Dell is a leading technology company that offers a broad range of product categories, including mobility products, desktop PCs, software and peripherals, servers and networking, services and storage. The company headquarter is located in Round Rock, Texas and was founded in 1984 by Michael Dell on a simple concept: by selling computer systems directly to customers, the company can best understand their needs and efficiently provide the most effective computing solutions to meet those needs. Over time the company has expanded its business model to include a broader portfolio of products, including services, and the company also added new distribution partners, such as retail, system integrators, value added resellers, and distributors, which allow the company to reach even more end-users around the world. To optimize the company’s global supply chain to best serve the global customer base, manufacturing locations around the world were established as well as expansion of the company’s relationship with third-party original equipment manufacturers is being sought.
The company is committed to managing and operating its business in a responsible and sustainable manner around the globe. This includes commitment to environmental responsibility in all areas of business. Direct relationships with the customers give the company an advantage of seeing changing customer requirements and needs earlier than companies who do not have the same breadth of direct relationships. As a result, the company is able to develop products with simpler and more productive technology to better serve the customers. As the company continues to expand its global presence, it further diversifies its revenue and profit streams. The goal of the company continues to be to optimize the balance of liquidity, profitability, and growth with a focus on increasing the mix of the product portfolio to higher margin products and recurring revenue streams.
The company is committed to innovating without legacy, creating efficient solutions, and providing price, performance, and feature leadership across all of the businesses. In addition, the company will deliver the power of cloud computing and connect with the customers through the Internet. The company is focused on helping customers identify and remove unnecessary cost and complexity in IT architecture and operations. The company focuses on developing standards-based technologies that incorporate desirable features and capabilities at competitive prices. The company employs a collaborative approach to product design and development where the engineers, along with direct customer input, design innovative solutions and work with a global network of technology companies to architect new system designs, influence the direction of future development, and integrate new technologies into the products. Through this collaborative, customer-focused approach, the company strives to deliver new and relevant products and services to the market quickly and efficiently.
Mission Statement
The company’s mission is to become the most successful computer in the world at delivering the best customer experience in markets that it serves. In doing so, the company will meet customer expectations of:
· Highest quality
· Leading technology
· Competitive pricing
· Individual and company accountability
· Best-in-class service and support
· Flexible customization capability
· Superior corporate citizenship
· Financial stability
Dell’s Business Model
Traditionally, computer manufacturers sold their products through retailers. Dell, however, created a cost-efficient way to sell their computers by “cutting out the middle man” and selling their computers directly to their customers. This direct sell method saves Dell three to five percent in inventory costs which would have otherwise been paid to retailers. In the past, computer manufacturers assembled computers based upon what they had in their inventory. This necessitated maintaining a stock room with three to four months of computer inventory in the distribution channel. On the contrary, Dell produces a computer only when the customer request and pays for the item. In essence, customers’ funds are used to finance the transaction and this saves Dell millions of dollars in financing costs. The direct sell method is advantageous for Dell because the company maintains two days worth of inventory and this helps to save several million dollars in inventory holding costs. Tailoring their computers to their customers’ specifications and selling the item directly to their customers is what makes Dell’s business model superior. Customers are more than willing to support a company that offers them flexibility and convenience. No longer is the customer locked into strictly buying their computer from a retailer who can only offer them the “one size fits all” item.
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