DELL INCORPORATE

Group Members

Bushra Naz 03Akbar Ali Ansari 14M. Anis 15Habib Ullah 26Shakir Rashid 27Azhar Bilal 31

The Islamia University of Bahawalpur

Shakir RashidRoll No. 27

Founded Austin, TX, USA

(November 4, 1984 as "PC's Limited")

Founders Michael S. Dell

Dell Incorporation

HeadquartersRound Rock, TX, USA

Area served Global

Key peopleMichael S. Dell(Chairman & CEO)

Industry Technology

Products

DesktopsServersNotebooksNetbooksPeripheralsPrintersTelevisions

Revenue ▲ US$ 61.101 Billion (2009)

Operating income ▲ US$ 3.190 billion (2009)

Net income ▲ US$ 2.478 billion (2009)

Total assets ▼ US$ 26.500 billion (2009)

Total equity ▲ US$ 4.271 billion (2009)

Employees 76,500 (2009)

SubsidiariesAlienwareASAP SoftwareEqualLogic

Website Dell.com

1984-- Founded in 1984 with a capital of 1000 dollars.

1985-- Produced first computer “Turbo” of its own design.1987-- Started the first international operations.

1988-- Changed its name to Dell computer corporation.

1989-- Dell released its first notebook computer.1990-- Dell shifts business over seas to try to gain market share.

1993-- $500 million sales; with an extensive line of products.1996-- Dell goes online; $1 million per day in online sales; $5.3B in annual sales.

1997-- Dell online sales at $3 million per day; 50% growth rate for 3rd consecutive year, $7.8B in total annual sales.

Cont’

1999-- Dell overtook Compaq to become the largest seller of PC’s in US.

2002-- Introduced Dell brand printers. 2003-- Changed its named to Dell, Inc.

2004-- Michael Dell stepped down as CEO & Kevin Rollins was asked to take his seat.

2005-- Dell records one of its poorest years in company history.

2006-- Dell Acquired Alienware. 2007-- Kevin Rollins resigned. Michael Dell became the CEO once again.

2009-- $61.101B sales & employees over 76,500.

Source: IDC PC Tracker, 1995 - 2005 (Full Year)

* In 1995 Pre-Merger, Compaq ranked #1, HP #7

Went Up

No Change

Went Down

New Entry

WW Vendor Ranking 1995 Q1'05 RankQ1'05 y/y Growth

Dell 7 1 13.6%HP (Merged) 1 2 10.6%

IBM 3 3 2.2%Fujitsu Siemens n/a 4 14.0%

Acer 6 5 39.1%Toshiba 8 6 22.6%

NEC 2 7 23.9%Apple 4 8 42.5%

Legend / Lenovo 46 9 19.9%Gateway 9 10 -20.0%

Dell Takes No.1Position in 2004

Dell Achievements

The 10 largest US companies run on Dell. The top 5 US commercial banks run on Dell. 14 of the top Supercomputers run on dell. Ships about 1,40,000 systems per day- that’s

more than one every second. Dell is the only computer company offering free

computer recycling to consumer worldwide.

Interesting Facts

Chairman of the BoardChief Executive Officer

Timothy Mattox

Global Consumer GroupGlobal OperationsStrategyVice President

Michael CannonPresident

Ron GarriquesPresident

Michael Dell

Buying a computer has never been an easy task. Since you’ll be putting a huge investment into it and you want to make sure that you are getting the best one at a reasonable price.

Dell and HP (Hewlett Packard) are known to be the two top companies that leads the personal computer industry.

Introduction with case

“It’s the way we do business……….!

It’s the way we interact with the community…..!

It’s the way we interpret the world around us---our customers, needs, the future of technology and the global business climate……whatever changes the future may bring……. Our vision ………..Dell-vision --- will be our guiding force”.

Vision Statement

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:-

High quality Leading technology Competitive pricing Individual & company accountability Flexible customization capability Best in class, service and support Superior corporate citizenship Financial stability

Mission Statement

Bushra NazRoll No. 03

DELL Products

Laptops Desktop PCs Servers Monitors Printers Electronics & Accessories

Laptops

Vostro Latitude E Series Dell Precision Workstations Notebooks Inspiron XPS Alienware Fast Track

Desktop PCs

Vostro OptiPlex Dell Precision Workstations Inspiron, Studio & XPS All-In-Ones Fast Track Power Edge

Servers

Tower Servers Rack Servers Blade Servers

Monitors

30” - 24” Widescreens 23” - 22” Widescreens 20” Widescreens 19” - 17” Widescreens 20” - 19” Flat Panels 17” and below Flat Panels

Printers

Color Laser Black & White Laser All-In-One Inkjet

Electronics & Accessories

Laptop Accessories Desktop Accessories Televisions Cameras Software Projectors Scanners

Azhar BilalRoll No. 31

Strengths

Dell has a reliable support and service. 24X 7 Customer support. Efficient Inventory management. Well-Known for online selling of Computers. Dell always keen to embed latest technology in its

products. Provide quality PCs, Laptops and computer peripherals

at low price. Offer wide range of PC, Server, Laptops, Monitors and

LCDs, Data storage devices, network switches and software.

The company website at least receives 25 million visits.

Weaknesses

Dell is dependent on its suppliers. Lack of technological expertise in upper management. Lapses in quality control. Ineffective entrance into profitable markets. Dell not able to attract the students of schools and colleges, this

segment earn only 5% of total revenues. Closure of Dell’s biggest call center in April, 2003 terminating 1100

employees. Elimination of bonuses in 2006 to increase the company financial

performance. On January 8, 2009 Dell announced the closing of its

manufacturing plant in Limerick, Ireland with the loss of 1,900 jobs and the shift of production to its plant in Poland.

Opportunities

Diversification strategy by introducing many new products to its range.

Making and selling low-cost, unbranded low-price computers to PC retailers in the World.

ASIA (India, Pakistan and Bangladesh) are the untapped markets.

Market penetration in education and Government markets.

Cost reduction in latest technology. Partnership or acquiring of suppliers. Dell has opportunity to sell computer directly to

retailers.

Threats

Competitive rivalry that exists in the PC market globally.

Exposed to fluctuations in the World currency markets (i.e., changes in exchange rates)

Major competitors in the market. Rapid change in technology obsoletes the

product in small span of time. Aggressive marketing by competitors.

Habib UllahRoll No. 26

Competitors Analysis

Computer Hardware Industry

The Products The Players

Notebooks

Desktops

PDAs

MP3 Players

Routers

Servers

Storage Devices

Competitors Analysis

Top Segment Laptops Computer Systems

Systems and Technology

Top Brand Dell Precision Workstations

HP Pavilion Laptop

Lenovo

CEO Michael S. Dell Mark V. Hurd Samuel J. Palmisano

Business Segments 6 5 6

Revenue 61.101 B 114.552 B 95.757 B

Net Income 2.478 B 9.415 B 13.425 B

Total Assets 26.500 B 52.539 B 109.023 B

Total Equity 4.271 B 38.942 B 22.637 B

Employees 76,500 3,25,000 3,99,409

HP Products

Laptops Desktop PCs Monitors Printers Scanners Softwares Electronic & Accessories

Laptops

HP Mini HP Pavilion HP TouchSmart HP ENVY HP Ultra-Portable HP Everyday Computing

Desktop PCs

HP Pavilion HP Pavilion Slimline HP Pavilion Elite HP Pavilion All-In-One Series HP TouchSmart

Monitors

HP w1858 18.5" Diagonal HD Ready Widescreen LCD Monitor  HP 2009m 20" Diagonal HD Ready Widescreen LCD Monitor 

HP 2159m 21.5" Diagonal Full HD Widescreen LCD Monitor  HP w2338h 23" Diagonal Full HD Widescreen LCD Monitor  HP 2509m 25" Diagonal Full HD Widescreen LCD Monitor 

HP 2709m 27" Diagonal Full HD Widescreen LCD Monitor 

Printers

HP OfficeJet HP Photosmart HP LaserJet HP DeskJet HP DesignJet

Scanners

Document Scanners Photo Scanners

Software

Operating System Photo Video Security Productivity Other software

Electronics & Accessories

Calculators Cameras & Video Handhelds Computer Accessories HP Printer Accessories Handheld Accessories Scanner Accessories

Muhammad AnisRoll No. 15

Top Computer Companies

Companies Revenue Net Income Total Assets

$ 114.552 B $ 9.415 B $ 52.539 B

$ 95.757 B $ 13.425 B $ 109.023 B

$ 61.101 B $ 2.478 B $ 26.500 B

$ 42.91 B $ 8.24 B $ 47.50 B

$ 17.9 B $ 384 M $ 17.3 B

HP DELL IBMSuccess Factors Weight Rating Score Rating Score Rating Score

Quality 0.13 4 0.52 3 0.39 3 0.39

Financial Position 0.15 4 0.60 3 0.45 4 0.60

Market Share 0.16 3 0.48 3 0.48 3 0.48

Technology/innovation

0.12 3 0.36 4 0.48 3 0.36

Global Market 0.10 3 0.30 4 0.40 3 0.30

Price Competitiveness

0.10 2 0.20 3 0.30 4 0.40

R&D 0.14 4 0.56 3 0.42 3 0.42

Customer Loyalty 0.10 3 0.30 3 0.30 2 0.20

Total 1.00 3.32 3.22 3.15

Competitive Profile Matrix

Competitive Advantage by Dell

Provide user-friendly instructions and bundled software

Just in time manufacturing

Use high quality components, build reliable Computers

Direct to consumer business model

Get paid via Credit Card

Provide 24/7 Phone Support Service

Provide warranty and repair service

Advertise heavily in suitable publications and direct mail

Dell's value chain allows Dell and its suppliers to exchange information and interact with each other

Akbar Ali AnsariRoll No. 14

Strategies and Goals

Continue to Innovate

Maintain Digital Music Lead

Leverage Designs of Hardware and Software

Appeal to Mass MarketKeep Costs Low and

Quality High

Expand Distribution Network

Invest in New Product Areas and R&D

Continue to improve international Business

Dell’s Global Presence

The AmericasThe Americas EMEAEMEA Asia PacificAsia Pacific ChinaChina

Sales Offices in 43 countries Sales presence in 170 countries

6 Manufacturing Sites

XiamenChina

PenangMalaysia

LimerickIreland

AustinTexas

NashvilleTennessee

Eldorado do Sul Brazil

Recommendations

Continue making “must have” products

Leverage the power of the Laptop

Stay ahead of the competition

Partner with companies that complement the Dell brand

Expand retail footprint

Keep costs low and quality high

Increase market share in the education, business and government sectors