Dell Computers Inc.

1. Executive Summary

The following report is going to make an overview of Dell Company at whole, including its old and new mission statement (based on the entry of the markets of China and India). Also it will show the business model on which the whole performance of Dell is based on and the changes in this model that have to be overtaken in order to gain success in the new entering markets. In continuing, it will show the environmental analysis of the Chinese and Indian markets and the SWOT analysis in the same region. Core competencies of the company are also stated in this research, supported by promotion of their Value Chan/Web management. Accordingly, competitive analysis is made showing the strategic alternatives and strategic choice for future. As a finishing statement, scenarios for a period of 5-15 years are provided based on previously gained information about future predictions.

2. Mission statements - old and new

Dell's old mission statement is: To be the most successful computer company in the world at delivering the best customer experience in the markets we serve.

The people at Dell believe that their continued success lies in the teamwork and the opportunity of each team member to learn, develop and grow. Dell focuses on building a pipeline of talented, diversified individuals in order to meet current and future staffing needs in order to develop Dell's leaders of tomorrow. They focus on attracting top candidates with the skill sets they require by working on the basis on early recruitment and full utilization of their pipeline program. Dell uses the best business-to-customers model because it offers the product directly to customers without using a retail store chain. This strategy has supported their mission statement fully until now. But if Dell plans to take a large amount of the market share in China and India, it will have to change its mission and strategy according to the needs of these customers.

Dell's new mission statement: To be the most successful computer company in the world at delivering the best customer experience in the markets we serve and providing special service and support to the markets that are highly differentiated on terms of cultural and demographic basis.

This statement actually shows that the customers in the region of Asia-Pacific, China and India to be precise, have special need that have to be satisfied. Since it is know from business practice that every market has different characteristic and different customers with their needs to be satisfied, Dell has to give special attention to the markets of China and India.

Until now Dell has had a great success with its applied business model, but in order to gain the trust of customers in the Asia-Pacific region it will have to change its model according to these markets special needs and wants in order to gain customer satisfaction and loyalty. Basically, the people in this region are not used to surf on the Internet and make purchase of the products they need. People in Asia-Pacific are used to go to a specific retail chain where they can visually obtain the information for the product or service they are receiving. Dell does not offer this option, so in order to obtain the customers of this region it will have to obtain certain retail chain in this region or offer its products to the existing retailers in Asia-Pacific.

3. Business model

(Dell's Direct Model) Dell focuses its all production on its direct business model. This model starts and ends with customers. With the power of "direct" and their team of talented people they are able to provide customers with: superb value, high-quality, relevant technology, customized systems, superior service and support and products and services that are easy to buy and use. This model is based on five tenets that create a unique way of buying and selling technology.

The five tenets of the model are:

Most efficient path to customer

The people at Dell believe that the most efficient path to the customer is trough direct relationship, with no intermediaries that are going to add confusion and cost. They are organized around groups of customers with similar needs. This allows the experienced team at Dell to understand the specific needs of the specific customers - without allowing some resellers and middlemen to translate these needs.

Single point of accountability

Technology can be complex, so Dell tries to keep thing simple for their customers. Dell is made the single point of accountability in a way that the resources that are necessary to meet customers' needs are easily marshaled in the support of complex challenges. The customers tell Dell what they want; their wants are streamlined with fast access to right resources and directly shipped to them.

Build-to-order

Dell provides customers exactly what they want in their computer systems trough easy custom configuration and ordering. Build-to-order means that Dell will not maintain months of aging and expensive inventory. As a result of this, they provide their customers with the best pricing and the latest technology for features they really want.

Low-Cost Leader

Dell focuses its resources to what really matters to their customers. With their highly efficient supply chain and manufacturing organization, a concentration on standards-based technology developed collaboratively with their industry partners, and a dedication to reducing costs trough business process improvements, they consistently provide their customers with superior value.

Standards-Based Technology

They believe that standard technology is the key to providing their customers with: relevant, high-value products and services. The focus on standards gives customers the benefit of extensive R&D from Dell and an entire industry - not just from a single company. Standards give customer flexibility and choice, which is different from proprietary technologies.

(Dell Introduces Customer-Focused Direct Business Model in China) In order to satisfy the needs of the customers in Asia-Pacific, Dell has to change and over-manipulate their business model. They have started offering their direct sales and technical support operations in this region on 20 of August 1998. Dell expected that it will be able to provide greatly enhanced customer service and support, faster-than-average delivery times and increased price efficiencies. As part of Dell's direct operations,