Based in the Texas in USA, Dell Incorporation is world's one of the primary seller of computer and laptops. It is a multinational information and technology corporation which employed around 76500 people across the world by 2009.
To speak about of origin of the Dell Incorporation, the idea of the company was developed and founded by Michael Dell in 1984 as with the name of PC's limited. While he was studying in university of Texas he was 20 yrs old and he founded the company with the administrative centre of $1000. At the period of 2009 the company had the asset valued of worth $26. 500 billion.
Dell Inc. was started with a tiny idea of direct sell to the finish consumer by Michael Dell. He was mainly focused to steer clear of the intermediaries and cut the price tag on product and sell it directly to the finish user in affordable rate. Dell's company PC Ltd. Was able to sell IBM clones for 40percent significantly less than the competition. (1) This plan gave a way to run the company in instant growth. Once Dell tried to market its products indirectly through warehouse clubs and computer superstores in 1990 but met with little success and the business refocused on its more lucrative direct to consumer sales model. Dell began to sell computer by Internet website from 1996.
Dell started to grow up as in the period between1980 to 1990 to be the greatest sellers of computers and servers. In 2009 2009 Dell took another position in computer sales industry as the 1st position took by Hewett Packard and 2nd position took by Acer incorporation. Because the history of computer sales to current position Dell incorporation is not limited with single product. It sells verities of products like servers Data storage Devices i. e. , USB storage devices, Televisions, Notebooks, Scanners etc. In addition, it sells types of electronic products manufactured by others.
In the mean time of 2006 it was listed in the 25th greatest company ranked by Fortune Magazine in the Fortune 500 list, 8th on its annual "Top 20" list of the most-admired companies in the United States. In 2007 Dell ranked 34th and 8th respectively on the same lists for the entire year. A 2006 publication determined Dell as one of 38 high-performance companies in the S&P 500.
Mission and strategies of Dell
Dell's mission is "to the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of finest quality, leading technology, competitive pricing, individual and company accountability, best in class service and support, flexible customization capability, superior corporate citizenship, financial stability. "(Dell)
Dell's own corporate website defines its global strategy as "our global strategy is usually to be the premier provider of products and services including the ones that customer requires to make their information technology and Internet infrastructures. "
Strategic marketing problems of Dell
One problem that is obvious in this regard is that it would need to re-evaluation of the existing advertising campaign whereby the campaign addresses the consumer at large. By narrowing the scope of the existing online marketing strategy Dell can achieve niche marketing goals.
Another problem with niche marketing in a pervasive company like Dell is the fact that it will reverse some of the procedure of manufacturing or rather alter it. For example suppliers would have to be unique who can do mass customization at shorter production time frame as well as maintaining quality standards. Dell therefore must concentrate on quality control as it slowly but surely integrates this new marketing strategy.
there is also the issue of global positioning. Dell's consumer base is not really a typical American or Canadian but a wide range of customers from Asia, Latin America, and Europe as well each with distinct needs and requirements. The difference in corporate culture as well as professional attitudes towards IT products and services create a hard need/requirement profile that would be challenging for Dell. As more and more consumers in developing regions like China, Brazil, France, and India grow to appreciate computerized environment, there is also complex needs. In this manner Dell would have a hard time to incorporate a pervasive online marketing strategy. Instead, it should maintain differential but integrative marketing strategy so the company has a distinct segment in each one of the markets in which it manufactures products.
Strategic marketing alternatives
Positioning and Target Market Strategy
Market segmentation Strategy
Market expansion strategies
Marketing strategies adopted by Dell
Direct Sales Model
The strategy which helped Dell to perform in today's position was direct sales approach. The reason behind to use this model is to steer clear of the intermediaries and sell the merchandise directly to the ultimate user in cheap rate. Direct selling model is a example of market penetration strategy. Direct sales means that dell must get in touch with possible client, either through its own sales team or through advertising and other marketing efforts. (Dell pdf. pdf through Internet)
Dell has divided its customers into two parts. Is corporate customers and another is home user customers. It includes differentiated the product and services according to its customers. This segmentation is very necessary as business based customers generally need mainframes and different types of equipment against the normal user at home who could just need the bare minimum to do his/her computing.
Direct Customers Relationships
Dell has mainly centered on its customers relationships. It offers equal priority to each customer. Throughout the direct selling model it will get out the necessity and desire of customer what they need. Vendors who sells their product through resellers often have no idea who their final customer are, so they need to rely on secondary general market trends to recognize their own customer trends earlier so it can respond with the required products before its competitors. It has established a 24*7network mechanism to pay attention and to provide services to its customers.
Swot Analysis of Dell
According to Dell. com, Dell incorporation announces itself as the world's leading computer company. Dell is the World's major PC maker. Started with the administrative centre of $1000 as in the current stage they have collected $2. 478billion net gain in 2009 2009. For the last year or two Dell has taken its position as a market leader. Dell's brands are one of the popular and renowned brands in the World.
Dell avoids the intermediaries and supplies product right to the finish users. It uses Customer Relationship Management approaches with information and technology to acquire data on its loyal customers. In order that a customer selects a particular PC model, then it applies to to include items according to customer's choice and upgrades before PC is fitted out to the customer's own specification. The components which are used to produce a computer ready are created by suppliers, never by Dell. PC's are fitted by using affordable labour. You can also keep track of your delivery by contacting customer services. When the products became ready it'll reach among the client by courier.
Dell has huge varieties of products and components made by different suppliers and different countries. Therefore sometimes it faces unexpected problems caused by different component which is utilized for the products. It is a minor case which happened in 2004. Dell was required to recall 4. 4 million laptop adaptors due to a fear that they could overheat, causing electric shocks or fires.
The main weak spot of Dell is the fact that it doesn't manufactures product. This will depend upon other manufacturer and it buys product from supplier and assembles the product as per customer's choice and desires. So dependability is the main weak spot i find in a research study of dell incorporation. Dell buys its component from selected hi-tech component manufacturer. So sometime manufacturer or supplier who supplies for Dell stop manufacturing, Dell must bear huge loss on its overall sales.
When Michael Dell was replaced by the post of ceo by Kevin Rollins in 2004 the business had got a new blood, management, vision and new strategy. That could lead the organization into a new even more profitable period.
Dell is chasing the diversification strategy by developing a lot of services to its range. In addition, it provides multiple facilities to its customer such as three in one, two in one for example getting computer peripherals when buying a Dell PC. It also produces non-computing goods such as IPod, and other electronic brands. Therefore the non-computing goods of Dell compete keenly against others. Pursuing a diversification strategy Dell will get out new markets and customers in order to sell its mass products.
Dell develops the reduced cost price customers in order to sell its retailers all around the globe. The produced PCs are unbranded plus they should not be known as being Dell, when the client makes purchase. Rebranding and rebadging for retailers, although a departure for Dell, gives the company new market segments to attack with the associated marketing costs.
The biggest threat for Dell incorporation is competition in the existing global PC market. Well reputed companies like IBM, COMPAQ also adopting the same kind of marketing strategies, so in today's global market of PC contend with the same kind of product can be an emerging challenge for dell incorporation. As with all profitable brands, retaliation from opponents and new entrants to the market poses potential threats. Dell sources from Far Eastern nations where labour costs remain low, but there is nothing stopping rivals doing the same - even sourcing the same or similar components from the same or similar suppliers. Remember, Dell is a PC maker, not really a PC manufacturer.
Dell's commitment to customer value, to your team, to being direct, to operating responsibly and, ultimately, to winning is constantly on the differentiate us from other companies. The Background section provides critical information and history about Dell's business world
-Economic factors- The recession decreases consumer spending and disposable income reduces.
Dell Inc. addresses these issues in many ways. It manages weaknesses and threats to make a positive outcome.
Suitable online marketing strategy and implementation arrange for Dell
Product: Dell's unique method of manufacturing separates the different processes so that Dell is not reliant on singular production or supplier's chain for equipment production. Though there is no segregation of different products and services but nevertheless in separating the components enabled it to focus on the customers predicated on the regions in which the products are manufactured. By assingning each regionalized production center particular component for production not only have diversified the chance of concentration of labor and production costs but also depending on particular infrastructure.
Price: For these reason Dell's product pricing reflect the affordability of the local consumers. For instance basing plants in Xiamen, China Dell has had the opportunity to provide products and services at the local prices without iincurring additional costs to price. Price reasonability and the option of support, after sales services and parts have alleviate Dell's position from others. Place: Because of this, Dell has had the opportunity to affect the positioning strategy aspect of its marketing campaign. As Dell's products are always available at the nearest dealers customers develop trust for the "local Dell" thereby attaining the aim of gaining their rely upon Dell products and services, and forming a huge and diversified consumer base.
Promotion: Dell before have not concentrated on intensive marketing campaigns but this revolutionarized in 1999 when Dell changed its tactics by engaging in extensive marketing campaigns. The "Be Direct" attitude has changed the way consumer view Dell as the local producers. They also tend to have exclusive trust in exploiting the company as evidence from the client from UK who complaint against Dell's promotional campaign, that the company does not follow its promise. However, in addition to the ad hoc mishap in its marketing campaign Dell has been successful in its promotions. Yet, its about time again to revise this campaign as much of its rival is begining to follow the same trend ("Dell Launches New Consumer Advertising Campaign" 1999).
Positioning and Target Market: What Dell needs to achieve now could be to focus on positioning of its products. Earlier, Dell's consumers can be anyone and anywhere. The advantage of not categorizing customer is that it allows Dell to anticipate different kinds of consumers yet not targetting specific band of customers. Within the modern times however, as Dell has grown, the client base changed from individual professionals to corporate type. Therefore, the new positioning strategy should follow the new marketplace and produce accordingly. The target market feature must be changed accordingly in order to tailor products to these corporate needs
Recommendation and conclusion
A simple formula" get rid of the intermediaries and sell for less" made Dell a reputed speediest growth company. In a short period of energy, how much reputation company has gained is the best part i found in cases like this study. Dell was founded in 1984 with a tiny idea of sell others product however in the existing period Dell has earned customers loyalty. It includes won the consumers faith. How it became possible, associated with absolutely its marketing strategies and trends. Today Dell Inc. is ranked No. 2 and one of the fastest growing PC Company worldwide. Marketing situation Dell is in a very favourable one in my perception. Customer buy Dell brand because of the qualitative brand and the reputation that Dell has gained through the years along with the proven fact that the brands are marketed pretty well too. Marketing however, is not Dell's priority. As discussed in the case and this article, Dell is more concerned with delivering good computers to the customers at the cheapest cost
In comparison to its mission statement and current condition i came across that Dell Inc. and the team of its management focused on rapid change, globalization, technology, innovation diversity and e- business. The unique part is that its website dell. com that they launched for with their corporate and public sector customers.
In respect of my views market penetration and market segmentation is the best benefit of Dell's online marketing strategy. Dell did a good job in identifying their economy and hence penetrating those aspects of markets leaving less room for ambiguity. The e-business that they have adopted is a very cost efficient method of selling their product. I would recommend dell that what they are doing, keep continuing but customers desires and needs are dynamic. Use to take customers feedback and do improvement.
In the current global competitive market the primary challenge for Dell is competition. Top competition for the Dell Inc. are Gateway, Hewlett Packard, and IBM. Also, they are manufacturing the same kind of product and following the same kind of marketing strategies. If Dell will not keep attention about these competition it should bear huge losses in the future sales and profit. Just what exactly i recommend to Dell is the fact what they have won is customer's faith and keeps it up. Watch the global market and competitor. Figure out the customer's changing perception about product; try to provide better quality and services with low priced than competitors.
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