Development of the
Direct Model Dell is continuously refining its direct approach to manufacturing,
selling and servicing personal-computing systems. The company is committed to
extending the advantages inherent in what is already the industry's most
efficient business model. Current Dell initiatives include moving even greater
volumes of product sales, service and support to the Internet; using the
Internet to improve the efficiency of Dell's procurement, manufacturing and
distribution process; and further expanding an already broad range of
value-added services. By taking its direct business model and its associated
customer experience to even higher levels, through the Internet and value-added
services, Dell intends to continue to grow its business at a multiple of the
high-growth rate anticipated for the computer-systems industry as a whole. Dell
still has significant opportunity for expansion in all parts of the world,
especially in markets outside of the U.S.; in all customer segments; and in all
product categories, ranging from home PCs to enterprise products, such as
network servers and workstations. Mission 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: · Highest quality · Leading technology ·
Competitive pricing ·
Individual and company accountability · Best-in-class service and support ·
Flexible customization capability · Superior corporate citizenship · Financial
stability Objectives: · To achieve market share of 14% by year 2002 worldwide. ·
Continue expansion of server and storage products. · Continue to maintain low
costs – decrease each year by 1%. · Establish global brand recognition. SWOT
Analysis: Strengths · No inventory buildup · Industry leading growth · Cost
efficiency · Direct to customer business model – latest technology ·
Customization · Internet sales leadership - $5M worth of products everyday
Weaknesses · No proprietary technology · High dependency on component suppliers
Opportunities · Network-internet, intranet and extranet · Strong potential
market in Europe, China and India · Low costs and advanced technology · Growth
in business, education and government markets Threats · Competition (price and
market share) · Currency fluctuation in countries outside the US · Political
instability · Tariff trade barriers Marketing Strategies · Major customers:
large corporations, government agencies and medical and educational institutions
to small business and individuals. · Strategy: Multinational corporate customers
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