Marketing Mix Of Dell Essay

In serving its customers Dell has succeeded more than its rivals. It can be seen from the table 3 that ranks PC manufactures based on Consumer Report where Dell won the 1st rank place.

Having the low cost advantage Dell is able to expand the gap between cost and customer's willingness to pay. Therefore, they are able to satisfy their end-consumers, who are educated want product stability, high-end performance and low lifetime costs. They have served the US market and started to expand their market worldwide; in addition, they have

• Competition : Apple with propriety architecture had 20% market share, Compac enters in ’82, Dell in ’84,

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

Dell. Dell’s products—computers, servers and printers—are commodities. Dell tends not to develop the technologies underlying these products. Instead, it purchases the components from firms that develop the technologies (semiconductors and computer software). Dell’s direct-to-customer marketing strategy is not unique, but the extent to which Dell performs this strategy better than anyone else in the industry gives it a competitive advantage. Its size, purchasing power, quality control, and efficiency permit it to operate as a low-cost provider.

Dell Company has a successful business strategy. As it is following cost leadership strategy. Its success story is hidden in cost proposition, delivery, and unique customization. In response to the high performance and better chances for growth Dell is applying two way strategy parallel to one another.

The most important questions facing Dell was – how to grow and at what cost. The purpose of this research is to analyze Dell’s core strategy, its working capital management, and come up with a plan to finance its future growth by evaluating its financial statements.

A major strength that limit threat is Dells ability to provide a cheap but highly customized product. Through strategic partnerships with suppliers and using a build-to-order model Dell has been able to keep up a barrier to new entrants into the industry.

The companies offer numerous services with their products, only one has effectively organized these services making it easier for consumers to identify what they need. Dell has not only successfully organized its services into seven suites; it has also made it applicable to the company’s different market segments.

Although Dell is an extremely successful company, there are areas of improvement and enhancement that should be considered. After a thorough analysis of Dell¡¯s IT tools, business model, IT infrastructure and competitive advantage, we have developed seven key suggestions. By implementing these recommendations, Dell can keep its high ranking in the competitive computer industry by increasing customer satisfaction, competitive advantage and superior value chain, without changing its principal operations to achieve these goals.

How Dell does it McGraw Hill Professional, 2006 In its March, 2005 issue, "Fortune" magazine dubbed Dell Inc., the "Most Admired Company in the U.S." Such high praise is nothing new for Dell.

Dell's business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use.

Thus, the centerpiece of Dell Inc. 's current marketing strategy is direct marketing to the enduser.

Competitors- This industry has very high competition. Each company is trying to provide the best product they can in their own way. Dell has focused on using the build-to-order model to provide customers with custom computers at relatively low prices.

Dell has also employed two major strategies, customization options for clients who demand cutting edge technology along with a build-to-order option. As a result this has drastically increased its value to customers and also allows Dell to carry fewer inventories which could in turn result in obsolesce. In other words the overproduction is greatly reduced as the production is essentially in line with the demand and the market.