Presenters

Manendra shukla

easy to buy easy to own

WHY

?

One of the leading laptop manufactures

Unique selling proposition strategy

Market leader

MISSION & VISION

MISSION“We make computing easy like it should be”

VISION“To focus on delivering the best possible customer

experience, by directly selling our services, based on industry standard technology.”

An Intro to

INTRODUCTION

Dell Inc- Texas,USA.Founder- Michael DellEmployees- >96000 peopleArea Served- World wideWebsite- www.dell.com

History

1984---Michael Dell created “PC’s Limited “while he was a student at University of Texas ,Austin.

1985---Turbo PC, The 1ST PC of its own design.

1992---Accredited it to be in the list of World’s Fortune 500 companies, making M.Dell to be the youngest CEO.

1996---Began selling its products via its website.

2002---Diversified its product line to T.V, digital audio players & printers.

2003---Named as Dell Inc.

2003-2007---Kevin Rollins as CEO.

2008-till date---Michael Dell back as CEO.

History contd…

4 P’s of Marketing MixProduct

Place

Promotion

Price

PRODUCT

Dell Inc. provides a wide variety of both business class and home/consumer class products and services. The different fragments are ------

Corporate professionals-- Dell Power Edge servers, Dell Studio

Professional customers and individuals—Dell studio, Dell Precision workstations, Opti Plex desktops, and Inspiron and Latitude notebooks

PRICE

The main objective of Dell is to produce the low price and profitable PC for the customers. For the above reason Dell’s product pricing reflects the affordability of the local consumers.

Because Dell products are so customizable, the price is largely dependent on the options and services added to the product.

PLACE

Dell has been able to affect the location strategy aspect of its marketing campaign.

As Dell’s products are always available at the nearest dealer’s customers develop trust for the “local Dell” thereby achieving the objective of gaining their trust in Dell products and services, and forming a large and diversified consumer base.

PROMOTION

Advertising is promoted through extensive marketing media like TV & Internet, in print media, email or mailing and direct marketing promotional materials such as catelogues & customers news letters.

Recently advertising promoted through retailers like Best Buy, Staples, Walmart, Gome & Carefour.

COMPETITORS

COMPETITORSHewlett PackardAcerLenovoVaioMeToshiba

DIFFERENTIATION

Speed

Quick online home services

Reducing time & cost

Customization

SEGMENTATION &

TARGETING

Customers, segmentation& targeting

Two kinds of customer segments

Transactional customers(30%)Relational customers(40%)Remaining are a mix(30%)

The customer segmentation drives the organizational structure of the company.

Customers, segmentation& targeting

Dell has 25% of fortune 500 companies as exclusive accounts and is fast penetrating into small & medium segments.

Dell let its competitors introduce the low margin PCs for first time users and targets consumer who are buying the second and third machines and who require less hand-holding.

MARKET SHARE

BCG MATRIX

M

arke

t gro

wth

rate

Relative market shareHigh Low

Hig

hLo

w

PC & Notebook

Dell PrintersComputer Peripherals

Dell Mobile

ACQUISITIONS

Ocarina Networks (10/9/10)

Exanet for $12M (2/9/10) Perot Systems for $3.9B (9/21/09)

Allin's Microsoft IT consulting business (8/10/09)

Equallogic for $1.4B (11/5/07)

Everdream (10/16/07)

Zing Systems(8/7/07)

• Provide quality PCs, Laptops and computer peripherals at low price. • Low manufacturing cost.

• 24X 7 Customer support.

• Dell built computer on customer provided specifications.

• It has a reliable support and service.

• The company website at least receives 25 million visits.

• Efficient Inventory management.

• Dell have no proprietary technology, the currently used technology by dell are shared by the other major competitors.

• Dell is dependent on its suppliers

• Lot of criticism against the Dell’s claim of world’s most secured notebooks.

• Limited no of service centres.

• 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.

• Government Policies.

• Bargaining of Suppliers.

• Rapid change in technology obsoletes the product in small span of time.

• Aggressive marketing by competitors.

Finance

DELL INCOME STATEMENT

Dell Quarter 2010 (income statement)

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-100

2000000

4000000

6000000

8000000

10000000

12000000

14000000

1600000015534000

1487400014900000

129480001235800012431000

Revenue/Sales Cost of Revenue

Gross Profit(Q-2010)

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-1024000002420000244000024600002480000250000025200002540000256000025800002600000

2469000

2516000

2586000

Gross Profit

Dell Balance Sheet

Total Liabilities + Total Stockholders Equity $26,500,000 $27,561,000 $25,635,000

2007 2008 20090

2000000

4000000

6000000

8000000

10000000

1200000010298000

7972000

10804000

Cash & Short term Investments

Cash & Short term Investments

Net Working Capital

2007 2008 2009

20151000 19880000 19939000

14859000

18526000 17791000

Current Assets Current Liabilities

Long-Term Position

2008 2009

5206000

73700007681000

6349000

Long-Term Funds Fixed Assets

Retained Earnings

2007 2008 20090

5000000

10000000

15000000

20000000

25000000

15282000

1819900020677000

Retained Earnings

Retained Earnings

Dell Ratio Analysis

20072008

2009

16.57

19.09

17.93

Gross Profit Ratio

Gross Profit Ratio

2007 2008 2009

5.3

5.6

5.2

Operating Profit Ratio

Operating Profit Ratio

Dell

9.7

43.8

1.7

Dell Ratio

Receivable Turnover Inventory Turnover Asset Turnover

Times

Times

Times

DELL CASH FLOW

Human Resource

Management

RECRUITMENT AND SELECTIONTraditional recruitment and selection process

References and recommendations from existing staff

Solicit comments from past employers in case of experienced candidate

Review of past records and experiences

TRAINING AND DEVELPOEMENT

T & D in Dell focuses on three outcomes:To have the best workforce team in the industryA culture that fosters organizational perfomanceTo be competent to its competitior ↓ Through ↓

Formal training program-organized training centresInformal training program-mentoring by co workers and others

Career at

Sales - as retail and sales professional

Manufacturing & Logistics – back-end employees

Business - project managers,HR professionals, e-business & corporate communications managers, etc.

Information Technology –IT and Engineering Professionals

Customer Service & Support – Front end executives ,Customer care execuitves, etc

Compensation and benefits

Employees at Dell enjoy-

Highly competitive and comprehensive compensation package

Benefits like health & medical facilities,discounted employee store,etc

Work culture at

Maintains effectiveness between work and personal lives

Empower employees and managers to discuss about their needs of the business.

And to construct a plan for fulfilling the need of the business

It has informal and formal flexible working arrangements-part time,work from home,flexible working ours.

Work place

Ensures an injury free working environment-

• conducts regular operational and mechanical check up in its manufacturing units

• complies with all the rules and regulations governing occupational health and safety

• has managers and supervisors to implement and maintain Dell health and safety procedures

• urges all employees to follow Dell health and safety procedures

Employee engagement program

Tell Dell program- Encourages employees to speak frankly about Dell’s policies ,managerial effectiveness ,welfare program, grievances etc.

Employee networking group(NWG)-It’s a platform where Dell employees who share common ethnicity,nationality & lifestyle meet together and share their views.

Employee engagement contd…

Cross cultural skills-Dell offers workshops where different cultural norms of different countries are taught & executed.

Career management program- Through an intensive, six-month Career Management Program, it strives to develop and retain the talent pool.

Corporate Social

Responsibility

Corporate social responsibility

Red Campaign-This campaign raises funds for the purchase of anti-retroviral drugs for HIV-infected individuals in Africa where they are critically needed.

Plant a tree program (2007)- Dell in collaboration with Conservation fund and carbon fund org.US. announced the plant a tree program wherein the Dell employees donated $2 to $6 to offset the carbon emissions of their computers and its lifetime use of electricity