Can Dell Regain Its Market Leader Position from Hp?
Essay Preview: Can Dell Regain Its Market Leader Position from Hp?
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Introduction
Dell – Company Overview
Dell Products and Services
Dell – Key Facts – Key Employees, Top Competitors, Revenues, Manufacturing Facilities
Dell Timeline
Dell – Business Segment Information
Dells Evolving Supply Chain Strategy
Typical Working of Dells Supply Chain
Five key strategies in Dells successful Direct Model
A supply chain with old technology is of little value
Restructuring at Dell
New Distribution Channels – Direct Model and Retail Strategy
Integrating the Supply Chain
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Case Study Abstract
The focus of this case study is the supply chain management practices of Dell. Dell has been following its unique direct build-to-order sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dells supply chain efficiencies and direct sales gave it a competitive advantage.
Can Dell regain its market leader position from HP?
In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). Industry analysts felt that, with Dells competitors also improving their supply chains and matching Dells direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations.
This case study covers the following issues:
Examine and analyze Dells Direct model, its basic working, success and future challenges
Typical Working of Dells Supply Chain and future supply chain challenges