Dell Company Case Study
Dell Company Knowledge of Operation
Dell Company has stuck to its original business model, which combines build-to-order production and direct sales. It seems simple in concept even though it remains complex in execution. Dell has reached out to its customers through its effort as other PC makers rely on retailers, sellers and other agents to carry the burden of sales and marketing (Wei et al., 2020). It has taken fifteen years for Dell to make its direct model to work, a point was driven home by Micheal Dell.
Direct sales approach as applied by Dell, which is built into components namely services and products targeted at different customer segments and customer relationship has helped Dell reach to where it is correctly (Nilsen, 2017). As sales and marketing remain competitive, Dell necessitation of direct customer relationship technique has provided it with nearly six per cent advantage as compared to other sellers. They get to know detailed knowledge about their customers as they reach to them via their sales or advertisement. In the long run, they have built a relationship with their customers. Dell’s I.T team is involved in extending the business model as a direct business model in the line of execution adapts new conditions. According to Jerry Gregoire, Chief Information Officer, it is essential tools that connect the existing customers with new customers via the use of new geographical markets.
It extends its business model by using additional internet sales of sales via field telesales and representative (Ross, 2016). Its transmission through innovation and technology has helped it rest its customers even mode. Modification of Dell Internet Web Page for its corporate customers has helped the company further into additional activities that improve firm operations from customization strategies.
Time-Based Competition in Dell Company
As from 1994 henceforth, DELL Computers remains a leading company for PC Supplies to government and corporate. It provides its customer with the best level of industry-standard premium processor power. Its Build-to-order Supply Chain Management (BOSC) strategy has recently attracted practitioners and researches from its successful implementation (Gefen et al., 2019). And as PC industries are driven with rapid technological improvements in components, Dell Company particularly initiates semiconductors, microprocessors and storage devices in its PC. Dell Company manages its inventory and introduced new products via incorporated standardized and modular nature of its PC. To be at per Dell outsource much of their purchased components and products from a well-established production network to fit in the competitive industry.
Build-to-Order Production by Dell Company
The type of principle applied by in Dell’s production is the “Just in Time” and lean manufacturing”. It was first employed in Japan by manufacturers such as Toyota. The approach is essential as it minimizes past inventories as suppliers are required to restock parts only needed to restore ownership. It is an effective strategy for Dell as it facilitates flexibility of its system production. It is the standard contact point of Dell’s production, logistics, sales, manufacturing and delivery.
Dell’s Information and Technology, Organization Contribution to Performance
For Dell to integrate with customers, suppliers as well as meet needs and demands in the geographical market; Dell uses Web Site to get customized information that helps the PC. For direct sales, build-to-order and straightforward distribution criteria, Dell’s I.T involve Call Center automation Premier Pages, “Dell On-Line Dell Product Services (DPS), Dell Order Management System (DOMS), e-mail and Lotus Notes and Dell Logistics System, Lotus Notes e-mail to run its business respectively (Amin, 2017). The transformation has profoundly impacted its organization sales and marketing, accounting and human resource management in various ways. For instance, they have accurately forecasted the demands, segmented early shifts in demands, better control of its daily operations and communication platform as well as accelerating outbound logistics.
Dell optimizes its production, quality and distribution globally via SAP plans are fixed on supporting the business model. Its organization structure is attached to a functional basis as it is decentralized. There are more than 100 scattered I.T departments in Dell, which is fixed on the 100-person rule (Chaffey, Hemphill & Edmundson-Bird, 2019). Its sub-units are organized in matrix structure based on the product design, sales, manufacturing, services and corporate systems.
Personal Reflection
Having undergone through the various studies that I got from peer-reviewed journals, articles and scholarly journals 2016-2020, I learned several things. Dell Company remains unique in its method of organization in various departments of sales and marketing, human resources, accounting, and risk management. Primarily, Dell has rapidly grown as top three PC industry vendors. Dell can handle the demands of time-based competition and applying standardized criteria has aided to its performance. Its direct sales and build-to-order business model is the reason behind it.
Besides its immemorial breakdowns, Dell IT team has not been left out the ineffective implementation of its business model. The validity is seen in sectors of procurement, logistics, manufacturing and service production. I came to understand how decisions to IT are subject to demand, especially in the PC industry. IT is a crucial element to any business and that its flexibility to come up with solutions impact on company performance. Additionally, effective use of human resources as facilitated by Dell PC has a unique outcome to the refinement and extension of business as witnessed from Dell PC-based technology.
References
Amin, M. H. (2017). Harnessing Information Systems & Technology with Supply Chain Management for Performance Excellence in Retail Sector. Journal of Business and Social Review in Emerging Economies, 3(2), 179-184
Chaffey, D., Hemphill, T., & Edmundson-Bird, D. (2019). Digital business and e-commerce management. Pearson UK.
Gefen, A., Savir, A., Taig, R., Harmelin, S., & Levy, I. (2019). U.S. Patent Application No. 15/875,924.
Nilsen, A. B. (2017). DELL: 2: 1 Convertible Notebook (Bachelor’s thesis, BI Norwegian Business School).
Ross, D. F. (2016). Introduction to e-supply chain management: engaging technology to build market-winning business partnerships. CRC Press.
Wei, R. U. A. N., Zhou, W. W., & Chen, J. M. (2020). U.S. Patent No. 10,545,801. Washington, DC: U.S. Patent and Trademark Office.