Supply Chain

Topics: Supply chain management, Supply chain, Strategic management Pages: 13 (4315 words) Published: April 19, 2013
1. Introduction
1.1 Product to be delivered & General background
It is reported that Michael Dell establishes the Dell Computer Corporation in 1984 which develop quickly expand market share of computer industry date back the early 1990’s, Michigan Technological University (2010). Dell website (2012) mentioned that the objective of Dell is to be global IT leader by building and inspiring IT solutions and services that give customers the power to do more. It also said that Dell offer laptops, desktops, monitors, printers, electronic, software7accessories and servers to various targeted customer group.

1.2 Market segaments targeted
Dell website (2012) showed that it targeted customer from home, small, medium office to large enterprise and government, healthcare, education areas. The customer was divided through entity or locations, therefore, each segment could be better served with more efficient use of firm facilities. Formis (2008) added that Dell operate physical store in domestic market. It show indirect sales of chain store or service center operate in US. Refer to global market. The direct sales like website or phone are remarkable.

(Source: Dell fiscal 2011 in review)
1.3 Major competitors&Market position(leader, niche)
The belw table provided by Ann(2008) reveal DELL relative leader position compete with its major competitors(eg.Acer, HP, Asus, Lenovo)

Report was writen by Li(2011)supported that HP, IBM main competitor of DELL. Li also offer a diagram to describle what niche that Dell strive for its service. Objective position
High quality

Comprehensive serive

Basice service

current position

Media quality

1.4 Driving force for external environment
in term of macro or micro environment, five force modeal need take into consideration, Refer to ‘threat of substitute products or services’, Ian(2010)said it relative high because people fancy for using portable hand-held devices like smart phone. Erin(2010) argued that ‘Threat of New Entrants’ is become moderate compare to 2000 when prevailing uses the Windows and Intel standard that IBM had created. ‘The Rivalry Among Competitors’ at moderate level. Competitor looks like IBM, Compaq, Hewlett-Packard, and apple who charge higher price compare to Dell. When talked about ‘The suppliers bargain power’, it was moderate since there were large amount of suppliers for Dell by outsourcing. Dell prefers the suppliers who were located close to their assembly plants that avoid unnecessary transportation cost. James (2002) point out two significant suppliers of Dell: Microsoft& Intel. Finally, ‘The buyers bargaining power’ is moderate, Dell had direct model to decrease cost compared to its’ competitors, the low prices to customers were attractive. Statistics showed Dell was not tied to distributors except for about 5% of their sales.

1.5 Stategic plan for supply chain& its mission, goals and objectives Jonason pointed out that Dell use cost leadership strategy in supply chain to be performance excellence(2011). It reflex the strategic plan hold inseperate connection to its supply chain. It enable DELL primary activities to create as lean of business as possible. The strategic planning initiative proposed by Dell fiscal review(2011):

It may easy to firgure out Dell mission/goal by looking above diagram. Moreover, the furture objective include redefining the infrastructure of supply-chain, offer flexible IT solutions to the customers, invest in more facilities of Dell Connect Classroom and, modifying business strategy and improve corporate citizenship.

1.6 Boundries of the organization& major processes to be mapped The supply chain, value chain, process map will be draw in the next step-B, It going to develop an organization/department level map of product delivery from raw materials supplier to final delivery and support to the end customer(eg: organization requirements defination, any development or collaboration,...

References: a. Ian& Erin(2010), Michigan Technological University, match Dell, accessed
f.Johnason(2011), ensuring strategic planning in Dell, accessed 30/09/2012,
g.Dell fiscal 2011 in review, accessed 30/09/2012,
i. Dell service(2004), managed deployment service, helpful linked to Dell website, accessed 03/10/2012,
f. Wisner, J. D., Tan, K-C., and Keong Leong, K., 3nd ed. (2012), Principles of Supply Chain Management: A Balanced Approach, South-Western; Cengage Learning. AUSTRALIA
i. Petter, M(2012), MGMT309, lecture note, accessed 09/10/2012, eLearning@UOW.
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