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Transcript of Dell Inc
Dell designs, develops, manufactures markets and sells a vast range of products that are in most cases customized to the individual customers needs and wants due to its infamous “built to order” model.
Built To Order Model
It is argued that much of Dell’s success is due to its built to order model
This is a production approach where products are not built until a confirmed order is received
This model allows Dell to deal directly with its customers, finding out exactly what they need and want, ensuring that their expectations are always met and that they are not disappointed.
Highly personalized service: every product has an end user’s name on it before it leaves the factory, this leads to better technical support if a problem arises, enhancing customer satisfaction
By the late 2000’s, this approach of manufacturing was no longer as efficient or competitive with high volume Asian contact manufacturers as PCs became a low cost commodity
However even though Dell now outsources most of its components. Pre-assembly and logistics, it has continued to develop its core competency in final assembly and its ability to manage the overall supply chain
Dell markets specific brand names to different market segments:
Corporate Business Class
Markets this brand through advertising emphasizing Long Life Cycles, serviceability and reliability
Examples of these brands are
To name but a few!
Home Office/Consumer Class:
Represents value, performance and reliability
Examples of these are:
This class moves outside the market for PCs and expands Dells product range to include:
Acquisitions in recent years have allowed Dell to offer complete solutions for enterprise customers compared to their original portfolio of computers only
-USB Key drives
• It is important to note that an area which differentiates Dells products from that of its competitors is the service they provide
• They offer technical support on the component type and level of protection purchased
1. Basic protection – offered on all models
2. Dell ProSupport, 24/7 support, 365 days a year for customers who choose thje highest level of support for their hardware assets. This demonstrates the RELIABILITY offered by Dell.
This is a feature which makes Dell's products stand out from its competitors.
Dell Product Differentiation
Recent Product Development
• Dell finally is making a serious entry into the mobile device market
• It launched its tablets into the market earlier this month – emphasizing its efforts in making long term commitments to the market
• Once again they use their service to differentiate themselves from their competitors – they are offering a POCKET Cloud service to enable its tablets to share documents and data with a wide range of other devices.
Dell XPS 10 Tablet
The amount charged
It is the sum of all the values that customers exchange for the benefits of having or using the good or service.
What is Pricing?
Low Cost - Dell operates a low-cost strategy which enables the company to pass savings onto its customers.
Inventory – Dell’s inventory is always kept to a minimum, holding just enough stock that is needed. In fact no more than 4 hours’ worth of parts inventory is held at any one time.
Manufacturing – only begins after an order comes in. Their practices ensure there is no wastage or excess stock left over.
Pricing At Dell
Compare to Competitors
Dell thrives on the basis of low price and a good value strategy
Skip the middle man
‘Direct only’ business whereas competitors such as HP continue to sell through retail outlets
Savings of up to €100
Market Failings & Future Focus
Basis for Dell's Competitive Advantage has been:
Unique relationship with suppliers
Customer/Manufacturer direct link
Dell’s future strategy will encompass:
i) New sophisticated products
ii) Target international markets
Michael Dell wants to
push a strategy
• De-emphasize the end- user computing (EUC)
• Create a transition to a model reliant on higher margin services to enterprises.
-the ads were “very effective. We were able to increase customer awareness about value."
-“communicative and forceful, not soft and fuzzy”.
in leading computer publications
In 1998, Dell debuted a
worldwide TV campaign
Dell unveiling the XPS at Armani/Casa in New York’s Soho on Dec. 6 2007
2. Target Markets
• Business Professionals
3. Tweens Promotional Strategy
Online pop-ups and advertisements
4. Students & Gamers Promotional Strategy
Promotional offers on accessories
Advertisements on popular websites
Loading screens for online games
Dell's XPS-branded machines had dedicated gaming areas operated by Gamerbase in HMV's London Trocadero store
5. Business Professionals Promotional Strategy
Targeted during commute
6. Non-Techs Promotional Strategy
Tv-shows, movies, sports, news, etc.
7. Corporate Responsibility
8. The Brand
Ranked 49Th in the Best Global Brands 2012
Brand equity of $7,591,000
Dell’s brand strategy is 100% customer-centric
Brand standards to clearing guide their identity
“World’s most secure laptops”
US National Advertising Division (NAD) evaluated the claim
Reported that Dell did not have enough evidence to support it
- One of the largest PC companies in the world today.
- Founded by Michael Dell on November 4, 1984 in Austin, Texas.
- In 1992 - youngest CEO to earn a rank in the Fortune 500.
- Company concept: to sell computer systems directly to customers online and through catalogs.
- Best possible customer experience.
- Result: a sustained, powerful and loyal Brand.
TOPICS OF DISCUSSION
• Place/ Methods of distribution
• Market Focus and failings