Seminar: Dell’s distribution departure

Topic Number: 4

Industry Studies 1

Overview

In the 1990s Dell was one of the most successful computer companies in the world, with an annual turnover of $30 billion. It was a pioneer in its distribution capability and sold its products directly to consumers. In addition, their supply chain drove further efficiencies like none other in the industry.

However, Dell has seen a massive declines in recent years, so much so, that Michael Dell has recently bought the company back to try and regain their entrepreneurial spirit.

In this seminar, we will initially explore their direct distribution model and what made them successful. Thereafter, we will look at their supply chain and how they were able to meet customer needs more effectively then competitors.

Thereafter, we will look at what has changed in the environment that has caused their decline and determine the outlook for the future of Dell.

3

• Be able to identify key aspects of the original Dell distribution model that led to their tremendous success

• Critically evaluate and describe the Dell supply chain to understand what was unique about it that gave them a competitive advantage

• Determine and describe key environmental changes that led to Dell’s decline

• Be able to articulate what the outlook is for the future

Learning outcomes of this seminar

Agenda for this seminar

Critically evaluate Dell’s push-pull supply chain strategy

Evaluate and describe the environmental factors that led to Dell’s decline

Determine what the outlook is for the future

Describe Dell’s original distribution model

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

The importance of operations

Our business is about technology, yes. But it’s also about operations and customer relationships

Michael Dell

The background to Dell

Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family.

Disrupting an industry in 1984

View video: https://www.youtube.com/watch?v=M29wyyk2RkI

Describe Dell’s original

distribution model

Discuss

Critically evaluate Dell’s push-pull

supply chain strategy

Discuss

Evaluate and describe the

environmental factors that led to Dell’s decline

Discuss

Outlook for Dell?

Discuss

End of Seminar

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