Dell Channels Essay

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| Effectiveness | Productivity | Financial Performance | Growth Prospects | Small/medium businesses (1-99 users) | Dell’s main goal of establishing this segment is to provide partners with the necessary skills and tools to ensure customers benefit from a certified buying experience. Dell has been successful in encouraging members to collaborate as a team through profit sharing incentives. However, in terms of financial performance, overall profits have been stagnating and thus this has led Dell to focus its distribution strategy on the larger enterprise segment. | Dell has focused on technology development in IT within the company with the aim of achieving efficiency gains from the increased automation of workplace processes and practices. Dell also have a strong focus on profitability, demonstrated from the announcement of GCC (Global Commercial Channel). This has led to an increase in productivity, mainly due to the establishment of more customised programs for partner support. | In its Fiscal Year 2013 and Fourth quarter financial statements, Dell reported revenue of $3.4 billion, a 5% decrease from last year. Revenue for the full year of this customer segment was $13.4 billion, down 1% from the previous year. | negative | Large Enterprises | Customers within the enterprise customer base are demanding a higher level of integration and solution in terms of storage solutions. Dell have responded to this problem by planning an efficient and scalable environment for the future with new investments and acquisitions to fill in the gaps. ‘Dell Storage Systems’ has been very effective for the company in terms of maintaining a large enterprise customer base as well as providing rapid growth, aggressive consolidation and a reduction in costs. Dell also maintains a close partnership with its enterprise customer base, providing a significant advantage over competitors in delivering globally consistent and cost effective solutions. | Dell’s large enterprise customer base consists of both global and national corporate businesses. Over $100 million was spent last year alone in building IT solutions and tools. Dell initiated a cost-effective solution; the establishment of ‘Dell storage solutions’. This has led to centralised resources, automated operations and simplified administration resulting in higher productivity for large enterprise businesses. Also, with the increase uses of Virtualization Technology, Cloud as well as emergence of BYOD, Michael Dell believes these means are a way to drive agility, efficiency and quality. | Dell’s strongest performing segment was large enterprises with revenue accumulating to $4.7 billion in the quarter. | Positive | Government/Not-for-profit | | | | | Hardware/Manufacturers | Dell has avoided the impact of globalisation (tight cost controls and capital intensity of manufacturing) through increases in IT spending. Dell’s association with several channel partners has ensured the latest technologies in computing are brought to the market faster. Dell’s association with companies such as Iron systems, WCA and NCS technologies has proved to be cost efficient developing Dell into a highly innovative company. Example: Cameramanager.com wanted to expand its client base with a local storage unit that would cost-effectively store large
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