Dell, Inc.

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Dell, Inc. Mitzi Hamp Managerial Accounting BUS 630 Oscar Lewis 04 September 2011 Dell, Inc. What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? Dell's business strategy "combines its direct customer model with highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use" (DELL, 2005, p.1). According to Noreen, Brewer, & Garrison (2011), customer intimacy is saying, "You should choose us because we understand and respond to your individual needs better than our competitors" (p. 6). That operational excellence is saying, "You should choose us because we can deliver products and services faster, more conveniently, and at a lower price than our competitors" (p. 6). That product leadership is saying, "You should choose us because we offer higher quality products than our competitors" (p. 6). With that said, Dell relies on a combination of customer intimacy and operational excellence. This can be supported by Dell's key tenets: "a direct relationship is the most efficient path to the customer, customers can purchase custom-built products and custom-tailored services, Dell is a low-cost leader, Dell provides single point of accountability for its customers, and non-proprietary standards-based technologies deliver the best value to customers" (Dell, 2005, p. 1-2). What business risks does Dell face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the
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