Dell Computer Case Study Essay
DELL'S SALES REVENUE
1992----------$2 BILL US
1996----------$16 BILL US
2004----------$41 BILL US
2008----------$61 BILL US
2009----------$61 BILL US
DELL'S STRATEGY IS AN UNCONVENTIONAL APPROACH.
• 1984 The company becomes the first in the industry to sell custom-built computers directly to end-users, bypassing the dominant system of using computer resellers to sell mass-produced computers.
• 1986 Dell unveils the industry's fastest-performing computer, pioneers the industry's first thirty-day money …show more content…
At a weekly Lead-Time Meeting, senior executives in sales, marketing, and supply chain collectively interpreted demand trends and supply issues to determine where component overages or underages were likely to develop. The meeting focused on a common variable: lead time for product delivery to customer. At this meeting, the group focused on managing product lead times to ensure that customers would not cancel sales, and that Dell would not be stuck with unsold components.
If a product lead time was climbing, purchasing could expedite component deliveries or shift to alternative sources of supply, or sales could try to induce customers to buy substitute products. If component overages were accumulating, sales could provide incentives for order-takers to steer customers toward the makeable set of products, or could bundle products with an attractive umbrella price. The order-takers could tell from their screens which configurations were available, and the dynamic incentives induced them to steer point-of-sale demand toward these.
Dell's pricing also reflected real-time demand management, and