Dell’s way to approach the fact that the company was not able to fulfil the customers wishes, was through honesty. The question was whether this strategy was an advantage for Dell or not. The brand “Dell? which serves various consumer segments, is efficiently delivering attributes such as good quality computers along with operative support services. Dell takes position in direct communication with customers and delivers build-to-order computers.
Whereas, IBM could gain only 9% and HP lost the Demand Strength by 16%. This completely means that Dell governs the market of computers in US and is trying to come up in the league in the other product categories as well. Dell’s main marketing strategy is customer segmentation that also includes product segmentation in which Dell targets individual market segments and design products according to individual needs of the customers. Looking at this geographically, Dell has set its grounds in US, EMEA and APJ where there are different marketing and pricing strategies. From the demographic view point there is no gender, race, age bias that particularly Dell has, but depends upon on the education, occupation and income of the people buying various products decides further the selling and purchasing behavior.
It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers. Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired.
The book was written before the WebPages became popular so it talks only about what the company expects from it and not about how the web page has performed. The Charles Shwabb investment web page gave a lot of information, which would suit potential investors on Dell. The web page allowed me to view Dell’s financial statements and analyze just how profitable Dell Computers has been and in which areas they showed the most or least profit. The book “The Market Share Reporter” gave me information on how much of the market Dell controls for each product they sell and how they compare to other companies. The book has many graphs, and charts to make it easier to see how much control a particular company has in that area in relation to other competing companies.
Dell Company has a clear understanding of its own company strengths such as selling their products directly to customers without a middle man and in designing its computers and other products to the customer's specifications. For example, Dell Company had designed its products to be more functional, lighter and more easier to use. This helps reducing the manufacturing costs that was needed. Dell Company also not forgetting its own weakness such as having no relationships with local computer dealers, which will be hard for getting supplies and support from the other companies. Besides, Dell Company is a company with a smaller capital, and at that time what they need the most will be financial support and sponsorship.
It all began when an up-and-coming 19-year college freshman name Michael Dell brought a Mac computer, took it apart just to understand how it worked. Michael Dell quit school, invested $1000 of his own money and establish PC’s Limited in 1984. PC’s Limited began by buying old computers, making improvements and retailing them for a profit. Once consumers learned more about PC’s, they wanted newer versions of the current PC’s Michael Dell made a decision, he would manufacture his own PC. The timing was perfect, there wasn’t much competition upgrading computer systems.
Eventually PCs experience the inevitable growing pains. Michael Dell made a decision that changed the way many consumers purchase their computer today. In 1987, after he restructured to company, increased production capability, management staff, and corporate infrastructure, while still maintaining low cost products to consumers. The company was then renamed Dell Computer and in that same year open their firs international offices. SWOT ANALYSIS OF DELL COMPUTER Strengths Michael Dell visionPersonal customization of computers and laptopsCutting out the middle man (retail sellers as a distributor)Order directly from the factoryFast deliveryComputer delivery tracking serviceLow inventory turnaroundLong-term relationship with suppliersLow price computerInexpensive laborJust-in-time inventory Weaknesses Buying from limited manufactures suppliersHome end user has no hands on experience to see or touch the actual productConsumer have to wait on deliveryDells products are prioritizeConsumer can not purchase comparable price ink cartridge for Dell printers Opportunity Introduction of printers and tonerIntroduction of LCD television and I podConstant growth in the market for laptops and computersConsumer are more computer knowledgeableInternet shopping for personalize computer (online store) Threats Orders have to be placed ahead to need time due to size or valueWith international orders constant change in exchange rates could leave Dell at a potential loss of parts from it supply chainPrice differential is becoming smaller with competitive marketDell competitors are a price threats in the computer industryThe computer that is the fastest, most advance in technology, most durable, and user-friendly is increase it share of the market RECOMMENDATIONS Liquidity, profitability, and growth are used to measure the success of a company.
However, the central problem for Dell was the methodology used to develop and communicate its core values to employees. As well as senior leaders’ inability to affect paradigms shift from the existing organizational culture and sustain an effective change management process. Case Study Analysis Background /Culture Dell Computer Company is known for its meteoric rise to industry dominance based on founder Michael Dell’s ability to transition a part-time business of building and upgrading personal computers into a multi-billion dollar enterprise (O’Rourke, 2010). Dell’s business model was producing low cost, high quality PC’s that were built-to-order called “Dell Direct”. The strategy of shipping direct to customers eliminated the need for middlemen and gave Dell a competitive advantage (O’Rourke, 2010).
The two suggested strategies are providing employees with “standard” devices such as a smartphone, tablet or computer provided by the company. “Standard” devices are monitored by IT departments. The downsides of “standard” devices are that companies must pay for the hardware device and cover all costs associated with that device. The second strategy is B.Y.O.D which allows employees to cover costs by bringing their own device into the workplace therefore saving the company money. Going back only a few years, B.Y.O.D was only an idea few knew about.
When Dell started this company, he followed a simple strategy: made built-to-order and sell directly. He believed that it has two advantages: elimination of the markups from retailers and cost reduction through built to order. However, from 1990 to 93, Dell slightly deviated from his main strategy. He was concerned about the growth from direct sales so he started selling his products through different retailers. But soon he learned that the profit margins are very low so he withdrew from selling through distribution channels.