Michael Dell founded Dell Inc. in 1984 with $1000 and built it into a global technology company through a direct sales model. Dell commits to building direct relationships with customers to understand their needs and customize computers accordingly. Dell also focuses on supply chain management and builds computers based on actual customer orders rather than forecasts to minimize inventory costs. Through segmentation, Dell tailors its offerings to different customer groups. Dell's success demonstrates the value of innovation, collaboration, and accepting risks and failures that come with change.

1. Michael Dell
Presented By:
Jigisha Dave
Submitted To:
Prof. Sakunt Jadav

2. “It’s amazing to me that our
competitors think the customer is the
dealer.”
Michael Dell
“Sales Leader: Tops in Global Basis.”

3. Introduction
• Michael Dell:
“The only constant
thing about business is that
every-thing is changing. We
have to take advantage of
change and not let it take
advantage of us.”

4. Introduction about Michael Dell
• Michael Saul Dell (born February
23, 1965) is an American business
magnate and the founder,
chairman and chief executive
officer of Dell Inc.
• He is the 44th richest person in
the world, with a net worth of
US$14.6 billion in 2011.

5. Introduction
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•
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Michael Dell is the chairman of the Board
of Directors of Dell, the company he
founded in ’84 for $1,000.
With an unprecedented idea---build
relationships directly with consumers
(born in February ‘65).
Dell’s commitment to consumer value, to
the team, to being direct, to operating
responsibly and, ultimately to winning.
Continues to differentiate Dell from other
companies.

6. Dell Inc.- Company Intro
• CEO: Michael Dell
• Registered as 'PC's Limited‘ in 1984
• From his condominium in Austin, TX
• Capital: $1,000
• Sold IBM PC-compatible computers

7. • Known for its innovative customer service and
product custom configuration
• Dell’s collaboration with other computer
software companies has allowed it to become
a leader in CRM
• It is not an inside-out company but outside-in

9. Mission
“To be the most successful computer
company in the world at delivering
the best customer experience”

10. Dell Business Strategy
• Faster inventory turnover and reduced inventory
levels
• Incorporate new technologies and components into
its product offerings.
• Online support to onsite customer-dedicated
systems

11. Highlights for direct model and crm
• Contacting with the customer directly & capturing as
much information as possible
• Eliminating middlemen
• Building computers based on customer’s needs.
• Engaging with customer on each touch point as
productive & efficient as possible.

12. Dell’s Direct Model
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Direct relationship, most efficient path
Low cost and best value
Built to order
Customized systems
Superior, tailored service and support
Highest quality and most relevant technology

13. Dell’s Value Web Model

14. Why SCM is so Important in PC business
• Material costs
• Improving SCM
• Changing technology
• Rely on market forecasting to drive Production.
• Technological breakthroughs cause very short Product life
cycles .

15. Competitors’ Disadvantages
vis-à-vis Dell
• Need to hold inventory
• Have to pay suppliers first
• Caught with short supplies
• Stuck with excess inventories
• Product time to market is critical.

16. Dell’s Competitive Advantages
Dell is having one of the best SCM in the world.
• 90% supplies ordered online using integrated websites of
supplier and Dell (B2B).
• 95% of suppliers situated very close to assembly plant hence
coordination is easier.
• Dell’s factories have only 7 hrs worth of inventory for most items
whereas industry wise it is around 10 days.
• 15 suppliers provide almost 85% of all supplies.
• Dell gets paid by customers and then pays to its suppliers.

17. i2 SCM S/W package
• i2 serves almost 70% of the SCM market.
• Every 20 sec the S/W aggregates orders,
analyzes material requirements ,compares Dell’s
on-hand inventory with its suppliers’ inventory
and then creates a supplier bill of material to
meet its order needs .
• Instead of forecasting the daily supply needed,
Dell receives the exact material every two hours
to fulfill actual customer orders.
• Tracks backlog numbers, stock status and supplier
commitments

18. RFID applications

19. Business To Business (B2B) Model
• Business model for dealing with large business
entities.
• Server- to- server communication over internet
integrating both supplier & buyer system.
• Shopping online with customer’s ERP
Procurement Application with simultaneous
upgradation.
• No duplicate information entry.
• Easy process, less cycle time, less errors.

20. Dell’s Objectives With B2B Integration
• To quickly integrate customers who are capable
today.
• Built a solution to integrate any customer who
supports open industry standard of XML,EDI
• To help customers built a B2B solution for rapid
deployment & connectivity.
• Providing hardware, software & consultation to help
build a system which not only connects to Dell but
even to other suppliers.

21. DELL’S CRM STRATEGY
Make segmentation and identify customers
Listen to their customers
Learn from customers
Each member is a student who is
responsible of learning from the customers.

22. Customer Relationship
Management Techniques

23. Pre-Sales customer support

26. Post-Sales customer support

27. Online support:

29. Sales force CRM
Media presence

30. Marketing Strategy

31. Segmentation
• Backbone of Dell computers
• Based on segmentation, company takes its
positioning and modifies its offerings for each
segment’s customers.
“An Important element of virtual integration with customers is
segmentation. The finer the segmentation, the better able Dell is to
forecast what customers are going to need and when. Then
coordination of flow of strategic information comes to stage all the
way back to suppliers, effectively substituting information for
inventory”

32. • Focusing on Personal Users
– In the early 2000s, Dell attempted to diversify its
business by targeting personal consumers, such as
families and students that needed to purchase
computers
• Dell's Retail Strategy
– In the fall of 2007, Dell announced partnerships
with major computer retailers, including WalMart, Best Buy and Officeworks

34. Marketing Mix
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Product - Customization
Price - Reasonable
Place - location strategy
Promotion - "Be Direct"

35. Ad Agency
• In 2007 BBDO to Working Mother Media
• Continue Change in Slogan
– “Work it Out”
– “Yours is here”

36. Dell Dude
• Benjamin Bowmar Curtis
• an American actor and former
spokesman for Dell Computers.
• from 2000 to 2003.
• "Dude, you're getting a Dell.“
• The campaign was a huge success
and not only helped bring
prominence to Dell, but to Curtis
as well.

38. •
social media content: You do not own the content you
create… your customers do
 Producing content via the same social media tools
your customers use allows 3 things:
1) Makes your content sharable
2) Gets your content to customers where they are
3) Gives you a reason to connect with fans

39. SOCIAL WEB STARTING TO EVOLVE
How do we reach
customers in different
social networks?
We’re still in the early
stages of the social
web
Shared ID options
Dell on other sites
Forrester’s Five Eras of the Social Web Jeremiah Owyang

40. Zero Concept at Dell
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Zero time organization
Zero value-gaps,
Zero-learning-gaps,
Zero-management-gaps-gaps,
Zero-process-gaps, and
Zero inclusion-gaps.

41. CSR - Green initiatives
• Establish a product-recycling program.
• On February 6, 2007, the National Recycling
Coalition award.
• Dell Bans E-Waste Exports
• Bamboo — Nature's Eco-Friendly Packaging
Solution

42. LESSONS‘ MICHAEL
DELL

43. LESSONS FROM MICHAEL DELL
1. Every customer is important, regardless of size
2. Innovation is incremental and continual
3. Innovators are their own market research departments
4. Collaboration leads to the best ideas
5. Customers want to help their peers
6. Don’t decide alone for your customer

44. LESSONS FROM MICHAEL DELL
7.
Participation is powerful
8.
Follow through is the middle name of collaboration
9.
Become your own incubator
10. Realize that innovation and collaboration are cousins

45. Success Mantra – Michael Dell
• “When you get a business that changes very quickly, you get
some of that naturally.”
• “You just have to change. To be successful, what you have to
do is have an acceptance of risk and you have to be pretty
explicit about that, because if you don’t accept risk, you
don’t get any innovation. And that means part of risk is you
have to accept failure because not everything works.”

46. Conclusion
“Be willing to take risks and
change,” if you want to stay
successful