1. Best in France Case Study January 2005 - March 2005
DELL France
Best in France Case Study
January March 2005
By: Marie Ledru, Rachid Dray, Benjamin Hakoun and Pierre-Emmanuel Pegues

2. Dell: corporate profile
Dell computer corporation was grounded in 1984 by the 19 year-old Michael Dell
The world leader in computer manufacturing (since 2001) and data processing solutions
50000 employees around the world, including in France (coming from 30 countries)
An annual turnover of 50 billion $ in 2003
A market share of 16,4% in 2004, 31 million computers sold
And almost: a specific business model

3. A brief overview 1984: Dell is grounded in Texas
1989: The company comes to France (Paris, currently 350 employees)
1992: Setting up in Montpellier (call center, currently 1000 employees)
2003: Setting up of a new call center in Casablanca, Morocco
: the target is to double the turnover

4. Why Dell came to France A predominant market in Europe for 15 years
A “stategic market” for Dell for 2 years
A strategic platform for South Europa, especially Italy and Spain
But no plant…

5. DELL’s core values
DELL’s values are the result of its success story based on the entrepreneurial personality of Michael Dell
A post start-up spirit: a top-down organization with plenty of room for creativity and innovation
The importance of execution
Transparency and constant performance assessment: an obsession
Closeness of management to their teams: 1 manager for only 10 employees
Outstanding competitiveness

6. DELL’s challenge: to instill these values in the French unit
Child care unit in Montpellier:
a way to demonstrate the long-term commitment of DELL to the French market
Recruiting of adequate staff, in particular
people with international profiles (middle and top management) and
through the setting up of DELL’s first sales school in Europe

7. DELL’s challenge: to instill these values in the French unit
The constitency of DELL’s policy is a crucial asset to help instill its US-flavoured values in France
The revision of the agreement « les 35 heures »
Cost containment and investment optimization as a daily battle at DELL
Work trips of managers
Close scrutiny of the ROI of advertising…

8. DELL’s products
DELL does not produce its computers in France and rumors about France being chosen as he location for the second assembly plant to be set up were denied by one of our interviewee (confidential).
France is one of DELL’s strategic market: the firm could not do without being in France, contrary to Spain and Italy
DELL’s location
Paris
Montpellier
…Casablanca

9. DELL’s products Hardware, software and peripherals
Desktop
Workstation
Notebook
Servers, storage and networking
Software and peripherals…
Business services: solutions
Outrageous deals !

10. DELL's clients DELL targets 3 market segments
Small and medium size businesses
Large firms
=> access to a dedicated private webpage, personalized advice, cost efficiency
Private customers: the best computer at the lowest price
A French presence is an essential condition to access a French speaking workforce, offer a tailored service and be close to clients to deliver real value.

11. Human Resource Policy in Dell France
A special kind of recruitment
A specific sales school.
The Comp&Ben System
The French workers always have to be reassured with long-term projects
Child care unit in Montpellier
International transfers
The board of the Montpellier site is composed of Anglo-Saxons.
In Dell, there is a high mobility of talents.

12. Constraints in France
The Dell’s distribution model require a high sense of work
The revision of the agreement « les 35 heures » highlights the will to keep the investment margin, as the work productivity of the Montpellier unit is too low according to the managers.
Cost of work ( social security and contributions , tax level…)
The traditional problem of the trade unions
No strikes, but tense negociations with trade unions when the opening of the Casablanca unit was announced.
The mentality of the French Workforce
Qualities required to work for Dell : adaptability, flexibility, evolution, mobility, creativity.
Transparency: the performance of each worker has to be estimated.
These constraints are a real hurdle to settle in France
A new plant is needed for the European market but France won’t be chosen.
Dell set up its EMEA headquarters in London…

13. Key Benefit Numbers What are the key benefits of being in France?
A high quality of life: very important for the establishment of foreign managers
Location benefits ( Montpellier: easy access and equal distance between Paris, Italy, Spain) and a quite cheap real estate market
Government assistance: subsidaries, tax credit
High quality of Infrastructures: airport, road, communication network
A high qualified pool of competences (both technical and commercial)
The establishment in France answers 2 logics:
A logic of market: France is a dominating market in Europe with worlwide firms (Accor, Axa…)
France constitutes a European platform especially for the markets of the South (Italy, Spain, Portugal, Greece).

14. Essential Advice…
Dell has a unique business model based on the need to be close to customers. Its competitive advantage is based on the distribution.
By the way it’s hard to set up rules and solutions from our case study
Dell = Outlier

15. We thank The Dell company, and especially
Mr. Patrick Thill, HR manager for France and top manager in charge of Montpellier’s operations
Miss Audrey Caillaud, HR assistant
Mr. Franck Penot Senior Marketing Manager

16. Our team Rachid Dray rachid.dray@mailhec.net
Benjamin Hakoun
Marie Ledru
Pierre-Emmanuel Pegues