Dell

12 Pages 2986 Words

e and software to the specific needs of the consumer. The organisation has been able to gain a cost advantage by creating a standardised product as well as achieving the market advantage of variety and uniqueness. The modular design of Dells products has made that possible. Dells use of modular design involves using a standardised building block/chassis to which; value is added by building each product to the customer’s specifications, the outcome being a unique finished product. Modular design also gives Dell the increased flexibility in its procurement function. The diagram below highlights this flexibility: Dell Computers Corp Suppliers (figure 1.1) Suppliers Figure 1.1 provides a simplistic example of Dells supply chain. The numbered squares each represent a component supplier. Hypothetically speaking lets us assume that supplier number 5 provides Dell with circuit boards. Management has discovered that it would be more efficient ordering that component from a regional supplier, therefore decides to cut supplier 5 out of the supply chain and switches to supplier number 6. The modular design of the product makes that possible as well as the fact that the bulk of the components are not being ordered from a single supplier. Dells product range includes the following: Based on the information above it can be said that, Dell is one of the most ideal models of a market-orientated organisation. By having a direct relationship with its customers the organisation has been able to gain an understanding of their individual needs Home and Homeand therefore, strategically segmenting the market as follows: Medium and Small business Center (businesses under 400 employees) office Internet Service Providerslarge business (businesses with over 400 employees) (Internet service providers, application service providers and web hosting Education facilities Government agencies  Health Care business ...