Dell Marketing Report

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This report provides a comprehensive analysis of Dell's marketing strategy. It begins with a company profile, outlining Dell's history, vision, and mission. A 5C's analysis is then presented, followed by a detailed SWOT analysis identifying Dell's strengths, weaknesses, opportunities, and threats. The report examines Dell's competitors, customers (categorized into relationship and transactional customers), and the contextual factors influencing its operations through a PESTLE analysis. Market research is discussed, exploring customer wants, competitive threats, contextual changes, and the roles of collaborators. The report concludes by proposing a market strategy for Dell, including target market identification, value proposition, positioning, and a detailed market mix (product, price, place, promotion, people, process, physical evidence).
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Running head: DELL
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MARKETING
DELL
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DELL
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Table of Contents
Company profile:.........................................................................................................................................1
5 C’s.............................................................................................................................................................2
Company SWOT analysis.........................................................................................................................2
Competitor..............................................................................................................................................4
Customers...............................................................................................................................................5
Context: PESTLE.......................................................................................................................................6
Market research:.........................................................................................................................................7
What customers want?...........................................................................................................................7
Which competitors pose threat?.............................................................................................................7
How context is changing?........................................................................................................................7
What are the roles of collaborators?.......................................................................................................8
Market strategies:.......................................................................................................................................8
Target market:.........................................................................................................................................9
Value proposition:...................................................................................................................................9
Positioning:..............................................................................................................................................9
Developing market mix..............................................................................................................................10
References:................................................................................................................................................10
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Company profile:
Dell is the company that operates in the information and technology industry. The company is
headquartered at Texas, United States. Information and technology is the industry that is
observed to be the most innovative and developing industry. The industry is experiencing
immense amount of improvements from the last some years (us, 2017). Even the people are
getting attracted towards this industry so as to use the products and services they are providing.
Dell is one of the parts of this industry that has started its operation in the year of 1984. The
company stepped into the world of information technology with the launch of desktop. The
company has launched its first PC in the year 1986 and then it grew with immense improvements
in its products and services by launching new computers, laptops, servers, notebooks, peripheral
computer system, IT services, scanners, printers and other associated products (Forbes.com.,
2017).
The company’s vision suggests that the company wants to serve the market with the efficient
computer system which is structurally and functionally very fine. As far as the mission of the
company is concerned, it has been analysed that the company tries to use all the resources to the
optimum level in order to serve the customers with most efficient products along with great
customer support services.
5 C’s
Company SWOT analysis
STRENGTH:
Strong market position
Grwing pesence in India and China
Wide products range
WEAKNESS:
Product recall
Weak internal processes
OPPOTUNITIES:
mobility products
expansion of products
Acquisition
THREATS:S
Standradization
Competitors
SWOT analysis
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Strengths:
Market position: It has been analysed that the market position of the company is very strong. The
company has lost some its shares in HP but still manages to be on the list of top companies of the
industry. As far as the market share of the company is considered, the below figure suggests that
Dell in on second position in the industry. In terms of growth also, the company’s shares have
increased by approximately 2% (Bizjournals.com., 2017).
Wide product range: the company has wide product offerings such as desktop, laptops, servers,
software, printers, notebooks, storage devices and associated products. It has been analysed that
the company is serving the market with large number of products and that large number helps the
company to have a great brand image in the market.
Growth in India and China: It has been analysed that the company’s presence is growing in the
countries that are developing in nature. India and China are the market with great opportunities
and the company like dell is exploring those opportunities to grab the new and developing
market.
Weakness:
Weak internal process: It has been analysed that the company is suffering from the internal
control issues (NDTV Gadgets360.com., 2017). The US Securities and Exchange Commission in
US are auditing the internal financial and accounting practices of the company. It has been
identified that there are many errors in the internal functioning of the company has till now the
company is trying to get over those issues.
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Product recalls: product recall is the practice that affect ten company’s brand image. Dell has
found to be recalling its products again and again due to quality issues. The company has
recalled one of its products in 2006 (Kumar, 2017). That product was notebooks. In 2005 also,
the company has replaced some of the batteries of its products which suggests that the company
is not performing its functions with quality efforts.
Opportunities:
Demand for portable and mobile products: It has been analysed that in today’s market the
demand for mobile and portable products is increasing. The company should try to improve its
products in such a ways so that it becomes easy to handle and carry at the same time. The
company can also try its hand again into mobile phones. The company should try to renew its
products and come up in the mobile market (Company, 2017).
Expansion of product range: The popularity of fit bit watches is immense in the market. The
company should explore this opportunity by launching one of the watches and can also link it
with its mobile phones.
Acquisition: As discussed that the company already has great market position. So there is the
opportunity for the company to make acquisition on the other small companies to enlarge its
market share and customers base in the rural areas of the developing countries.
Threats:
Intense competition: The competition in the industry is very fierce. This is the biggest threat for
the company as the customers are not so much loyal to the brand. This may be because of the
homogeneity of the products in the industry (Holweg and Helo, 2014). The major competitors of
the company are Lenovo, HP, Toshiba, etc.
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Standardization: Even the non-branded companies are producing the products that are difficult to
be differentiated from the branded products. This is because of standardization of the quality and
the cheap prices.
Competitor:
As far as the competitors of the company are concerned, it has been analysed that the
competition in the industry is very strong. There are many companies who are entering the
market y launching their products related to computers (Qrunfleh and Tarafdar, 2013). In
addition to it, the homogeneity and introduction of unbranded products have also develops
competition issues. The major competitors of the company are Lenovo and Hewlett Packard. HP
is the major competitor from the tow. This is because it is ahead of Dell. Dell has to make some
of the strategies in order to reach up to the HP’s level. Sony was also in the competition but Sony
it has exited as it has made all its focus on the selling mobile phones.in terms of server and
software products, Microsoft is the biggest competitor. Microsoft is serving the market with
great products which is really hard to compete with (Niederwieser, et al. 2016).
Collaborators:
Collaborators involve distributors, suppliers and partners of the company that are associated and
linked to the company for supporting its functions. As far as the suppliers of Dell is concerned, it
has been analysed that the company has established its manufacturing units in the countries
where it wants to sell its products so as to reduce the cost of distribution and supply (Cusumano,
Kahl and Suarez, 2015). The company takes the raw materials from that country only to make
the products and, manufacturing faster.
In terms of distributors, it has been analysed that at every market the company has large number
of distributors along with its exclusive stores (Kim, W.C. and Mauborgne, R.A., 2014). In this
industry where Dell operates, the distributors are the dealers who act as the mediator between the
company and the customers. Distributors serve the market with the platform from where they can
make a purchase.
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As far as the partners of the company are considered, it has been analysed that the company has
many partners. Dell technologies family has different partner brands such as Dell, EMC, RSA,
Pivotal, Secure Works, VMware and Virtue Stream.
Customers
As far as the target customers are concerned, it has been analysed that Dell target the market into
two divisions. The first division is called relationship division and the second one is called
Transactional customers.
Relationship customers: relationship customers are those customers who belong to large
corporations and education sectors along with government. These are the customers that provide
large profits to the companies (Alves, 2015). Dell approaches the different businesses to make
relationship with them so that it can cater those businesses with its products. It makes
collaborations with the firm and whenever those customers company needs any of the computer
system they contact to Dell for the same. This customers segment helps the company to make its
sale in bulk and provide large profit as well.
Transactional customers: this is the segment that involves the individual customers who wants to
have the products at low prices. For such audience as well, Dell provides the products with low-
cost so that these customers can also be targeted. This is more competitive market as individual
customers cannot be retained for long (Chen, 2014).
Context: PESTLE
Political and legal factors: political and legal factors deal with the factors that are related to
government regulation formed to conduct the business activities in ethical and legal way. The
field of information and communication technology, the companies have to face several
restrictions by the government. The government restricts the foreign companies to set up their
manufacturing units so as to promote the domestic ones. This acts as the challenge for Dell to
enter the new market. The same situation is faced by the company in China. Even in the parent
country, the companies like Dell have to face the legal obstruction in the form of contracts of not
using another company’s entered technology etc.
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Economic factors: growth of any of the industry or the company is influence by the economic
situation of the country or the world (Groover, 2016). As far as the dell is considered, it is
important for the growth of the company that the economy of the world remains stable as the
company operates in many countries. Change in the tax and the inflation rates affect the sales
and the revenue of the company.
Social factors: It has been analysed that the social factors are related to the choice and
preferences of the customers. The demand for computers is in the countries which are highly
educated. In today’s time, compute is the basic part of daily lives of the people. Earlier, there
were found I the shops r at the offices but now every house has computer associated products.
Even the education system wants their students to learn about this technology so that demand for
the products is immense.
Technological factors: every industry is very much influenced by the technological changes in
the environment. It has been analysed that computer industry is very much related to technology
only. Any updates in the technology needs to be implemented in the system so that the company
can serve the customers with the latest technological hardware and software (Zhang, et al. 2014).
Dell is the firm that focuses on developing and innovating its products according to the latest
technologies. They not only improve their products but also try to improve their processes
according to the updated technology.
Environmental factors: environment factors suggest that the companies need to be sustainable on
order to conduct the practices that does not harm the society and the environment. Dell is the
firm that focuses on using green technology in its process so as to be sustainable.
Market research:
Analysis of the market suggests that Dell is operating at the 2nd position in the market and
providing wide range of products to the customers.
What customers want?
As far as the customers of dell are considered, it has been analysed that customers want the
company to be updates with latest technology. In terms of relationship customers, it has been
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identified that these requirements from the company is that the company supplies them the
products on time (Govindan and Popiuc, 2014). The products that need to be transferred to them
should be effective in quality as the business customers cannot compromise in the quality. On the
other hand, the transactional customers are those customers who want the company to serve them
with low cist products and they can compromise with the quality if the company is offering range
of products in cheap prices than the competitors.
Which competitors pose threat?
The competition analysis of the company suggests that it is operating in the industry that I very
competitive in nature. The company still manages to conduct its operation by staying at the 2nd
position in the market after Hewlett Packard. The immediate competitor of the company after HP
is Lenovo (Bryman and Bell, 2015). Lenovo is also releasing many products n different products
range so as to cover high market share and customers base. As far as the competitors are
considered, it has been analysed that even the unbranded companies are also entering the market
with assembled computer system that costs cheaper to the customers.
How context is changing?
Many contextual factors affect the company and its functions. The major contextual factors are
environmental as well as political and legal factors. Dell is the company that operates in many
countries and has its manufacturing units in different countries. The company has to make the
strategies according to different political environment of different countries. The company also
have to be very conscious about the use of reduces as the manufacturing units of the company
pollutes the environment. It has to take permission for the government to make use of the host
country resources so as to manufacture the products on their lands.
What are the roles of collaborators?
In the industry of information technology and computer system, the companies like dell are very
dependent on the suppliers as well as the distributors. Suppliers provide the raw material for the
company to make the final products. Distributors at different places are required by the company
as it cannot reach to the market only by the franchisee stores (Zikmund, Babin, Carr and Griffin,
2013. The company has many distributors even at the rural areas of the places or the world so as
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to cater the market. The company also have some partner firms which help and supports the
company to conduct its operation in different products range.
Market strategies:
As far as the opportunities are concerned, it has been analysed that the company has the very big
opportunity to enter the watch market and launch a new watch in the fit bit section. The watch
should be like bracelet that targets the customers who are heath conscious and are in sports. The
people with this background would love to use such watches which are also linked with their
mobile phones (Sekaran and Bougie, 2016). It should have the technology that it can be linked to
any of the phone just by downloading software.
Target market:
The target market for the company as per the above opportunity should be the health conscious
transactional customers; it is because the company is already dog well with the relationship
customers. Now, the need for the company is to cater the market of transactional customers with
new and innovative products.
Value proposition:
Value proposition can be defined as the reason behind the existence if the products. It is required
by the company to line with the customers and to make the relation between the products and the
customers (Bull, et al. 2016). By launching this fit bit Dell watch it can relate the heath conscious
customers with the products. This product adds the value to the customers as it provides them the
technological device that allows them to see their heart beats, steps, time, day, linked calls from
their mobiles etc.
Positioning:
The company has positioned itself as the firm that has the power to do more. This suggests that
the company is still working on improving its products. As the products of Dell fit bit is
considered, the company should portray itself as a brand that cares for the customers.
DELL….we care for you
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This positioning statement helps the company to relate with the target customers.
Developing market mix
Product: The products that have been discussed to be released by the company should be Dell Fit
Bit Watch. This watch can be linked to any of the mobile and the customers can even attend their
calls and messages on their watch.
Price: the pricing strategy that needs to be used should be competitive in nature as there are other
companies that have launched the same kind of products but the price is too high. The company
competitive pricing helps the company to cater the market and earn the profit.
Place: The place can only be the franchisee stores, as initially the company can only release less
number of products to test the market so this watch should be available only on the franchisee
stores and not with their small retailers or distributors.
Promotion: the promotional techniques that can be sued by the company are television
advertisements and promotional campaigns.
People: As far as people are concerned, the employees of the company are very skilled and thus
operate in a very good environment. The company is customer oriented and thus provides many
offerings to them.
Process: the process involved is manufacturing, assembling, marketing and distribution.
Physical evidence: The products packaging should be such that attracts the target customers. It
should be unisex watch so that the boys and girls both can buy the products.
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References:
Alves, P., 2015. The Game of the Computer Industry: A Classroom Game of Competition
Simulating the Computer Industry from 1980 to 1995. Developments in Business Simulation and
Experiential Learning, 42.
Bizjournals.com. (2017). Cite a Website - Cite This For Me. [online] Available at:
https://www.bizjournals.com/austin/news/2017/01/13/during-busy-2016-dell-gained-ground-in-
global-pc.html [Accessed 22 Sep. 2017].
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Chen, C., 2014. Comparative Study of CODP for PC Manufacturing Industry. Management &
Engineering, (16), p.9.
Company (2017). Dell Inc.. [online] Nytimes.com. Available at:
https://www.nytimes.com/topic/company/dell-inc [Accessed 22 Sep. 2017].
Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Forbes.com. (2017). Forbes Welcome. [online] Available at:
https://www.forbes.com/companies/dell/ [Accessed 22 Sep. 2017].
Govindan, K. and Popiuc, M.N., 2014. Reverse supply chain coordination by revenue sharing
contract: A case for the personal computers industry. European Journal of Operational
Research, 233(2), pp.326-336.
Groover, M.P., 2016. Automation, production systems, and computer-integrated manufacturing.
Pearson Education India.
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Holweg, M. and Helo, P., 2014. Defining value chain architectures: Linking strategic value
creation to operational supply chain design. International Journal of Production Economics, 147,
pp.230-238.
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review Press.
Kumar, S. (2017). Dell EMC eyes Jan Dhan, Aadhaar and mobile to increase market share.
[online] The Financial Express. Available at: http://www.financialexpress.com/industry/dell-
emc-eyes-jan-dhan-aadhaar-and-mobile-to-increase-market-share/797083/ [Accessed 22 Sep.
2017].
NDTV Gadgets360.com. (2017). Dell Laptops News Articles: Top News on Dell Laptops -
NDTVGADGETS.COM. [online] Available at: http://gadgets.ndtv.com/tags/dell-laptops/articles
[Accessed 22 Sep. 2017].
Niederwieser, D., Baldomero, H., Szer, J., Gratwohl, M., Aljurf, M., Atsuta, Y., Bouzas, L.F.,
Confer, D., Greinix, H., Horowitz, M. and Iida, M., 2016. Hematopoietic stem cell
transplantation activity worldwide in 2012 and a SWOT analysis of the Worldwide Network for
Blood and Marrow Transplantation Group (WBMT) including the global survey. Bone marrow
transplantation, 51(6), p.778.
Qrunfleh, S. and Tarafdar, M., 2013. Lean and agile supply chain strategies and supply chain
responsiveness: the role of strategic supplier partnership and postponement. Supply Chain
Management: An International Journal, 18(6), pp.571-582.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
us, D. (2017). About Dell. [online] Dell. Available at:
http://www.dell.com/learn/us/en/uscorp1/corp-comm [Accessed 22 Sep. 2017].
Zhang, L., Luo, Y., Tao, F., Li, B.H., Ren, L., Zhang, X., Guo, H., Cheng, Y., Hu, A. and Liu,
Y., 2014. Cloud manufacturing: a new manufacturing paradigm. Enterprise Information
Systems, 8(2), pp.167-187.
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Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods.
Cengage Learning.
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