Exploring The Resources And Capabilities Of Dell

Exploring The Resources And Capabilities Of Dell This essay will be based on Dell Inc and how the topic resources and capabilities are used as a strategy throughout the company. The topic will be explored to identify how it applies to Dells strategy and how they use it within the company. The essay will identify the different types of strategys which are used to help them sustain competitive advantage. During the essay theoretical concepts will be used and applied to Dell in order to analyse the organisation. The theoretical concepts which will be used will be concepts from the module, these concepts will help draw conclusions from the essay and help identify why Dell continually sustain a competitive advantage. Dell was founded in 1984 by Michael Dell in his university dorm in Texas using his last $1000. With this money he created a company called PCs Limited. Within a year Michael Dell had turned his $1000 into $6 million in sales. He managed to do this by borrowing $300,000 from his family and upgrading computers for local firm from their existing software to IBM. By 1986 the company was producing sales of $60 million; this was due to dell starting their own assembly lines. 4 years later Dells sales had increased vastly to $500 million, because they had now created a wide line of products. By 1996 Dell launched their products online, this gave them $1 million in sales a day boosting their annual sales to an astonishing $5.3 billion, increasing to $7.8 billion the following year. The sales had risen 50% and tripled to making sales of $3 million a day in sales. By 2005 Dells sales had risen to $49.2 billion, showing how the company has become one of the most successful companies within rece nt times by being a fortune company while only being around for 14 years. Also during 2005 Dell was ranked 28th biggest company in America by revenue. In 2006 Dell was looked at as one of the most admired companies in America. Their sales for 2009 were $61.1 billion, simply showing why they were nominated a top 200 fortune. They are the highest earning company within the computer industry. Dell employs over 75,000 employees across the world, due to having to serve customers in over 170 countries. Dell took over as leaders in their market from their biggest and most successful competitors Hewlett Packard, whilst also staying ahead of rivals such as IBM and Apple computers who are the only other alternative substitute for a PC. Dell now offer a range of products and services, including computing software, computing systems, computing peripherals, consulting and IT services. Dell have gone a long way from upgrading computers for local businesses to offering products such as televisions , printers, peripherals, netbooks, notebooks, servers, scanners and their main product computers. In 2007 Michael Dell returned to the company as a CEO to help improve its financial performance by bringing new plans in for the company. Key Success Factors In the ever maturing PC industry it is very important for any company wishing to be competitive to meet the industries key success factors (KSF). In order to succeed, certain KSFs must be incorporated into their business model. Specific KSF include: Competitive prices Excellent relationships with suppliers Product customisation Excellent customer services Superior cost structure Dell has continued to perform well, through incorporating many of these factors into their business model. Dells customer centric approach with a closely managed supply chain and cash flow process has seen them succeed in the mature PC industry. Key Competencies Customer focus- Dell has a thorough understanding of their consumers needs and wants and it serves them very effectively. The custom build business model that Dell adopts accommodates the ever changing needs and wants of consumers. This model is very effective as it allows Dell to offer the latest technologies at competitive prices in a timely manner. This is exactly what customers demand in a hyper competitive market. Manufacturing Processes- Dell benefited greatly from the first mover advantage, through adopting the direct selling business model which was unique to the industry, aided by the boom of the internet. Supply Chain Management- The direct selling business model employed by Dell is run by an i2 technology supply chain management (SCM) system. Every 20 sec the software aggregates orders, analyzes material requirements, compares Dells on-hand inventory with its suppliers inventory and then creates a supplier bill of material to meet its order needs. SCM is particularly important as improving it by 0.1% has greater impact than improving manufacturing process by 10%. This system allowed Dell to go beyond a simple value chain model, into a more complex value web model. Customer Selection, Acquisition and Retention- Dell also employ a state of the art IT and customer relationship management (CRM) system. Through efficiently targeting customers they are able to keep costs to a minimum which suit consumers budgets. Consumers are very price sensitive in the PC industry as there are many substitutes. Customer Service- Dell offers a complete range of services, including, technical support through internet and global call centres. For additional fees Dell offers extended service and support plans. Dells customer service was considered to be the best in the industry. However after recently outsourcing this, their reputation is beginning to fall, after repeated poor treatment of cases. Porters value chain By identifying Dells value chain and network it will allow us to identify how Dell value their customers and how it is created. FIRM INFRASTRUCTURE Dell has a very strong and organised stock management. Dell sells straight thought their website cutting out intermediaries. They sell thought a direct model. Dell receives payments normally immediately as customers generally use credit cards online. Once the orders have been placed and paid the customers products are order from the suppliers, this is so dell only have stock in which is being used to build products from orders they have received reducing excess stock. OPERATIONS Dell deal with a few operations, they deal with the most important one in their opinion, being the final configuration of customer products. Dell outsources operations such as the assemblies of motherboards and most of the production chain for all of their notebook computers. INBOUND LOGISTICS As dell allows customers to build their own products and order the products when needed using just in time, it allows deal not to buy an overload of stock they just pay for what they need from the order made. Dells direct model in which they sell their products to their consumers they depend on time management, so that all the components they need arrive at the time they are need to produce the product for their customers. MARKETING SALES Dell using the direct selling model it has taken out all intermediaries. Normally the intermediaries would want to take about 20 to 30%. Dell managed to cut out intermediaries as they align their value chain and supply chain very closely, and also their assembly factories and order taking systems. Dell has incorporated their direct selling model with their supply chain. Dell put together 80,000 PCs daily, but they do not own their own warehouse as they only order components they need to assemble products within a few days as they only hold stock for a maximum of two days. TECHNOLOGY DEVELOPMENT Dell spend a tiny amount on technology research compared to their biggest rivals HP. Dell spend around $400 million which is a small margin of HPs $4 billion. Yet Dell has near perfect assembly chain along with very efficient assembly operations. Dell have a unique way to identify if an employee is a fault for a product as a single product is made by a single employee making them accountable if it faulty. Value Web Model Dell moved beyond the simple value chain into a more effective value web organism. This positively impacted Dells just-in-time manufacturing and the inventory management systems. Dell relies on big players to provide their high-tech components. E.g. Microprocessors-Intel, Software- Microsoft. Dell rely on smaller multiple players to provide low-tech components. These low-tech, low- differentiation component manufacturers compete fiercely on price and availability. Dell Has one of the latest SCM systems, which is unmatched by competitors. This system enables Dells factories to have only 7 hours worth of inventory, whereas most of the industry holds a 10 day inventory. It also helps that 85% of all their supplies are provided by 15 suppliers. This value web organism has been achieved through careful knowledge management and 15 years of learning. It is a very complex system, and due to this it is inimitable. Dells Direct Business Model Unlike their competitors, Dell has adopted a direct selling approach to customers compared to all of their competitors. Dell have cut out all intermediaries meaning customers order straight thought their website, this allows Dell to sell directly to them. Due to customer buying straight from Dell it has given them a great understanding of customer needs. Dells main focus is on their customers which their strategy is based around. The Direct business model also allows customers to customize their products letting them have what they desire rather than a standard product. As customer order a want they want product, it allowed Dell to minimize their stock, as they will order only what they need adopting JIT strategy. This also allows Dell to deliver the newest technology to their customers sustain an edge on their competitors. Dells Direct Model Customers SUPPLIERS Competitors Model Dells competitors model has 2 extra sections, outsourcing and channels. This produces extra cost and it doesnt allow them to have complete customer focus as they dont deal directly with their customers. Their customer buy from channels which are shops taking away customer relation with the company. They also dont get supplies directly from their suppliers as they outsource 1st to other companies. Dells model is a far better strategy and it allows them to have a great focus on their customers. They use their resources and capabilities such as their great product lines to achieve the efficiencies they want to produce. Activity Mapping Through conducting detailed research into Dell, a number of conclusions can be drawn. At the core of Dells business strategy and its direct selling model is customer focus. Dells core competencies were developed around their customer centric approach, and its resources and capabilities were placed in a way to best serve their customers. This customer centric approach has enabled them to develop more competencies, including, manufacturing processes, supply chain management, customer selection and service. Within the hyper competitive PC industry it is imperative that companies provide the latest technology in a timely manner. Dell achieved this through adopting the kaizan approach to its supply chain. To compliment the increased efficiencies of the supply chain Dell also improved their manufacturing processes. A key advantage for Dell is that they have one of the best SCM systems in the world. This is complimented by the fact that 95% of their suppliers are located near to their assem bly plants making coordination easier. Holding only a 7 hour inventory, instead of the industries norm of around 10 days is another advantage. Holding such a short inventory means they do not have socks of slow selling products leading to poor cash flow. Dell aim to deliver the custom product within 36 hours of an order being placed, which competitors just cant match. Dell constantly operates with a negative cash flow conversion cycle as they only pay their suppliers once the customer has paid them. Building these strong relationships with suppliers has taken years and combined with Dells complex supply chain is inimitable and leads to a sustainable competitive advantage. Through the careful selection, training and retention of its workforce that could develop and evolve as Dell grows, they were able to manage knowledge, encourage honesty, loyalty and learning over time. Through employing the best Dell become more effective in recognising, acquiring and retaining customers through providing them with their needs and wants at competitive prices and in a timely manner. Through aligning their core competencies with the industry KSFs, Dell were able to perform favourable in an ever maturing market. Dells differentiation comes from process innovation. Through capturing the value of its suppliers and partners Dell has capitalised on their technology innovation. This enabled Dell to minimise their research and development spend and improve their cost structure. This strategy has yet to match by any of their major competitors in the industry, leading to a sustainable competitive advantage. Ultimately in order to sustain competitive advantage Dell need to continue to outdo their competitors. By adopting the direct business model and adopting their customer centric approach they have achieved competitive advantage. In order to ensure the sustainability of this they need to evolve as consumer demands change. Through their direct business model and their superior relationships with suppliers they have developed core competencies which align with the industry KSFs and are also difficult for the competition to imitate. Factors which will provide sustained competitive advantage include: Online custom build of each computer. Minimisation of working capital in the production process High manufacture and distribution quality- latest technology, timely manner, competitively priced, reliable products The careful management of their resources and capabilities make all this possible.

Memory Recall History

Bibliography Cherry, Kendra. â€Å"Memory Retrieval: Retrieving Information from the Memory. † About. com Psychology. The New York Times Company, n. d. Web. 22 Sept. 2012. Holladay, April. â€Å"How Does the Human Memory Work? † USA Today. WonderQuest, 15 Mar. 2007. Web. 24 Sept. 2012. Mastin, Luke. â€Å"Memory Recall/ Retrieval. † The Human Memory. N. p. , 2009. Web. 22 Sept. 2012. Miller, Greg. â€Å"How Are Memories Stored and Retrieved. † Science Mag. AAAS, 1 July 2005. Web. 22 Sept. 2012. Mills, Kristen L. and Heather K. McMullan. â€Å"A Study of Short-Term Memory Recall with Pictures, Words, and Pictures and Words Presented Together. † National Undergraduate Research Clearinghouse Site. Missouri Western State University, 22 Apr. 2004. Web. 22 Sept. 2012. Memory Recall Memory recall occurs when you access information stored in your brain without being cued. This occurs when you are remembering simple things or taking a test. Two other types o f memory recall are recollection and recognition.Recollection is when you remember partial information. Recognition occurs when you identify information after experiencing it again (Cherry). Memories are stored into your brain using medical temporal lobes, MLT (Miller). The job of MLT is to make memories using neural activities that are created in response to the senses (Mastin). Another part of the brain that helps with memories is the hippocampus. The job of the hippocampus is to contain the new memories in the long-term or short-term memory (Holladay).One way of experimenting with memory recall was performed by Missouri Western State University. During this experiment people were given cards, some had just words, some had just pictures, and some had words and picture. These people were given a short amount of time until they were quizzed to see which group remembered what was on the card. The group that filled out the most information was the group that was given the words and pi ctures (Mills).

Marketing Plan for New Product Launch

{draw:g} {draw:frame} SUPERIOR UNIVERSITY LAHORE Project Name: Marketing Plan for new product launch Presented To: Sir Kashif* *Mahmood Group Name : The Stallionz Leader Name & Id: Imran Shoukat MBP Members Name & Id: Muhammad Arslan Dilawar MBP Abuzer Shabbir MBP Hassan Raza Muhammad Kashif Munir Company N*ame:* The Glimmers Limited. Company Logo: {draw:frame} Product Name: {draw:frame} * * * *Contents of Marketing Plan Part 1: Executive Summary Part 2: Purpose and Mission Part 3: Situational Analysis Product, Market Analysis Distribution Analysis Competitor Analysis Financial Analysis Other Analysis Part 4: Strategy and Objectives text:list-item} {text:list-item} Part 5: Tactical Programs {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} Part 6: Budgets, Performance Analysis, Implementation Budgeting and Analysis Implementation Part 7: Additional Considerations Executive Summary This report explains the marketing plan for launchin g a fresh Juice named â€Å"Refresh†. This product has been made by the Glimmers Limited. And it is approved from the Ministry of health. In the very beginning of the report we have explained the mission and vision of the Glimmers and then we have further carried out our. It will be introduced in the market with the help of various promotional displays, advertisement and distribution of free samples to the general public and financial institution. This report examines that this product is initially launching in Lahore’s domestic market. The study included both primary and secondary research. The primary study focused on a survey of the competitors and the likings and disliking of people. Through this strategy company can penetrate more into the market and can attract the bulk of customers. For this purpose we have conducted SWOT analysis of the company to see the company’s strengths, weaknesses, opportunities and threats. Then we have explained the purposes, benefits and objectives of our product. Then we have made a marketing mix strategy for our product. We have divided market into different segments and decided to target the kids, youngster mature and old age person. We have also paid special attention to the packaging, color and price of the product. We have decided to place the product in all the markets of Punjab especially in the canteens of colleges and universities. We will promote our product through electronic media, print media, cable, and outdoor sources. We shall also conducted a market survey in future to know the opinion of public about our product and developed our product accordingly. Introduction to the Glimmers Limited Company’s Vision Statement: â€Å"Be the global leader in customer value†. Company’s Mission Statement: â€Å"To set world class standards in the Juice industry through providing a diverse range of high quality Juice products that are prepared in accordance with Islamic principles striving to satisfy consumers tastes and needs and serving the Society† The Glimmer’s Business in Lahore The Glimmers will commence its operation in Lahore from October 2010. The factory facility has been founded on a 20 canal area of land in the Industrial area, Ferozepur Road Lahore. The factory is expected to match the demand of our products. We have ensured the installation of modern, sophisticated and efficient equipment, conforming to the very latest standards of â€Å"Goods Manufacturing Practices†. Introduction to Refresh People started too perished under the scorching heat of summer in our country. They need an energy drink to refresh themselves. Refresh is a fresh juice product. It provides energy and keeps people fresh when they are felt weak or tired from doing a lot of work. It contains vitamins and proteins which is a useful energy source. Vitamins give freshness and proteins are the energy cells that recharge the human body so that they work at their maximum. The students, employees and workers become tired due to the work burden and sunlight which make them feel loose. They need an energy drink that makes them re-energize so they may be able to perform better again and feel refresh. * Slogan*: â€Å"The taste u desire† Ingredients are: {text:list-item} Objectives: To increase 25% market share {text:list-item} {text:list-item} {text:list-item} {text:list-item} Current Market Situation Refresh is a fresh juice product that is going to introduce in the Lahore domestic market. We are focusing to all levels of generation. The kids, youths, mature and olds and overall families The prices of the refresh are moderate, because it is for everyone in the society. Market Demographics: The customer of the Refresh consists of following: Geographic’s: The refresh geographic target area is currently Lahore. We are supplying our product to all area of the Lahore. We have further divided the areas of Lahore into 4 zones. A zone includes Gulberg, M. M Alam road, Defence B zone includes upper Mall, Wahdat road, model town C zone includes lower mall, Allama Iqbal Town, Sabzazar Scheme D zone includes Multan road , Sakeem mor, Allama Iqbal town {draw:frame} b. Demographics: There is an almost equal ratio between male and female and also kids. We are focusing: Kids Youngsters Mature Old age persons Our Competitors The Refresh is currently facing a very competitive environment. Because the competitors of the Refresh are:- Shezan Country Nestle Sunfresh Benz Product Review: The Refresh is available in 250ml size and available in different Flavors like: Mango Apple Pineapple Orange Mix-fruit Competitive Review â€Å"Refresh† Competitors: The competitors of â€Å"Refresh† juice are more than 10. NESTLE & SHEZAN is leading market right now and other companies are far away from it. NESTLE & SHEZAN has loyal customers over the years because it is very old company and customers are aware of its merits & demerits. The company’s first purpose is to compete NESTLE and other juices which have large market share. The main competitors are {draw:frame} & {draw:frame} {draw:frame} Product: Shezan juice is a product by Shezan International Ltd. Qualities of Shezan: High availability Large range of flavors Standardized and attractive packing Large promotion and market coverage Available in Various weights packing. Price: Minimum price of juice is 12 R. s Place: Shezan has a large market share in Pakistan. Sales: Promotion: They promote this product through Electronic media Print Media FM Radio stations Wall Chalking {draw:frame} {draw:frame} Product: Nestle beverages is a product by Nestle International. Qualities of Nestle: Large promotion and market coverage Large range of flavors High availability Price: Minimum price of juice is 20 R. s Promotion: They promote this product through a. Electronic media b. Print Media c. FM Radio stations Place: Nestle has a large market share in Pakistan. All calculations based on non-rounded figures Strategy: Creating shared value global forum Good pricing Better Quality By offering different flavors Intensive distribution Attractive packing SWOT Analysis of Glimmers {draw:frame} Strengths: Updated technology plant Quality product Specialists available for specialized jobs and tasks Hire experienced staff Medical insurance of employees Pakistani made Targeted to low and middle class people. Reasonable price Expiry date above 6 months Weakness New in juice industry Small distribution network Strong competitor No market share Limited experience of customers Opportunities Increase the distribution network. Acquiring the newer technology & techniques. Market is very big & attractive. Take-over of the distributor Increased demand of high quality products due to Lahore being a developed city. Threats Political instability New entrance from the exiting competitors So many competitors Retaining consumers Economic instability. Increases of general sales tax Development of plant Marketing Strategy and Objectives The market strategy is based on positioning of the product in the mind of consumers. Providing high quality Juice to the customers. We will distribute our product on mass level so that we can maximize the profitability. Positioning Strategies: We want to put an image of our product in the consumers mind as compare to competitor’s product. We want to target the high school, college and graduate students and government sectors that have to work hard and need to â€Å"Refresh† them in an instant. *2. * Segmentation: * We made the market segmentation on the following basis: Density Age Gender Income Family size Family life cycle Occupation Education Social classes Life style 3. Targeting: We will target the following customers: Kids Youngsters Mature Old age persons Marketing Mix: Product Price Promotion Place Product Strategy: Develop the long-term relationship with the customers Give val ues to the customers to delighting them Do whatever it takes not to satisfy the customers but retain our customers In order to accomplish this objective, the company has established sales, marketing and support teams. Product variety: Our product would be available in the following flavors:- Mango Apple Orange Grapes Mix-fruit Brand name: The name which we have chosen for our product is *â€Å"Refresh*† {draw:frame} Quality: High quality assurance would be our first priority. This would be ensured by: Implementing high quality standards Total quality management Acquisition of the high quality raw materials Design: â€Å"Refresh† is a sweet, refreshing Juice with an eye catching Tetra hedral pack. *Features*: Here are of the some features of our product: Fresh original fruit juice Provides proteins and minerals Provides vitamins Beneficial for kidneys Excellent in taste Gives freshness Tetra Pack protection packing Packaging: Product units are packed in 6-layered Tetra Pack Brick Aseptic. Sizes: Our product is available in 250 ml pack. Pricing Strategies: Our pricing strategies for the product are for total cost, which include custom services and other expenses. Pricing strategy usually change as the product passes through its life cycle. The price should be set at moderate level in order to attract a large number of buyers and to gain large market share. Amounts are in Pak Rupees. The total per unit price for 250ml packs that we will offer as follows: The cost of fruits Rs. 3 Electricity Rs. 2 Factory Overhead Rs. 3 Miscellaneous Rs. 2 Retailer Margin Rs. 2 Profit Rs. 3 Total Price Rs. 15 In accordance to our strategy we have decided to offer the product to customers at the price of Rs. 15. The price is very much compatible and the offer is substantial enough to attract a large percentage of market in a very quick time. Price and Quality Grid: This grid shows what pricing strategy a firm is perusing:- {draw:rect} {draw:custom-shape} According to this grid we are offering high quality at low price. So we are following penetration strategy. Communication Strategies: Promotion: Actually the promotion is a first step when we are launching a new product, but we make its strategies in last. We want to make a good image in the mind of customers, so that they will buy only our products. Criteria for Promotion: In promotion our main objective is to provide: Awareness Knowledge Liking Preference Purchasing Main Sources of Promotion: Electronic Media Print Media Cabel network Billboards Hoardings Electronic Media: Print Media: Billboards: Hoardings: Cabel Network Benefits: Following are the additional benefits which are offered to the customers to give them Value: Give 5 rappers and get one free juice pack Purchase ten juice packs and get one pack free. If you purchase a small crate of juice then you will able to participate in lucky draw and you can win following prizes: Samsung FM Guru DVD system Rs. 5000 Place: Distributors Review To assure the availability of its product â€Å"Refresh† juice has established effective network of registered dealers. The main target of these juices is Lahore. draw:g} The end consumer would then purchase â€Å"Refresh† from the retailer. The distributor are the most reliable distributors in the region. They enjoy a flawless reputation combined with business relations with numerous retailers even in the rural areas of Lahore and near sides. This has ensured that â€Å"Refresh† will be made available all over Lahore. Budgeting: Controls: This is the main and last element of the marketing planning by using this we can check our product standard by comparing It with our standards if there is any problem arrive in marketing plan the it must be corrected. Three main functions are performed under this element of planning that is: Measuring Comparing Correcting Measuring: We can check our marketing condition through measuring in which different types of tasks may be performed like Surveys Survey *for* *The* Future: In order to learn weather people would like to buy or use our product, we have decided to conduct a market survey in future so that we can assure that people likes our product or not. Comparing: In controlling process we compare our product with our standards Correcting: If any problem occurs then correcting process will take place in which we found that from where the problem will arises. Marketing Organization: Refresh’s chief marketing officer, holds overall responsibility for all of the company’s marketing activities. There are other subordinates with him to help the sales campaigns, trade and consumer sales promotions, and public relations efforts. Action Programs: The â€Å"REFRESH† will be introduced in May. Following are summaries of the action programs we will use during this summer session to achieve our stated objectives. May We will initiate 80,00,000 rupees trade sales promotion campaign to educate dealers and generate excitement for the product launch, and provide sample crates to our selected product reviewers, opinion leaders and celebrities as part of our public relation strategy. June We will start an integrated print/displays/television campaign. The campaign will show how many features the â€Å"REFRESH† have for users to reenergize them. July As the juice advertisement continues, we will add consumer sales promotion by including them to our messages. We will also support or retailer to increase our sales. August _ _We plan to roll out a new advertisement having new views of customers through survey who have used our drink which will help to promote our juice. Story Board References: Philip Kotler* * * * (Principle Of Marketing) Journal of Marketing Journal of Advertisement Websites: www. mickinsey. com www. wikipedia. com *www. Nestle. Com* www. Angrofoods. com www. shezan. com www. marketing. com

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