Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0036

Year : 2004

Industry : Engineering, Electrical and Electronics

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Dell Computers Limited, in 20 years of its existence became a pioneer in direct marketing. The company always focused on improving its supply chain by reducing costs through direct selling. Dell's mission statement – "With manufacturing and sales offices throughout North America, Europe, Asia and South America, we are closer to our customers wherever they are. And we use our outstanding products, services and direct relationships to meet the unique needs of those customers, one at a time" – was focused on the same concept of direct-to-market strategy.

The company's direct model became a global benchmark in supply chain management, and many other organizations worldwide incorporated it in order to improve their supply chains. Dell had the lowest operating expenses in the industry owing to this direct business model that helped it to sell its products cheaper than its competitors. These lower costs helped the company to achieve huge sales each year and in 2003,Dell became the number one computer manufacturer in the world in terms of volume...