Dell 2007 Annual Report Download - page 25

Table of Contents
ITEM 7 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
SPECIAL NOTE: This section, "Management's Discussion and Analysis of Financial Condition and Results of Operations,"
contains forward-looking statements that are based on our current expectations. Actual results in future periods may differ materially
from those expressed or implied by those forward-looking statements because of a number of risks and uncertainties. For a discussion
of risk factors affecting our business and prospects, see "Part I — Item 1A — Risk Factors." This section should be read in
conjunction with "Part II — Item 8 — Financial Statements and Supplementary Data."
Overview
Our Company
As a leading technology company, we offer a broad range of product categories, including desktop PCs, servers and networking products,
storage, mobility products, software and peripherals, and services. We are the number one supplier of personal computer systems in the
United States, and the number two supplier worldwide.
We manufacture many of the products we sell and have manufacturing locations worldwide to service our global customer base. We
believe that our manufacturing processes and supply-chain management techniques provide us a competitive advantage. We have
relationships with third-party original equipment manufacturers that build some of our products to our specifications. In addition, we are
continuing to expand our use of original design manufacturing relationships and manufacturing outsourcing relationships in order to
generate cost efficiencies, deliver products faster and better serve our customers in certain segments and geographies.
Our core business strategy is built around our direct customer model, relevant technologies and solutions, and highly efficient
manufacturing and logistics; and we are expanding that core strategy by adding new distribution channels to reach even more commercial
customers and individual consumers around the world. Using this strategy, we strive to provide the best possible customer experience by
offering superior value; high-quality, relevant technology; customized systems and services; superior service and support; and
differentiated products and services that are easy to buy and use. Historically, our growth has been driven organically from our core
businesses. Recently, we have begun to pursue a targeted acquisition strategy designed to augment select areas of our business with more
products, services, and technology that our customers value.
We also offer various financing alternatives, asset management services, and other customer financial services for business and consumer
customers. To reach even more customers globally we have launched new distribution channels to reach commercial customers and
individual consumers around the world; we sell products indirectly through third-party solution providers, systems integrators, and third-
party value-added resellers. In Fiscal 2008, we announced PartnerDirect, a global program that brings our existing partner initiatives
under one umbrella in the U.S. PartnerDirect includes partner training and certification, deal registration, dedicated sales and customer
care, and a dedicated web portal. We intend to expand the program globally.
We sell our products and services directly to customers and through a variety of indirect sales channels. Continuing our strategy and
efforts of better meeting customers' needs and demands, we began offering select products in retail stores in several countries in the
Americas, EMEA, and APJ during Fiscal 2008. These actions represent the first steps in our retail strategy, which will allow us to extend
our business model to reach customers that we have not been able to reach directly.
We have always strived to simplify and lower costs for our customers while expanding our business opportunities. To continue to meet
this goal, sustain our business strategy, and improve our business, we are focused on improving our current state and reigniting growth.
We believe these actions will help position us for sustainable long-term profitable growth.
• Improving our current state — We are focused on eliminating bureaucracy and improving competitiveness by enhancing our
productivity and becoming more efficient while strengthening our operating processes and internal controls. Our new and
experienced executive leadership team is working together to increase productivity and efficiency across all functions. We are
focused on improving product innovation by
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