COMPAQ遗作对竞争对手DELL.pptVIP

Dell Computer Competitive ReviewJune 2001 Early 2001 Developments “Dell takes top spot in Global PC Sales” “Dell takes top spot in U.S. server market for Q1” “Dell CEO says storage business is the next target” “Dell will be ruthless in cost cutting – It’s gonna be Bosnia” “Compaq chief declares price war” Business Mitosis Circa 1997 Dell sales segments $7.4Billion annual revenue, 10,000 Employees Business Mitosis As business units reached critical mass, at roughly $2B in annual sales, they would be split into multiple BUs Business Mitosis Split strategy increased focus and fueled growth Divide and Conquer These were all independent business units with complete sales and marketing infrastructures Consolidation at Dell Corporate sales recently consolidated back into single business unit to reduce costs – moving away from strategy that got them where they are today. Shake-up at Dell - good time to attack VP and General Manager of Large Corporate Accounts (Cliff Mountain) was asked to step down from his position recently. He has since left the company. VP of Sales for Corporate Accounts (Ralph Spagnola, 11 year Dell vet) was unhappy with recent management changes and decided to leave the company. Tom Meredith, former CFO, chief strategist, GM Dell Ventures, and key developer of the Dell Business Model -- gone Recently promoted Regional Sales Managers were demoted back to Inside Sales Managers Recently promoted Inside Sales Managers were pushed back down to Inside Sales reps. Some under-performing Account Managers were let go Account teams swapped around in the process – disrupting customer relationships What do customers like about Dell? Low cost model – With no channel associated costs, only 5 days of inventory, and a highly leveraged service model, Dell is able to pass along component cost savings directly and rapidly to customers Single point of accountability – Account Executive orchestrates all resources and is accountable to the customer for the rel