Dell Computers Strategy? Essay Example

configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory every four days on average. Dell Inc. S at the top of innovation and technological development in computer's industry; and Innovation is the only sustainable competitive advantage available to the business. Dell is enhancing and broadening the fundamental competitive advantages of the direct model by applying the efficiencies of the Internet to its entire business. The company is increasingly realizing Internet-associated efficiencies throughout its equines, including procurement, customer support and relationship management.

Dell is the world's most preferred computer systems company, and a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell's climb to market leadership is the result of a persistent focus on delivering the best possible customer experience by directly selling computing products and services based on industry- standard technology. Revenue for 2006 totaled $55. 908 Billion USED (2006), Net income $3. 572 Billion USED (6. 9% profit margin) and the company employs approximately 5,200 team members around the globe. BUSINESS STRATEGIES ; Customer-Driven: Dell innovation starts with customers. These requirements drive Dell technology initiatives, innovations, and product directions. For that reason, Dell has made alliances with its customers, sharing risks and profits, allowing the customers to participate in the making decision processes. Therefore, Dell Inc. Manufactures and sells only what the customer needs; they can suggest alternatives to adding values to the products.

Consequently the relationship Company-customer becomes stronger and probably the customers develop more loyalty to the brand. Effective Research and Development (R;D): A fierce commitment to

producing consistently high quality, custom-made computer systems that provides the highest performance and the latest relevant technology to the customers Dell products may be developed in house or by working closely with strategic partners. Customer feedback throughout this cycle reinforces Dell's focus on relevant technologies that address real customer requirements. Open Innovation: Dell R&D organizations steer enabling industry standards and technologies through industry groups and strategic partners, and develop innovative, nonparametric, open standards-based products. Dell's focus on product leadership and continuous improvement produces significant innovation. The U. S. Patents granted to Dell for its developments in product, online and operations technology provide examples of this innovation. ; Build-to-order: They provide customers exactly what they want in their computer systems through easy custom configuration and ordering.

Build-to-order means that they don't maintain months of aging and expensive inventory. As a result, they typically provide their customers with the best pricing and latest technology for features they really want. Scalable economy/Low-Cost Leader: By simplifying operations and improving utilization, organizations can take advantage of cost-effective scaling. Industry- standard enterprise hardware and integrated systems management tools enable organizations to pay as they grow and as demand dictates. They focus resources on what matters to our customers.

With a highly efficient supply chain and manufacturing organization, a concentration on standards-based technology developed collaboratively with their industry partners, and a dedication to reducing costs through business process improvements, they consistently provide their customers with superior value. Precipice. Com Business models are possibly the most discussed and least understood facet of the web. Brokerage models, such as Precipice. Com are market makers: they bring buyers and sellers together to facilitate transactions. Precipice.

Mom leads the way to a unique new type of e-commerce known as a "demand collection system". Precipice. Com is the world's first online buying service through which consumers name the price they're willing to pay. Leveraging the unique attributes of the Internet, Precipice. Com finds sellers willing to meet buyers' needs and price. Jay Walker, the founder of Precipice. Mom, created a new concept and business model. This model shifts the setting of prices from sellers to buyers. The company seeks to use its patented system on products such as airline seats, hotel rooms, gasoline and groceries.

Using a simple and persuasive consumer proposition called "Name Your Own Price," Precipice. Com collects consumer demands for a product or service at a desired price. Precipice. Com reroutes that demand within their own databases or simply directly to participating providers. Precipice. Com fulfills customers' offers from inventory provided by participating sellers. Precipice. Mom enables sellers to generate extra revenue without disrupting their existing distribution channels or retail pricing structures.

In this sense it uses the Internet's communication and information abilities to turn customary retailing upside down; alternatively it opens up to the individual consumer a form of transaction which has previously only been open to corporate entities. Due to coloratura trends, Precipice. Com faces numerous growth opportunities. More and more consumers are shopping online. Technological advances have made online shopping secure, providing a greater sense of security for online transaction. With younger generations adhering to online purchases, Precipice. Mom's customer base has room to grow over the years. Also, with dual income families, households are more likely to have extra money to spend on traveling. Expedite,

one of Precipice. Coma's biggest competitors, offers the same products as Prickliness. Com except with added value to its customer. Customers can make specific choices and receive answers in a matter of minutes, as opposed to at Precipice. Com customers can not. Traceability. Com, is also a leader in online discount tickets, they also offer a larger range of features than Precipice. Mom and offer superior customer service. Conduction. Mom, not as big a threat as Expedite or Traceability, auctions the tickets to customers. Hotelier gives customers discount fairs, customers do not set prices. Hotelier is an alliance between six major airlines which poses as a serious menace to Precipice. Com. Orbits. Com offers similar services than that of Hotelier; however it is under investigation for anticompetitive behavior. These 5 competitors pose serious threats to Precipice. Coma's survival. It is important to keep in mind that, it is possible to get real service from a regular travel agent who may find customers almost as good a discount as the online services.

At the same time as providing clients with assurance, recommendations, and suggestions. There is no doubt that there will always be that market that will go the extra mile simply for a very cheap discount. But they're unpredictable and not very loyal customers. They are more likely to switch online ticket provider simply to find the lowest price. Precipice. Com Cutting out the middleman seem like a great idea, but Precipice. Com needs to do more than what has been doing in the past years. Available options for Precipice. Com could be as following: Option 1: Concentrate only on travel related products.

Automobile sales,

personal finances and long distance telephone calls could be dropped. In its place, introduce additional products related to traveling such as vacation packages, bus tickets, train tickets and cruises. Option 2: Improve overall customer service. Create a different approach to servicing customer. Offer more flexibility for customer to choose certain features as regards to their discount inquiry. Option 3: Expand all products internationally. Precipice. Com could consider offering all of its products on an International level. At this point Precipice. Mom is doing business globally in the airline ticket sales, but not in other products. Especially expanding the hotel and car services internationally. The thirty busiest airports measured by number of passengers are in the United States, Europe and Asia. Interesting new markets for could include Europe and Asia. Airports in England, France, Japan and China are in the top 30 busiest passenger airports. Option 4: A combination of option 1 and option 2. Concentrate on the travel industry and offer more features and flexibility to the customer, while providing the best customer service.

Option 5: Combination of option 1, 2, and 3. Provide better customer service by offering more feature form witch customers can choose, concentrating on travel related products in an international setting. At this point, the best alternative for Precipice. Com is option 4. Precipice. Com need to use its first mover advantage and concentrate on travel related products. This way Precipice. Com could concentrate on what it does best, as opposed to spreading out to multiple industries. 92% of its revenues are from the airlines ticket sales. The brand would be attributed to only the travel industry, reinforcing its brand power.