Mission Statement
Dell's mission is to be the most successful computer
company in the world at delivering the best customer experience in markets we
serve. In doing so, Dell will meet customer expectations of:
v
Highest quality
v
Leading
technology
v
Competitive pricing
v
Individual and company accountability
v
Best-in-class service and support
v
Flexible customization capability
v
Superior corporate citizenship
v
Financial stability
Substantiation of this mission
statement
Part 1:
Dell Computers – An Executive Summary
Part 2:
Dell Computers – A Historical Perspective
Part 3:
Dell Computers - Competitive Advantage (An Industry Perspective)
Part 4: Dell
Computers – A SWOT Analysis
Part
5: Dell Computers – Strategies in IT
Part
6: Dell Computers - Source Listings
Dell computers - Executive Summary
About the
Executive Summary
This summary
represents the highlights of a research project completed by graduate students
at Dakota State University of Madison, SD.
The group assignment was to research and prepare a paper and
presentation on Dell Computer Corporation.
Moreover, how has Dell used information technology in the marketplace,
what gives it a competitive advantage over industry competition, a SWOT analysis,
and what information technology strategies does Dell incorporate?
Methodology
Used
An in-depth
search was made of both Internet sources and printed medias to secure
information that was relevant to our assigned task. A list of sources utilized in the preparation
of this report are footnoted, and has been compiled and made part of the
detailed report.
Detailed
Report
The detailed
report of the group findings on Dell Computer Corporation is attached. Copies
are available upon request, and group members may be contacted for presentation
purposes.
Report
Highlights
v Dell timeline - maps and
highlights rise to industry prominence
v
Dell utilizes its “Golden Rule” in
conducting commerce world-wide
v
Computer industry analyzed using
Porter’s Five Forces Model
v
Industry comparisons using Compaq,
Hewlett-Packard, Gateway, and IBM
v
Dell’s value chain then and now
compared
v
Dell Computer Corporation analyzed
using the SWOT method
v
Analysis of Dell Financial
statement
v
Dell’s strategies in Information
Technology
v
Dell’s virtual integration
Results
v
From humble 1984 beginnings, Dell
goes public in 1988, capitalization is increased to $85 Million Dollars from
$1,000.00 in 1984
v
Dell has posted only 1 quarterly
operating loss in company history
v
By 1996, Dell has become the 3rd
largest hardware vendor in the world
v
Dell unveils Metric 12 production
line, and drastically changes the way they manufacture hardware
v
In less than 13 years of
operation, Dell becomes the number 1 seller of personal computers in the United States
v Over 50% of all company sales are conducted via e-Commerce, ranking Dell
as the #5 e-Tailer overall
v
Dell begins to divide its
attention between the mature PC market and new and innovative forms of business
in order to increase profitability
v Virtual integration enables Dell to meet customers’ needs faster and more
efficiently
v Information technology for Dell has not been one large step, but rather a
series of small steps that over time has added up to a large competitive
advantage
Recommendations
Success is measured by liquidity, profitability, and
growth. A company must have liquidity in order to withstand the ups and downs
of the business cycle. A company must be
profitable in order to maintain the confidences of the investors. A company must grow, not only in their
current market place, but also in new and innovative markets, as technology
dictates. The ability to succeed in
these areas will prove advantageous, when competing within your industry, when analyzing your strengths and weaknesses,
and when changing the way you are doing business, based on changes in the internal strategies of information
technology.
The ability to recognize and utilize
cutting edge information technology strategies (the means) will lower
transaction costs, thereby increasing profitability, liquidity, and allow the
company to grow within its market and industry (the end).
To this end, Dell has utilized
many IT strategies, namely: E-Tailing,
E-Commerce / Procurement, Just-In-Time Manufacturing, E-Commerce /
Distribution, and an ultra-modern customer database.
Can the success of Dell be
duplicated? The answer is no, but it can
be emulated to a large degree, furthering the success of your business
pursuits. Michael Dell has some simple
observations for success, you must be - high quality, leading edge,
competitive, customer driven, financially stable, and willing to learn.
Dell Computers – A Historical
Perspective
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1984
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With
$1000.00 in startup capital, Michael S. Dell registers his business Dell
Computer Corporation DBA PC’s Limited.
They are the first company to sell custom-built computers directly to
end-users, thereby bypassing the
normal retail channels of using resellers to sell their products.
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|
1986
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Dell
pioneers the industry’s first 30-day money back guarantee.
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1987
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Dell
establishes its first International subsidiary in the
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1988
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Dell goes
public, raising $30 million in its first offering, bringing capitalization to
$85 million from $1000 in 4 years.
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1989
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Dell
accumulates excess inventory of memory components, which results in write
downs, and cancels a development program named “Olympic”.
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1990
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Dell becomes
the first to sell through retail stores such as CompUSA and Best Buy, later
they also become the first to leave this retail segment.
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1992
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Fiscal year
ending January 1993 shows sales of $2 billion, an increase of 127%.
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1993
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Dell cancels
second stock offering, and posts its only quarterly loss in company
history. “Liquidity, profitability,
and growth” become the company credo, signifying its shift from a focus on
growth alone to a focus of more balanced priorities.
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|
1994
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Dell severs
ties with German ERP software company SAP, citing mistakes in company
direction, and the lack of desire to dilute company leadership from its
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1996
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Dell
introduces Power Edge server line; in less than 2 years, Power Edge takes
Dell from the 10th position in market share to 3rd
largest vendor in the world.
Dell begins
selling custom-built computers over the Internet.
Dell
introduces the first custom-made web links for customers, named “Premier
Pages”.
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1997
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Dell changes
the way its makes PCs, unveiling the Metric 12 production line. Metric 12 combines just-in-time
manufacturing concepts with the custom-made building of computers, thereby
avoiding the need to warehouse inventory.
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1998
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Dell expands
Premier Pages to more than 9000 customers and establishes web-based
connections with suppliers to speed the flow of inventory and quality
information.
Dell opens
an integrated sales, manufacturing, and support center in
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1999
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Dell moves
past Compaq into the number 1 position of PC sales in the
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2000
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Amid 3rd
and 4th quarter recalculations of profits, Dell stock price drops
over 53% from values reported on the NASDAQ one year earlier.
Dell
captures the No. 1 position worldwide for sales of personal workstations.
Dell
announces the formation of an alliance with Intel and Microsoft aimed at
expanding the Dell E Works program to assist customers doing business on the
web.
Dell
announces a strategic technology alliance with Toshiba one of the world's largest suppliers
of semiconductors, electronic components and storage products. This
technology alliance creates opportunities for both companies to focus their
business initiatives, share their respective expertise and offer a broader
selection of industry-leading products to Dell customers.
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