Case Study of Dell Computer Corporation

Dell Computer Case Study Introduction Michael Dell founded Dell Computer Corporation in 1984 with a simple vision and business philosophy. You can manufacture the ordered personal computer and sell directly to consumers. Michael believes that his approach has two advantages. (I) eliminating dealer markup through dealers and retailers, and (ii) greatly reducing the cost and risk of shipping large parts, parts and finished goods.

For Dell Computer Inc.'s "Michael Dell", a business model has been created that allows companies to establish orders for each product. Dell is known for its ability to mass produce customized computers tailored to customer orders. This manufacturing and operation process is called batch customization or in the value chain environment is called a build-to-order manufacturing (BTO) strategy. In order-to-order strategies, Dell assembles products only after customer orders, but BTO often needs to change organizational culture, management philosophy, and interaction and support with suppliers. Inevitably this process begins with a better understanding of customer needs and then an improvement in information flow will create the ability to improve responsiveness in all areas of the value chain.

Dell Computer Corporation is a major computer system company. Dell sells computer systems directly to end customers without going through dealers or retail stores (dealers). Dell's supply chain consists of three phases. They gain fundamental resource suppliers and turn innovation to technology manufacturers (Dell) and end users. Dell agrees demand and supply for customers to order computer configurations on the phone or online (Internet), but each computer needs to be configured as needed, so it is possible to use the JIT (instant) process Yes. These computer configurations are built from available components. Dell's strategy is to provide a customized, low cost, high quality computer that delivers on time, so that customers can experience the value and value of time and money. Dell successfully performed this strategy through efficient manufacturing operations, better supply chain management, and direct sales models.