Dell Marketing Case Study

On the laptop market, which Dell was committed to re-enter due to its growing customer base, there were a number of technological problems. Dell had hired John Medica, lead developer of Apple computer’s Powerbook line, and according to him, only one of the laptops being developed would be able to compete on the market. However, it would take some time before it was fully developed, so Dell had to reject their customer’s demand for laptops. In doing so, Dell made the customers understand that it would not take forever. Dell’s way to approach the fact that the company was not able to fulfil the customers wishes, was through honesty.

Sun does not see Dell as a major competitor, in obvious place of Dell; they see Microsoft as a major competitor along with Hewlett-Packard and IBM This being said, Dell is performing in the right direction and sales are increasing dramatically overtime as mentioned above, and the competition exist between the companies and that what makes Dell unique. The increase in sales between 2001 and 2004 proves the success for the organization. Operating Environment Consumers view Dell as a quality brand at a good price. Some consumers find that Dell's competitors may be a little more expensive but still offer a quality brand the company plans to launch a sales campaign –"Dell on Ice" – that will offer 15% discounts on its Blade Centre system and on its x440 top-end Intel server. (Shankland).

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.

Market Apple has become a leader in the consumer electronics industry with the products they produce like computers, portable media players, smart phones, and software. As a competitor in an oligopoly market they have fewer businesses to take into consideration, which the competition is based on which product is evaluated. For example, the computer-based side of the company competes with companies like Microsoft and Hewlett Packard. When it comes to smart phones, their biggest competitors are Samsung and HTC. Luckily, for Apple, there is not a lot of new companies entering the market because their business is so technologically advanced which sets barriers to entry high.

Apple advertises Mac letting consumers know if they purchase a Mac they do not need an anti virus protection like PC owners as hackers haven’t been able to break Apple’s code. This could be a threat to Apple if a hacker does break the code and Mac’s start to crash. Mac doesn’t feel the “threat of new entrants” (Kotler & Keller, p.155) as they have innovated the computer, targeting consumers who want the latest in computer technology. Apple does what others don’t do, they sell their computers from either their own store or from a licensed retailer who has an Apple representative available to answer any consumer questions. Raquel, I enjoyed your write –up on Mac vs .Industry.

Dell, as a small start-up, could not build this infrastructure. Instead, they developed a model where they developed relationships with organisations that could provide these components, allowing Dell to focus on selling and delivering computers. By selling directly to customers, initially through mail orders and later by using the internet, Dell avoided reseller mark-up. Dell also enabled customers to order customised computers, which Dell then assembled after receiving the order (Magretta, 1998, p.73-74). “Customers got exactly the computer they wanted and Dell saved money making the computers only when they were ordered” (Hill & Seggewiss, 2008).... ... middle of paper ... ... , accessed 31 Aug 2008.

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.

Going into 1998, Dell Computer had a 12 percent share of the PC market in the United States, trailing only Compaq Computer and IBM, which held first and second place in the market, respectively. Worldwide, Dell Computer had nearly a 6 percent market share (see Exhibit 1). And the company was gaining market share quickly in all of the world's markets. The company's fastest growing market for the past several quarters was Europe. Even though Asia's economic woes in the first quarter of 1998 resulted in a slight decline in Asian sales of PCs, Dell's sales in Asia rose 35 percent.

Consumers account for 70 percent of our economy and if they have more buying power it will mean good news for the shareholders. The unemployment rate has also dropped to 6.7 percent, this is a major figure because it clearly shows how many people are not having money to spend, especially when a company like Sony relies on selling expensive TV’s and home entertainment devices. As the economy is slowly getting better so is our technology. Technology is what keeps business afloat for Sony, without trying to make any advances they will go out of business rather quickly. Last year Sony launched the PlayStation 4, it was known as the biggest Console launches of all time selling over 1 million units in 24 hours (Clemmer).

Below I discuss a few reasons why Qualcomm should return respectable gains in near term. Continuously growing revenues As illustrated in the chart below, Qualcomm has been continuously growing its revenues over the last five year, even though its quarterly earnings have languished in $1-$2 billion range since late 2010. Nevertheless, it still fares better than some of its industry peers, those barely reporting any earnings at all. In the fiscal-first quarter of 2014, the company reported record revenues of $6.62 billion, up 10% from the same period a year ago. The growth was mainly attributed to stronger-than-expected device sales and Mobile Station Modem (MSM) chip shipments during the quarter.