Operations Strategy Essay

632 words - 3 pages

February 9, 2012
BUSM 302 Operations Management
Operations Strategy of Dell

The main function of an operations strategy is to ensure that a plan is in place for the operations of the company so that is can as productive as possible with the use of available resources. These companies have to ensure that their operations plan is place and that it is functioning properly in order to achieve desired results within the market place.
I am going to discuss the operations strategy of Dell. Dell is a computer company that has become a leader in the computer industry because of its speed of delivery and low price. This unique corporation has marketed thousands of computers online and continues to be an industry leader. Dell’s main delivery channel is the internet, and they have developed their business around that channel. Dell’s mission is “to be the most successful computer company in the world at delivering the best customer experience in markets we ...view middle of the document...

A system was designed so that the components of the manufactured product were not actually ordered until the customer order was placed. This keeps costs low, because they don’t have to carry a bunch of inventory that may sit for days. Customers can go to Dell and piece together their desired product, place the order, and then Dell manufacturing it to that order request. Dell was able to design a warehousing system where once an order was placed; parts could be delivered in a very short time frame. This also differed Dell from its competitors, which usually have longer wait times on the ordering of parts. They also set up an agreement with UPS where they would have their finished product delivered in a timely manner.
This is a short summary of the use of operations strategy for Dell. They found a gap in the market and developed a business strategy to meet the needs of that market. They then developed the operations strategy that covered off four key components being cost, time, quality and flexibility. They are able to provide their customers with competitive pricing because of their reduced overhead costs as a result of their business design. Dell is also able to deliver a finished product to its customers in very timely fashion because of the arrangements made with UPS, as well as the method of delivery of the parts to build the computers upon order from the customer. They are also able to develop a product that meets the quality expectations of their customers, while giving the customers the flexibility to order what they want when they buy a computer. Dell appears to have a good understanding of the importance of a well-defined operations strategy and how it fits into the business strategy. Their operations strategy ensures that Dell will be an industry leader in its market place with the efficient and effective use of resources, while meeting the objectives of the business strategy.

REFERENCE
Operations Strategy and Competitiveness. Retrieved February 9, 2012 From http://media.wiley.com/product_data/exerpt/48/04713472/0471347248.pdf.

Hamilton, Dr. D. (2011, January 13). Top 10 Company Mission Statements in 2012.
Retrieved from http://drdianehamilton.wordpress.com/2011/01/13/top-10-company-mission- statements-in-2011/.

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