DELL's Commitment to Quality

DELL's Commitment to Quality

Introduction

Dell Incorporation was founded as the PC's limited in 1984, but soon its name got changed as Dell Computer Corporation, after the name of its founder Michael Dell. In 1988, Dell registered itself as the public limited company with 3.5 million shares at the rate of $8.50 each. Due to its unmatched and distinctive strategies Dell has catered 15% share of the international market. Dell has divided its target market into three segments i.e. corporate sector, medium and small scale businesses and individual consumer. Dell is one of those companies that are fully dedicated and committed to quality. Dell uses the most sophisticated benchmark system for its production that ultimately completes all the compliance of its customer.

Discussion

Value Chain

Dell Incorporation is the most prominent computer selling company. It caters the customers of 170 countries and has approximately 35,000 employees in more than 30 countries. Dell became the market leader just because of its consistency of providing the highest level of satisfaction and a delight to its valuable customers throughout the world. Dell declines the conventional concept of “made to stock” and adopts the most dynamic and distinctive approach of “direct business model” (ivythesis, 2009).

The value chain of Dell Incorporation reflects the true spirit of its commitment to quality. Value Chain is divided into two segments i.e. Primary and Supportive, which are as follows (ivythesis, 2009).

Primary Activities

Inbound Logistics

Dell fulfills its mission and commitment to quality because of its valuable suppliers.

Operations

All the production operations are backed by the most sophisticated benchmark system so that the company can produce the best quality product.

Outbound Logistics

Dell does not follow the conventional methods of distribution. It sells directly to its customers.

Marketing and Sales

Dells philosophy of “direct sale to customer” helps the company to minimize its marketing expenses and on the other hand brings out the desired results too.

Service

Dell has advisory and suggestion panel that are available to help the customer in any regard.

Support Activities

Procurement

Dell procures only that quality material which has a tendency to qualify the benchmark system and company's quality requirement.

Technology Development

It is the main distinctive area of Dell incorporation. Dell has catered the global market because of its innovative and creative product.

Firm Infrastructure

Dell modernized the conventional value chain through its unique approach of “direct to customer”. This approach helps the company to reduce its product cost.

Performance Measurements

It is very much important for the public limited companies to maintain their performance in all aspects because every stakeholder has an eye on them. Dell being the most prominent public limited company, always took great care of its stakeholders. Dell evaluates its performance on three scales i.e. ROI- Return on investment, ratio of production, Customer Satisfaction. Dell uses these three scales of performance measurements to create an equilibrium level among its all stakeholders. The performance of production of Dell has been evaluated by a critical benchmark system which is known as Dell performance system Lab (SPA-Lab).

Goods and Service Design

Dell Incorporation has kept its pace with the changing trends of diversification and ...