Dell Computers Strategy

Dell Computers Strategy

Dell grew in the 1980’s and 90’s to become, for a time, one of the largest sellers of personal computers and servers within the industry. The company currently sells not only computers and servers but includes a wide array of home and personal electronics from both its own line of products and other manufacturers as well. These products vary from mp3 players, to High Definition TV’s to data storage devices, cameras and much more. In 2006, Fortune magazine ranked Dell as the 25th-largest company in the Fortune 500 list, 8th on its annual "Top 20" list of the most-admired companies in the United States.

The company’s marketing strategy was built around a number of important elements: Build-to-order manufacturing, Partnerships with suppliers, Just-in-time components inventories, Direct sales to customers, Award-winning customer service and technical support, Pioneering use of the Internet and e-commerce technology.

Dell builds its computers, workstations, and servers to order; Dell customers can order custom-built servers and workstations based on the needs of theirapplications. Desktop and laptop customers ordered whatever configuration of microprocessorspeed, random access memory (RAM), hard disk capacity, CD-ROM drive, fax/modem, monitorsize, speakers, and other accessories they preferred. The orders were directed to the nearestfactory. In 2000, Dell had PC assembly plants in Austin, Texas; Nashville/Lebanon, Tennessee;Limerick, Ireland; Xiamen, China; Penang, Malaysia; and El Dorado do Sul, Brazil. All six plantsmanufactured the company’s entire line of products.

Until 1997, Dell operated its assembly lines in traditional fashion, with each worker performing asingle operation. An order form accompanied each metal chassis across the production floor;drives, chips, and ancillary items were installed to match customer specifications. As a partlyassembled PC arrived