Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Case Presentation - Matching Dell

Strategic Management
by

Kristen McNamara

on 24 October 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Case Presentation - Matching Dell

Matching Dell
Group 3
Started out as the leader of the PC industry
Early 1980s fell to 3rd in market shares
Main source of income: hardware, software, and IT services
Through the 1990s IBM used retailers to sell their PCs
Profit Margin: (Net Income/Sales)=($944/$12,227)=8%
-Dell: 8%
-Compaq: -8.80%
-HP: 6.26%
-IBM: 7.75%
-Gateway: 4.5%



ROA=($944/$12,327)*($12,327/4268)=($944/$4,268)=22.12%
-Dell: 22.12%%
-Compaq:-11.89%
-HP: 8.74%
-IBM: 7.35%
-Gateway: 11.9%
Hewlett-Packard
Extended Solutions Partnership Program
Ten channel assembly system
Distribution Channels
75% Distributors and Resellers
23% Retailers
1998 created website for direct sales
Compaq
Sales and Marketing

Production and Logistics

Service and Support
QUESTIONS?
Gateway 2000
Dell's biggest competitor using direct sales

Target Market
Individual home users and small businesses

Support and Service

1997 Gateway tried to gain market shares using other distribution channels
Personal Computer Industry
IBM
DuPont Analysis 1998 Comparisons (in millions)
Dell's Competitive Advantage
1981 - IBM created a "open architecture" PC
Only alternative was Apple
Clones:
1982 - Compaq
1984 - Dell
1985 - HP
Recommendations
IBM
Focus on Home PC Market
Compaq
Focus on implementing one thing at a time after more development and avoid inconsistencies
HP
Shift from large companies to small companies and individual consumers
Improve online website
Invest in R&D
Gateway 2000
Keep focusing on their direct sales
Invest in R&D
Total Asset Turnover: (Sales/Total Assets)=($$12,327/$4,268)=289%
-Dell: 289%
-Compaq:135%
-HP: 139.8%
-IBM: 94.9%
-Gateway: 264.6%


Equity Multiplier: (Total Assets/Equity)=($4,268/$1,293)=330%
-Dell: 330%
-Compaq:203%
-HP: 199%
-IBM: 443%
-Gateway: 215%
Focused on competitive low prices
Used all four channels of distribution
Online Catalog
DirectPLus
Implemented improved forecasting methods and Optimized Distribution Model
Increased support service and consulting stafff
Full transcript