Dell Case Study

Dell

In its approach, DELL strongly focused on the needs of each particular customer with a special focus government institutions (witch accounted for more than 77%) and large companies.

Also, DELL divided its customers into two groups:

-Relationship buyers for witch it assigned outside and inside sales representatives.

-Transaction buyers were reached via advertisement, catalogues and direct marketing. On the other hand, the rest of the industry focused only on building recognizable brands using advertising.

-Operations

In the past, Dell’s facilities were organized in assembly line fashion just like the rest of the competitors. However, DELL renewed its manufacturing process in its facilities (Austin). This new technique results in fewer defects and more efficiency.

-Outbound logistics

While competitors use four kinds of channels in their distribution process (retail stores, distributors, integrated resellers and direct distribution), Dell uses electronic links to direct some suppliers’ shipments straight to its customers.

-After sale service

in industry surveys, customers rated Dell’s services highly relative to the competition. This ranking was a result of Dell’s online customer support information and also because of the technical support staff representatives via a hotline that was manned 24 hours a day. The support specialists could resolve the problem over the phone in approximately 90% of cases.

-Procurement

Like all other competitors in the PC industry Dell outsourced its products and also encouraged all suppliers to locate warehouses and production facilities close to its assembly operations.

-Firm infrastructure

In its early age, Dell had started up with a few formal control systems. Nowadays, Dell hired a number of specialized managers from other major firms (Motorola, apple) focusing especially on operations and manufacturing.

As a conclusion, all these activities are major facts that made Dell successful and highly ranked among competitors.

· In its marketing and sales approach, Dell has the advantage of being close to its customers and in response to their needs.

· In its operation activity, the new method gave Dell less defectuous products and more efficient ones.

· In its logistic activity, the electronic links allowed Dell to direct suppliers’ shipment straight to its customers.

· Because of its online support information and technical support via hotline, Dell built a confident relationship with its customers.

· The aim of lowering costs pushes Dell to encourage suppliers to locate warehouses close to assembly operations.

· Organization within Dell was of a great importance, especially after the loss faced in 1993. hiring qualified managers and senior manager helped Dell overcome its crisis.

Why has dell been so successful?