Essay: Production process of Dell Company

Sample Essay

In 1994, Dell revolutionalized its production process after suffering from losses due to over-forecasting of inventory. The improved business model has allowed Dell to concentrate more on selling what it had manufacturing rather than manufacturing first and then attempting to sell it.

This business model when combined with Dell’s build-to-order sales technique brought about favorable returns for Dell including component inventory coming down dramatically and helping save funds that were then used to help Dell grow (Byrnes, 2003). Dell continued to align inventory and sales in this way and still continues to do so in order to reduce costs and ensure that the inventory was being managed through profitability rather than the other way around.

Marketing

Having lost quite a bit of its market share to competition in 2006, Dell redesigned its marketing strategy in 2007 with the appointment of new marketing chief, Mark Javis (Lee, 2007). Dell now operates a more aggressive and bright marketing campaign then it was accustomed to in earlier years.

Dell has always been a user of direct interaction strategies with the consumer. Dell chooses to interact directly with the consumer because direct interaction with the consumer ensures that the name of the brand remains alive and active in the minds of the consumers as well as allowing savings through the exclusion of intermediaries in the distribution process.  The approach allows Dell to customize its product line according to changing customer demands and reduce operating expenses. It is safe to assume that the current success of Dell has been brought about by concentrating on people who want to buy computer systems rather than those who might buy a computer system. The returns of targeted marketing have always remained loyal to Dell.

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