Focuses mainly on Business model and recommendations

1. Dell Inc. Case
• Balachander Anbalagan
• Madhumathi Muthukumaran
• Pavithra Krishnan
• Ragavendra Mohan

2. Business Model - Customer Value
Proposition
 Comparatively Low price
 Customization
 Focus on Customer Groups
 Swift Response to design flaws &
component defects
 Direct sales approach

3. Customer Value Proposition contd…..
 Required & pertinent Information in
Website
 Support & Services
 Premier Page – customized website
 Recommendations through purchase
inventory
 IdeaStorm – ideas from customers

4. Business Model – Profit Formula
 Revenue generation:
Sale of Desktops PC’s, Laptops, software
and peripherals like printers, monitors,
Projectors, Ink and toner cartridges, Server
and Networking Hardware, Consulting and
enhanced services and storage products.
 Cost Structure:
Production & Manufacturing costs,
Investment cost, Promotional & Advertising
Costs

5. Profit Formula Contd…
 Profit Margin:
The profitability of Dell dependent on
attracting large number of customers to
cover its costs

6. Business Model contd….
 Key Resources and Processes:
• Three geographic segments like the
America, Europe and Asia Pacific-Japan
• Manufacture to order, Information
technology and Integrate partner planning
and execution

7. Recommendation and Action Plan
 Increase standard
Quality before entering into markets would
reduce defects and compete well.
 IdeaStorm
Fulfillment of expectation of the customers
 Trade Off
Availability in retail stores
 Student focus
5% from educational institutions

8. Recommendation & Action Plan contd…
 Focus on Innovation
More emphasis on Research & Development
 Expansion of Support & Services
Entering into business consulting
 Enhancing Customer services
 Strengthen the Customization of products
by increasing its suppliers
 Modification of retail stores

9. Thank You!!!!