Engr 185A

Engr 185A - -change of CEO in 2007, let go of 9000 workers...

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-change of CEO in 2007, let go of 9000 workers (10% of work force) -overtaken by HP -utilized direct sales model, also efficient manufacturing and supply chain management -once the fastest growing market shifted to individual consumers, from governments and large businesses, Dell began to lose its advantage -Dell was unable to achieve its goals for expansion into China -Direct Model: sold directly to customers, dealt directly with suppliers, and communicated directly with its employees -Dealing directly with customers, gave Dell a cost advantage through eliminating the middle man (saved 25 to 45 percent on each machine) -Also without a middle intermediary Dell was able to strengthen their relationship with their consumers -High visibility of customer demand, allowed Dell to not keep inventory. “Demand first, supply second” -“Always listen to the customer” -“Never sell indirectly” -the absence of inventory and warehouse upkeep, allowed Dell to save money. Newer technology was able to be delivered at a quicker rate,
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This note was uploaded on 08/27/2011 for the course ENGR 185a taught by Professor Staff during the Fall '08 term at UCSB.

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Engr 185A - -change of CEO in 2007, let go of 9000 workers...

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