Dell Mission and Strategies

Mission and Strategies

Mission:

Dell is a company leader in delivering the latest technology in computer systems to customers, and a broad range of products that enhance the service. The main concept is to sell directly to customers without intermediaries to better understand their needs and provide personalize assistance to take customers to the next level of service. (1)

Strategy:

Dell combines direct customer model which is our initial goal, with relevant technologies and solutions, efficient manufacturing and logistics, and strive to find new distribution channels amongst businesses and individuals around the world. Within the customer experience, superior value, high quality, relevant technology, and customized systems set us apart from our competitors. Also, product differentiation, and new acquisitions are a part of the widening of the business. (1)

Trends:

No single customer accounted for more than 10% of our consolidated net revenue during any of the last three fiscal years.

Marketing Strategy:

By directly selling our products and services to customers, we improve service quality. We have committed personnel who sell our products through telephone-based sales, and online at www.dell.com. Dell customers come from every single industry, from large governmental agencies to individual consumers. Each geographic region we have has been assigned with sales and marketing resources who work for seeing the consumer needs, and preferences fulfilled. We value our customer’s opinion and behold suggestions as important as our customers, therefore we continuously work hand in hand with the customer to develop and improve our products.

For large industries, and businesses we keep a handful number of representatives, consultants, and field-based system engineers, who build up long-term relation ships and develop specific tailored solutions for them throughout the world. Our support programs especially cater multinational customers across global regions, and have access to central purchasing facilities. Our main source of advertising is the television and the internet, as well as direct mail of marketing publications such as catalogs, promotions, and newsletters. (1)

Organization and Employees:

Our workforce has grown in the last year, at the end of Fiscal 2007, we had approximately 90,500 total employees (consisting of 82,200 regular employees, 7,200 temporary employees, and 1,100 DFS employees), compared to approximately 73,500 total employees (consisting of 65,200 regular employees, 7,200 temporary employees, and 1,100 DFS employees) at the end of Fiscal 2006. Approximately 29,100 of the regular employees at the end of Fiscal 2007 were located in the U.S., and approximately 53,100 were located in other countries. While our workforce located both inside and outside the U.S. continued to increase during Fiscal 2007, the proportion of our workforce located outside the U.S. increased due to a number of factors, including our rapid international growth. We have never experienced a work stoppage due to labor difficulties, and believe that our employee relations are good. An important asset of our company workforce is the diversity which brings workers committed to quality and great service. (1)

Technology:

As of October 12, 2007, we held a worldwide portfolio of 1,890 patents and had an additional 2,001 patent applications pending. We also hold licenses to use numerous third party patents. To replace expiring patents, we obtain new patents through our ongoing research and development activities. Our product, business method, and manufacturing process patents may establish barriers to entry in many product lines. While we use our patented inventions and also license them to others, we are not substantially dependent on any single patent or group of related patents. We have entered into a variety