Dell 2010 Annual Report Download - page 10

Table of Contents
from third-party suppliers. Quality control is maintained through the testing of components, sub-assemblies, and systems at various stages
in the manufacturing process. Quality control also includes a burn-in period for completed units after assembly, ongoing production
reliability audits, failure tracking for early identification of production and component problems, and information from customers
obtained through services and support programs. We are certified to the ISO (International Organization for Standardization) 9001: 2008
Quality management systems standard. This certification includes most of our global sites that design, manufacture, and service our
products.
We purchase materials, supplies, product components, and products from a large number of vendors. In some cases, multiple sources of
supply are not available and hence we have to rely on single-source vendors. In other cases, we may establish a working relationship with
a single source or a limited number of sources if we believe it is advantageous to do so due to performance, quality, support, delivery,
capacity, or price considerations. These relationships and dependencies have not caused material supply disruptions in the past, and we
believe that any disruption that may occur because of our dependency on single-or limited-source vendors would not disproportionately
disadvantage us relative to our competitors. See "Part I — Item 1A — Risk Factors" for information about the risks associated with
single- or limited-source suppliers.
Geographic Operations
Our global corporate headquarters is located in Round Rock, Texas. We have operations and conduct business in many countries located
in the Americas, Europe, the Middle East, Asia and other geographic regions. We have invested in high growth countries such as Brazil,
Russia, India, and China, which we refer to as "BRIC," and we expect to continue our global expansion in the years ahead. Our continued
expansion outside of the U.S. creates additional complexity in coordinating the design, development, procurement, manufacturing,
distribution, and support of our increasingly complex product and service offerings. For additional information on our product and service
offerings, see "Products and Services — Manufacturing and Materials" and "Part I — Item 2 — Properties." For information about
percentages of revenue we generated from our operations outside of the U.S. and other financial information for each of the last three
fiscal years, see "Part II — Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations —
Results of Operations" and Note 16 of Notes to Consolidated Financial Statements included in "Part II — Item 8 — Financial Statements
and Supplementary Data."
Competition
We operate in an industry in which there are rapid technological advances in hardware, software, and service offerings and we face
ongoing product and price competition in all areas of our business including both branded and generic competitors. We compete based on
our ability to offer to our customers competitive, open, capable, affordable, and integrated solutions that provide the most current and
desired product and services features. We believe that our strong relationships with our customers and our distribution channels, such as
retail, system integrators, value-added resellers, distributors, and channel partners, allow us to respond to changing customer needs faster
than many of our competitors. This connection with our customers allows us to best meet customer needs and is one of our competitive
advantages.
Sales and Marketing
We sell our products and services directly to customers through our online store at www.dell.com, dedicated sales representatives,
telephone-based sales, and a variety of indirect sales channels. Our customers include large global and national corporate businesses,
public institutions including government, education and healthcare organizations, and law enforcement agencies. Our customers also
include small and medium-sized businesses, and individual customers. Within each geographic region, we have divided our sales
resources among these various customer groups. No single customer accounted for more than 10% of our consolidated net revenue during
any of the last three fiscal years.
Our sales efforts are organized around the evolving needs of our customers, and our marketing initiatives reflect this with our brand, "the
power to do more." Our direct business model emphasizes direct communication with our customers, thereby allowing us to refine our
products and marketing programs for specific customer groups. Customers may offer suggestions for current and future Dell products,
services, and operations on an interactive
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