Dell Computers Case Study

For the mass customization project we chose to use Dell Computers, but more specifically, Dell laptops. Dell Computers was founded in 1984 by Michael Dell, who at the time was a student at the University of Texas, as PC’s Limited. The company was founded as a technology company that provided home computers and produced its first computer in 1985. Dell differentiated itself from its competition by offering risk-free returns and next-day, at-home product assistance. After completing its initial public offering in the late 1980’s, Dell produced its first laptop, the 316LT. Throughout the 1990’s and 2000’s, Dell experienced massive growth and expansion, becoming the number one computer system provider, worldwide. After topping the list on …show more content…
There are other players in this space, but the threat of new entrants is somewhat low. The market is fairly saturated with large and small companies and all of these computer companies are, for the most part, in the laptop space already. Due to this market saturation, the bargaining power of customers is high. Although Dell offers customized computers, price-conscious buyers can easily shop online and in stores for similar products from competing companies. Given Dell’s status in the laptop industry, supplier bargaining power is low. Lastly, the major obstacle for Dell’s laptops is the threat of substitute products. The tablet and the smartphone have become the wave of the future and are beginning to render the laptop obsolete. During the fourth quarter of 2014 there were total PC shipments of 80.8 Million units worldwide . This is a decline of 2.4% over the same period in 2013. For all of 2014 total PC shipments were 308.6 million units, done 2.1% from 2013. Of the 80.8 million units shipped during the fourth quarter, Dell shipped 10.8 million units or 13% of the market. Based on the market research done by IDC, the overall market will continue to grow into 2017 with tablet’s outpacing the growth in the combined laptop and personal computer …show more content…
Unfortunately Dell is not a public company and the recent financials are not available for review. Given the number of different options that are provided, and the quick turnaround provided by the Dell, the parts used must be interchangeable and they need to have a sufficient supply of each type in stock and ready to install into a selected order. Since Dell is also providing prebuilt machines for stores, they need to not only build those machines, they need to have a separate process for building the customized