CHAPTER-1

INTRODUCTION
Dell, Incorporated is a computer hardware manufacturer and distributor. The
company is one of the world's largest computer distributors in terms of both
quantity of units sold and gross income, and one of the United States' largest
corporations. rom !""" until #$$% Dell deli&ered more complete computer
systems worldwide per quarter than any other '( manufacturer. )owe&er, a bad
reputation stemming from poor customer support had seen Dell's mar*et shrin*,
with ri&al )ewlett+'ac*ard outselling Dell for the first time in ,- #$$%. Dell is
now attempting to impro&e its image with .inu/+based des*top and
laptop models, a community+dri&en idea generation website, and a mo&e to less
e/pensi&e 01D processors.
1ost of Dell's products are I21 '(+compatible des*top, laptop, and ser&er
computers using Intel or 01D processors. The company also mar*ets a line of
)T(+produced handheld computers hand, rebranded computer peripherals such
as *eyboards and mice, and Sony+de&eloped monitors and tele&isions. 3ther Dell+
branded peripherals such as scanners and printers are often designed in+house
with production outsourced. Dell also distributes third+party hardware such as
gaming consoles from Sony, 4intendo, and 1icrosoft. 3ften Dell will mar*et &ia
the company website third+party de&ices that compete with its own products, such
as the 'alm Tungsten handheld that competes with Dell's own 0/im line.
Dell (omputer was founded as '('s .imited in !"5- by uni&ersity student
1ichael Dell. Selling assembled computers from his dormitory room, 1ichael
abandoned the uni&ersity during the planning stage of his first in+house computer
design in !"56. The company was so successful that within two years '('s
.imited had distribution offices in 7urope, and changed its grammatically+
incorrect name to Dell (omputer (orporation. 2y !""!, se&en years after selling
its first computer, Dell (omputer (orporation was listed in the ortune 6$$. 8ith
much e/perience in mail order telephone sales, Dell was one of the first
companies to offer computers for mail order &ia the internet. The Dell (oupon
program made many Internet models cheaper than other brands, and continues to
be popular to this day.
Dell Inc. is an 0merican pri&ately owned multinational computer technology
company based in 9ound 9oc*, Te/as, United States, that de&elops, sells, repairs
and supports computers and related products and ser&ices. 2earing the name of its
founder, 1ichael Dell, the company is one of the largest technological
corporations in the world, employing more than !$:,:$$ people worldwide.
Dell sells personal computers, ser&ers, data storage de&ices, networ* switches,
software, computer peripherals, )DT;s, cameras, printers, 1': players and also
electronics built by other manufacturers. The company is well *nown for its
inno&ations in supply chain management and electronic commerce, particularly its
direct+sales model and its <build+to+order< or <configure to order< approach to
manufacturing=deli&ering indi&idual '(s configured to customer specifications.
Dell was a pure hardware &endor for much of its e/istence, but a few years ago
with the acquisition of 'erot Systems, Dell entered the mar*et for IT ser&ices. The
company has since made additional acquisitions in storage and networ*ing
systems, with the aim of e/panding their portfolio from offering computers only
to deli&ering complete solutions for enterprise customers.
Dell is listed at number 6! in the ortune 6$$ list. In #$!# it was the third largest
'( &endor in the world after )' and .eno&o. Dell is currently the >! shipper of
'( monitors in the world. Dell is the si/th largest company in Te/as by total
re&enue, according to ortune maga?ine. It is the second largest non+oil company
in Te/as @ behind 0TAT @ and the largest company in the Breater 0ustin area. It
was a publicly traded company C40SD0,D D7..E, as well as a component of the
40SD0,+!$$ and SA' 6$$, until it was ta*en pri&ate in a le&eraged buyout
which closed on 3ctober :$, #$!:.
Dell traces its origins to !"5-, when 1ichael Dell created '('s .imited while a
student of the Uni&ersity of Te/as at 0ustin. The dorm+room headquartered
company sold I21 '(+compatible computers built from stoc* components. Dell
dropped out of school to focus full+time on his fledgling business, after getting
about F:$$,$$$ in e/pansion+capital from his family. In !"56, the company
produced the first computer of its own design, the Turbo '(, which sold for
FG"6.'('s .imited ad&ertised its systems in national computer maga?ines for sale
directly to consumers and custom assembled each ordered unit according to a
selection of options. The company grossed more than FG: million in its first year
of operation.
In !"5%, 1ichael Dell brought in .ee 8al*er, a 6!+year+old &enture capitalist, as
president and chief operating officer, to ser&e as 1ichael's mentor and implement
1ichael's ideas for growing the company. 8al*er was also instrumental in
recruiting members to the board of directors when the company went public in
!"55. 8al*er retired in !""$ due to health, and 1ichael Dell hired 1orton
1eyerson, former (73 and president of 7lectronic Data Systems to transform the
company from a fast+growing medium+si?ed firm into a billion+dollar enterprise.
The company changed its name to Dell (omputer (orporation in !"55 and began
e/panding globally. In Hune !"55, Dell's mar*et capitali?ation grew by F:$
million to F5$ million from its Hune ## initial public offering of :.6 million shares
at F5.6$ a share .In !""#, ortune maga?ine included Dell (omputer (orporation
in its list of the world's 6$$ largest companies, ma*ing 1ichael Dell the youngest
(73 of a ortune 6$$ company e&er.
In !"":, to complement its own direct sales channel, Dell planned to sell '(s at
big+bo/ retail outlets such as 8al+1art, which would ha&e brought in an
additional F!#6 million in annual re&enue. )owe&er, 2ain consultant Ie&in
9ollins persuaded 1ichael Dell to pull out of these deals, belie&ing they would be
money losers in the long run. Indeed, margins at retail were thin at best and Dell
left the reseller channel in !""-. 9ollins would soon Join Dell full+time and
e&entually become the company 'resident and (73.
Growth in 1990s and early 000
3riginally, Dell did not emphasi?e the consumer mar*et, due to the higher costs
and unacceptably low profit margins in selling to indi&iduals and households,
howe&er this changed when the companys Internet site too* off in !""% and
!""G. 8hile the industrys a&erage selling price to indi&iduals was going down,
Dells was going up, as second+ and third+time computer buyers who wanted
powerful computers with multiple features and did not need much technical
support were choosing Dell. Dell found an opportunity among '(+sa&&y
indi&iduals who li*ed the con&enience of buying direct, customi?ing their '( to
their means, and ha&ing it deli&ered in days. In early !""G, Dell created an
internal sales and mar*eting group dedicated to ser&ing the home mar*et and
introduced a product line designed especially for indi&idual users.
!ro" 199# to 00$%
Dell enJoyed steady growth and it gained mar*et share from competitors e&en
during industry slumps. During the same period, ri&al '( &endors such as
(ompaq, Bateway, Inc., I21, 'ac*ard 2ell, and 0ST 9esearch would struggle
and e&entually lea&e the mar*et or get bought out. Dell surpassed (ompaq to
become the largest '( manufacturer in !""". 3perating costs made up only !$
percent of Dell's F:6 billion in re&enue in #$$#, compared with #! percent of
re&enue at )ewlett+'ac*ard, #6 percent at Bateway, and -% percent at (isco. In
#$$#, when (ompaq merged with )ewlett 'ac*ard Cthe -th place '( ma*erE, the
newly combined )ewlett 'ac*ard too* the top spot but struggled and Dell soon
regained its lead. Dell grew the fastest in the early #$$$s.
Dell attained and maintained the >! rating in '( reliability and customer
ser&iceKtechnical support, according to (onsumer 9eports, year after year, during
the mid+to+late "$s through #$$! right before 8indows L' was released.
In !""%, Dell began selling computers through its website. In the mid+!""$s, Dell
e/panded beyond des*top computers and laptops by selling ser&ers, starting with
low+end ser&ers. The maJor three pro&iders of ser&ers at the time were I21,
)ewlett 'ac*ard, and (ompaqM many of which were based on proprietary
technology, such as I21's 'ower- microprocessors or &arious proprietary
&ersions of the U4IL operating system. Dell's new 'ower 7dge ser&ers did not
require a maJor in&estment in proprietary technologies, as they ran 1icrosoft
8indows 4T on Intel chips, and could be build cheaper than its competitors.
(onsequently, Dell's enterprise re&enues, almost none/istent in !""-, accounted
for !: percent of the company's total inta*e by !""5. Three years later Dell passed
(ompaq as the top pro&ider of Intel+based ser&ers, with :! percent of the mar*et.
Dell's first acquisition occurred in !""" with the purchase of (on&erge 4et
Technologies for F::# million, after Dell had failed to de&elop an enterprise
storage system in+house, howe&er (on&erge 4et's elegant but comple/ technology
did not fit in with Dell's commodity+producer business model, forcing Dell to
write down the entire &alue of the acquisition.
In #$$#, Dell e/panded its product line to include tele&isions, handhelds, digital
audio players, and printers. (hairman and (73 1ichael Dell, howe&er, had
repeatedly bloc*ed 'resident and (33 Ie&in 9ollin's attempt to lessen the
company's hea&y dependency on '(s, which 9ollins wanted to fi/ by acquiring
71( (orporation.
In #$$:, the company was rebranded as simply <Dell Inc.< to recogni?e the
company's e/pansion beyond computers.
In #$$-, 1ichael Dell resigned as (73 while retaining the position of (hairman,
handing the (73 title to Ie&in 9ollins who had been 'resident and (33 since
#$$!. Despite no longer holding the (73 title, Dell essentially acted as a de facto
co+(73 with 9ollins.
Under 9ollins, Dell began to loosen its ties to 1icrosoft and Intel, the two
companies responsible for Dell's dominance in the '( business. During that time,
Dell acquired 0lien ware, which introduced se&eral new items to Dell products,
including 01D microprocessors. To pre&ent cross+mar*et products, Dell
continues to run 0lien ware as a separate entity, but still a wholly owned
subsidiary.
Rollins as CEO and disa&&oint"ents
)owe&er in #$$6, while earnings and sales continued to raise, sales growth
slowed considerably, and the company stoc* lost #6N of its &alue that year. 2y
Hune #$$%, the stoc* traded around F#6 USD which was -$N down from Huly
#$$6=the high+water mar* of the company in the post+dotcom era.
The slowing sales growth has been attributed to the maturing '( mar*et, which
constituted %%N of Dell's sales, and analysts suggested that Dell needed to ma*e
inroads into non+'( businesses segments such as storage, ser&ices and ser&ers.
Dell's price ad&antage was tied to its ultra+lean manufacturing for des*top '(s,
howe&er this became less important as sa&ings became harder to find inside the
company's supply chain, and as competitors such as )ewlett+'ac*ard and 0cer
made their '( manufacturing operations more efficient to match Dell, wea*ening
Dell's traditional price differentiation. Throughout the entire '( industry, declines
in prices along with commensurate increases in performance meant that Dell had
fewer opportunities to up sell to their customers Ca lucrati&e strategy of
encouraging buyers to upgrade the processor or memoryE. 0s a result the company
was selling a greater proportion of ine/pensi&e '(s than before, which eroded
profit margins. The laptop segment had become the fastest growing of the '(
mar*et, but Dell produced low+cost noteboo*s in (hina li*e other '(
manufacturers which eliminated Dell's manufacturing cost ad&antages, plus Dell's
reliance on Internet sales meant that it missed out on growing noteboo* sales in
big bo/ stores. (47T has suggested that Dell was getting trapped in the
increasing commoditi?ation of high &olume low margin computers, which
pre&ented it from offering more e/citing de&ices that consumers demanded.
Despite plans of e/panding into other global regions and product segments, Dell
was hea&ily dependent on U.S. corporate '( mar*et, as des*top '(s sold to both
commercial and corporate customers accounted for :# percent of its re&enue, 56
percent of its re&enue comes from businesses, and Si/ty+four percent of its
re&enue comes from 4orth and South 0merica, according to its #$$% third+quarter
results. )owe&er, U.S. shipments of des*top '(s were shrin*ing. urthermore, the
corporate '( mar*et which purchases '(s in upgrade cycles had largely decided
to ta*e a brea* from buying new systems. The last cycle started around #$$#,
three or so years after companies started buying '(s ahead of the percei&ed O#I
problems, and corporate clients were not e/pected to upgrade again until
e/tensi&e testing of 1icrosoft's 8indows ;ista Ce/pected in early #$$GE, putting
the ne/t upgrade cycle around #$$5.)ea&ily depending on '(s, Dell had to slash
prices to boost sales &olumes, while demanding deep cuts from suppliers.
Dell had long stuc* by its direct sales model. )owe&er consumers had become the
main dri&ers of '( sales in recent years, yet there had a decline in consumers
purchasing '(s through the 8eb or on the phone, as increasing numbers were
&isiting consumer electronics retail stores to try out the de&ices first. Dell's ri&als
in the '( industry, )', Bateway and 0cer, had a long retail presence and so were
well poised to ta*e ad&antage of the consumer shift. The lac* of a retail presence
stymied Dell's attempts to offer consumer electronics such as flat+panel T;s and
1': players. Dell responded by e/perimenting with mall *ios*s, plus quasi+retail
stores in Te/as and 4ew Oor*.
Dell had a reputation as a company that relied upon supply chain efficiencies to
sell established technologies at low prices, instead of being an inno&ator. 2y the
mid+#$$$s many analysts were loo*ing to inno&ating companies as the ne/t
source of growth in the technology sector. Dell's low spending on 9AD relati&e to
its re&enue Ccompared to I21, )ewlett 'ac*ard, and 0pple Inc.E=which wor*ed
well in the commoditi?ed '( mar*et=pre&ented it from ma*ing inroads into
more lucrati&e segments, such as 1': players and later mobile de&ices.
Increasing spending on 9AD would ha&e cut into the operating margins that the
company emphasi?ed. Dell had done well with a hori?ontal organi?ation that
focused on '(s when the computing industry mo&ed to hori?ontal mi/+and+match
layers in the !"5$s, howe&er by the mid+#$$$ the industry shifted to &ertically
integrated stac*s to deli&er complete IT solutions and Dell lagged far behind
competitors li*e )ewlett 'ac*ard and 3racle.
Dell's reputation for poor customer ser&ice, since #$$#, which was e/acerbated as
it mo&ed call centres offshore and as its growth outstripped its technical support
infrastructure, came under increasing scrutiny on the 8eb. The original Dell
model was *nown for high customer satisfaction when '(s sold for thousands but
by the #$$$s, the company could not Justify that le&el of ser&ice when computers
in the same line+up sold for hundreds. 9ollins responded by shifting Dic* )unter
from head of manufacturing to head of customer ser&ice. )unter, who noted that
Dell's D40 of cost+cutting <got in the way,< aimed to reduce call transfer times
and ha&e call centre representati&es resol&e inquiries in one call. 2y #$$%, Dell
had spent F!$$ million in Just a few months to impro&e on this, and rolled out
Dell (onnect to answer customer inquiries more quic*ly. In Huly #$$%, the
company started its Direct#Dell blog, and then in ebruary #$$G, 1ichael Dell
launched IdeaStorm.com, as*ing customers for ad&ice including selling .inu/
computers and reducing the promotional <bloat ware< on '(s. These initiati&es
did manage to cut the negati&e blog posts from -"N to ##N, as well as reduce the
<Dell )ell< prominent on Internet search engines.
There was also criticism that Dell used faulty components for its '(s, particularly
the !!.5 million 3pti'le/ des*top computers sold to businesses and go&ernments
from 1ay #$$: to Huly #$$6 that suffered from bad capacitors made by a
company called 4ichicon. 0 battery recall in 0ugust #$$%, as a result of a Dell
laptop catching fire caused much negati&e attention for the company though later,
Sony was found responsible for the faulty batteries.
#$$% mar*ed the first year that Dell's growth was slower than the '( industry as a
whole. 2y the fourth quarter of #$$%, Dell lost its title of the largest '(
manufacturer to ri&al )ewlett 'ac*ard whose 'ersonal Systems Broup was
in&igorated than*s to a restructuring initiated by their (73 1ar* )urd.
0fter four out of fi&e quarterly earnings reports were below e/pectations, 9ollins
resigned as 'resident and (73 on Hanuary :!, #$$G and founder 1ichael Dell
assumed the role of (73 again.
Dell '0 and downsi(in)
Dell announced a change campaign called <Dell #.$,< reducing the number of
employees and di&ersifying the company's products. 8hile chairman of the board
after relinquishing his (73 position, 1ichael Dell still had significant input in the
company during 9ollins' years as (73. )owe&er with the return of 1ichael Dell
as (73, the company saw immediate changes in operations, the e/odus of many
senior &ice+presidents and new personnel brought in from outside the company.
1ichael Dell announced a number of initiati&es and plans Cpart of the <Dell #.$<
initiati&eE to impro&e the company's financial performance. These include
elimination of #$$% bonuses for employees with some discretionary awards,
reduction in the number of managers reporting directly to 1ichael Dell from #$ to
!#, and reduction of <bureaucracy.< Him Schneider retired as (3 and was
replaced by Donald (arty, as the company came under an S7( probe for its
accounting practices.
3n 0pril #:, #$$5, Dell announced the closure of one of its biggest (anadian call+
centres in Ianata, 3ntario, terminating appro/imately !!$$ employees, with 6$$
of those redundancies effecti&e on the spot, and with the official closure of the
centre scheduled for the summer. The call+centre had opened in #$$% after the city
of 3ttawa won a bid to host it. .ess than a year later, Dell planned to double its
wor*force to nearly :,$$$ wor*ers add a new building. )owe&er these plans were
re&ersed, due to a high (anadian dollar that made the 3ttawa staff relati&ely
e/pensi&e, and also as part of Dell's turnaround, which in&ol&ed mo&ing these
call+centre Jobs offshore to cut costs. The company had also announced the
shutdown of its 7dmonton, 0lberta office, losing "$$ Jobs. In total, Dell
announced the ending of about 5,5$$ Jobs in #$$G+#$$5 = !$N of its wor*force.
2y the late #$$$s, Dell's <configure to order< approach of manufacturing=
deli&ering indi&idual '(s configured to customer specifications from its US
facilities was no longer as efficient or competiti&e with high+&olume 0sian
contract manufacturers as '(s became powerful low+cost commodities. Dell
closed plants that produced des*top computers for the 4orth 0merican mar*et,
including the 1ort Topfer 1anufacturing (entre in 0ustin, Te/as Coriginal
locationE and .ebanon, Tennessee Copened in !"""E in #$$5 and early #$$",
respecti&ely. The des*top production plant in 8inston+Salem, 4orth (arolina
recei&ed F#5$ million USD in incenti&es from the state and opened in #$$6, but
ceased operations in 4o&ember #$!$. Dell's contract with the state required them
to repay the incenti&es for failing to meet the conditions, and they sold the 4orth
(arolina plant to )erb life. 1ost of the wor* that used to ta*e place in Dell's U.S.
plants was transferred to contract manufacturers in 0sia and 1e/ico, or some of
Dell's own factories o&erseas. The 1iami, lorida facility of its 0lien ware
subsidiary remains in operation, while Dell continues to produce its ser&ers Cits
most profitable productsE in 0ustin, Te/as. 3n Hanuary 5, #$$" Dell announced
the closure of its manufacturing plant in .imeric*, Ireland with the loss of !,"$$
Jobs and the transfer of production to its plant in .od? in 'oland.
The release of 0pple's i'ad tablet computer had a negati&e impact on Dell and
other maJor '( &endors, as consumers switched away from des*top and laptop
'(s. Dell's own mobility di&ision has not managed success with de&eloping smart
phones or tablets, whether running 8indows or Boogle 0ndroid. The Dell Strea*
was a failure commercially and critically due to its outdated 3S, numerous bugs,
and low resolution screen. Info8orld suggested that Dell and other 371s saw
tablets as a short+term, low+in&estment opportunity running Boogle 0ndroid, an
approach that neglected user interface and failed to gain long term mar*et traction
with consumers .Dell has responded by pushing higher+end '(s, such as the L'S
line of noteboo*s, which do not compete with the 0pple i'ad and Iindle ire
tablets. The growing popularity of smart phones and tablet computers instead of
'(s dro&e Dell's consumer segment to an operating loss in ,: #$!#. In December
#$!#, Dell suffered its first decline in holiday sales in fi&e years, despite the
introduction of 8indows 5.
In the shrin*ing '( industry, Dell continued to lose mar*et share, as it dropped
below .eno&o in #$!! to fall to number three in the world. Dell and fellow
0merican contemporary )ewlett 'ac*ard came under pressure from 0sian '(
manufacturers .eno&o, 0sus, and 0cer, all of which had lower production costs
and willing to accept lower profit margins. In addition, while the 0sian '(
&endors had been impro&ing their quality and design, for instance .eno&o's
Thin*'ad series was winning corporate customers away from Dell's laptops,
Dell's customer ser&ice and reputation had been slipping.P%:QP%-Q Dell remained
the second+most profitable '( &endor, as it too* !: percent of operating profits in
the '( industry during ,- #$!#, behind 0pple Inc.'s 1acintosh that too* -6
percent, se&en percent at )ewlett 'ac*ard, si/ percent at .eno&o and 0sus, and
one percent for 0cer.P%6Q
Dell has been attempting to offset its declining '( business, which still accounted
for half of its re&enue and generates steady cash flow, by e/panding into the
enterprise mar*et with ser&ers, networ*ing, software, and ser&ices. It a&oided
many of the acquisition write downs and management turno&er that plagued its
chief ri&al )ewlett 'ac*ard. Dell also managed some success in ta*ing ad&antage
of its high+touch direct sales heritage to establish close relationships and design
solutions for clients. )owe&er despite spending F!: billion on acquisitions to
di&ersify its portfolio beyond hardware, the company was unable to con&ince the
mar*et that it could thri&e or made the transformation in the post+'( world, as it
suffered continued declines in re&enue and share price. Dells mar*et share in the
corporate segment was pre&iously a <moat< against ri&als but this has no longer
been the case as sales and profits ha&e dropped fallen precipitously.
01* +,yo,t
0fter se&eral wee*s of rumours, which started around Hanuary !!, #$!:, Dell
announced on ebruary 6, #$!: that it had struc* a F#-.- billion le&eraged buyout
deal that would ha&e delisted its shares from the 40SD0, and )ong Iong Stoc*
7/change and ta*en it pri&ate. 1ichael Dell and Sil&er .a*e 'artners, aided by a
F# billion loan from 1icrosoft, will buy the public shares at F!:.%6 a piece. The
F#-.- billion buyout is the largest le&eraged buyout bac*ed by pri&ate equity since
the #$$G financial crisis. It is also the largest technology buyout e&er, surpassing
the #$$% buyout of ree scale Semiconductor for F!G.6 billion.
The founder of Dell, 1ichael Dell, said of the buyout <I belie&e this transaction
will open an e/citing new chapter for Dell, our customers and team members<.
Dell ri&al .eno&o reacted to the buyout, saying <the financial actions of some of
our traditional competitors will not substantially change our outloo*<. 1eanwhile,
)' stated that Dell's traditional product inno&ation might suffer as a result of the
buyout.
The buyout price represents a small premium o&er the current stoc* price, and
much lower than the stoc*'s all+time high of F%6 USD per share reached during
the dotcom bubble in #$$$, as well as its Huly #$$6 price of F-$ USD which was
the high+water mar* of the post+dotcom era. The price of F!:.%6 per share
represented a #6 per cent premium to the stoc* price, but far below the 6#+wee*
high of F!5.:%, and more than G% per cent off its all+time high .Se&eral maJor
institutional shareholders ha&e &oiced opposition, including South eastern 0sset
1anagement and 1ason )aw*ins. 1ichael Dell owns the largest single share of
the company's stoc* and was part of negotiations to go pri&ate, howe&er he is
offering only FG6$ million of his own money for a deal that will in&ol&e almost
F!% billion in new debt. T. 9owe 'rice, which has the third largest holding, also
obJected to the low price of the proposal. South+eastern 0sset 1anagement, the
largest shareholder of Dell stoc* with about 5.6N, is opposed to the deal at the per
share price of F!:.6$ to F!:.G6 as they &alue the company at F#:.G# a
share.Southeastern also complained that the o&erseas funds aren't offered to
sweeten the buyout offer.
Typical le&eraged buyouts ha&e been &iewed as tools of &ulture capitalists.
3rdinarily, the buyer see*s to brea* up the firm and lay off wor*ers, or bring
greater efficiency and new management to a troubled firm. The Dell le&eraged
buyout is unusual because the dri&ing force behind the deal was not a &ulture
capitalist, but rather, 1ichael Dell, who was already the (hairman and (73,
founder, and largest shareholder of the firm. Unli*e most le&eraged buyouts that
aim to wrest management control away from incumbents, the Dell deal intends to
*eep the same leadership team in place. The main aim of Dell's le&eraged buyout
is to reJigger the companys financial structure. 2y going pri&ate, Dell would be
able to radically restructure its legacy '( business and build up its enterprise
solutions and cloud computing, without worrying about the impact on its quarterly
results and its stoc* price. Bartner has warned that this may include Dell lea&ing
the '( mar*et entirely.
In 1arch #$!:, the 2lac*stone Broup and (arl Icahn e/pressed interest in
purchasing Dell .In 0pril #$!:M 2lac*stone withdrew their offer, citing
deteriorating business. 3ther pri&ate equity firms such as II9 A (o. and T'B
(apital declined to submit alternati&e bids for Dell, citing the uncertain mar*et for
personal computers and competiti&e pressures, so the <wide+open bidding war<
ne&er materiali?ed. 0nalysts said that the biggest challenge facing Sil&er .a*e
would be to find an Re/it strategyS to profit from its in&estment, which would be
when the company would hold an I'3 to go public again, and one warned R2ut
e&en if you can get a F#6bn enterprise &alue for Dell, it will ta*e years to get out.S
In 1ay #$!:, Dell Joined his board in &oting for his offer. The following 0ugust
he reached a deal with the special committee on the board for a raised price of
F!:.G6 plus a special di&idend of !: cents per share, as well as a change to the
&oting rules. The offer was accepted on September !# and closed on 3ctober :$,
#$!:, ending Dell's #6 year run as a publicly traded company.
0fter the buyout the newly pri&ate Dell offered a ;oluntary Separation
'rogramme that they e/pected to reduce their wor*force by up to se&en percent.
The reception to the program so e/ceeded the e/pectations that Dell may be
forced to hire new staff to ma*e up for the losses.
A-.,isitions
or more details on this topic, see .ist of Dell ownership acti&ities.
In #$$%, Dell acquired 0lien ware, a manufacturer of high+end '(s popular with
gamers. The company acquired 7qual .ogic on Hanuary #5, #$$5, to gain a
foothold in the iS(SI storage mar*et. 2ecause Dell already had an efficient
manufacturing process, integrating 7qual .ogic's products into the company dro&e
manufacturing prices down.
In #$$", Dell acquired 'erot Systems, a technology ser&ices and outsourcing
company, mainly acti&e in the health+sector, founded by former presidential
hopeful ). 9oss 'erot
In #$$", Dell acquired 'erot Systems, based in 'lano, Te/as, in a reported F:."
billion deal, and amalgamated into Dell Ser&ices. The acquired business pro&ided
Dell with applications de&elopment, systems integration, and strategic consulting
ser&ices through its operations in the U.S. and !$ other countries. In addition, the
acquisition of 'erot brought a &ariety of business process outsourcing ser&ices,
including claims processing and call centre operations.
3n ebruary !$, #$!$, the company acquired I0(7 4etwor*s a leader in
Systems 1anagement 0ppliances. The terms of the deal were not disclosed.
3n 0ugust !%, #$!$, Dell announced plans to acquire the data storage company
:'09. 3n September #, )ewlett+'ac*ard offered F:: a share for :'09, which
Dell declined to match.
3n 4o&ember #, #$!$, Dell acquired Software+as+a+Ser&ice CSaaSE integration
leader 2oomi. Terms of the deal were not disclosed.
In ebruary #$!! Dell completed the acquisition of (ompellent e/tending the
storage solution portfolio.
In 0ugust #$!! Dell completed the acquisition of orce!$ networ*s changing the
name in Dell orce!$. 2y acquiring this company Dell now has the full
Intellectual property for their networ*ing portfolio, which was lac*ing on the Dell
'ower (onnect range as these products are powered by 2roadcom or 1arcell I1.
3n ebruary #-, #$!# Dell acquired bac*up and disaster reco&ery software
solution pro&ider 0pp 0ssure Software of 9eston, ;0. 0pp0ssure deli&ered !"-
percent re&enue growth in #$!! and o&er :6$$N growth in the prior three years.
0pp0ssure supports physical ser&ers and ;1ware, )yper+; and LenSer&er. The
deal represents the first acquisition since Dell formed its software di&ision under
former (0 (73 Hohn Swainson. Dell added that it will *eep 0pp0ssures #:$
employees and in&est in the company.
In 1arch #$!#, US0 Today said that Dell agreed to buy Sonic 8all, and the
acquisition was completed " 1ay #$!#.0 (ompany with !:$ patents, Sonic 8all
de&elops security products, and is a networ* and data security pro&ider.
3n 0pril #, #$!#, Dell announced that it wants to acquire 8yse, global mar*et+
leader for thin client systems
3n 0pril :, #$!#, Dell announced that it acquired (larity Solutions. (larity, a
company offering ser&ices for application CreEhosting, was formed in !""- and
has its headquarters in (hicago. 0t the time of the ta*e+o&er appro/imately G$
people were wor*ing for the company.
3n Huly #, #$!#, Dell announced that it was buying ,uest Software. The
acquisition was completed on #5 September #$!#
3n 4o&ember !%, #$!#, Dell announced it was acquiring Bale Technologies, a
pro&ider of Infrastructure 0utomation 'roducts. Bale Technologies was founded
in #$$5 and is headquartered in Santa (lara, (alifornia
3n December !5, #$!#, Dell announced it was acquiring (redant Technologies, a
pro&ider of storage protection solutions. (redant is the !"th acquisition in four
years, as Dell had spent F!: billion on acquisitions since #$$5 and F6 billion in
the past year alone.
3n 1arch #-, #$!-, Dell announced it was acquiring Stat Soft, a global pro&ider
of analytics software, in order to bolster its 2ig Data solutions offering.
Dell facilities
Dell's headquarters is located in 9ound 9oc*, Te/as. 0s of #$!: the company
employs about !-,$$$ people in central Te/as and is the region's largest pri&ate
employer, which has #,!$$,$$$ square feet C#$$,$$$ m#E of space. 0s of !"""
almost half of the general fund of the (ity of 9ound 9oc* originates from sales
ta/es generated from the Dell headquarters.
Dell pre&iously had its headquarters in the 0rboretum comple/ in northern 0ustin,
Te/as. In !"5" Dell occupied !#G,$$$ square feet C!!,5$$ m#E in the 0rboretum
comple/. In !""$, Dell had !,#$$ employees in its headquarters. In !"":, Dell
submitted a document to 9ound 9oc* officials, titled <Dell (omputer (orporate
)eadquarters, 9ound 9oc*, Te/as, 1ay !"": Schematic Design.< Despite the
filing, during that year the company said that it was not going to mo&e its
headquarters In !""-, Dell announced that it was mo&ing most of its employees
out of the 0rboretum, but that it was going to continue to occupy the top floor of
the 0rboretum and that the company's official headquarters address would
continue to be the 0rboretum. The top floor continued to hold Dell's board room,
demonstration centre, and &isitor meeting room. .ess than one month prior to
0ugust #", !""-, Dell mo&ed !,!$$ customer support and telephone sales
employees to 9ound 9oc*. Dells lease in the 0rboretum had been scheduled to
e/pire in !""-.
The company sponsors Dell Diamond, the home stadium of the 9ound 9oc*
7/press, the 000 minor league baseball affiliate of the Te/as 9angers maJor
league baseball team
2y !""%, Dell was mo&ing its headquarters to 9ound 9oc*. 0s of Hanuary !""%
:,6$$ people still wor*ed at the current Dell headquarters. 3ne building of the
9ound 9oc* headquarters, 9ound 9oc* :, had space for %,-$$ employees and was
scheduled to be completed in 4o&ember !""%. In !""5 Dell announced that it was
going to add two buildings to its 9ound 9oc* comple/, adding !,%$$,$$$ square
feet C!6$,$$$ m#E of office space to the comple/
In #$$$, Dell announced that it would lease 5$,$$$ square feet CG,-$$ m#E of
space in the .as (imas office comple/ in unincorporated Tra&is (ounty, Te/as,
between 0ustin and 8est .a*e )ills, to house the company's e/ecuti&e offices
and corporate headquarters. !$$ senior e/ecuti&es were scheduled to wor* in the
building by the end of #$$$. In Hanuary #$$!, the company leased the space in
.as (imas #, located along .oop :%$. .as (imas # housed Dell's e/ecuti&es, the
in&estment operations, and some corporate functions. Dell also had an option for
!:5,$$$ square feet C!#,5$$ m#E of space in .as (imas :. 0fter a slowdown in
business required reducing employees and production capacity, Dell decided to
sublease its offices in two buildings in the .as (imas office comple/. In #$$#
Dell announced that it planned to sublease its space to another tenantM the
company planned to mo&e its headquarters bac* to 9ound 9oc* once a tenant was
secured. 2y #$$:, Dell mo&ed its headquarters bac* to 9ound 9oc*. It leased all
of .as (imas I and II, with a total of :!#,$$$ square feet C#",$$$ m#E, for about a
se&en+year period after #$$:. 2y that year roughly !$$,$$$ square feet C",:$$ m#E
of that space was absorbed by new subtenants.
In #$$5, Dell switched the power sources of the 9ound 9oc* headquarters to
more en&ironmentally friendly ones, with %$N of the total power coming from
TLU 7nergy wind farms and -$N coming from the 0ustin (ommunity .andfill
gas+to+energy plant operated by 8aste 1anagement, Inc.
Dell facilities in the United States are located in 0ustin, Te/asM 'lano, Te/asM
4ashua, 4ew )ampshireM 4ash&ille, TennesseeM 3*lahoma (ity, 3*lahomaM
'eoria, IllinoisM )illsboro, 3regon C'ortland areaEM 8inston+Salem, 4orth
(arolinaM 7den 'rairie, 1innesota CDell (ompellentEM 2owling Breen, Ientuc*yM
.incoln, 4ebras*aM and 1iami, lorida. acilities located abroad include 'enang,
1alaysiaM Liamen, (hinaM 2rac*nell, UIM 1anila, 'hilippines (hennai, India
)yderabad, IndiaM )ortolandia and 'orto 0legre, 2ra?ilM 2ratisla&a, Slo&a*iaM
TUdV, 'oland, 'anama (ity in 'anama, Dublin and .imeric*, Ireland and
(asablanca, 1orocco.
The US and India are the only countries that ha&e all Dell's business functions and
pro&ide support globallyD research and de&elopment, manufacturing, finance,
analysis, and customer care.
/an,0a-t,rin)
rom its early beginnings, Dell operated as a pioneer in the <configure to order<
approach to manufacturing=deli&ering indi&idual '(s configured to customer
specifications. In contrast, most '( manufacturers in those times deli&ered large
orders to intermediaries on a quarterly basis.
To minimi?e the delay between purchase and deli&ery, Dell has a general policy of
manufacturing its products close to its customers. This also allows for
implementing a Just+in+time CHITE manufacturing approach, which minimi?es
in&entory costs. .ow in&entory is another signature of the Dell business model=a
critical consideration in an industry where components depreciate &ery rapidly.
Dell's manufacturing process co&ers assembly, software installation, functional
testing Cincluding <burn+in<E, and quality control. Throughout most of the
company's history, Dell manufactured des*top machines in+house and contracted
out manufacturing of base noteboo*s for configuration in+house .)owe&er, the
company's approach has changed, as cited in the #$$% 0nnual 9eport, which
states, <8e are continuing to e/pand our use of original design manufacturing
partnerships and manufacturing outsourcing relationships.< The 8all Street
Hournal reported in September, #$$5 that <Dell has approached contract computer
manufacturers with offers to sell< their plants. 2y the late #$$$s, Dell's <configure
to order< approach of manufacturing=deli&ering indi&idual '(s configured to
customer specifications from its US facilities was no longer as efficient or
competiti&e with high+&olume 0sian contract manufacturers as '(s became
powerful low+cost commodities.
0ssembly of des*top computers for the 4orth 0merican mar*et formerly too*
place at Dell plants in 0ustin, Te/as Coriginal locationE and .ebanon, Tennessee
Copened in !"""E, which ha&e been closed in #$$5 and early #$$", respecti&ely.
The plant in 8inston+Salem, 4orth (arolina recei&ed F#5$ million USD in
incenti&es from the state and opened in #$$6, but ceased operations in 4o&ember
#$!$, and Dell's contract with the state requires them to repay the incenti&es for
failing to meet the conditions. 1ost of the wor* that used to ta*e place in Dell's
U.S. plants was transferred to contract manufacturers in 0sia and 1e/ico, or some
of Dell's own factories o&erseas. The 1iami, lorida facility of its 0lien ware
subsidiary remains in operation, while Dell continues to produce its ser&ers Cits
most profitable productsE in 0ustin, Te/as.
Dell assembled computers for the 7170 mar*et at the .imeric* facility in the
9epublic of Ireland, and once employed about -,6$$ people in that country. Dell
began manufacturing in .imeric* in !""! and went on to become Ireland's largest
e/porter of goods and its second+largest company and foreign in&estor. 3n
Hanuary 5, #$$", Dell announced that it would mo&e all Dell manufacturing in
.imeric* to Dell's new plant in the 'olish city of TUdV by Hanuary #$!$. 7uropean
Union officials said they would in&estigate a W6#.Gmillion aid pac*age the 'olish
go&ernment used to attract Dell away from Ireland. 7uropean 1anufacturing
acility ! C71!, opened in !""$E and 71: form part of the 9aheen Industrial
7state near .imeric*. 71# Cpre&iously a 8ang facility, later occupied by
le/tronics, situated in (astletroyE closed in #$$#. 0nd Dell Inc. has consolidated
production into 71: C71! now PwhenXQ contains only officesE.Subsidies from
the 'olish go&ernment did *eep Dell for a long time. 0fter ending assembly in the
.imeric* plant the (herrywood Technology (ampus in Dublin was the largest
Dell office in the republic with o&er !#$$ people in sales Cmainly UI A IrelandE,
support Centerprise support for 7170E and research and de&elopment for cloud
computing, but no more manufacturing e/cept Dell's 0lien ware subsidiary,
which manufactures '(s in an 0thlone, Ireland plant. 8hether this facility will
remain in Ireland is not certain. (onstruction of 71- in TUdV, 'oland has
startedD Dell started production there in autumn #$$G.
Dell opened plants in 'enang, 1alaysia in !""6 and in Liamen, (hina in !""".
These facilities ser&e the 0sian mar*et and assemble "6N of Dell noteboo*s. Dell
Inc. has in&ested PwhenXQ an estimated F%$ million in a new manufacturing unit in
(hennai, India, to support the sales of its products in the Indian subcontinent.
Indian+made products bear the <1ade in India< mar*. In #$$G the (hennai facility
had the target of producing -$$,$$$ des*top '(s, and plans en&isaged it starting
to produce noteboo* '(s and other products in the second half of #$$G.
Dell mo&ed des*top and 'ower 7dge ser&er manufacturing for the South
0merican mar*et from the 7ldorado do Sul plant opened in !""", to a new plant
in )ortolandia, 2ra?il in #$$G.
Prod,-ts
1-o&e and +rand
Dell's tagline 'Oours is here', as seen at their 1all of 0sia branch in 'asay (ity,
'hilippines
The corporation mar*ets specific brand names to different mar*et segments.
Its 2usinessK(orporate class represent brands where the company ad&ertising
emphasi?es long life+cycles, reliability, and ser&iceability. Such brands includeD
3pti'le/ Coffice des*top computer systemsE
Dimension Chome des*top computer systemsE
;ostro CofficeKsmall business des*top and noteboo* systemsE
4 Series Cdes*top and noteboo* computers shipped with .inu/ or reeD3S
installedE
.atitude Cbusiness+focused noteboo*sE
'recision Cwor*station systems and high+performance noteboo*sE,
'ower 7dge Cbusiness ser&ersE
'ower ;ault Cdirect+attach and networ*+attached storageE
orce!$ Cnetwor* switchesE
'ower (onnect Cnetwor* switchesE
Dell (ompellent Cstorage area networ*sE
7qual .ogic Centerprise class iS(SI S04sE
Dell 719 Celectronic medical recordsE
Dell's )ome 3fficeK(onsumer class emphasi?es &alue, performance, and
e/pandability. These brands includeD
Inspiron Cbudget des*top and noteboo* computersE
L'S Chigh+end des*top and noteboo* computersE
0lien ware Chigh+performance gaming systemsE
;enue CTablets 0ndroid K 8indowsE
Dell's 'eripherals class includes US2 *ey dri&es, .(D tele&isions, and printersM
Dell monitors includes .(D T;s, plasma T;s and proJectors for )DT; and
monitors. Dell Ultra Sharp is further a high+end brand of monitors.
Dell ser&ice and support brands include the Dell Solution Station Ce/tended
domestic support ser&ices, pre&iously <Dell on (all<E, Dell Support (entre
Ce/tended support ser&ices abroadE, Dell 2usiness Support Ca commercial ser&ice+
contract that pro&ides an industry+certified technician with a lower call+&olume
than in normal queuesE, Dell 7&er dream Des*top 1anagement C<Software as a
Ser&ice< remote+des*top managementE, and Oour Tech Team Ca support+queue
a&ailable to home users who purchased their systems either through Dell's website
or through Dell phone+centresE.
Discontinued products and brands include 0/iom C'D0M discontinued 0pril ",
#$$GE, P!%:Q Dimension Chome and small office des*top computersM discontinued
Huly #$$GE, Dell Digital Hu*ebo/ C1': playerM discontinued 0ugust #$$%E, Dell
'ower0pp Capplication+based ser&ersE, and Dell 3ptiple/ Cdes*top and tower
computers pre&iously supported to run ser&er and des*top operating systemsE.
Te-hni-al s,&&ort
Dell routes technical support queries on products for the professional mar*et
according to component+type and to the le&el of support purchased.
2asic support pro&ides business+hours telephone support and ne/t business+day
on+site supportK 9eturn+to+2ase, or (ollect and 9eturn Ser&ices Cbased on
contracts purchased at point of saleE
Dell 'ro Support pro&ides #-/G/:%6 telephone and online support, a selection of
- or %+hour onsite support after telephone+based troubleshooting, and a 1ission
(ritical option with two+hour onsite support, for customers who choose the
highest le&el of support for their most critical hardware assets.
In addition, the company pro&ides protection ser&ices, ad&isory ser&ices,
multi&endor hardware support, <how+to< support for software applications,
collaborati&e support with many third+party &endors, and online parts and labor
dispatching for customers who diagnose and troubleshoot their hardware. Dell
also pro&ides Dell 'roSupport customers access to a crisis+centre to handle maJor
outages, or problems caused by natural disasters. Dell also pro&ide on+line support
by using the computer's ser&ice+tag that pro&ides full list of the hardware elements
installed originally, purchase date and pro&ides the latest upgrades for the original
hardware dri&ers.
Dell's (onsumer di&ision has #-/G phone based and online troubleshooting in the
United States and (anada. In #$$5, Dell redesigned ser&ices+and+support for
businesses with <Dell 'ro Support<, offering customers more options to adapt
ser&ices to fit their needs.
Co""er-ial as&e-ts
Or)ani(ation
The board consists of nine directors. 1ichael Dell, the founder of the company,
ser&es as chairman of the board and chief e/ecuti&e officer. 3ther board members
include Don (arty, 8illiam Bray, Hudy .ewent, Ilaus .uft, 0le/ 1andl, 1ichael
0. 1iles, and Sam 4unn. Shareholders elect the nine board members at meetings,
and those board members who do not get a maJority of &otes must submit a
resignation to the board, which will subsequently choose whether or not to accept
the resignation. The board of directors usually sets up fi&e committees ha&ing
o&ersight o&er specific matters. These committees include the 0udit (ommittee,
which handles accounting issues, including auditing and reportingM the
(ompensation (ommittee, which appro&es compensation for the (73 and other
employees of the companyM the inance (ommittee, which handles financial
matters such as proposed mergers and acquisitionsM the Bo&ernance and
4ominating (ommittee, which handles &arious corporate matters Cincluding
nomination of the boardEM and the 0ntitrust (ompliance (ommittee, which
attempts to pre&ent company practices from &iolating antitrust laws.
Day+to+day operations of the company are run by the Blobal 7/ecuti&e
1anagement (ommittee, which sets strategic direction. Dell has regional senior
&ice+presidents for countries other than the United States, including Da&id
1armonti for 7170 and Stephen H. elice for 0siaKHapan. 0s of #$$G, other
officers included 1artin Bar&in Csenior &ice president for worldwide
procurementE and Susan Shes*ey C&ice president and (hief Information 3fficerE.
/ar2etin)
Dell ad&ertisements ha&e appeared in se&eral types of media including tele&ision,
the Internet, maga?ines, catalogs and newspapers. Some of Dell Inc's mar*eting
strategies include lowering prices at all times of the year, free bonus products
Csuch as Dell printersE, and free shipping to encourage more sales and sta&e off
competitors. In #$$%, Dell cut its prices in an effort to maintain its !".#N mar*et
share. )owe&er, this also cut profit+margins by more than half, from 5.G to -.:
percent. To maintain its low prices, Dell continues to accept most purchases of its
products &ia the Internet and through the telephone networ*, and to mo&e its
customer+care di&ision to India and 7l Sal&ador.
0 popular United States tele&ision and print ad campaign in the early #$$$s
featured the actor 2en (urtis playing the part of <Ste&en<, a lightly mischie&ous
blond+haired youth who came to the assistance of bereft computer purchasers.
7ach tele&ision ad&ertisement usually ended with Ste&en's catch+phraseD <Dude,
you're gettin' a DellY<
0 subsequent ad&ertising campaign featured interns at Dell headquarters Cwith
(urtis' character appearing in a small cameo at the end of one of the first
commercials in this particular campaignE.
0 Dell ad&ertising campaign for the L'S line of gaming computers featured in
print in the September #$$% issue of 8ired. It used as a tagline the common term
in Internet and gamer slangD <T8<, meaning <or The 8in<. )owe&er, Dell Inc.
soon dropped the campaign.
In #$$G, Dell switched ad&ertising agencies in the US from 22D3 to 8or*ing
1other 1edia. In Huly #$$G, Dell released new ad&ertising created by 8or*ing
1other to support the Inspiron and L'S lines. The ads featured music from the
laming .ips and De&o who re+formed especially to record the song in the ad
<8or* it out<. 0lso in #$$G, Dell began using the slogan <Oours is here< to say
that it customi?es computers to fit customers' requirements.
2eginning in the year #$!!, Dell began hosting a (onference in 0ustin, TL at the
0ustin (on&ention (entre titled <Dell 8orld<. The e&ent featured new technology
and ser&ices pro&ided by Dell and Dell's partners. In #$!!, the e&ent was held
3ctober !#@!-. In #$!#, the e&ent was held December !!@!:. In #$!:, the e&ent
was held December !!@!:.
Dell &artner &ro)ra"
In late #$$G, Dell Inc. announced that it planned to e/pand its program to &alue+
added resellers C;09sE, gi&ing it the official name of <Dell 'artner Direct< and a
new 8ebsite.
Dell India has started 3nline 7commerce website with its Dell 'artner
www.compuindia.com B4B 7lectronics '&t .td termed as Dell 7/press Ship
0ffiliate CD7S0E. The main obJecti&e was to reduce the deli&ery time. (ustomers
who &isit Dell India official site are gi&en option to buy online which then will be
redirected to Dell affiliate website compuindia.com.
Criti-is"s o0 "ar2etin) o0 la&to& se-,rity
In #$$5, Dell recei&ed press co&erage o&er its claim of ha&ing the world's most
secure laptops, specifically, its .atitude D%:$ and .atitude D5:$. 0t .eno&o's
request, the CU.S.E 4ational 0d&ertising Di&ision C40DE e&aluated the claim, and
reported that Dell did not ha&e enough e&idence to support it.
Retail
Dell 0irst o&ened their retail stores in India'
United 1tates
In the early !""$s, Dell sold its products through 2est 2uy, (ostco and Sam's
(lub stores in the United States. Dell stopped this practice in !""-, citing low
profit+margins on the business, e/clusi&ely distributing through a direct+sales
model for the ne/t decade. In #$$:, Dell briefly sold products in Searss stores in
the U.S. In #$$G, Dell started shipping its products to maJor retailers in the U.S.
once again, starting with Sam's (lub and 8al+1art. Staples, the largest office+
supply retailer in the U.S., and 2est 2uy, the largest electronics retailer in the
U.S., became Dell retail partners later that same year.
3ios2s
Starting in #$$#, Dell opened *ios* locations in shopping malls across the United
States to pro&ide personal ser&ice to customers who preferred this method of
shopping to Internet or telephone orders. Despite the added e/pense, prices at the
*ios*s match or beat prices a&ailable through other retail channels. Starting in
#$$6, Dell e/panded *ios* locations to include shopping malls across 0ustralia,
(anada, Singapore and )ong Iong.
3n Hanuary :$, #$$5, Dell shut down all !-$ *ios*s in the U.S. due to e/pansion
into retail stores.
2y Hune :, #$!$, Dell had also shut down all of its mall *ios*s in 0ustralia.
North Par2 1er4i-e Centre
In #$$%, Dell Inc. opened one full store, :,$$$+square+foot C#5$ m#E in area, at
4orth 'ar* (entre in Dallas, Te/as. It operates the retail outlet se&en days a wee*
to display about :% models, including '(s and tele&isions. 0s at the *ios*s,
customers can only see demonstration+computers and place orders through agents.
Dell then deli&ers purchased items Just as if the customer had placed the order by
phone or o&er the Internet.
In addition to showcasing products, the stores also support on+site warranties and
non+warranty ser&ice C<Dell Solution Station<E. Ser&ices offered include repairing
computer &ideo+cards and remo&ing spyware from hard dri&es.
3n ebruary !-, #$$5, Dell closed the Ser&ice (entre in its Dallas 4orth 'ar*
store and laid off all the technical staff there.
Retail 1tores
0s of the end of ebruary #$$5, Dell products shipped to one of the largest office+
supply retailers in (anada, Staples 2usiness Depot. In 0pril #$$5, uture Shop
and 2est 2uy began carrying a subset of Dell products, such as certain des*tops,
laptops, printers, and monitors.
Since some shoppers in certain mar*ets show reluctance to purchase technological
products through the phone or the Internet, Dell has loo*ed into opening retail
operations in some countries in (entral 7urope and 9ussia. In 0pril #$$G, Dell
opened a retail store in 2udapest. In 3ctober of the same year, Dell opened a retail
store in 1oscow.
In the UI, )1;'s flagship Trocadero store has sold Dell L'S '(s since
December #$$G. rom Hanuary #$$5 the UI stores of DSBi ha&e sold Dell
products Cin particular, through (urrys and '( 8orld storesE. 0s of #$$5, the large
supermar*et+chain Tesco has sold Dell laptops and des*tops in outlets throughout
the UI.
In 1ay #$$5, Dell reached an agreement with office supply chain, 3ffice wor*s
Cpart of (oles BroupE, to stoc* a few modified models in the Inspiron des*top and
noteboo* range. These models ha&e slightly different model numbers, but almost
replicate the ones a&ailable from the Dell Store. Dell continued its retail push in
the 0ustralian mar*et with its partnership with )arris Technology Canother part of
(oles BroupE in 4o&ember of the same year. In addition, Dell e/panded its retail
distributions in 0ustralia through an agreement with discount electrical retailer,
The Bood Buys, *nown for <Slashing 'rices<. Dell agreed to distribute a &ariety
of ma*es of both des*tops and noteboo*s, including Studio and L'S systems in
late #$$5. Dell and Dic* Smith 7lectronics Cowned by 8oolworths .imitedE
reached an agreement to e/pand within Dic* Smith's -$$ stores throughout
0ustralia and 4ew Zealand in 1ay #$$" C! year since 3ffice wor*s = owned by
(oles Broup = reached a dealE. The retailer has agreed to distribute a &ariety of
Inspiron and Studio noteboo*s, with minimal Studio des*tops from the Dell
range. 0s of #$$", Dell continues to run and operate its &arious *ios*s in !5
shopping centres throughout 0ustralia. 3n 1arch :!, #$!$ Dell announced to
0ustralian Iios* employees that they were shutting down the 0ustralianK4ew
Zealand Dell *ios* program.
In Bermany, Dell is selling selected smart phones and noteboo*s &ia 1edia 1ar*t
and Saturn, as well as some shopping websites.
Co"&etition
Dell's maJor competitors include )ewlett+'ac*ard C)'E, 0cer, uJitsu, Toshiba,
Bateway, Sony, 0sus, .eno&o, I21, 1SI, Samsung and 0pple. Dell and its
subsidiary, 0lien ware, compete in the enthusiast mar*et against 0;0 Direct,
alcon 4orthwest, ;oodoo '( Ca subsidiary of )'E, and other manufacturers. In
the second quarter of #$$%, Dell had between !5N and !"N share of the
worldwide personal computer mar*et, compared to )' with roughly !6N.
In late #$$%, Dell lost its lead in the '(+business to )ewlett+'ac*ard. 2oth
Bartner and ID( estimated that in the third quarter of #$$%, )' shipped more
units Pdead lin*Q worldwide than Dell did. Dell's :.%N growth paled in
comparison to )''s !6N growth during the same period. The problem got worse
in the fourth quarter, when Bartner estimated that Dell '( shipments declined
5."N C&ersus )''s #:."N growthE. 0s a result, at the end of #$$% Dell's o&erall '(
mar*et+share stood at !:."N C&ersus )''s !G.-NE.
ID( reported that Dell lost more ser&er mar*et share than any of the top four
competitors in that arena. ID('s ,- #$$% estimates show Dell's share of the ser&er
mar*et at 5.!N, down from ".6N in the pre&ious year. This represents an 5.5N
loss year+o&er+year, primarily to competitors 71( and I21.
Partnershi& with E/C
The DellK71( brand applies solely to products that result from Dell's partnership
with 71( (orporation. In some cases, Dell and 71( Jointly design such
products. 3ther cases in&ol&e 71( products that Dell supports=generally
midrange storage systems, such as fibre channel and iS(SI storage area networ*s.
The relationship also promotes and sells 371 &ersions of bac*up, reco&ery,
replication and archi&ing software.
3n December ", #$$5, Dell and 71( announced the multi+year e/tension,
through #$!:, of their strategic partnership that began in #$$!. In addition, Dell
plans to e/pand its product line+up by adding the 71( (elerra 4L- storage
system to the portfolio of DellK71( family of networ*ed storage systems, as well
as partnering on a new line of de+duplication products as part of its Tier Dis*
family of data+storage de&ices.
3n 3ctober !G, #$!!, Dell announced officially discontinued reselling all 71(
storage products, this put end to !$ years of partnership.
En4iron"ental re-ord
Dell committed to reduce greenhouse gas emissions from its global acti&ities by
-$N by #$!6, with #$$5 fiscal year as the baseline year. It is listed in Breen
peaces Buide to Breener 7lectronics that scores leading electronics
manufacturers according to their policies on sustainability, climate and energy and
how green their products are. In 4o&ember #$!!, Dell ran*ed #nd out of !6 listed
electronics ma*ers Cincreasing its score to 6.! from -.", which it gained in the
pre&ious ran*ing from 3ctober #$!$E.
Dell was the first company to publicly state a timeline for the elimination of to/ic
poly&inyl chloride C';(E and brominated flame retardants C29sE, which it
planned to phase out by the end of #$$". It re&ised this commitment and now aims
to remo&e these to/ics by the end of #$!! but only in its computing products. In
1arch #$!$, Breenpeace acti&ists protested at Dell offices in 2angalore,
0msterdam and (openhagen calling for Dells founder and (73 1ichael Dell to
[drop the to/ics and claiming that Dells aspiration to be [the greenest technology
company on the planet was [hypocritical Dell has launched its first products
completely free of ';( and 29s with the B+Series monitors CB##!$ and
B#-!$E in #$$".
In its #$!# report on progress relating to conflict minerals, the 7nough 'roJect
rated Dell the eighth highest of #- consumer electronics companies.
Green initiati4es
Dell became the first company in the information technology industry to establish
a product+recycling goal Cin #$$-E and completed the implementation of its global
consumer recycling+program in #$$%. 3n ebruary %, #$$G, the 4ational
9ecycling (oalition awarded Dell its <9ecycling 8or*s< award for efforts to
promote producer responsibility. 3n Huly !", #$$G, Dell announced that it had
e/ceeded targets in wor*ing to achie&e a multi+year goal of reco&ering #G6
million pounds of computer equipment by #$$". The company reported the
reco&ery of G5 million pounds Cnearly -$,$$$ tonsE of IT equipment from
customers in #$$%, a ":+percent increase o&er #$$6 and !#.-N of the equipment
Dell sold se&en years earlier.
3n Hune 6, #$$G, Dell set a goal of becoming the greenest technology company on
7arth for the long term. The company launched a ?ero+carbon initiati&e that
includesD reducing Dell's carbon intensity by !6 percent by #$!# requiring
primary suppliers to report carbon emissions data during quarterly business
re&iews partnering with customers to build the <greenest '( on the planet<
e/panding the company's carbon+offsetting program, <'lant a Tree for 1e<
The company introduced the term <The 9e+Beneration< during a round table in
.ondon commemorating #$$G 8orld 7n&ironment Day. <The 9e+Beneration<
refers to people of all ages throughout the world who want to <ma*e a difference<
in impro&ing the world's en&ironment. Dell also tal*ed about plans to ta*e the lead
in setting an en&ironmental standard for the <technology industry< and
maintaining that leadership in the future.
Dell reports its en&ironmental performance in an annual (orporate Social
9esponsibility C(S9E 9eport that follows the Blobal 9eporting Initiati&e CB9IE
protocol. Dell's #$$5 (S9 report ran*ed as <0pplication .e&el 2< as <chec*ed by
B9I<.
The company aims to reduce its e/ternal en&ironmental impact through energy+
efficient e&olution of products, and also reduce its direct operational impact
through energy+efficiency programmes. Internal energy+efficiency programmes
reportedly sa&e the company more than F: million annually in energy+cost
sa&ings. The largest component of the company's internal energy+efficiency
sa&ings comes through '( power managementD the company e/pects to sa&e F!.5
million in energy costs through using specialised energy+management software on
a networ* of 6$,$$$ '(s.
Criti-is"
1ee also5 6aws,its in4ol4in) Dell In-'
In the !""$s, Dell switched from using primarily 0TL motherboards and 'SU to
using boards and power supplies with mechanically identical but differently wired
connectors. These meant customers wishing to upgrade their hardware would ha&e
to replace parts with scarce Dell+compatible parts instead of commonly a&ailable
parts. 8hile motherboard power connections re&erted to the industry standard in
#$$:, Dell continues to remain secreti&e about their motherboard pin+outs for
peripherals Csuch as 11( readers and power onKoff switches and .7D'sE
In #$$6, complaints about Dell more than doubled to !,6::, after earnings grew
6#N that year.
In #$$%, Dell ac*nowledged that it had problems with customer ser&ice. Issues
included call transfers P#$:Q of more than -6N of calls and long wait times. Dell's
blog detailed the responseD <8e're spending more than a F!$$ million = and a lot
of blood sweat and tears of talented people = to fi/ this.< .ater in the year, the
company increased its spending on customer ser&ice to F!6$ million. Despite
significant in&estment in this space, Dell continues to face public scrutiny with
e&en the company's own website littered with complaints regarding the issue
escalation process.
3n 0ugust !G, #$$G, Dell Inc. announced that after an internal in&estigation into
its accounting practices it would restate and reduce earnings from #$$: through to
the first quarter of #$$G by a total amount of between F6$ million and F!6$
million, or # cents to G cents per share. The in&estigation, begun in 4o&ember
#$$%, resulted from concerns raised by the U.S. Securities and 7/change
(ommission o&er some documents and information that Dell Inc. had submitted.
It was alleged that Dell had not disclosed large e/clusi&ity payments recei&ed
from Intel for agreeing not to buy processors from ri&al manufacturer 01D. In
#$!$ Dell finally paid F!$$ million to settle the S7('s charges of fraud. 1ichael
Dell and other e/ecuti&es also paid penalties and suffered other sanctions, without
admitting or denying the charges.
In Huly #$$", Dell apologi?ed after drawing the ire of the Taiwanese (onsumer
'rotection (ommission for twice refusing to honour a flood of orders against
unusually low prices offered on its Taiwanese website. In the first instance, Dell
offered a !"< .(D panel for F!6. In the second instance, Dell offered its .atitude
7-:$$ noteboo* at 4TF!5,665 CUSF65$E, G$N lower than usual price of
4TF%$,"$$ CUSF!"$$E. (oncerning the 7-:$$, rather than honour the discount
ta*ing a significant loss, the firm withdrew orders and offered a &oucher of up to
4TF#$,$$$ CUSF%#6E a customer in compensation. The consumer rights
authorities in Taiwan fined Dell 4TF! million CUSF:!#6$E for customer rights
infringements. 1any consumers sued the firm for the unfair compensation. 0
court in southern Taiwan ordered the firm to deli&er !5 laptops and G% flat+panel
monitors to :! consumers for 4TF-"$,$$$ CUSF!6,!#$E, less than a third of the
normal price. The court said the e&ent could hardly be regarded as mista*es, as the
prestigious firm said the company mispriced its products twice in Taiwanese
website within : wee*s.
1

1 SourceD httpDKKen.wi*ipedia.orgKwi*iKDell
PE1T6E ANA671I1
Politi-al !a-tors5
The laptop and '( industry is e/pected to grow at a faster rate in de&eloping
countries compared to the de&eloped countries. Therefore, changes in go&ernment
policies in de&eloping countries li*e India and (hina can affect the potential
growth rates in their mar*ets. or instance, the remo&al of import duties on
laptops in India in #$$6 was one of the factors that resulted in a growth of "-N in
laptop sales in #$$6. Increasing focus on the en&ironmental impact of high+tech
trash has lead to more stringent en&ironmental regulations on the electronics
industry such as the 9o)S C9estriction of )a?ardous SubstancesE and 8777
C8aste 7lectrical and 7lectronic 7quipmentE Directi&e. The additional testing and
certification in&ol&ed directly affect the supply chains for laptop and '(
manufacturers, resulting in increased costs. or instance, in (anada, then
forcement of the 8777 Directi&e will increase the cost of computers by F!6.The
increase either affects the consumer or reduces profitability for manufacturers.
E-ono"i- !a-tors5
The global economy influences &arious different factors that affect the growth of
the '( industry. 2usiness capital spending for small and large corporations,
resulting in reduced demand for '(s. Bartner, Inc. forecasts a decline of :.5N in
global IT spending, of which computing hardware spending is e/pected to
decrease by !-."N in #$$". Though this decline in IT spending is li*ely to reco&er
slowly during #$!$, the global '( mar*et is e/pected to face declining growth
rates in terms of mar*et &alue, from an e/pected 6.-N growth in #$$" to -.!N in
#$!# 1ost laptop Cand '(E manufacturers such as Dell, )', 0cer, .eno&o, and
0pple generate sales throughout the world and therefore currency e/change rates
are an important factor as well. The strength Cor wea*nessE of the US dollar &ersus
other currencies can directly affect a companys bottom line \"],\!$]. The
economies in de&eloping countries such as (hina, India, 2ra?il, and .atin
0merica are growing at a much faster rate than de&eloped countries and therefore
pro&ide better growth opportunities for computer manufacturers, since de&eloped
countries li*e the US and Hapan ha&e become saturated .This trend is reflected in
the slower single digit growth in the last few years as opposed to the consistent
double digit growth in the de&eloping mar*ets
1o-ial
Social factors such as education, preferences, income le&els, and other cultural
factors influence demand patterns in the different regions and therefore affect how
a company operates in each region. The education and income le&el of users
affects the brand perception of the computer remanufacturers. 0s shown in igure
6, households with higher income ha&e higher percentages of 0pple computers.
Such households are also more li*ely able to afford Cand wantE 0pple computers.
This has allowed 0pple to continue its strategy of premium pricing and
performance compared to 8indows '(s, while at the same time increasing its
mar*et share of the total laptop and '( mar*et. 0t the other end of the education
spectrum, new de&ices such as the rugged and ultraportable 3.'( C3ne .aptop
per (hildE ha&e been de&eloped for under pri&ileged users in de&eloping countries
li*e 0frica. Thus, education le&els affect both product demand as well as
preference. (ultural aspects of different regions affect the occurrence of seasonal
sales, which significantly affect the performance of the computer industry as a
whole. or instance, in the U.S., the periods from 4o&ember+December
CThan*sgi&ing K (hristmasE and 0ugust Cbac*+to+schoolE are significant earnings
period.
Te-hnolo)i-al5
Technological ad&ances o&er the past decade, such as increased processing power
with reduced power consumption and reduced cost, or the standardi?ation of
8indows and Intel in laptops, are one of the main reasons for the increase in
mar*et share of the laptop segment compared to the o&erall '( industry. or
instance, the net boo* categorys a&erage selling price C0S'E ofF:$$ was made
possible by the low cost Intel 0tom microprocessor, released in #$$5. 4ew
technologies, such as hosted &irtual des*tops C);DE, threaten to completely
change the industry dynamic, due to the possibility of cheaper computers along
with lower software costs .);Ds in&ol&e centrali?ed computing.
!I8E !ORCE1
ANA671I1
9ar)ainin) Power o0 9,yers
The personal computer industry is somewhat &ulnerable against the bargaining
power of buyers. In recent years customers ha&e more and more alternati&e
options to the personal computer. Smart phones, tablet computers, and other
handheld de&ices li*e I'ods ha&e most of the same capabilities as a personal
computer. 0nd because of the a&ailability, slee*ness, and trendiness of these
alternati&es, they ha&e become increasingly popular ma*ing personal computers
more and more obsolete. In order for the personal computer to compete with
these newer alternati&e options, it must differentiate itself in order to regain
mar*et share.
The +ar)ainin) &ower o0 s,&&liers
0ccording to common assumption, power is high where the brand is powerful.
Therefore, Dell is assumed to ha&e far higher bargaining power than the
suppliers. Dell has been successfully managing its competitors in terms of getting
the needed supply of in&entories and get them produce the in&entories according
to the specifications of the company.
0nd the (73 of the company, 1ichael Dell also mentioned that Dell (ompany
ne&er stic*s to one supplier fore&er, as they always change the suppliers if the
suppliers are not meeting the demands of Dell. 0nd the company always goes to
the supplier which is inno&ati&e and cost competiti&e among other ri&al suppliers.
Therefore, it again indicates that Dell has higher bargaining power than its
suppliers.
0nother indication of Dell to be in better position than its suppliers is that Dell got
most of its suppliers locate their businesses and manufacturing units close to
Dells manufacturing and assembly units. 2y getting the suppliers near its
manufacturing units, in&entory is down to an incredible four days and efficiency is
the *ey ingredient.
1oreo&er, suppliers can regularly supply their in&entories to Dell within hours of
assembling the computers which indicates a strong corporate understanding of
both Dell and its suppliers.

Threat o0 new Entrants
0s it has been stated by 1ichael Dell, his only fear about his business empire is
the possibility of new entrants to the mar*et who could ad&ersely affect his
business. 0nd moreo&er, Dells new strategy is the product di&ersificationM
therefore, almost all electronic companies are potential entrants to this new
mar*et.
9ar)ainin) &ower o0 C,sto"ers
3ne of the competiti&e ad&antages Dell has gained has been through offering in+
person relationships with corporate and institutional customers. This is done by
telephoneM internet purchasing, customi?ed computer systems where corporate
clients can go to Dells special website called 'remier Dell.com and configure
computer systems in regard to the price and specifications.
1oreo&er, they ha&e post sales online supports which are online and in some
cases the company engineers can e&en &isit the customer sites.
0s long as the company has been ser&ing giant companies such as go&ernments,
and huge companies such as (o/ communications, 7DS and etc, they tend to be
permanent customers as it costs massi&e money for the customers to switch from
Dell to another company.
1oreo&er, as the company has been di&ersifying its product ranges from simply
computers to other products such printers, storage ser&icesM this indicates that the
company will be ser&ing all type of customers, not only corporate
clients. Therefore, Dell has to focus on impro&ing its customer ser&ice to small
business and indi&idual customers as well to gain their lifetime loyalty.
2

2 HTTP5 : : RE1EARCH- /ETHODO6OG7' NET: DE66- PORTER1- !I 8E- !ORCE1-
ANA671I 1:
3E7 1UCCE11
!ACTOR1
1' C,lt,re
Dell's winning ways begin and end with its culture. Dell has created a disciplined
culture that relentlessly focuses on optimi?ing its operational model, responding
to its customers' needs and sustaining a self+moti&ated wor*force.
' In0or"ation is a &ower0,l strate)i- wea&on
Information is *ing at Dell + it is widely distributed, analy?ed and acted upon.
'eople *now where they and their business units stand at any time.
0ccording to DellD <If the fol*s in our consumer business notice it's !$am and
they're not getting enough phone calls, they *now they ha&e to do somethingD run
a promotion on the web starting at !$D!6, or change their pricing or run more ads.
They can't wait :$ days after the end of the quarter to figure it out.< 9ollins addsD
<7&erybody sees e&erybody else's numbers and gets to help with suggestions
about their businesses. 3penness and sharing are part of success at Dell.<
Dell has made a serious in&estment in understanding its customers' acti&ity in real
time and then uses this information to constructi&ely build its business and its
winning culture. (ompanies that rely on distributor for information about how end
customers use their products but dell ha&e an ad&antage as they are the focal point
for customers. They can obtain info through their websites.
*' 9ein) a low -ost &ro4ider -reates 0le;i+ility and "ar2et
ad4anta)e
2eing a low cost pro&ider unloc*s mar*et opportunities
$' Prod,-t de4elo&"ent is -,sto"er and shareholder 0o-,sed
2ecause they ha&e ta*en the time to identify and measure the *inds of 9AD that
help them differentiate their products, they are able to allocate capital offensi&ely,
not defensi&ely. This is a crucial distinctionM particularly in fast+mo&ing,
ambiguous mar*ets where getting e&en a quarter's Jump on competitors can ha&e
huge upside. This approach rewards both customers and shareholders.
3
3 : httpDKKwww.studymode.comKessaysKDell+Iey+Success+actors+!6$!55.html
Do"inant +rand na"e5
1any companies in the industry ha&e strong brand name. Their dominant
presence in the mar*et is because of the image they created for their products
through their strategic mo&es. This enabled them to earn more mar*et share in the
industry. 7.B. 0pple, Dell, Sony.
Or)ani(ational Poli-y and 1trate)y
Ieeping up with the demandD The industry is up+to+date with the technological
inno&ations ta*ing place around the mar*et. 0lso, it sells products that are
preferred by the consumers. (onstant replacement of products is ta*ing place in
the industry. 4ew &ersions of laptops, '( etc ha&e increased the compatibility,
storage, loo* and usage of the product
E-ono"ies o0 s-ale
7&en though the industry e/perience high learning cur&e effects, once the learning
is achie&ed, the companies are benefited from economies of scale. 0lthough this is
a disad&antage to the new entrants, in the long run this ma*es Justification to their
in&estment.
Pri-in) &oli-y
The pricing policy in the industry is &ery clear and appropriate. The pricing in the
industry is related to the economies of scale. 0s the production cost has come
down because of the economies of scale, the industry is capable to maintain their
current pricing le&els. The pricing is also acceptable by the consumers.
^ The supplier relations, distribution systems and strategic approaches li*e
bac*ward or forward integration ha&e also acted as success factors in the industry.
In particular, Dell had its own in house manufacturing of its components which
helped them to build e/pertise in their technology they use.
The 9AD capabilities in the industry impro&ed and enabled them to *eep their
products on the cutting edge because of the efficiency achie&ed in &ertical
integration. % Dell Inc + (ase
Or)ani(ational Poli-y and 1trate)y
3utsourcing the manufacturing of certain components and ha&ing a concentrated
assembly line also pro&ed to be effecti&e in the industry.
The reduction in the supply chain by integrating and collaborating with outside
&endors and suppliers ha&e acted as a success factor in reducing product and
production cost.
4
4 h ttpDKKwww.slideshare.netKbalabswKdell+!#:!5!-!
3E7 DRI8ING
!ORCE1
^ 7/plosion of digital and information content is a *ey dri&er as it impro&ed data
a&ailability. The o&erall rate of global spending increased and the data a&ailability
also doubled.
^ The ad&ent of search engine acti&ity, social networ*ing sites, e+mail, mobile
phones, android applications etc. also acted as a *ey dri&er. This digital e/pansion
impro&ed the industrys economic presence and o&erall demand in the industry. :
Dell Inc + (ase
3rgani?ational 'olicy and Strategy
^ The demand for information technology in emerging mar*ets li*e India, 2ra?il,
9ussia, (hina and India increased. The population is high in these areas and thus
the demand for IT products and ser&ices also increased. This was a *ey dri&er in
the industry
. ^ (ertain dri&ers had negati&e implications on the industry. The digital &olume
content lac*ed authentication and there are many security issues in the industry.
0lso the consumers e/pectations are not stable. These *eep changing. The o&erall
ability of the consumers to deal with comple/ity and sophistication is low. The
consumers want quic* access to their demands. 0ll these factors are the downside
dri&ing factors of the industry
. ^ 9eplacement factor is a *ey dri&er in the industry. The e/isting '(s are getting
replaced with the ad&ancement in features, design and compatibility of the '(
. ^ The entry of smart phones into the industry is a *ey dri&er. The cross category
competition became more intense with the de&elopments in the smart phone
industry. These de&ices also ga&e access to the internet. The smart phones are
slee* and they offer compatible usage. The costs of these smart phones are also
low compared to the '( and laptops. Thus consumers may switch to smart phones
from '(.
^ The mobile phones are offering the features of the internet at a subsidi?ed rate.
These dri&ing forces ha&e negati&e implications on the industry.
^ 'rocessor speed and 901 were the dri&ing forces in the industry that generated
profit. They are no longer the dri&ing force as cloud computing is introduced.
They are slowly replacing processors and 901.
CHAPTER-
6ITRATURE
RE8IE<
.aptop A '( Industry is e/pected to grow fast in de&eloping countries li*e India
A china because of changes in go&ernment policies. In #$$6, Indian go&ernment
remo&ed the import duties on .aptops, which resulted in growth of "-N in #$$6.
C'hysorg.com, #$$%E(yber 1edia 9esearch C#$!!E study states that nearly !$
million des*top A noteboo* personal computers ha&e been installed in #$!$ and
thus India has estimated to cross 6#million till Dec #$!$ for total installation of
both.ID( is Indias quarterly '( sales mar*er, for the quarter ending in 3ct+Dec
#$!$, it suggested that Indian '( mar*et had found reco&ery from the effect of
global recession. (ompared to last quarter of #$$", .aptop mar*et has seen the
growth of -"N, while with compare to :rdquarter it has decreased by GN because
of )igh inflation A low industrial growth.
A--ordin) to Pin2i 1har"a% The entire study shows that .aptop usage is &ery
much popular in between the students whether their residential status is urban and
rural. Its the present day demand to run hand with the latest technology. This
technology not only simplify students tas* but it also seem to morale boost up of
the students. Students found themsel&es connected with the entire world with the
help of .aptops.
A--ordin) to Dr' Nilesh 9' Ga==ar% The study of student beha&iour is quite
comple/, because of many &ariables in&ol&ed and their tendency to interact with
A influence each other. These are the factors controlled by e/ternal en&ironments
li*e the following form the basis of e/ternal influences o&er the mind of a
customer _ Social (lass, and Social Broup,(ulture, and Sub+culture,_Couter
circleE. amily, and Inter+'ersonal Influences,
A--ordin) to Rinal 9'1hah% The research was aimed to e/amine the applicability
of 0a*ers conceptual framewor* of student +based brand equity for laptop brands
in Indian mar*et .)ere the findings dont support completely to the entire brand
equity dimensions of 0a*ers model, it was found that percei&ed quality and brand
loyalty had a significant positi&e direct effect on brand equity. It had the strongest
impact which indicated the essential role of de&elopment of percei&ed quality and
brand loyalty in minds of customers to build brand equity for laptop brands.
Anna"alai 1olaya&&an% >othi >aya2rishnan ?010@ their research showed that
branded computers play a prestigious role in the students segment. Due to the
computer world e&erything is in the hands of the students. 7&erything in the world
seems to be digital. 7&eryone needs a computer to dri&e a smooth and fast race.
7specially, branded computers will try to safeguard the competiti&e race. So, the
&arious factors discussed may determine the student to purchase branded
computers.
A--ordin) to 8adla"ani 1'?011@% Des*top A laptop mar*et has achie&ed the
growth of %N C#.% million unitsE in India in first quarter of #$!!. the growth was
dri&en by laptop &endor by #:N. Top fi&e brands are Dell, )', 0cer, .eno&o and
)(. with combined mar*et share of 6G.6N.ID( C#$!!E wrote that, in the second
quarter of #$!!, the sales of laptop A des*tops has decreased by -.#N at #.--
million units, compared to ,! #$!!M Dell has again leaded the mar*et share by
!G.-N, while top 6 companies cumulating %$N mar*et shareM companies are
targeting tier+: A tier+- cities now through large+format retails.
<ahida !ar(ana ?01@ this study is to e/plore how consumers psychological
factors C1oti&ation, perception, and attitudeE are associated with brand equity
Cbrand loyalty, brand association, percei&ed quality, and brand awarenessE of
laptop. The result re&ealed that, consumers moti&ation to use laptop and brand
association criteria wor* separately. They consider battery lifetime Cbrand
associationE as important feature while satisfying those purposes. (onsumers
attitudes are shaped up by others, especially by family members while buying
high+in&ol&ement products. 9espondents show a positi&e association between
their attitudes with one of the highest ran*ing laptop 0pple. .i*e other products,
consumers perception for choosing laptop relies upon different sources of
information. In this particular case, they choose newspaper and websites to build
up their perception. Though newspaper and websites play the &ital role for
organi?ing, e&aluating information, they rarely help them to choose the brand.
Dr' Ansir Ali Ra=&,t% 1a+ir H,ssain 3alhoro ?01@ presented in this article
has significant impact on both price and quality, one thing has been noticed during
the sur&ey that people do gi&e more focus to price rather quality because of low
income le&el. 'eople ha&e more alternati&es in products that are the reason people
go for lower price products.
.aptop A '( Industry is e/pected to grow fast in de&eloping countries li*e India
A china because of changes in go&ernment policies. In #$$6, Indian go&ernment
remo&ed the import duties on .aptops, which resulted in growth of "-N in #$$6.
C'hysorg.com, #$$%E (yber 1edia 9esearch C#$!!E study states that nearly !$
million des*top A noteboo* personal computers ha&e been installed in #$!$ and
thus India has estimated to cross 6# million till Dec #$!$ for total installation of
both.
ID( is Indias quarterly '( sales mar*er, for the quarter ending in 3ct+Dec #$!$M
it suggested that Indian '( mar*et had found reco&ery from the effect of global
recession. (ompared to last quarter of #$$", .aptop mar*et has seen the growth
of -"N, while with compare to :rdquarter it has decreased by GN because of )igh
inflation A low industrial growth. CShinde H.E
0ccording to ;adlamani S.C#$!!E, Des*top A laptop mar*et has achie&ed the
growth of %N C#.% million unitsE in India in first quarter of #$!!. The growth was
dri&en by laptop &endor by #:N. Top fi&e brands are Dell, )', 0cer, .eno&o and
)(. with combined mar*et share of 6G.6N. ID(C#$!!E wrote that, in the second
quarter of #$!!, the sales of laptop A des*tops has decreased by -.#N at #.--
million units, compared to ,! #$!!M Dell has again leaded the International
Hournal of 0d&anced 9esearch in mar*et share by !G.-N, while top 6 companies
cumulating %$N mar*et shareM companies are targeting tier+: A tier+- cities now
through large+format retails.
9rand e.,ity -on-e&t A "odel
2randing will add &alue to the product which will influence the customers
purchase decisionsM the brand which gi&es strong, optimistic A enduring
impression in customers mind can become successful CIotler, #$$:E.
0ccording to 0a*er C!""!E, 0 brand is name andKor symbol used to identify the
goodsKser&ices of sellers, and to differentiate it from the competitors. 2rand equity
is an impact on mental association created by customers for different brandsM )e
ga&e the model to measure customer based brand equity, in&ol&ing si/ brand
building bloc*s, namely brand salience, brand performance, brand imagery, brand
Judgment, brand
eeling, brand resonance CIeller !""5E 2rand equity assets can help customers
interpret process A store huge quantities of information about products A brandsM
he proposed the model to measure brand equity based on consumers point of
&iew, including percei&ed quality, brand awareness, brand association A brand
loyalty components. C0a*er !""!E.
'ercei&ed quality
0a*er C!""!, p.GE defined 'ercei&ed quality as Rthe customers perception of
o&erall quality or superiority of a product or ser&ice with respect to the intended
purpose, relati&e to alternati&esS (onsumers always want to spend less time A
efforts in selection of brand, so they mostly rely on feelings about the
characteristics of products of particular brands. )ere their perception is dri&ing
the decision ma*ing process. It also depends on the willingness of the customer
for purchase decision.
Tsai C#$$-E Suggests those brands with lower emotional ratings may redirect
mar*eting resources and efforts to increase consumers emotional perceptions,
which will gi&e higher satisfaction.
2rand 0wareness
0ccording to 0a*er C!""!, p.%!E, brand awareness is Rthe ability of potential
buyer to recogni?e or recall that a brand is a member of a certain product
categoryS International Hournal of 0d&anced 9esearch in
It will lead customers to select the most familiar brands under their *nowledge.
8hen customer ta*es decision, he considers many alternati&es based on brand
recall. So brands those are not recalled will not be considered in selection process.
It will also increase the familiarity of brand with customers, thus the customers
will be able to recogni?e the brand among the group of brands.
2rand 0ssociation
0a*er C!""!, p.!$"E claimed that brand association is Rthe category of brands
implication which include anything lin*ed in memory to a brandS. 0ccording to
Ieller C!""5E, it is set of information nodes attached with the brand in mind of
consumers, which can be classified as attributes, attitudes A benefits related to the
brand. It is helpful to customers to retrie&e information about some brands from
their memory. 8hen they are confronted with the brand, the associated benefits or
e/perience or features will be reflected in customers mind. .aptop firms need to
increase brand awareness to increase the familiarity of brands in the mind of
consumersM high le&el of brand association can moderately wor* to increase
buying beha&ior of (hinese customers. C.iu Z., #$$GE
2rand .oyalty
It is the inclination of customer to purchase the same brand e&ery time C(ollin et
al, !""!E. Bilbert C#$$:E wrote that when customer purchases the same brand of
products on regular basis it is brand loyalty. It costs si/ times more to gain the
new customer than to retain the old customers CIotler, #$$$E. 2rand loyalty will
be helpful to increase the mar*et share. The e/isting old customers can be
effecti&e communication to prospects for assurance of brand commitment. So
brand loyalty can also attract new customers. 2ecause of brand loyalty customers
will purchase the same brand, recommend it to others, and choose it o&er the
competitors e&en if pro&ided at lower price A better featuresKser&ices. (ollege
students are loyal to higher priced brands C.odes 1., #$!$E. The post purchase
ser&ices are e/tremely important as they are directly related to customers brand
loyaltyM the companies should also in&est in technology through 9 A D and create
differentiation at utmost le&el.
5

5httpDKKwww.studymode.comKessaysK.iterature+9e&iew+3n+student+2eha&ior+
8hile+!:""$$5.html
CHAPTER-*
RE1EARCH
/ETHODO6OG7
O9>ECTI8E15
To *now about the consumer preference le&el associated with dell laptop.
To understand brand loyalty of consumer.
actor that influence decision ma*ing in purchasing a laptop.
NEED O! THE 1TUD7
The needs of the study areD+
This research is intended to describe and analy?e consumer brand
preference on dell laptop purchase.
The purpose of this report is to understand the personal e/perience of dell
laptop and analysis on preference of branded laptop among the consumers.
This will gi&e a conclusion on how does consumer percei&ed brand among
different criteria in order to ta*e the decision in purchasing the branded
dell laptop.
1IGNI!ICANCE O! THE 1TUD7
indings of the study might be useful and important among consumer.
It can also become good information for those companies who has been
engaging in research of branding process in order to indentify perception
of the consumers for their branded product.
This finding will broad enough to generate interest among a sufficiently
large group of researchers because it analysis of load of facts about the
&arious criteria of choice that determine the perceptions and preferences of
dell laptop.
This finding will gi&e a data of &arious sources from where consumer can
get information about the product in percentage form which will help the
planner, to ma*e decision regarding which source will be more effecti&ely
to promote their branded products.
RE1EARCH DE1IGN5
0 research design is the framewor* or plan for a study used as a guide in
collecting and analy?ing data. There are three basic types of research designD
e/ploratory, descripti&e, and causal. The names of the three types of research
design describe their purpose &ery well.
The sample technique employed in this research was a non probability sample
method gi&en that questionnaire was distributed randomly, which gi&es a fair
representation of the study population. 0mong &arious non probability techniques,
the researcher selected con&enience sampling technique to study the proJect
because the data was collected li*e as stopping people on a street corner as they
pass by. 9espondents were selected based on their con&enient accessibility.

/ETHOD1 O! DATA CO66ECTION5
The *ey for useful systems is the selection of the method for collecting data and
lin*ing it to analysis and decision issue of the action to be ta*en. The accuracy of
the collected data is of great importance for drawing correct and &alid conclusions
from the detailed in&estigations.
PRI/AR7 DATA5
The primary data are those which are collected a fresh hand for the first time and
thus happen to be original in character. There are se&eral methods of collecting
primary data, particularly in sur&ey and descripti&e research.
1ECONDAR7 DATA5
Secondary data are used means that are already a&ailable 0mong them the
study use sur&ey or structured questionnaires to obtain specific information such
as ways of information search to obtain information , perceptions, attitudes ,
factors and beha&iour regarding mobile phones.
S01'.I4B 17T)3D3.3BOD
Sample Unit + (onsumers are using different mobile phone.
Sampling 0rea+ Bandhi4agar.
Sampling Technique + (on&enience sampling technique.
1tatisti-al Tools Used- S'SS, t+test, chi square test
1o0tware ,sed - S'SS, ms+office
Sample Si?e + :56 respondents are needed
(onfidence le&el ` "6N
Standard de&iation ` .6
1argin of error ` ]K+ 6N.
` CZ+scoreE a @ Std De&\C!+StdDe&E K Cmargin of errorE a
`C!."%Ea/.6C.6EEKC.$6Ea
`C:.5-!%/.#6EK.$$#6
`."%$-K.$$#6
`:5-.!%
`:56 respondents are needed
CHAPTER-$
DATA ANA671I1
AND
INTERPRETATION
9' Gender
1ale emale
#%$ !#6
Table no +!
Braph no +!
Inter&retation
The graph will show the %5N are male, :#N are female.
C' A)e
2elow #$ years 2elow :$ Oears 2elow -$ years -$ or abo&e years
6$ ##$ "$ #6
Table no +#
Braph no +#
Inter&retation
The graph will show the !:N are below #$ years, 6GN are below :$ Oears, #:N
2elow -$ years, G N -$ or abo&e years of age.
D' O--,&ation
Ser&ice )ousewife 2usiness Student 9etired
"$ #6 %6 !5$ #$
Table no +:
Braph no +:
Inter&retation
The graph will show the #-N are Ser&ice, GN are )ousewife, !GN are 2usiness,
-GN are Student, and 6N are retired.
E' Ed,-ational 9a-2)ro,nd
Schooling Braduate 'ost Braduate Doctorate Illiterate
%6 !"6 !!6 !$ $
Table no +-
Braph no +-
Inter&retation
The graph will show the !GN are Schooling, 6!N are Braduate, :$N are 'ost
graduate, and # N are doctorate.
!' In-o"e 6e4el ?&er "onth@
.ess than or
equal to
!$,$$! @ #$,
$$$
#$,$$!@
:$,$$$
:$,$$! @
-$,$$$
1ore than
-$,$$$
!$,$$$
G6 !!G !$: 66 :6
Table no +6
Braph no +6
Inter&retation
The graph will show the #$N are .ess than or equal to !$,$$$, :$N are !$,$$! @
#$, $$$, #GN are #$,$$!@ :$,$$$, !-N are :$,$$! @ -$,$$$, "N are 1ore than
-$,$$$.
G' !or how lon) ha4e yo, +een ,sin) yo,r la&to&B
!+:
years
:+6 years 6+G years G years
and
more
6G !%6 "6 %5
Table no +%
Braph no +%
Inter&retation
The graph will show the using laptop !6N are !+6 years, -:N are :+6 years, #6N
are 6+G years and !G N are G years and more
H' <hat was the "ost in0l,ential 0a-tor that a00e-ted yo,r
-hoi-e when yo, +o,)ht yo,r la&to&BB
riends amily
members
0d&ertisements Sales
person
2rand
image
'roduct
re&iews
others
-: :G "! % !-" 6- $6
Table no +G
Braph no +G
Inter&retation
The graph will show the !!N influence by friends, !$N influence by family
members, #-N influence by ad&ertisement, !N influence by sales person, :"N
influence by brand image, !-N influence by product re&iew and !N influence by
others.
I' <hi-h -hannel did yo, ,se when yo, +o,)ht yo,r
la&to&B
The
brand's
own
website
3nline
retail
stores
7lectronics
retail stores
8arehouse
stores
3thers
-6 #: #$$ !G !$$
Table no +5
Braph no +5
Inter&retation
The graph will show the !#N use brands own website for purchase, %N use
online retail stoe, 6#N use electronics retail stores, -N use warehouse stores, #%N
use others source for purchase laptop.
>' <hat do yo, thin2 a+o,t 0eat,res o0 Dell la&to&B
1' Pro-essors
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
%G !G: !#" !: :
Table no +!$
Braph no +!$
Inter&retation
The graph will show the !GN strongly agree, -6N agree, :-N neutral, :N
disagree and !N strongly disagree with processors.
' D8D dri4e
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
5G !-G !!G :$ $-
Table no +!!
Braph no +!!
Inter&retation
The graph will show the #:N are strongly agree , :5N are agree, :$N are 4eutral
,5 N are disagree, !N are strongly disagree.
*' In+,ilt HDD
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
G% !5! !$! #% $!
Table no +!#
Braph no +!#
Inter&retation
The graph will show the #$N are strongly agree, -GN are agree, #%N are 4eutral,
GN are disagree,$N are strongly disagree
$' O&eratin) syste"
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
": !!6 !-5 #! $5
Table no +!:
Braph no +!:
Inter&retation
The graph will show the #-N are strongly agree, :$N are agree, :5N are 4eutral,
%N are disagree,#N are strongly disagree.
C' <e+-a"
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
66 !#! !%G #G !6
Table no +!-
Braph no +!-
Inter&retation
The graph will show the !-N are strongly agree, :#N are agree, -:N are 4eutral ,
GN are disagree, -N are strongly disagree.
D '1-reen si(e
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
-: !:6 !5" !G $!
Table no +!6
Braph no +!6
Inter&retation
The graph will show the !!N are strongly agree :6N are agree, -"N are 4eutral ,
6N are disagree,$N are strongly disagree.
#' RA/
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
5% !66 !!$ #6 $"
Table no +!%
Braph no +!%
Inter&retation
The graph will show the ##N are strongly agree, -$N are agree,#5N are 4eutral,
GN are disagree,:N are strongly disagree.
E' 9attery
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
:G -$ !-" !-G !6
Table no +!G
Braph no +!G
Inter&retation
The graph will show the !$N are strongly agree, !$N are agree, :5N are 4eutral,
:5N are disagree,-N are strongly disagree.
9' 1o,nd Te-hnolo)y
Strongly
agree
0gree 4eutral
Disagree Strongly
disagree
$5 66 !5# !:G $#
Table no +!5
Braph no +!5
Inter&retation
The graph will show the :%N are strongly agree, !-N are agree, -GN are neutral ,
:%N are disagree,!N are strongly disagree
3' Colo,r
Inter&retation5
The graph will show the

.. . . 8hat would you be willing to pay for a dell laptopX
2elow
#6,$$$
#6$$$ to
#""""
:$$$$ to
:"$$$
-$,$$$ to
-""""
1ore than
6$$$$
#- G% !-% "6 -6
1. . . 8here did you often see the dell laptop ad&ertisementX
T; 4ewspape
r
1aga?in
e
3nline outdoor 9adio leafle
t
other
#- G% !-% "6 -6
4. 8hich si?e of screen you preferX
!: +!:."
inch
!-+!-." inch !6+!6." inch !%+!G." inch
#- G% !-% "6

Hy&othesis5 T-TE1T
!. '93(7SS39S
1te& 15 hy&othesis
)$D bc:C(ustomer are agree with 'rocessors featureE
)aD bd: Ccustomer are disagree with 'rocessors featureE
1te&5 T-test
1te& *5 Al&ha 8al,e
e`$.$6
(onfidence inter&al "6N
1te& $5 De-isional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected.
1te& C5 Data
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
PROCESSOR 385 3.7481 .80778 .04117
1te& D5 Cal-,late the T 4al,e
One-Sample Test
Test Vale ! 3
t d" Si#. $%&tailed' Mean Di""eren(e
)5* Con"iden(e +nterval o" t,e
Di""eren(e
-o.er /00er
PROCESSOR 18.171 384 .000 .74805 .1171 .8%)0
1te& #5 re=e-ted or a--e&ted
3bser&ed T &alue is &17.104 so it is less than tabulated &alue &.)007. So the null
hypothesis is accepted.
1te& E5 +,siness i"&li-ation
(ustomers are satisfied with 2rand Image facilities.
#. D;D dri&e
1te& 15 hy&othesis
)$D bc:C(ustomer are agree with D;D dri&e featureE
)aD bd: Ccustomer are disagree with D;D dri&e featureE
1te&5 T-test
1te& *5 Al&ha 8al,e
e`$.$6
(onfidence inter&al "6N
1te& $5 De-isional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected.
1te& C5 Data
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
DVD 385 3.7351 .)31%0 .04741
1te& D5 Cal-,late the T 4al,e
One-Sample Test
Test Vale ! 3
t d" Si#. $%&tailed' Mean Di""eren(e
)5* Con"iden(e +nterval o" t,e
Di""eren(e
-o.er /00er
DVD 15.48) 384 .000 .73501 .1418 .8%84
1te& #5 re=e-ted or a--e&ted
3bser&ed T &alue is &17.104 so it is less than tabulated &alue &.)007. So the null
hypothesis is accepted.
1te& E5 +,siness i"&li-ation
(ustomers are satisfied with 2rand Image facilities.
:. Inbuilt )DD
1te& 15 hy&othesis
)$D bc:C(ustomer are agree with Inbuilt )DD featureE
)aD bd: Ccustomer are disagree with Inbuilt )DD featureE
1te&5 T-test
1te& *5 Al&ha 8al,e
e`$.$6
(onfidence inter&al "6N
1te& $5 De-isional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected.
1te& C5 Data
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
2DD 385 3.7)%% .84375 .04300
1te& D5 Cal-,late the T 4al,e
One-Sample Test
Test Vale ! 3
t d" Si#. $%&tailed' Mean Di""eren(e
)5* Con"iden(e +nterval o" t,e
Di""eren(e
-o.er /00er
2DD 18.4%3 384 .000 .7)%%1 .7077 .8718
1te& #5 re=e-ted or a--e&ted
3bser&ed T &alue is &17.104 so it is less than tabulated &alue &.)007. So the null
hypothesis is accepted.
1te& E5 +,siness i"&li-ation
(ustomers are satisfied with 2rand Image facilities.
-. 3perating system
1te& 15 hy&othesis
)$D bc:C(ustomer are agree with 3perating system featureE
)aD bd: Ccustomer are disagree with 3perating system featureE
1te&5 T-test
1te& *5 Al&ha 8al,e
e`$.$6
(onfidence inter&al "6N
1te& $5 De-isional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected.
1te& C5 Data
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
OS 385 3.1857 .)1181 .04)%8
1te& D5 Cal-,late the T 4al,e
One-Sample Test
Test Vale ! 3
t d" Si#. $%&tailed' Mean Di""eren(e
)5* Con"iden(e +nterval o" t,e
Di""eren(e
-o.er /00er
OS 13.)11 384 .000 .18571 .5888 .78%1
1te& #5 re=e-ted or a--e&ted
3bser&ed T &alue is &17.104 so it is less than tabulated &alue &.)007. So the null
hypothesis is accepted.
1te& E5 +,siness i"&li-ation
(ustomers are satisfied with 2rand Image facilities.
6. 901
1te& 15 hy&othesis
)$D bc:C(ustomer are agree with 901 featureE
)aD bd: Ccustomer are disagree with 901 featureE
1te&5 T-test
1te& *5 Al&ha 8al,e
e`$.$6
(onfidence inter&al "6N
1te& $5 De-isional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected.
1te& C5 Data
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
R3M 385 3.7377 .)553) .0481)
1te& D5 Cal-,late the T 4al,e
One-Sample Test
Test Vale ! 3
t d" Si#. $%&tailed' Mean Di""eren(e
)5* Con"iden(e +nterval o" t,e
Di""eren(e
-o.er /00er
R3M 15.150 384 .000 .73711 .141) .8334
1te& #5 re=e-ted or a--e&ted
3bser&ed T &alue is &17.104 so it is less than tabulated &alue &.)007. So the null
hypothesis is accepted.
1te& E5 +,siness i"&li-ation
(ustomers are satisfied with 2rand Image facilities.
%. 2attery
1te& 15 hy&othesis
)$D bc:C(ustomer are agree with 2attery featureE
)aD bd: Ccustomer are disagree with 2attery featureE
1te&5 T-test
1te& *5 Al&ha 8al,e
e`$.$6
(onfidence inter&al "6N
1te& $5 De-isional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected.
1te& C5 Data
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
43TTER5 385 %.851) .)8713 .05033
1te& D5 Cal-,late the T 4al,e
One-Sample Test
Test Vale ! 3
t d" Si#. $%&tailed' Mean Di""eren(e
)5* Con"iden(e +nterval o" t,e
Di""eren(e
-o.er /00er
43TTER5 &%.)41 384 .003 &.14805 &.%470 &.04)1
1te& #5 re=e-ted or a--e&ted
3bser&ed T &alue is &17.104 so it is less than tabulated &alue &.)007. So the null
hypothesis is accepted.
1te& E5 +,siness i"&li-ation
(ustomers are satisfied with 2rand Image facilities.
G. Sound technology
1te& 15 hy&othesis
)$D bc:C(ustomer are agree with Sound technology featureE
)aD bd: Ccustomer are disagree with Sound technology featureE
1te&5 T-test
1te& *5 Al&ha 8al,e
e`$.$6
(onfidence inter&al "6N
1te& $5 De-isional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected.
1te& C5 Data
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
SO/ND 385 %.8130 .711%1 .03880
1te& D5 Cal-,late the T 4al,e
One-Sample Test
Test Vale ! 3
t d" Si#. $%&tailed' Mean Di""eren(e
)5* Con"iden(e +nterval o" t,e
Di""eren(e
-o.er /00er
SO/ND &4.8%0 384 .000 &.18701 &.%133 &.1107
1te& #5 re=e-ted or a--e&ted
3bser&ed T &alue is &17.104 so it is less than tabulated &alue &.)007. So the null
hypothesis is accepted.
1te& E5 +,siness i"&li-ation
(ustomers are satisfied with 2rand Image facilities.
CHAPTER-C
!INDING
1,))estion

6i"itation
0 small sample si?e of :56 students is ta*en, so we cannot draw inferences
about the population from this sample si?e.
Time period is short and resource constraints.
The scope of the proJect is limited to the city of Bandhinagar.
This study is based on the pre&ailing a study on consumer brand
preference of dell laptop.
(onsumer test and preference *eep on changing day by day so the findings
from the sur&ey may not be applicable in all cases.
Sur&eys should thus be underta*en periodically in order to gauge changing
consumer laptop usage patterns and perceptions o&er time.
Test of null and alternati&e hypothesis can be done based on the literature
re&iew. 3nly integrating the literature re&iew with the theory was done.
The study can be further analy?ed in terms of different dimension li*e
brand preference among gender wise, income wise as well as &arious
factor they choose feature of dell laptop .

CHAPTER-D
CONC6U1ION
CHAPTER-#
9I96IOGRAPH7
CHAPTER-E
ANNEFURE