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By: Oleg Toming & Natalja Kjaernested

By: Oleg Toming & Natalja Kjaernested. Dell was founded in 1984 , when Michael Dell was studying at the University of Texas at Austin .

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By: Oleg Toming & Natalja Kjaernested

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  1. By: Oleg Toming &Natalja Kjaernested

  2. Dell was founded in 1984, when Michael Dellwas studying at the University of Texas at Austin. • Dell is an Americanmultinational information technology corporation based in the United States, that develops, sells and supports computers and related products and services. Dell is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell’s revenue in 2011 was US$61.49 billion • Dell sells personal computers, servers, data storage devices, network switches, software, and computer peripherals,cameras, printers, MP3 players and other electronic devices.

  3. Dell's strategy is built around a number of core elements: • Build-to-OrderManufacturing • Partnershipwith suppliers • DirectSales • Demand Forecasting • Research and Development • Advertising

  4. SWOT Analysis Strengths: • They deal directly with the customers with no use of a middle man. • They design the computer to the customer's specifications. • Their assembly is done at a fairly inexpensive cost. • They offer their customers the ability to track their delivery. • They are the number one PC provider for medium and small businesses across the US for 10 straight years. • They ship around one hundred and forty thousand computers in a day. • They have very good branding and are one of the most known computers in the world. Weaknesses: • Dealing with a large amount of supplies from many different countries can cause a large issue when products are recalled. • They build computers, not develop them. • Their supply orders are so large that they become limited to dealing with a small few supplies that can handle the volume. • They have weak business relationships with many computer retailers. • They do not have unique technologies to offer the market.

  5. Opportunities • Expanding PC market • New retail agreement • Broadening their scopes in Europe, India and China. • Threats • Tariff trade barriers affecting their positions in multiple countries • Economic slowdown in EU and US

  6. Cost leadership & differentiation strategies • Dell’s low cost strategy is centered on the capability to produce and deliver products of competitive quality at lower price. • A simple direct-to-consumer model, is their differentiation strategy.

  7. Dell innovations Since the first Dell PC was introduced in 1986, Dell has continued to shape the industry by breaking new ground and pioneering critical developments in home, small business and enterprise computing. Dell's research and development efforts now span the globe, driven by some of the industry's foremost product designers and engineers. At the core of Dell's innovation approach, however, remains an unwavering commitment to deliver new and better solutions that directly address customer needs. http://content.dell.com/us/en/corp/our-story-innovation-at-dell

  8. Sources: • http://www.oppapers.com/essays/Cost-Leadership-Dell/518437 • http://www.academon.com/Essay-Dell's-Differentiation-Strategy/3658 • http://webcache.googleusercontent.com/search?q=cache:vP03zu6-uUkJ:www.scribd.com/doc/51608620/Cost-Leadership-and-Differentiation-An-Investigation-of-the-Fundamental-Trade-Off+combination+of+cost+leadership+and+differentiation+by+Dell&cd=4&hl=et&ct=clnk&gl=ee • http://marketingteacher.com/swot/dell-swot.html

  9. THANK YOU! ANY QUESTIONS?

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