Dell 1997 Annual Report Download - page 5

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Relationship Business -- The Company has a broad range of business based on
continuing relationships with Fortune 500(R) companies, governmental, medical
and educational institutions and small-to-medium businesses. The Company
maintains a field sales force calling on business and institutional customers
and prospects. The Company develops direct sales marketing programs and services
specifically geared to these relationship customers. For large customers,
dedicated account teams, consisting of sales, customer service and technical
support representatives, form long-term customer relationships to provide each
customer with a single source of assistance on various issues, including
technology needs assessment; system configuration; order placement; lifecycle
cost management; technology transition planning; installation assistance and
project management; and detailed product, service and financial reporting. To
support these teams, the Company has account executives in many major cities
around the world. For customers with in-house maintenance organizations, the
Company offers a variety of programs, including specialized computer training
programs, a repair parts assistance program and other customized programs to
provide access to the Company's technical support team. Customized product
delivery and service programs are available on a worldwide basis. See "Item
1 -- Business -- Service and Support" below.
For multinational corporate customers, the Company offers several programs
designed to provide global capability, support and coordination. Through these
programs, the Company can provide single points of contact and accountability
with global account specialists, special global pricing, consistent service and
support programs across global regions and access to central purchasing
facilities.
The Company also has specific sales and marketing programs targeted at federal,
state and local governmental agencies. The Company maintains account teams
(consisting of sales representatives, K12 and higher education sales
representatives, health care sales representatives and technical support
representatives) dedicated to specific governmental markets. The Company holds a
U.S. General Services Administration Schedule contract, through which it sells
to U.S. federal governmental agencies.
Transactional Business -- The Company also has a significant base of business
among small-to-medium businesses and home users. The Company maintains a sales
force that markets its products and services to these customers by advertising
in trade and general business publications and by mailing a broad range of
direct marketing publications, such as promotional pieces, catalogs and customer
newsletters. The Company believes these customers value its ability to provide
reliable, custom configured computer systems at competitive prices,
knowledgeable sales assistance, post-sale support and on-site service offerings.
Internet Business -- An increasing portion of the Company's business is being
conducted via the Internet through the Company's World Wide Web site at
www.dell.com. Through the web site, customers and potential customers can access
a wide range of information about the Company's product offerings, can configure
and purchase systems on-line and can access volumes of support and technical
information. By the end of fiscal 1998, the Company was receiving in excess of
800,000 visits per week to www.dell.com, where it maintains nearly 42
country-specific sites, and Company revenue generated through the Internet
exceeded $4 million a day.
The Company also utilizes the Internet to enhance the direct relationships with
its customers. The Company designs and implements custom Internet sites, called
Premier Pages(SM), for various large customers, allowing these customers to
simplify and accelerate procurement and support processes. Through these custom
sites, the Company is able to provide the customer with on-line configuration,
pricing and purchasing capability; on-line detailed order, purchasing and
inventory reports; and critical account team information.
Leasing and Asset Management Services -- During fiscal 1998, the Company formed
Dell Financial Services L.P. ("DFS") as a joint venture with Newcourt Credit
Group Inc., a financial services company headquartered in Toronto, Canada. DFS
offers leasing and other financial services
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(including asset management and recovery, technology planning and project
management) that are directly integrated with the Company's sales and
manufacturing capabilities.
SERVICE AND SUPPORT
The Company offers a variety of service and support programs in all of its
geographic markets. The following is a brief description of the service and
support programs offered exclusively or primarily to the Company's U.S.
customers. A full line of warranty, service and support options are available in
the Company's international markets, but these options can vary significantly
based on the local market and customer requirements.