Dell direct marketing

SJB INSTITUTE OF TECHNOLOGY
• Sub with code : Research Methods (14MBA23)
• Topic: DELL
Presented by:
GOURAV J
2nd SEM,’A’ SEC,
Department of MBA
Presented To:
Mr. SANTHOSH
Asso Professor
SJBIT,MBA Dept..

Contents
 Introduction.
 History.
 Present CEO.
 Dell Vision and Mission.
 Dell direct model.
 Dell supply chain and logistics.
 SWOT Analysis.
 Conclusion.

Introduction
 Dell company was established in 4th November 1984.it is an American
multinational information technology corporation founded by Michael Dell.
 Head quarter located at Round Rock Texas , United States.
 Dell company is one of the largest technological corporations in the world ,
employing more than 1,03,300 people.
 Dell company develops ,sells and supports computers and related products and
services.
 Dell-world’s largest direct selling company.
 Dell changed the tradition by eliminating retailers.
 They ship more than 10,000 systems every day to customer in 180countries.
 About 90% of the Dell computers are manufactured in china.

History of DELL
• Dell computer corporation became official in may 1984. founded by Michael
S. Dell
• In 1985 company introduces the first computer system of its own design.
• In 1987 Dell is the first computer systems company offer next day, on-site
product service.in 1988 the company changed its name as Dell computer
corporation.
• In 1996,Dell started selling computers over the web ,and his company
launched its services.
• In 2003,changed its named to Dell Inc.
• Dell is the industry leader in direct sale of personal computers to
consumers.it was founded on the direct Business-to-consumer.
• The following year ,Dell computers became world’s largest pc maker.

PRESENT CEO
Michael Dell
Michael Saul Dell (born February 23,
1965) is an American business magnate,
investor, philanthropist, and author. He
is the founder and CEO of Dell Inc, one
of the world’s leading sellers
of personal computers (PCs). He was
ranked the 41st richest person in the
world on 2012 Forbes list of
billionaires, with a net worth of
US$22.4 billion as of December 2014.

Dell VISION & MISSION
VISION
“It’s the way we interpret the world around us- our customers needs, the
future of technology, and the global business climate”
MISSION
“to be the most successful computer in the world at delivering the best
customer experience in markets we serve”

Dell Products
 Desktops.
 Notebooks.
 Peripherals.
 Printers.
 Televisions.
 Scanners.
 Pen drives.
 Smart phones.

Dell Direct model
• Direct sales from the PC manufacturer to the corporate customer.
• By passing the dealer channel . selling directly to consumer.
• Focused on speed of execution and minimum inventory.
• Reseller customized the pc to customer requirements , installed
components and provided additional service and support.
• Dell operates in B2B and B2C business in 180 country markets.
• Dell utilizes a direct distribution model to sell about $50 million per
day online . half of its sales.

• Product and services aimed at specific market segments.
• Use IT to control value chain and achieve a high degree of
coordination.
• Latest technology was introduced faster than indirect channels.

Benefits of direct sales method
 Customer get what they want , rather than be forced to choose among a fixed
set of options.
 Direct sales is a powerful model for both Dell and its customers.
 Dell can use savings in other areas such as web site improvement ,
marketing and distribution.
 It established direct customer relationship and eliminate cost and risks of
carrying large inventories.

Dell supply chain , logistics
o Transportation from suppliers to hubs . this takes approximately
30 days.
o Movement between hubs and dell factory .time taken is about 2-5
days.
o Dell chose i2 technologies for its scm system.
o Instead of forecasting the daily supply needed. dell receives exact
material every two hours to fulfil actual customer orders.
o Every 20 sec they analyses material requirements ,compares dell’s
hand inventory with its suppliers inventory.

SWOT Analysis
STRENGTH
 Dell cuts out the retailer and suppliers directly to the customers.
 It uses information technology and customer relationship management
approaches to capture data and its loyal customers.
 Technical knowledge.
 Customer focused.
WEAKNESSES
 Low investments in R&D.
 Weak patents portfolio.
 Too few retail locations.

OPPORTUNITIES
 Expand services and enterprise solutions businesses.
 Obtain more patents through acquisition.
 Product extensions.
THREATS
 Growing demand for smartphones and tablets.
 Slowing growth rate of the laptops market.
 Intense competition.

conclusion
• The key to dell’s success has been its direct sales and build
up order business model.
• Dell’s use of IT plays a vital role in the implementation of its
business model . the company has used IT to coordinate its
build-to-order processes from order taking through
procurement , logistics , production, service and support.

Dell direct marketing

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