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Vibhav Khandelwal

14 BSP 2205

History/Background of Dell
Dell computer was founded by Michael Dell. Dell traces
origins to 1984 when Michael dell created PCs limited.
The company changed its name to Dell computer
corporation in 1988 and began expanding globally as a
multi national company first in Ireland.
In 1992 Fortune magazine included Dell computer
corporation in its list of the worlds 500 largest companies.
Michael Dell is the youngest CEO of the fortune 500 ever.
Dell Inc. is now the 41st among the fortune 500 companies.

Mission statement
Customer satisfaction: Dell satisfies their customer by
providing their superior customer service.
Team satisfaction: Management and employees of Dell
inc. are committed to cooperating as a team for the
purpose of profitability and gratification of a job well
done.
Community Satisfaction: Dell provides jobs in a clean,
safe, environmentally sound atmosphere and be an
active participant in community affairs.

Dell SWOT Analysis


Strengths

Weaknesses

1.Brand name valued at $7.5 billion


2.Product customization
3.Environmental record
4.Competency in mergers and acquisitions
5.Direct selling business model

1.Commodity (computer hardware) products


2.Poor customer services
3.Low investments in R&D
4.Weak patents portfolio
5.Too few retail locations
6.Low differentiation

Opportunities

Threats

1.Expand services and enterprise solutions


businesses
2.Obtain more patents through acquisitions
3.Strengthen their presence in emerging
markets
4.Tablet market growth

1.Growing demand for smartphones and


tablets
2.Profit margin decline on hardware products
3.Slowing growth rate of the laptops market
4.Intense competition

Strength
Dell has a very strong brand reputation for quality products.
Its brand is valued at $ 7.5 billion.
Dell allows its customers to customize their laptops. Such
services were not originally found within any other major
computer retailer (and currently only Sony and Toshiba allow
that), but add great value to the customers and provides
Dell with a competitive advantage.
Over the last five years Dell has spent $13 billion for
successful mergers and acquisitions, which brought patents,
new capabilities, assets and skills to the business.
Dell doesnt sell its products through big-box retail outlets
but instead sells directly to consumers and enterprises,
keeping their already thin profit margin to themselves.

Weakness
The company has such a huge range of products and
components from many suppliers from different countries,
that there is occasional products recall that can cause dell
some embarrassment.
Dell is a computer maker, not a computer manufacturer.
It outsource for big player group of hi tech component
manufacturers and this allows dell to focus on marketing,
logistics and other business operation.
The company spends a much lower percentage of its income
on r&d that its main competitors and thus, missed an
opportunity to develop strong products for smart phones and
tablet markets as well as to learn new skill and capabilities.

Opportunities
Dell provides various services (cloud, security and
infrastructure) and enterprise solutions (servers, networking
and storage), which are the most profitable Dells business at
the moment. Dell business should focus on growing these
divisions as they promise better growth opportunities and
higher profit margin
Dell hasnt properly established its R&D facilities to discover
new technologies and patents, so the only feasible way to
obtain patents and technologies is to acquire other companies.
Strengthen their presence in emerging markets
Tablet market is expected to grow in double digits for the next
few years and the company has a great opportunity to release
new tablet models and benefit from the market growth.

Threats

With a lower price and strongly improved capabilities, consumers


often choose tablets and smart phones over laptops. The growing
demand for the previous devices takes a share out of laptops, the
main stream of revenue for Dell.
Dells main income is from selling hardware products, which prices
will increase in the future due to rising raw material prices. This will
add to costs for Dell and will further cut the profit margin.
Growth rate of the computer market is slowing down and in the near
future the markets will become saturated. It will prove hard for Dell to
compete in such market or at least fight back the lost market share.
The company faces intense competition in all its business segments.
It competes in terms of price, quality, brand, technology, reputation,
distribution and range of products, with Acer, Apple, HP, IBM, Lenovo
and Toshiba.

Products Of Dell Inc.

Products
Desktops
Servers
Notebooks
Peripherals
Printers
Televisions
Scanners
Pen Drives
Smart Phones

Dell As An Multi-National Company


Dell is an American multi national technology based company
centered in Round rock, Texas, United states.
Dell has a big market share in China and India.
In 2006, Dell cut its price in an effort to maintain its 19.2%
market share
Current market share of dell is 15% worldwide
Dell International started in India about seven or eight years back
by opening a customer contact center at Bangalore in 2001. In
2003, the second contact center was opened at Hyderabad.
After the U.S., Dell India is the second biggest centre with
13,000 employees.
About 90% of dell computers are manufactured in China.

Product Mix of Dell (4ps)


Dell is one of the leading Consumer
durables brand. The marketing mix of dell
talks about the way in which dell has
improvised gain a competitive position.
Product
Place
Price
Promotion

Product

Dell believes that, Marketing is not about providing


products or services it is essentially about providing
changing benefits to the changing needs and
demands of the customer.
Dell provides a wide variety of both business class
and home/consumer class products and services.
Dell designs, develops, manufactures, markets,
sells, and supports a wide range of products that in
many cases are customized to individual customer
requirements.
A few examples of products for individual and
professional customers are Dell Precision
workstations, Opti Plex desktops, Dimension
desktops, and Inspiron and Latitude notebooks.

Price

Pricing strategies usually change as the product


passes through its life cycle, because there is
constrains on the companys freedom to price a
product at different stage.
The main objective of Dell is to produce the low
price and profitable PC for the customers.
For the above reason Dells product pricing reflects
the affordability of the local consumers.
Because Dell products are so customizable, the
price is largely dependent on the options and
services added to the product.
Dell is undercutting competitors in price to rapidly
gain market share.

Place

Place is also known as channel, distribution, or


intermediary. It is the mechanism through which goods
and/or services are moved from the manufacturer /
service provider to the user or consumer.
Dell has been able to affect the location strategy aspect
of its marketing campaign.
As Dells products are always available at the nearest
dealers customers develop trust for the local Dell
thereby achieving the objective of gaining their trust in
Dell products and services, and forming a large and
diversified consumer base.

Promotion
Another one of the 4 Ps is promotion. This includes
all the tools available to the marketer for marketing
communication.
Dell in the past have not concentrated on extensive
marketing campaigns but these revolutionaries in
1999 when Dell changed its tactics by engaging in
extensive marketing campaigns.
Dell markets its products primarily by advertising on
television and the Internet, advertising in a variety of
print media, and mailing or emailing a broad range of
direct marketing publications, such as promotional
materials, catalogs, and customer newsletters.
Dell has recently started promoting its products
through retailers like Best Buy, Staples, Wal-Mart,
GOME, and Carrefour.

Growth strategy
Process streamlining: Dell built a significant advantage in
the marketplace by focusing on innovations in the supply
chain. Dell focused on enabling "just in time" delivery of
parts and components.
Product diversification: Dell has used a diversification
strategy to enable business growth.
Market penetration: Dell has achieved market
penetration internationally with various segmentation
strategies.

Digital Campaign
Dell targets youth with 'Masti ka pitaara' Inspiron for it
laptop series
Source use common people youth with creative ideas
Promoted through TV adds and YouTube Adds.

Online tools use by dell


for engagement
The major online tools use by dell is Social Media Market
Dell is very interactive brand on twitter which have a strong
interactive platform to customer which can connect directly
with dell
Dell India have 5,14,000 followers in twitter
Which help dell to promoted and launch (new)
its products through twitter
Twitter presents help dell as a brand
Face book help dell to inform about new product specification
and get feedback about it.
Dell use SSM as a test marketing for feedback/Reviews of
new launch

Future Outlook
Dell future outlook is difficulties to predict that the future of dell won't
we so good as per my point of view as dell never invest in R&D so in
long run it will difficult to survive in market is will be not easy for dell
As dell strength is outsource patent which help dell to be a free biz
which can any time modify or change its trend as per market taste and
preference
Dell as a company should come up with new product which can be
handy like tab, cell phone etc
Dell use SSM very smartly as they have dell support page in that
costumer can solve issue with in a minute
Dell service no doubt is excellent onsite which was first stared by dell
My view on dell is great company which have great future if they plan
out with new product

Reference
http://www.marketing91.com/markehttp://wallblog.co.uk/2
011/12/05/five-standout-digital-campaigns-that-you-maynot-have-heard-about-infographic/ting-mix-dell/
http://www.zdnet.com/article/dells-directors-forecast-a-gri
m-future-for-the-pc-industry/
http://www.campaignindia.in/Video/315123,dell-targets-yo
uth-with-masti-ka-pitaara-inspiron.aspx
http://www.slideshare.net/?ss
https://twitter.com/Dell?ref_src=twsrc%5Egoogle%7
Ctwcamp%5Eserp%7Ctwgr%5Eauthor

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