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Case: Dell computers

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by

Samn Hoang

on 15 June 2014

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Transcript of Case: Dell computers

Case: Dell computers
Members:
Nguyen Viet Ai Nhi
Nguyen Le Thuy Mi
Vo Duy An
Nguyen Ngoc Phuong Thao
Hoang My Vy Hang
Review the chapter
Products are groups of attributes

Attributes are of 3 types:

Features
Functions
Benefits

Summarize the case
Market size grew rapidly
4 major competitors
2 important attributes
Position Map
The relative position of the Executive
Concentrated mostly on attribute 1

Aimed at the segment of customers who preferred high-performance PCs


Dell’s major competitors on 2 key attributes
Attribute (Performance): (Lenovo).


Attribute (Flexibility):
Competitor(s) Dell should be the most concerned about
There are two main segments

Segment 1: Customers who prefer attribute 1

Segment 2: Customers who prefer attribute 2

IBM was a remarkable competitor who gained considerable market shares.

HP was the one who could exploit this segment of customers who prefers highly flexible PCs.
Conclusion
Dell should
determine
in which
attribute
should be
invested properly
and
efficiently
to
consolidate
its
position
compared with the other
competitors
.
Additional information about the competitors/marketplace
Dell was not at its best in the battle of positions with all of its competitors on both attributes.
Dell is not well-positioned on both attributes as its position is still
half-baked
and
insufficient
.
The trend of PCs market at this point

The number and size of customer benefit segments in the marketplace.

Is there

A new segment which is a combination of the two attributes?

A brand-new emerging competitor who was investing in the both attributes or a completely new attributes?
Segment
Segment
How might a seemingly “weaker” later competitor make a dent in Dell’s market share?
How might a seemingly “weaker” later competitor make a dent in Dell’s market share?
This could be a competitor...
Who was not very strong in both attributes 1 and 2

Who was exploiting the segment 3 (combination of the two attributes)

Who was investing in a new attribute which could be overlooked by Dell (design or aesthetics)

Prediction
An underestimated competitor who could have combined the two attributes and decided to aim at segment 3 which might be overlooked by Dell.

Low market shares but impressive growth rate. Invested in new attribute (design and innovation).
Thank You for listening
Full transcript