The PC Industry and Dell

1. The PC Industry and Dell Gartner Group 2005 Estimates

2. Porter’s Competitive Forces Model New Entrants Buyer Power Supplier Power Rivalry Among Competitors Substitutes

3. 1990 DJI $5000 Dell $5000 2008 DJI Dell Successful Initiatives Highest world wide market share. Long term stock performance growth.

4. Direct Model Dramatic change in the PC industry. Suppliers Manufacturer Distributors Retail Stores Resellers Suppliers Manufacturer

5. Direct Model Suppliers Customers 90,000 computers per day Demand Side Supply Side

6. Direct Model By selling directly to customers, Dell could best understand their needs and provide the most effective solutions to meet those needs. “Dell sells directly to our customers, deals directly with our suppliers, and communicates directly with our people, all without the unnecessary and inefficient presence of intermediaries.” Michael Dell, Direct from Dell “People make products, push them through channel partners and hope someone will buy them, there’s no market pull. We place customers at the center and nothing starts until we have an order.” Paul Naughton, Director of Supply Chain Planning

7. Supply Chain Management

8. Timing A part of Dell’s success was that they were in the right market with the right model at the right time.

9. Ongoing Challenges