dell - basics of marketing.pptx

7/28/2019 DELL - BASICS OF MARKETING.pptx

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DISTRIBUTION NETWORKOF DELL

Presented by

Bhumi Shah07

Geeta Honrao10

Jessica Poddar

13Swapnil Khandare - 29


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DELL AT A GLANCE

American multinational computer technology corporation

Based in 1 Dell Way, Round Rock, Texas, United States

Develops, sells and supports computers and related products and

services.

Started in Michael Dells dorm room at the University of Texas in

1984

The company is one of the largest technological corporations in the

world

Employs more than 1,10,000 people worldwide.

Listed at number 44 in theFortune 500 list.


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DELLCURRENT STATISTICS

Revenue

US$ 63.07

billion

Operating

income

US$ 04.43

billion

Net income

US$ 03.49

billion

Total assets

US$ 44.53

billion

Total equity

US$ 08.91

billion


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MICHAEL DELL

College dropout

Changed how computers were sold

Started his business with $1000 in capital

Now worth $17.3 billion


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Dells distribution strategy

Distribution refers to steps taken to move and store a product from

supplier stage to customer stage in the supply chain

Dell has adopted direct distribution channel

It sells its product to end user customer /corporate customers.

Uses direct sales model via Internet and Telephone network.

Dells distribution network:

Manufacturer storage with direct shipping

Manufacturer storage with direct shipping and intransit merge


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Dell online

Started in 1996

website www.dell.com

Dell online is a high success storyindustry analyst

Millions of people visit the website each week and company

generates millions of dollars revenue.

Dells business model

is to let the customer configure the producton the web and fulfill within 36 hours.

Customers can check the order status and also get the technical

help online.


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Dells distribution network

Dells distribution network:

Manufacturer storage with direct shipping

Manufacturer storage with direct shipping and intransit merge


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Manufacturer storage with direct

shipping


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in-transit merge network


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Dells direct distribution

vs.

industry indirect distribution


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Why is dells direct model successful?

Direct Sales

Build-to-orderSupplier

Integration

Together these allow for maximum effectiveness with minimum cost


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Direct sales


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BUILDTO - ORDER


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Supplier Integration


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DELLs VALUE WEB MODEL


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Component

Suppliers



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Component supplier

The suppliers of high-tech components, such as

microprocessors and software provided by firms such as Intel

and Microsoft

The low-tech, low-differentiation components manufacturers

who compete on prices and availability.

High tech components Rely only on big players

Low tech components Small multiple players


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CMs/OEMS



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Original equipment Manufacturer (OEM)

The OEMs traditionally would receive all the parts from their

suppliers, assemble the computers in their production lines and

ship them over to their distributors, or Corporate resellers.

e.g. Company XYZ receive parts from Intel (processor),

Microsoft (software) then this company assemble the computer to

Santech computer.

Microsoft,

IntelXYZ DELL

Supplier OEM


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Distributors



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Distributors

They generally supply to corporate resellers and other distributors.

They carry large quantities of different products, to increase their

leverage when dealing with their customers.

They also provide specific software, peripherals, furniture, etc, as

well as service.

e.g. Ingram Micro, Tech Data, Computer 2000, and Santech .

DELL DistributorOther distributor

& customer


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System

integrators



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Corporate resellers/System Integrators

The corporate resellers or systems integrators generally buy

systems directly from manufacturers and install these systems at

their corporate clients.

These are firms whose main purpose is to provide customization to

their clients.

ManufacturerSystem

IntegratorsCustomer

integrate software, hardware, and network

capabilities


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Particular Name of companies

Component parts Intel(microprocessors),

Sony(picture tube),

Third party hardware and software

supplier

Microsoft

Distributors Ingram Micro, Tech Data, Computer

2000, and Santech .

Retailers Wal-Mart, Office Max, Computer City,

CompUSA and Micro-Center

System integration Wang, Unisys, and IBM

Repair and Support companies Wang, Unisys, IBM and BancTec

COLLABORATORS OF DELL


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Benefits OF DIRECT DISTRIBUTION

to company

25

CASH COST

CRMDEMAND

FORECAST


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Tailored offerings from Dell in

terms of add-on products and

services.

Very customizable systems at an

affordable rate, since Dellmanufacturing builds specifically

for each customer.

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Benefits OF DIRECT DISTRIBUTION

to CUSTOMER


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RFID @ DELL

RFID stands for Radio Frequency Identification Devices.

RFID is a 3 part technology consisting of:

A reader

A receiver with decoder

A Transponder


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RFID APPLICATIONS

RFID stands for Radio Frequency Identification Devices.

RFID is a 3 part technology consisting of:

A reader

A receiver with decoder

A Transponder


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RFID @ Dell - Manufacturing

Tracking code and Computer assembly instructions are

added to the tray.

This determines the specific line to which the tray should go

to.

At every stage of the assembly, the tags are read by the

antenna for specific instructions.


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RFID @ Dell - SHIPPING

Once assembled and tested, production information is

inserted into the tags and sent to a shipping station.

At the shipping station, the RFID tag transfers data to the

control PC.

This control PC uses this information to print the

appropriate label.


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Benefits of RFID

Production stops have reduced dramatically.

Labor can be allocated by minimizing repetitive

activities.

Returns due to wrong shipping of products have been

minimized.


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Thank You

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