DELL

Papel do gestor 1.Forming a Strategic Vision Michael Dell is definitely the company’s chief strategic visionary. He came up with the concept for the business and has guided the evolution of Dell Computer’s business model. 2.Objective Setting In 1990, Michael Dell set an objective for Dell Computer to become one of the top three PC companies. It achieved this objective in 1998 and has since moved into a battle with Hewlett-Packard for first place worldwide. He has presided over Dell’s very good financial performance (see case Exhibit 2). Dell Computer has turned in a very solid financial performance since 1997, except for fiscal Crafting a Strategy Michael Dell is the chief architect of the company’s strategy. The direct sales approach and the build-to-order approach are both Michael Dell con­tributions. Michael Dell has been the driving force behind the company’s initiatives to revamp the traditional industry value chain, cutting out middlemen by selling direct, streamlining supply chain activities, and applying Internet technology. Using alliances with suppliers, Michael Dell and Dell Computer have pioneered the cre­ation of an exceptionally efficient supply chain (supply chain management is one of Dell’s distinctive competencies, along with use of Internet technology) There is plenty of evidence in the case that Michael Dell’s prints are on many key pieces of the company’s strategy.

Papel do gestor 4.Executing Strategy Dell is active in pushing for better execution of just-in-time inventory management and reduction in the number of days of parts inventories. Dell’s strategy requires smooth execution—from customers all the back to the operations of suppliers. And the evidence in the case is that the strategy is being executed very, very well. The company’s astute application of Internet technology is one of its keys to effective strategy execution and squeezing out cost savings ($1 billion in costs were eliminated in 2002 and more cost savings are on the horizon). 5.Leading Corrective Adjustments He stays in close personal touch with customers. Selling direct gives Dell firsthand intelligence about customer preferences and needs, as well as immediate feedback on design problems and quality. Dell has responded to changes in the PC marketplace by pursuing ever greater market seg­mentation. Michael Dell has led the evolving refinements in the company’s strategy. The most recent refinement is the expansion into other IT products— data storage products, Internet switches, printers and cartridges, handheld PCs, and IT services.

SWOT Dell’s Resource Strengths/Capabilities/Competitive Assets Build-to-order capability—capability to mass produce customized products Proven capabilities as a world-class manufacturing innovator Just-in-time inventory know-how and capabilities Long-term partnerships with key suppliers Pioneering use of Internet and e-commerce technology— information-sharing and close collaboration of parts/component suppliers, Dell, and Dell customers Dell appears to be the low-cost leader among the major players in the IT industry—a very powerful strength and competitive asset Capability to load customer software, install asset tags, create Premier Pages for corporate customers; Dell’s value-added approach to customer service lowers customer costs Intimate knowledge of customer requirements Dell’s global manufacturing and global sales capabilities More potent direct sales capability than any other rival R&D expertise in steering customers to “best” technologies and equipment configurations Reputation /image Growing breadth of product line Dell’s Resource Weaknesses/Deficiencies/Competitive Liabilities Direct sales is probably not the best way to access first-time buyers No in-house repair service capabilities (as some rivals have)— warranty repairs and ful­filling service contracts is outsourced to local service providers Lacks the product line and service breadth of Hewlett-Packard and IBM The direct sales approach is not the “preferred” or “normal” distribution channel in Europe, China, and in several other parts of the world

SWOT Dell’s Market Opportunities Continue to take market share away from rivals and PCs in all the world’s major markets Make further inroads in servers, data storage products, data routing switches, handheld PCs, printers and ink cartridges, IT services Threats to Dell’s Well-Being Corporate customers and other large buyers decide to rely more and more heavily on the systems and service capabilities that IBM and HP can provide and that Dell cannot, thus giving HP and IBM an advantage in providing such service-conscious customers with their brands of PCs and servers A long-term slow-down in global sales of PCs, servers, and other IT products—many large enterprises are looking to cut their IT costs.

Dell’s Distinctive Competencies Just-in-time inventory practices and supply chain management (no one in the PC industry does it better—or even comes close to matching what Dell can do) Build-to-order manufacturing and mass customization—a world- class manufacturing innovator Direct sales capabilities (no rival can yet match Dell)—and the capabilities are global Leadership in use of the Internet and e-commerce technologies Dell’s Core Competencies Value-added customer services Market segmentation capabilities and skills