Introduction and Perceptual Mapping on Dell Computer

976 Words Aug 26th, 2012 4 Pages
Do you think Dell is well positioned with respect to its competitors?

Not yet because Dell still left behind HP and IBM. People who want flexibility in their PCs tend to buy HP brand. For instance, HP Power Distribution Rack which controls three-phase power distribution across a row of server racks brings enhanced flexibility to IT personnel who are seeking to place power where it is needed, but without over provisioning or otherwise wasting the precious resource.

In other hand people who want high performance, they tend to buy IBM brand. For instance, IBM System x server (formerly IBM eServer™ xSeries®) brought up database application, all of the performance number were beyond expectation.

Actually, Compaq is well-positioned
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A small drop in the Japanese IT market can offset their gains very quickly.
About the market place: The core of the PC industry has already evolved from standardization to commoditization. As a consequence of commoditization other low brand – low cost assemblers will enter the PC market and the challenge for Dell will be to remain a major low-cost provider for the majority of the market. Some of the advantages of the current business model will turn against Dell: 1. Dell can no longer benefit as much from falling prices as already cheap components suffice to build a suitable PC.
2. Furthermore, the required just-in-time procurement will make components more expensive then with bulk procurement.
3. It also creates relatively higher assembly costs due to complexity and the need to assemble near the end-user region, which is typically more expensive

How might seemingly “weaker” later competitor makes a dent in Dell’s market share, given by the time they enter, the executive will have been on the market for at least several months?
The weaker later competitor can be assumed as Lenovo and Acer.
The reasons are: 1. They have strong performance so they take a part of dell’s market share, which in the long tern pose a threat to Dell. 2. High rate of failures on Dell’s product so it might be displaced by others. 3. The competitor set

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