Dell Case Study

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Dell is a multinational information technology corporation in Round Rock, Texas which employees more than 96 000 people worldwide. Their core business is to develop, sell and support computers. In addition they offer several related products and services. Since 1984, when Michael Dell founded the forerunner of Dell “PC’s Limited”, the growth of the company was vast. In 1993 they already achieved to become one of the top five computer companies worldwide. Due to the fact that Dell had such a huge success in running their business, the company now dominates the computer market together with the American multinational information technology corporation HP. As a consequence of the economical crisis in the last years Dell has to cope with the demanding challenge to cut back overheads and build up performance. Although they offer a huge variety of products and services, their main profit, almost 80%, comes from the PC industry. One of their competitive advantages are their resources and capabilities. In the following we would like to classify the resources in three certain groups- tangible, intangible and human. The Financial benefit is the first essential resource. In comparison to their competitors on the computer market Dell only has 9,7% of operational costs which is very low. The average rate is around 20-40%. Furthermore the product shipment growth is about 26% and Dell owns more than 12$ billion in cash and other investments. Another impressing fact is that the revenue hit 60$. The second tangible resource of the company is physical. An important key to success is the way they provide their products. Instead of having warehouses, Dell decided to sell their range of products only in catalogs or on the internet. Technology is one of the intangible resources Dell has. One essential improvement for the company was to have call centers all over the world. In

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