1. Future of Dell Key points  Core business  computer sales  Direct distribution  Market leader  But Dell stagnates on occidental markets Group : Tiphaine Lalonde, Adeeb Munim,Jean-Paul Nicolet, John Soltane.

2. Strength (1)Business model= “direct model” (1): Virtual Integration, Customer relation - Information, Efficiency, Reactivity (2) Disruptive innovation (2) Mindset: Capturing the market by the low end through business model that could compete profitably at lower prices (3) Grow or Die Invade Market at the right time (3) Segment to mirror the market (4) Return on investment Rely on your partners Delegate Stay fexible Plan Weakness Dell is following actor Dell only oriented to Computer business Operational problems:  Hotline lack of Reactivity  Problem Battery (4 millions exchanges ) Services* Unique, Global Thinking  No adaptation to comportmental behavior of local customers world wide(cultural and social factors)  absent market focus old people Young generation payment via phone/internet  Excluding people afraid to use virtual payment methods Lack of Human dimension into relationship Poverty of “R & D”

3. Opportunities Future Convergences ex :  Mobile phone + PDA  PDA + “I pod”  Home entertainments  Media center (TV, cinema, PC, hi-fi device, etc Customer data base Threats His model can be copied Closed model Depends on his suppliers

4. ( 1) Dell’s Business model  « The Direct model has become the backbone of our company, and the greatest tool in its growth » Michael Dell  Reference: How DELL does it? By Steven Holzner (2)Distruptive innovation  DELL captured the computer market with innovative business model that didn’t attack core market by bringing better product to established users in direct competition with leaders in industry (IBM, HP), but rather it came onto the low end of the market through business model that could compete profitably at lower prices.  Reference Clayton Christensen, Harvard Business School, http://www.gartner.com/research/fellows/asset_93329_1176.jsp (3)Michael Dell: “the magic formula in our business is figuring out what stage of evolution a given technology is at and when it’s right for Dell to use the business model and customer relationships to make a product much higher in volume and lower in price  where

5. Dell’s products line PC Corporate PC General Public At the beginning Servers Corporate Peripherals: Printer, screen TV, Camera, PDA, Zune, Software and Accessories

6. Dell’s products line

7. Ideas about changing Some ideas:  « Direct Model » Anamorphous ??? Find an angle? Have a side view?  Dell Computer Inc would become Dell Corp.