Dell Against Hp

DM200 Management of Resources

HP & Dell Computers Comparison Assignment

Introduction

This is an assignment based on HP and Dell, it is intended to show my understanding of the operational and fundamental requirements that stakeholders hold within both companies.

I will be answering a variety of questions set to help understand the different aspects of each area of the companies, in an aim to give a clear evaluation of both operations.

Each question will be listed and a clear answer will be given, with all questions following on from the previous.

Within this assignment I will be including a wide range of different outlooks of the company, from Financial to Marketing in a hope to answer all questions correctly.

Questions

1) Describe and evaluate the current operational processes of HP & Dell that have gained them their current positions in the market place.

Dell - Always being the company that can offer the customer it's individual needs, and being able to tailor it's offerings to your requirements.

Dell is offering it's customers it's own individual touch on your orders, it has always been DellÐ''s main area of expertise.

If customers feel they are getting special treatment from an order, it will make them feel as if they are being personally praised for their order.

They are focusing on the fact of being a product lead company, and by cutting out the retail side within shops worldwide they are able to focus more on customer needs

Dell Inc. listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 34 on the Fortune 500. Dell's climb to market leadership is the result of a persistent focus on delivering the best possible customer experience by directly selling standards-based computing products and services. Revenue for the last four quarters totalled $59.4 billion and the company employs approximately 89,100 team members around the globe.

Dell was founded in 1984 by Michael Dell, the longest-tenured executive to lead a company in the computer industry. The company is based on a simple concept: by selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model can diminish Dell's understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly.

The Dell Effect

For more than 20 years, Dell has revolutionized the industry to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers. Because of Dell's direct modelÐ'--and the industry's response to itÐ'--information technology is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives.

Dell has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories. Nearly one out of every five standards-based computer system sold in the world today is a Dell. This global reach indicates our direct approach is relevant across product lines, regions and customer segments.

Balancing Liquidity, Profitability and Growth

Dell's high return to shareholders has been the result of a focused effort over time to balance growth with profitability and liquidity. Dell has consistently led its largest competitors in each of those categories.

http://www1.euro.dell.com/content/topics/global.aspx/corp/background/en/facts?c=uk&l=en&s=corp&~ck=mn&~section=000

To deliver effective solutions that meet customer challenges, Dell focuses on setting pivotal standards that drive future technology innovation. Dell's industry leadership places it in a unique position to help establish the core building blocks for future innovation Ð'-- in the home, the office and the enterprise. With a long track record of pioneering work and a wide network of strong industry alliances, Dell can drive

Adoption of open standards that give customers:

Ð'* Increased choice

Ð'* Decreased cost and complexity

Ð'* Product and process interoperability

The problems with Sony Lithium batteries 'exploding' within certain laptops causing a major stress on the company, showed cracks in their customer service, which I will expand on later within the assignment.

http://www.dell.com/content/topics/global.aspx/innovation/en/cto_dell_standards?c=us&l=en&s=corp&redirect=1

HP is able to offer more of a broad range of services, with other products within the range being a strong point.

They are renowned for their cheap printers which are sold at near cost price, but they make their entire margin from ink cartridges which are required, and must be genuine products otherwise exempting warranties supplied with the products.

For example, a brand new colour printer that costs just Ð'Ј30, but the ink cartridges also cost roughly the same.

HP focuses on simplifying technology experiences for all of its customers Ð'-- from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world's largest IT companies, with revenue totalling $104.3 billion for the fiscal year ended October 31, 2007.

Ð'* Hewlett-Packard Company (NYSE: HPQ)

Ð'* Headquarters: Palo