DELL

DELL

Dell

Introduction/Background

Dell Computer is a product and service provider for customers to build their information technology and Internet infrastructures. Dell Computer Corporation, with headquarters in Round Rock, Texas, is the world's number one computer system company. Employing 30,000 workers who are spread out across the United States and other parts of the globe, Dell revenue for the year has totaled 31.2 billion. Rated number 48 on the Fortune 500, number 122 on the Fortune Global 500, and Number 7 on the Fortune Global, Dell has been referred to as the most admired company in the World. Dell computers sells its business directly by designing, manufacturing, and customizing products and services to their customer requirements. (Consumer Reports 2001a)

Vision Statement

That personal computers could be built to order and sold directly to customers.

Mission Statement

To be the most successful computer company in the world and delivering the best computer experience in the markets we serve.

Strategies:

Build to order manufacturing

Partnerships with suppliers

Just in time components inventories

Direct sales to customers

Award winning customer service and technical support

Pioneering use of the Internet and e-commerce technology.

Demand Forecasting

Advertising

Market Size

Because computers are becoming almost essential for home use, the computer industry market size is relatively huge. More people purchase computers in order to shop on the Internet. People are using computers to pay bills, and to send pictures and mail to family members. Grade school, high school and college students are using computers to do research papers and search for information on the Internet. More than 50% of all homes have at least one computer.

Review And Evaluation Of The Communications Mix

Market Growth:

In the third quarter of 1999, the leader of the market worldwide was Compaq. Second place was Dell who was gaining the market share quickly. Dells market growth rate more than tripled by 18%. IBM came in third place with an 8.2% market share. Overall the market growth rate is still growing. (Consumer Reports Online 2002a)

During the fourth quarter of 2000, Dell computers became the leader in PC sales, with a 17 percent market share. Compaq was second, which was a point share behind Dell. Gateway came in third followed by Hewlett Packard, and IBM.

Threat of Potential New Comers

The threat of new-comers in the industry is strong. It takes little capital costs to start up a local company that buys old computers and rebuilds them. With the combination of competent managers and great strategic plans these local companies will blossom into becoming a competitive rival of Dell, Compaq, or possibly IBM in the computer industry. China's industry computer leaders are small companies and offer low cost priced computers. Dell sells a computer in the Asian market called the SmartPc which cost 4,792 yuan or in United States dollars $579. Tongxi, the lowest priced model offered by China PC king, Legend Holdings, sells for about $628 United States dollars. Both of these computers use Intel's 900 MHz Celeron Chip. Tongxi is a real threat to Dell and all the other company companies that sell in the Asian ...