Write 6 pages thesis on the topic dells operation strategy. Dell is the most prominent mergers have been with Alienware and Perot Systems. Dell is known for its supply chain management and online sales where it focused on “configure to order” strategy where every product was customized (Fuller, 2012). It initially worked but as the demand became global the strategy was just too hard to keep up. Customers became smarter and wanted to use the products before buying which weakened Dell’s online selling strategy (Eden, 2012). Graph 1. Dell’s market share in U.S. and Worldwide (in Q1 2009) compared to other top PC makers http://www.casestudyinc.com/dell-supply-chain-case-study According to Atikan (2012), from 1997-2004 was an era of growth for the firm where the firm got a number one position for customer services and reliance. In 2002 the firm expanded its product portfolio to include televisions and printers etc. it also acquired Converge Net Technologies. In 2004, with the change in management, Dell’s ties with Microsoft and Intel deteriorated and in 2005 Dell lost 25% of its shares. With the market now stretching across the globe, Dell could not maintain its customer services nor manufacture customized products. Moreover, the prices per product production reduced cutting down on Dell’s profits. Adding to it Dell spent less on its R&D, which retarded its future growth prospects. The firm undertook many acquisitions as an attempt to rise again with its latest acquisition in September 2012 of Quest Software. Today it has gained strength by transforming into an IT solution provider and is successful in the Virtual Era (Fuller, 2012). 2 Application of OM in Dell’s workplace Operational management is primarily how Dell manages its quality, supply chain, maintenance, global locations, and human resources. 2.1 Quality Dell was always known for its quality products, however, as the market expanded globally, the firm had increasing difficulty to produce customized products and thus quality also suffered leading to complaining customers and slow customer care. Every market has a different requirement and to cater to that it became difficult for the firm. This was also adding to the cost where Dells products were marked higher than the market price (Chen and Press, 2012). 2.2 Supply chain at Dell The firm has stringent legal frames that it follows and ensures that its suppliers follow that too. Maintaining that has enabled Dell to reached the global markets as the quality is maintained and at the same time the suppliers realize the standards they need to maintain if they intend to work with Dell. 2.3 Maintenance management Dell trains and develops its employees continuously and has highly skilled employees because the products are customized and thus require specific skills to follow this strategy. As per Atikan (2012), Dell aims to converge its technology that will simplify operation and make performance better simultaneously reducing operational costs. Dell claims to have a holistic approach that helps its customers with managing their virtual and physical IT needs thereby achieving their objectives. 2.4 Global management Dell’s acquisition of Perot Systems and integration into Dell Services enabled Dell to develop its applications services, strategic consultations, integration of its systems, etc. However, currently, only the US and India has all of Dell’s business functions.
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