The company was founded in 1984 by Michael Dell, now the computer industry's longest-tenured Chief Executive Officer. His simple concept was selling personal computer systems directly to customers, Dell could best understand their needs, and provides the most effective computing solutions to meet those needs. Today, Dell is enhancing and broadening the fundamental competitive advantages of the direct model by increasingly applying the efficiencies of the Internet to its entire business. Through the direct business model, Dell offers in-person relationships with corporate and institutional customers; telephone and Internet purchasing (the latter now exceeding $18 million per day); customized computer systems; phone and online technical support; and next-day, on-site product service. Dell arranges for system installation and management, guides customers through technology transitions, and provides an extensive range of other services.
At a glance
- Examines Dell’s direct sales and build-to-order production model
- Discusses Dell’s Premier pages for corporate purchasing
- 15 sources in the bibliography
Contents
1. EXECUTIVE SUMMARY OF DELL COMPANY:
2. BRIEF HISTORY ON DELL COMPANY ACTIVITIES:
3. GEOGRAPHICAL EXPANSION:
4. LEADERSHIP:
5. CUSTOMER RELATIONSHIP:
6. ADVERTISING:
7. DIRECT BUSINESS MODEL:
7.1 Harnessing the Internet:
7.2 Market Segmentation:
8. THE E-COMMERCE EDGE:
8.1 Business-to-business Market:
8.2 Sales and Marketing:
9. MEASURING THE PERFORMANCES
10. CONCLUSION:
Objectives and Topics
The work examines Michael Dell’s leadership and Dell’s business strategy, focusing on how direct sales, customization and Internet commerce shape the company’s relationships with customers and its competitive position.
- Company history and geographical markets
- Leadership, collaboration and employee empowerment
- Customer relationships and market segmentation
- Advertising and sales promotion
- Direct sales, build-to-order production and supply chains
- E-commerce and business-to-business sales
Excerpt from the Book
LEADERSHIP:
Managers want stability and control through procedures and systems. Leaders, on the other hand, thrive on change, exercise control through inspiring visions of what might be accomplished cooperatively and they understand that empowering people by extending and expanding their authority is the only path to vitality and sustained progress. One of the ways one can differentiate leadership from management is by this old saying: you lead people and you manage assets.
Leaders are pioneers and Michael Dell can be mentioned among them. They challenge the process; they look for better ways to do things. They also can get others to buy into their vision so that it becomes a shared vision that employees work towards together.
Leaders create a culture that brings out the best in people, which enables them to act. Using Abraham Maslow's hierarchy of needs, leaders appeal to the higher psychological needs by recognizing employees for a good job and by encouraging employees to fulfill their own potential. Michael Dell challenged the processes used to sell computers to consumers.
Dell has been fortunate to have business leaders as mentors throughout his career, who coached and guided him. They instilled in him a strong work ethic and the curiosity to examine things and ask why? Being open to feedback and having the ability to evolve as a leader based on this feedback was invaluable and critical in his job.
Dell's philosophy is to accomplish things with people. This is a concept he continually discusses and practices. One of the things that leaders needed to do is to recognize that it is better to do things in collaboration than in isolation.
People expect leaders to be collaborative and those who are typically more successful. Dell certainly practices this precept. He develops strong relationships with employees, customers and vendors.
He has always tried to surround himself with a strong team and have trust in their ability to get things done. Empowering employees is beneficial for both the employee and the company and is a principle Dell still operates under today. Michael Dell broke the rules and continues to do so.
Chapter Summaries
EXECUTIVE SUMMARY OF DELL COMPANY: Introduces Dell’s origins and its direct model, including customized systems and customer services.
BRIEF HISTORY ON DELL COMPANY ACTIVITIES: Discusses the company’s products, customer groups, Internet activities and strategic planning.
GEOGRAPHICAL EXPANSION: Describes Dell’s regional markets and product categories, drawing on company-profile data and market expectations.
LEADERSHIP: Considers Michael Dell’s leadership in relation to shared vision, collaboration, employee empowerment and credibility.
CUSTOMER RELATIONSHIP: Examines customer service, segmentation and the role of direct contact in customization and support.
ADVERTISING: Discusses advertising channels, sales promotions and online offers for higher-education customers.
DIRECT BUSINESS MODEL: Describes direct sales, build-to-order production, Internet use and customer segmentation.
THE E-COMMERCE EDGE: Addresses supply-chain operations, business-to-business purchasing and the integration of online sales with sales representatives’ incentives.
MEASURING THE PERFORMANCES Considers expansion opportunities, products, advertising and the company’s prospects.
CONCLUSION: Brings together the discussion of leadership, direct sales and supply-chain management.
Keywords
Michael Dell, Dell, direct business model, build-to-order production, leadership, customer relationships, market segmentation, e-commerce, supply chain management, advertising, business-to-business sales, strategic planning
Frequently Asked Questions
What is this work about?
It examines Michael Dell’s leadership and the business practices associated with Dell’s development in the computer industry.
What are its central themes?
The main themes include direct sales, customer relationships, leadership, advertising, e-commerce and supply-chain management.
What is the primary objective?
The work aims to explore Dell’s strategy and how its direct model relates to customer service and competitive positioning.
What research method does the work use?
It presents a descriptive discussion of Dell using cited company information, publications and online sources.
What does the main discussion cover?
It covers Dell’s markets, Michael Dell’s leadership, customer relationships, advertising, the direct model and online business operations.
Which keywords characterize the work?
Key terms include direct business model, build-to-order production, leadership, e-commerce, customer relationships and supply-chain management.
How does the work discuss customer segmentation?
It describes Dell’s division of customers into distinct markets and considers how direct contact informs products, services and support.
What role do Premier pages play in the discussion?
They illustrate how corporate customers can use customized interfaces to place and route purchasing orders.
How is leadership connected to employee empowerment?
The leadership section discusses shared vision, collaboration, trust and the expansion of employees’ authority.
- Quote paper
- Doctor in Business Administration Franklin Atadja (Author), 2019, Michael Dell and Dell Company. Dell Business Strategies, Munich, GRIN Verlag, https://www.grin.com/document/492241
