customer
specifications unlike other market players
þ Manufacturing process covers assembly, software
installation, functional testing and quality control
þ Plant at Chennai in India to serve for Indian Subcontinent
 




þ Dell¶s business has been built on a direct sales, build-to-
order(Model) strategy for producing and selling PCs-following for
more than 20 years

þ Customers can directly place an order via the phone or its website-
with no retail outlets and no middleman(Known as E-commerce)

þ Over the years, direct sales, Ecommerce and its supply chain
efficiencies gave it competitive advantage-USP

þ In the beginning of 2002, half of the revenue from company¶s

website-Within six months of entry

þ In short, this direct contact with consumers gives Dell a

competitive advantage-feedback from customers-fully customized
product
 Dell¶s Direct Model
þ Traces its origins to Michael's idea of selling computers
directly to the consumer eliminating the need for middlemen
and distributors
þ Michael believed that by selling PCs directly to the
consumers, the company would be able to better understand the
needs of its customers
þ Role of Dell¶s Suppliers:
þ In order to manage its operations with low inventory
levels, Dell collaborated closely with its supplier
þ Procurement decisions were based on four criteria -
quality, cost, delivery and technology
þ Selected on the basis of cost (Weightage of 30%) and
quality, service and flexibility (Weightage of 70%)
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þ Close relationship with customers and suppliers
þ First-hand and pure customer feedback
þ High volumes of customer information
þ Low Inventory
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§ Established  
, )  by embracing the
Internet in its supply chain

§ 
!  to Dell:
þ Dell brings products to market faster than its competitors

þ Customization and quick response

þ Attract large business customers

þ Reduce °ullwhip Effect

þ Collecting the payments

§  (
   # ! 

  

þ Dell uses direct sales via Internet, whereas Traditional PC

manufacturers previously assemble PCs ready for purchase at
retail stores.
þ PCs have life cycles of only a few months
þ Thus, Dell enjoys early-to-market advantage

§  - 

 , # 


þ Dell uses the Internet to sell its products

þ Offers a virtually unlimited variety of PC configurations
þ °uyers can click through Dell and assemble a computer system
piece by piece, based on their budgets and needs
§ |  (
 

þTo facilitate °2° sales, the Dell site offers each corporate
customer an individualized interface called ³Premier page´
þPurchasing managers log on and order using an interface
customized for their company's needs
þWhile Dell¶s consumer sales are highly visible, its business
sales are a much bigger revenue source
þ³About 15 percent of our total revenue is consumer business
and the rest is °2°´ says °ob Kaufman, Media Relations
manager of Dell

§  
 +!!
þ Dell constracts special Web pages for suppliers, allowing them
to view orders for components they produce.
þ This allows suppliers to plan based on customer demand
§ 
 
 


þ °ecause of direct sales, Dell can collect payments in averagely

5 days after they are sold
þ However, Dell continues to pay their suppliers according to the
traditional billing schedules
þ Low level of inventory and negative working capital helps Dell
increase its performance and profitability