Dell Case Study

What attract me in the Dell Company is to see how a vision can match the future.

□ The Company was founded in 1984 by Michael Dell, now the computer industry's longest-tenured chief executive officer, on a simple concept: that by selling personal computer systems directly to customers, Dell could best understand their needs, and provide the most effective computing solutions to meet those needs.

Dell Computer's mission statement is:

"Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of:

* Highest quality

* Leading technology

* Competitive pricing

* Individual and company accountability

* Best-in-class service and support

* Flexible customization capability

* Superior corporate citizenship

* Financial stability"

Dell's target market consists of large corporate accounts, medium and small businesses, and the consumer business. Dell has set out to satisfy each different customer segment through its Direct Model.

In order to continue being successful, Dell has to make sure that it produces the right PCs that would be satisfying to customers, and take advantage of the opportunities that are available.

□ Focusing on the laptop industry, if Dell wants to produce a next generation laptop platform that will carry its business in the future, it should look at today's trends in the industry and how they could impact the next generation laptop.

Mobility is increasingly influencing the world and markets that Dell will be operating in. Therefore, the implication associated with this trend is that the laptop that Dell would produce should be lighter and smaller.

The internet is becoming a necessity in people's everyday life. Because of this trend, and the impact of mobility at the same time, wireless internet would be a potential demand.

Moore's Law: it has been observed that laptops and PCs in general are becoming cheaper, smaller and faster, with CPU performance doubling every 18 months. This is an affect of people's demand for continuous improvement and innovation.

People today are using their computers for a broad range of activities (digital cameras, MP3 players, music, DVDs, etc...)

The growth in the economy has been observed on a worldwide scale. It increases demand for productivity, therefore impacting continuous improvements in technology. Dell should make sure it continues to satisfy all its customers, and to that it should produce better performing laptops, that will keep up with the various business activities today.

Customers are searching for cheaper laptops. PCs are becoming more of a necessity today, and differentiation within the PC industry is becoming more minimal.

As a result, customers (especially first time buyers) make decisions mainly based on price.

To summarize, based on the above trends in the industry, the next generation laptop platform that must carry Dell's laptop business in the future should have the following features: It should be cheaper, smaller, faster, and lighter, with a better overall performance.

□ SWOT Analysis

Strengths

- Direct model. The Dell Direct model was the "engine of Dell's success". It gave it an advantage over its competitors as it was very hard to duplicate. It is an efficient distribution system characterized by build-to-order manufacturing, and products and services targeted at specific market segments. PCs, custom made, are assembled and shipped to the customer in a relatively short amount of time

- Differentiated Products. Because of its Direct model, Dell is able to be described as having a differentiated product, custom made. This is an advantage for Dell since it enable it to differentiate itself from its rival and gain relatively more supplier power.

- Customer Service. After sale customer service is another one of dell's strengths. A customer with a problem can reach a technical support staff through a hotline that is manned 24 hours a day.

- Economy of scale. Dell is the greatest producer of laptops and therefore has economy of scale in the laptop business.

Weaknesses

- Compared