Two Megaliths of Computer - Hp and Dell

Two megaliths of computer ---HP and DELL

Introduction

Computers play an essential role in this modern society. All people around the world are forced the "computer age" nowadays. It is now necessary in many areas of life, such as banking, retail and information exchange among others. Since the first computer was made in the late 1950s which is I heard that was came from the Chinese Abacus, the technology developed in booming waves. An english professor of mathematics is the person start the real beginnings of computers called Charles Babbage(1792-1871). Computers are everywhere and control a great deal of our living environment and make more competition. More and more areas are being taken over by the computer. Not able to use a computer is a serious handicap in many areas of life. Therefore, if people do not know computers or do not know how to use them it means they are not prepared for the future. They will drop behind the advancing society life. Computers have been applied to education, industry, agriculture, economy, science and many other fields; it is becoming more and more important. Hardly computer derivative the competitor and business in modern life more than others. Whether we like it or not, computers have infiltrated every part of our life. To totally understand and appreciate the impact computers have in our lives and allow they hold for the future, it is important to understand their history. This paper forces on the performance of two companies: HP and DELL. The paper given overview of the history of its establishment and competition environment. Dell's products, suppliers and customers are discussed and business model of the company is presented focus on the costs and competitive advantages.

Dell

Dell is one of the leader companies in computer market all the world. It is now the largest online commercial seller of computer systems. Dell was produced in 1984 by Michael Dell. Dell introduced their first computer in 1986 which is the turbo that was quickly named the industry's fastest performing computer. The forerunner of company that direct telephone sale of computers after noticed the increased contention of the consumer towards buying computers sight unseen. In 1987 Dell becomes international afert opened a branch in the UK. The company introduces its first laptop in 1991. In 1993 the company categorize of the top-five computer system makers around the world. They added e-commerce capability in 1996 by firm launched www.dell.com in. The following year Dell became the first company to record $ 1 million in online sales. The company is try to deliver faster, better and more convenient service to customers. The company's web site, based on Microsoft Windows operating systems, received more than 900 million page requests per quarter at 80 country sites in about 30 languages and 40 currencies.

Dell's leadership position is due to a persistent based on deliver the best possible customer experience by directly selling computing products and services based on industry-standard technology. Dell's direct business model start and end by the customers. The direct business model is the first key differentiator from its competitors. In addition to that, the company keeps only 5 days of inventories, manage receivables to a month , and pushes payables out to less than 60 days.

The no entitative shops and middlemen means that the company can sell their goods more cheaper than rivals. There are some important factors characterized of business model as following:

* Most efficient way to the customer through a direct relationship without intermediaries.

* Single point of accountability which infer the need to make process easy for customers.

* Offers customers exactly what they want in their computer systems, through easy customization by built to order.

* low cost --- Dell is obviously the low-cost leader. By pushing for market share gains during the price war, the company has presented its competitors with a predicament. On one hand, they can try to maintain market share by pricing against to Dell. Dell kept costs at a minimum about 10 percent of revenues compared with 21 percent at HP, they partly through buying components in huge volumes at lower prices.

Moreover, the worldwide operation and global markets are second key make Dell has rivalrousness. The products are manufactured in 6 locations around the world, such as Ireland, Malaysia, China, and Brazil etc.Dell Asia Head branchs are located in Japan and Singapore. Operate subsidiaries have been established in Australia, China, Korea, Hong-Kong, India, Malaysia, New Zealand, and Thailand. Also, Europe, Middle East and Africa area is headquartered in the UK with operate subsidiaries in euromarket (e.g Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, South Africa, Spain, Sweden, and United Arab Emirates). Beside this, Dell has 17,4 percent market share in worldwide PC shipments. For the year 2003, products shipments in 5 main markets: China, France, Germany, Japan and the UK rose total more than 30 percent in the third quarter. America volumes grown up 33 percent, higher still in Latin America where shipments in Mexico more than doubled. Dell's 28 percent unit growth in Asia pacific was more than three times the rate of the rest of the industry. (IDC 2003).

Have you ever heard how does the model work? It can be only one and half hour from the time of order is placed for the computer on website to the time it begins its journey through the factory. Suppliers are based very closed to the factories. They are located within a few miles so that parts can be delivered just hours ahead of being needed. In Dell's factories, an empty computer package start with one end of the automated and high-efficient factory line and moves down it, having different parts added along the line until a completed computer get the other end, packed in Dell box and transported on its journey to the customer. In its business statement the company claimed that its responsibility to customers: " to innovate products and services that deliver great value, and our people are doing that with exceptional skill and efficiency". As shown at Dell's website, customers may review, configure and price systems within Dell's entire product line, order systems online, and track orders from manufacturing through shipping. Dell's reputation is due mainly to the satisfaction of consumer needs. The company has established the way with direct