Case Analysis Week 6

Dell Direct and Not-So-Direct

Case Summary:

Dell is the largest computer-systems company based on estimates of global market share. It is also the fastest growing of the major computer-systems companies competing in the business, education, government, and consumer markets. Dell's product line includes desktop computers, notebook computers, network servers, workstations, and storage products. Michael Dell founded the company based on the concept of bypassing retailers and selling personal computer systems directly to customers, thereby avoiding the delays and costs of an additional stage in the supply chain. Much of Dell's superior financial performance can be attributed to its successful implementation of this direct-sales model. The core elements of Dell's business model are its direct sales model, usually referred as "direct model", and the build-to-order strategy.

Key Marketing Issues

• Positioning/repositioning – Dell needs its brand to appeal to its correct target audience.

• Styling- presenting a new cpu that is aesthetically appealing to the focused market

• Design- creating a cpu that is not only stylish but with a design that can appeal to the mass of the market

• Competition- with HP, and Apple being huge rivals, Dell being able to capitalize on their direct channel could give them the competitive advantage among others

• Differentiation- differentiate the limited-edition products from the others

• Competitive Assessment – correctly evaluating the major competition to determine if a particular segment is worthy of targeting

• Market segmentation – Effective segmentation of marketing mix and efficiently targeting that particular market

• Build Brand Loyalty- Maintain an active presence. Increasing presence will lead to more people will find out about the business and attracting more consumers.

• Global branding- appealing to both the domestic and foreign markets

• Value creation – creation of the need for the product and to the target market and supplementing that need with benefits at a relatively good price.

Personal Case Analysis

I learned that the Dell company founded in 1984 by Michael Dell, has a very unique strategy for market coverage. They use direct selling strategy aiming to customers which is their top priority. Although they do focus on this selling strategy, their indirect channels have also been revamped to make them more successful