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ePGP-04C-044 Karan Sangar, Senior Business Advisor, Dell India Pvt Ltd
Our goal:
During this project, we will go through the Value Dell creates for the customer. We are all well familiar with Dell direct 2 customer approach enabling no middleman business model and creating a value for the customer through cost leadership achieved during this process. In recent past, Dells competitors has pushed them to look into not just direct but other well established models in the industry. HP has achieved substantial lead in overall PC sales due to long term relationships with LR (large retailers). Lenovo has built efficient distribution centers, low cost shipping methods & low cost structures especially in the consumer segment enabling them cost advantage. We will explore why and how dell could take advantage of the opportunities created from inside to mitigate risk from competitors, build relationship with LR & MR (medium retailers) and ensure smooth supply chain through less complexity that can be converted to value for the customer. We will look at understanding & creating value in direct & reseller channels by: -
Target Market segmentation through in house modeling capabilities & effective positioning & customer value propositions Products rationalization through complexity reduction Monitoring & assessing customer value by benchmarking against competition through effective product competitive analysis Working with Suppliers and across functions to enable benefit achieved through complexity reduction
IDC began tracking the PC market quarterly in 1994. The results also marked the fourth consecutive quarter of year-on-year shipment declines.
Dells Next best Competitors Globally (Lenovo) & in US (HP) Recent Performance:
HP remained the top vendor, but posted a substantial double-digit decline in shipments after an aggressive fourth quarter kept growth flat during the holidays. HP's worldwide shipments fell more than 23% year on year in 1Q13, with significant declines across all regions, as internal restructuring continued
to affect commercial sales. Although HP maintained its leadership position in the United States, the company saw U.S. shipments fall -22.9% from a year ago. Lenovo remained second in global shipments and nearly closed the gap with HP. Lenovo continued to outpace the market, notably expanding shipments with its attack strategy. In the United States, Lenovo outperformed the market with double digit year-on-year growth compared to the market's double-digit contraction. Shipments in Asia/Pacific declined, however, keeping Lenovo's overall growth flat.