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Dept., RVCE
                IT
BY,
 SIDDHARTH DC
 (1RV09IT043)
OUTLINE
 Brief history
 Business Model
 USP




                   Dept., RVCE
 Dell as Brand
 Conclusion




                   IT
History




                                                  Dept., RVCE
     In 1983 Michael Dell a freshman at the
      University of Texas, Austin started upgrading




                                                  IT
      IBM compatible personal computers door to
      door for local business
     Started with the idea to sell directly to
      consumers…..
……
    1985
    ◦ Released the “Turbo”, Dell’s first computer.
    1989
    ◦ Dell released its first notebook computer.
    1993
    ◦ Dell shifts business over seas to try to gain
      market share
    ◦ Europe




                                                      Dept., RVCE
    ◦ Middle-east
    ◦ Japan
    ◦ Australia




                                                      IT
    1996
    ◦ Started selling products on its website.
Business Model
    Direct to customer business model.

    Dell is not a manufacturer. Components are
    made
     by supplier and Dell assembles the computer




                                                   Dept., RVCE
     using cheap labor




                                                   IT
    Markets its direct sales model.
      No intermediaries
      No warehousing
      No physical store presence……
………..
     Dell maintained a month’s worth of
    component
      inventory but it suppliers generally carried
      supplemental buffer stock that could be
      immediately shipped




                                                       Dept., RVCE
     Tailoring their computers to their customers
      specification and selling the item directly to
      their customers is what makes Dell’s




                                                       IT
    business
      model superior
USP’s
    Dell eliminated the need for central
     warehousing as well as the need for a
     physical store presence. Instead Dell attracts
     customers to its site and then builds bonds
     with them there rather than investing in a




                                                    Dept., RVCE
     physical relationship.

    Reduced price




                                                    IT
     ◦ The money saved from selling products
       directly to the customers is then passed on to
       them.
     ◦ By selling directly to the customer Dell
       removes all the cost that they would have
….
   Total customization of their personal computers.
    ◦ Dell offers a totally hands on experience when
      its comes to purchasing your next computer

    Higher level of communication between
    customer
     and company.




                                                       Dept., RVCE
    ◦ Dell is free to collect customer information
      directly from there customers rather than an
       having intermediary try to do this.




                                                       IT
   This allows Dell to not only track its customers
    but also helps to retain them.
…
     A 24-hour telephone support system
    comprising
      well-trained technical representative
    provided
      the first post-shipment level of support.




                                                      Dept., RVCE
      Dell serviced its customers with combination
    of




                                                      IT
       home based telephone representative and
    field
       based representative.
Dell as Brand
    1997
    ◦ Recorded 1 million in sales generated from
      the internet.
     2000
    ◦ Dell was ranked 1 world wide in shipment of




                                                    Dept., RVCE
      Workstations
    2003
    ◦ Dell is made the official name of the




                                                    IT
      company
    ◦ Continually expanding overseas….
….
.
    Dell is the industry leader in direct sale of
     personal computers to consumers

       Global PC Market Share by Units, Percent




                                                     Dept., RVCE
        RANK    2008      2009      2010
        01      HP-18.4   HP-19.3   HP-17.9
        02      DELL-14.3 ACER-13   DELL-12.9




                                                     IT
        03      ACER-     DELL-12.2 ACER-
                11.1                11.3
Conclusion

   There's always an opportunity to make a
    difference..
                       Michael Dell




                                             Dept., RVCE
                                             IT
IT   Dept., RVCE

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Dell ppt

  • 1. Dept., RVCE IT BY, SIDDHARTH DC (1RV09IT043)
  • 2. OUTLINE  Brief history  Business Model  USP Dept., RVCE  Dell as Brand  Conclusion IT
  • 3. History Dept., RVCE  In 1983 Michael Dell a freshman at the University of Texas, Austin started upgrading IT IBM compatible personal computers door to door for local business  Started with the idea to sell directly to consumers…..
  • 4. ……  1985 ◦ Released the “Turbo”, Dell’s first computer.  1989 ◦ Dell released its first notebook computer.  1993 ◦ Dell shifts business over seas to try to gain market share ◦ Europe Dept., RVCE ◦ Middle-east ◦ Japan ◦ Australia IT  1996 ◦ Started selling products on its website.
  • 5. Business Model  Direct to customer business model.  Dell is not a manufacturer. Components are made by supplier and Dell assembles the computer Dept., RVCE using cheap labor IT  Markets its direct sales model.  No intermediaries  No warehousing  No physical store presence……
  • 6. ………..  Dell maintained a month’s worth of component inventory but it suppliers generally carried supplemental buffer stock that could be immediately shipped Dept., RVCE  Tailoring their computers to their customers specification and selling the item directly to their customers is what makes Dell’s IT business model superior
  • 7. USP’s  Dell eliminated the need for central warehousing as well as the need for a physical store presence. Instead Dell attracts customers to its site and then builds bonds with them there rather than investing in a Dept., RVCE physical relationship.  Reduced price IT ◦ The money saved from selling products directly to the customers is then passed on to them. ◦ By selling directly to the customer Dell removes all the cost that they would have
  • 8. ….  Total customization of their personal computers. ◦ Dell offers a totally hands on experience when its comes to purchasing your next computer  Higher level of communication between customer and company. Dept., RVCE ◦ Dell is free to collect customer information directly from there customers rather than an having intermediary try to do this. IT  This allows Dell to not only track its customers but also helps to retain them.
  • 9. …  A 24-hour telephone support system comprising well-trained technical representative provided the first post-shipment level of support. Dept., RVCE  Dell serviced its customers with combination of IT home based telephone representative and field based representative.
  • 10. Dell as Brand  1997 ◦ Recorded 1 million in sales generated from the internet.  2000 ◦ Dell was ranked 1 world wide in shipment of Dept., RVCE Workstations  2003 ◦ Dell is made the official name of the IT company ◦ Continually expanding overseas….
  • 11. …. .  Dell is the industry leader in direct sale of personal computers to consumers Global PC Market Share by Units, Percent Dept., RVCE RANK 2008 2009 2010 01 HP-18.4 HP-19.3 HP-17.9 02 DELL-14.3 ACER-13 DELL-12.9 IT 03 ACER- DELL-12.2 ACER- 11.1 11.3
  • 12. Conclusion There's always an opportunity to make a difference.. Michael Dell Dept., RVCE IT
  • 13. IT Dept., RVCE
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