Dell Customer Value Proposition Analysis

This assignment examines Dell's customer value proposition in Malaysia, comparing it to competitor Acer. It analyzes customer perceptions, supply chain, and showroom experiences. The research delves into how Dell utilizes traditional and new marketing strategies to meet customer needs and achieve business success. Additionally, it evaluates the effectiveness of Dell's value-based market strategies.

Marketing and Customer Values
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Table of Contents
INTRODUCTION................................................................................................................................4
1 Customer perceived values model for customer a company........................................................4
2 Evaluation of existing value proposition and comparison of competitors of value proposition: 5
3. Evaluating dells existing value proposition and and comparison to its Competitor Acer:..........7
5. Plan to implement external and internal:.....................................................................................9
Conclusion..........................................................................................................................................10
References...........................................................................................................................................11
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INTRODUCTION
We are living in the world which is most stable and dynamic so. So this world is all about
peoples beliefs and their values. To run any business and to take any decisions we have to take
considerations of customer values and their satisfactions (Balakrishnan and Parekh, 2014). So world
is not only changing but pace of living standard is also changing so to satisfy their need first their
values need to be understand. Customer needs, wants expectation are changing more rapidly.
Customers are increasing more demand in term of quality and quantity of service or product. So in
this assignment customer values, their need demand, new marketing strategies and traditional verses
new marketing are explained. Furthermore Dell company Malaysia and its competitor Acer
company market registries and value based market strategies are analysed. Moreover Strategic
marketing choice, value proposition of company and competitor is analysed.
1 Customer perceived values model for customer a company
Customer perceived value is concept of branding and marketing that defined the product
and it success totally based on on customer belief whether it is able to satisfied their necessity or
not. That phase stats that when company develop a product and brand and market its product,
customer ultimately determine and interpret it how to react on the marketing message. Companies
spend significant time and money to research the market to know the customer how they sense and
feel. Here the industry selected is IT industry and two companies are Dell and its competitors is
Acer which manufactures Laptop, computer and its components.
Customers perceived value of a product is customer evaluation technique which explain all
benefits gained against all cost of product or services (Butler, 2013). Zeithami defines customer
value like customer all around assessment utility of product depends on perception of what is
accepted and what is delivered. . Though it differ from consumer to consumer as few group only
need amount as some people prefer quality on particular goods. The kind of things delivered to
customer also differs as some consumer concern with price of product while some concern with
time and effort they are putting in buying product.
Target market and segment are youth people who buys laptop or computers for eductaional
purpose or working professional (Chaffey and Ellis-Chadwick, 2012)l. So here target market is
Malaysia and age group fall is all age group from children to old aged their service is to provide
latest technology and advanced laptops and computers in affordable price to all age group as per
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their needs. So in simple words customer perceived values is customer perceived benefits and
customer sacrifice. In benefits attribute of core products and services, sensed quantity and amount
are included. loosing or sacrifice cost for customer included like time in buying, travelling,
remaking, defect piece of work etc (Crouch and Housden, 2012). Perceived benefits associated with
perceived values are:
Price: Customer can get great saving offers and discount while purchasing laptop in showrooms or
stores from dell or Acer.
Quality: Both brands quality and performance of laptop varies in price segment and purpose, infract
cheap laptop is coming with good processors.
Status: Being Dell as top brand in IT and solution and manufacturing computer and processors it is
US top brand after Microsoft and Apple. So if we talk about Acer it is Taiwan multinational brand
manufactures laptop, computers, and some mobile phone chip. So these companies have very high
status in market so customer are very aware of goodwill and prestige of company.
Convenience: They have got many facilities for its customer like service centres and retails outlet
and 24*7 online customer service for providing online solutions and queries related to warranties.
Sacrifice related to perceived values:
Wealth:
If consumer find product cost higher then expected then they have to decide if product is worth
according to price or value for money.
Period of time: Period of time or time is total time that customer gives or consume on
discovering appropriate product and purchase the commodity or product. Like searching different
outlet or store and comparing price and quality or product and then visiting stores and purchasing
products.
Activity: Activity includes physical energy given by consumer to find the product that
match their need or want and find stores so in finding stores is effort full activities in shopping .
Psychological Price: Searching best laptops and finding all specification in budgeted product
is nerve-racking task and frustrating experience sense of risk involved in execution of commodity
that can perform activity of value for money product in particular price ranged. Psychic cost may be
if product harm buyer like battery blast or overheating laptop etc.
2 Evaluation of existing value proposition and comparison of competitors of value proposition:
Value proposition is an analysis research or argument of services and products offered by
company to its consumer in exchange or place of payment (Das and Chowdhury, 2012). This
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argument make potential customer to convince that one specific commodity will add-on more value
offer more service then another similar product. Companies uses these type of statement to target
customer who will benefit companies most from using the product and this will help in economic or
competitive advantage.
There are various model of value proposition which are as follows:
Value Constructor theory: Value suggestion developed in an organisation coming to build in
customer values, service and experience (Inn, 2016). It is so simple if company provide value
proposition it can increase profitability and top quality customer beliefs or values. Value proposition
constructor theory or model stats few steps that analyse:
 Marketplace: Analyse or identify the marketplace segment or particular client or target those
individual or customer for whom the result has potentiality to present economic value and
profitability.
 Evaluate and analyse the experience or values that client take from the organisation from on
going action or activity. Companies have to segment good performing, bad or neutral
performing experience. The effect of value or worth proposition rely on collecting new
customer perspective and worker opinion.
 Explain offer and mix capabilities of leveraging experience of value company is capable to
pushing the marketplace.
 Alternatives and different in next level or characteristic to examine the kind of alternate
option is marketplace having for goods or services.
Model based on focusing enterprise value: Making a value focused enterprises require a primal and
important refocusing on the way that things are organised and and handled(Jobber and Ellis-
Chadwick, 2012). All these are at core of organisation's strategies and execution. So customer need
have will to buy for sales effort that a value will create and provide extra performance to external of
the commodity. By using this theory or model companies are capable to make plan based on kinds
of values to be delivered
 value centred strategies Attentive: The attractive organisation where test its feasibility
related to future need and demand and at what principal the product will be delivered.
 value proposition: All types of value proposition linked in to all marketplace, worthiness or
value, offering and benefits, experiences, Alternate and differentiation and evidence and
whether it is related to strategies approach.
 Management based on Value generation: The way of managing and executing all its
managerial activities and strategies followed are co related and reflect on maximum value
delivery.
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Value Cycle: It stated the way of studying value proposition is to study entire life cycle and value of
of product. Elements that put in values of product are created in 5 stage of value of life cycle of the
product. These phase are
 Value creative activity: Traditional approach of process of value creation does not allow the
customer to participate in sensing the product or product value. Research and development
and marketing are responsible for adding worthiness or value to product at this phase.
 Value appropriation: Adding value to product in this phase can be done by developing,
designing, and researching buying experience of customer. This can be executed by firstly
tracking the transaction type and secondly fulfilment the requirement of customer
 Value Consuming phase: At that stage customer fell worthiness or value and purchase and
consume the product by paying its appropriate value
 Value restoration: This phase is product value expired, again product value can be created
and again add values to goods and services.
 value transfer: It is last stage of value life of product when customer no long gain value.
Worthiness abduction can be seen in this phase
3. Evaluating dells existing value proposition and and comparison to its Competitor Acer:
Value proposition of Dell is simple. Low cost delivery by Dell customised computers door-
to-door step delivery. Dell is able to keep its price low as its ordering system is just and in time
type of ordering system which minimise stocks and essential to calculated need advise (Liu, Chen
and Balachander, 2016). For Acers value proposition is to provide mobile and Laptops at best price
level to all hands whether is students and or business or self service or in government sectors. Acer
also provide microprocessor chips and an computer components.
Defining a USP means examining the business in details hence it can be start with brainstorming
session. Value proposition provide the comparison between the competitors. It provide various
comparison like ease of using within brand or same product lien, Flexibility of customer need,
provide full picture of constituent relationship, Member tracking, Website content management,
Online payment process, event management, price among different products and etc. and compares
with different product and different brands. It can also make compression of score, customer
satisfaction, Price Price model overview and quick links.
So following values are covered in Value proposition comparison
Market mission and Values:
Mission: To create value for customer to earn their lifetime loyalty. Firstly company need to do is to
measure few things like for ex. analysis of its competitor, Self judgement, analysing the situation.
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There is need of proper judgement or evaluation and once the evaluating is completed then need to
setting objective is made. The objective needs to be in proper line up with work line and in time line
to manufacture products. (Lusch and Vargo, 2014). Both short and long term production process
needed to set. Companies mission and vision are clear.
Values: their values are Customer utmost, Winning together, Innovation, result and integrity,
optimum use of resources from all macro and micro economic environment. Vision is to provide
structurally an functionality effective computer to visually impaired individual and globally(Miller,
2012). Future oriented is goal and vision of company.
Customer business strategy:
In order to raise needed fund or cash Dell needs to find a way of operation without
inventories. The main aim of this phase or model is to match up demand and supply in which all
managers of different department within company decide the companies productivity. So while
collecting data from various source the dell companies value proposition is good as compared to
acer in Malaysia.
Competitive position: Competitive advantages can be analysed by its recent performance
where Dell was at 165th rank in fortune 500 list of worlds largest MNC corporation in the world.
From time of its corporation is has continuously grown and became onle of the largest multinational
enterprises. being a market leader it has slipped from top to third place after HP and Lenovo(Pride
and Ferrell, 2016). Dells competitive advantages is focus on direct customer and this made dell one
of the leader supplier of the Direct computing and technological system. It focuses on best solution,
not just on best technology. Its innovation approach is listen, solve and impact.
4 Analysis of current value proposition and new value proposition that meet the criteria of company
The comparison proposition identifies that Dell fulfils the category related to consumer
perceived beliefs and values. Perhaps this is not going to be sufficient proposition, important
criticism of both value proposition phase. Perhaps Dell provide huge range of products and
customer values through its effort, Acer deliver selected strong values by giving few efforts . So
value proposition can be evaluated by mission model and strategic model. In mission model
Mission is to be Malaysia's best leader in providing quality service and laptops at affordable price
while upholding the ethical values to environmental and community.
 Organisational philosophies: What do they want, They want to be to Malaysian market
leader in IT industry
 Organisational faith: People behave in way according to company: to carry on the moral
responsibility toward community and environment
 Domain Of product market: Which place do they going to function. In Malaysia and
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neighbour countries like Singapore, Indonesia etc.
 Some Complex factor for success: Company have to decide what they want like, good in
serving affordable price and services of technology and computers at affordable price to
within reach of everybody.
So following changes have been suggested in model.
Value proposition can also be identifies by internal and external factor or SWOT analysis of
Both Dell and Acer companies like Threat:
5. Plan to implement external and internal:
Relationship between internal and external Marketing: Technological changes impacts the
development of DELL. In present era the competition has advanced at great extent so management
need to ensure about global values. Opportunity: It has been noticed that Dell is having better
opportunities in the market which allows to gain better potential growth in order to meet objectives,
New products can be development with an assistance of industrial standards (Rao and Prabhala,
2014). Weakness: Single source, new product market and reliance on corporate clients. Strength can
be Research and Development team, capability of potential use of resources and large production of
Microprocessor.
Internal marketing Programme:
 Product defines what is strategy regarding product design, branding, labelling and packaging
etc.
 Price- What will staff have to give and at how much price product need to be salled.
 Communication: what information channels will company use like straight line
communication, vertical or horizontal, conferencing and calling.
 Distribution Channels: How can company influence change [Focus key company group,
alliance and partners]
External Marketing Programme:
 Product- What product will your strategy include
 Price- How much will they cost
 Communication: what will be promoted
 Distribution: how will they supply [Focuses on key customer segment and niches]
Role New strategies can be developed with an modifications in job roles
Sales Assistant Ethical aspects need to be referred effectively in order to have better
promotion of services. Along with this, proper background in formation
need to be shared with members so that goals and objectives can be
accomplished.
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Marketing team Better values need to be promoted with an assistance of marketing
aspects. Along with this, the television, websites and other mediums need
to be covered for sustainable development.
Store Manager It is significant to have promotion of motivation among members so that
goals and objectives can be meet. Better strategies can be employed in
order to have better reflection of values.
.
All Proper involvement of members is significant because it allows to meet
the objectives and lead business to impressive level of success
CONCLUSION
This research has positively recognised the purchaser perception, Supply and showrooms,
appraised how DELL presently encounter the purchaser values. It also indicates information about
ways adopted by company to its value proposal can be transformed related to insure future success.
Furthermore it has concluded that Dell has better customer value proposition an business strategies
as compared to Acer Laptops and computer components and devices. So in this assignment
customer values, their need demand, new marketing strategies and traditional verses new marketing
are explained. Furthermore Dell company Malaysia and its competitor Acer company market
registries and value based market strategies are analysed.
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REFERENCES
Books and Journals
Balakrishnan, R. and Parekh, R., 2014. Learning to predict subject-line opens for large-scale email
marketing. In Big Data (Big Data), 2014 IEEE International Conference on. (pp. 579-584).
IEEE.
Butler, S., 2013. How Burberry Is Doing Digital Marketing Differently. The Guardian.
Chaffey, D. and Ellis-Chadwick, F., 2012. Digital marketing. Pearson Higher Ed.
Crouch, S. and Housden, M., 2012. Marketing research for managers. Routledge.
Das, K. and Chowdhury, A. H., 2012. Designing a reverse logistics network for optimal collection,
recovery and quality-based product-mix planning. International Journal of Production
Economics, 135(1). pp.209-221.
Inn, O.G.P., 2016. Digital marketing. Omni.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing(No. 7th). McGraw-
Hill Higher Education.
Liu, Y., Chen, H. and Balachander, S., 2016. The Effects of a Product's Aesthetic Design on
Demand and Marketing Mix Effectiveness: The Role of Segment Prototypicality and Brand
Consistency. Journal of Marketing.
Lusch, R. F. and Vargo, S. L., 2014. The service-dominant logic of marketing: Dialog, debate, and
directions. Routledge.
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