Str 581 - Dell Marketing Case

Running head: WEEK 4 INDIVIDUAL PAPER 1

Week 4 Individual Paper

STR/581

MJ Meade

July 31, 2011

Professor Deborah Bowen

WEEK 4 INDIVIDUAL PAPER 2

Dell’s recipe to success is based on its belief of made to order PC configurations to meet the exclusive requests of the consumers and its competent circulation system based on build-to-order manufacturing. The small price of their products, their straightforward customer relationships, and effective mixture played a principal act in becoming the major retailer of PCs in the United States. Dell’s method of conducting business is that they contract with the manufacturers and customers and maneuver the products and services at clear-cut market segments. Dell’s image is nonstop precision therefore creating it difficult for competitors to replicate.

Dell uses operational excellence, which is a precise strategic tactic to the creation and conveyance of products and services. The reasoning of Dell employ this strategy is to guide its production in value and expediency.

Dell uses two strategies at the same time: it focuses on cost leadership and offers products of equal features alike its competitors at lower prices. Dell utilizes the just-in-time ordering system, short-term inventory, which is six days compared to 20-70 days for its major competitors and its operating costs, and are the lowest in the PC industry. Dell is persistent in cost cutting. Dell focusing on operational excellence has publicized to PC purchasers they do not have to forfeit superiority or high-tech technology to buy personal computers effortlessly and economically. Dell focuses on differentiation strategy as it provides consumer customizing the goods according to his or her requests.

Dell is the market share principal in PCs and notebooks in the United States and globally. Dell’s chief competitors are Compaq and HP. Dell is the leader in Windows NT workstations in

WEEK 4 INDIVIDUAL PAPER 3

the United States and global market, and the main competitors are IBM and Compaq. Dell plays a part mainly in the entry-level market and is the global market leader with its most important rival Compaq. Dell excelled in product leadership and Dell’s power continues because they react to issues as they become obvious. Speedy