Dell is one among the largest computer system companies in the world, which is unique and popular because of its direct marketing policy. It deals in manufacturing personal computers, servers or enterprise products, storages and offer IT solutions for the customers. The services provided by the company are of high quality and low cost, thus providing the source of economical investment to the clients. Dell is among the pioneers and still a unique company that carry direct marketing operations. It started its sales via telephone and then expanded it using internet.
A 19-year-old teenager Michael Dell founded Dell in 1984 with only $1,000 capital. He started business with an aim of selling IBM-compatible PCs. Dell received high worldwide success and profit in just few years of its functions. During the first year, it made $6 million gross revenue. The next year, Dell started selling computer of its own design name the Turbo PC. After three years, the company introduced public offering at $8.50 a share and renamed as Dell Computer Corporation. During 1990 to 1996, the company expanded its offerings up to 12 different countries. In 1997, Dell became one of the top five computer makers of the world.
Dell is famous for its unique selling and marketing strategies. It was the first company who introduced the selling of computers via website and providing technical support to the clients all over the world. Customers found it easy to purchase the products via website and get their order at doorstep. The feasibility of purchasing computer products via website highly increased the internet sales of the company up to $50 million in a day in year 2000. Even in 2001, Dell left Compaq behind and became the sales market leader. However, in 2006, Dell lost its leading position due the merging of HP and Compaq. It was due to increased competition and slow market growth that Dell's sales decreased by 15.9% from 2007 to 2008.
The Dell Company's mission is to become the most successful Computer Company in the world by delivering the best customer and technical support to clients. This report will discuss the marketing plan and strategies that the company follows to achieve its mission and vision. Moreover, how the company manage to maintain competitive edge in the market.
Dell's Marketing Process
Dell Inc. takes care of its customers' needs and delivers them with what they exactly want. It is due to only this practice that in just few years Dell reached at the top position among computer manufacturing companies. Dell is among the pioneers who implemented direct marketing strategies and later on rest of the top companies followed the same strategies. Dell made high sales and profits during the start years because of its unique marketing strategies but when others also started following the same practices, the competition became tougher and Dell sales drop.
In order to keep pace with the changing trends of the market, the companies must introduce new ideas and marketing strategies so that to fulfill customers' changing demands. Therefore, company must always keep their marketing process updated.
Marketing Process
As according to the American Marketing Association, marketing is the process of planning and executing the conception, promotion, pricing, and distribution of goods, services and ideas to create exchanges that satisfy individual and organizational objectives. (Bennett, 1995)
The above definition of marketing explains that the companies' main emphasis needs to be on consumers' needs and demands. Thus, customer satisfaction is the measure of any company's success. It is for this reason; Dell has been able to make its place in the market in a minor period. Since, for Dell, the customer satisfaction, needs, and demands are the foremost priority.
The marketing concepts state that the company must follow the process before the implementation of marketing plan. The marketing process demands that the company must first identify the customers' needs and bring those products to the market that fulfills the demands of consumers. The customers' needs are in other terms considered as the opportunity for the companies. However, it depends on the company that how it formulizes the marketing strategies as according to the needs of the customers and earns profits.
The Marketing Process consists of four main stages including Situation Analysis, Marketing Strategy, Marketing Mix Decisions and Implementation and Control.
Situation Analysis
A thorough situation analysis forms the basis of success for the organization. The identification of any unfulfilled need of customers provides an opportunity to the organization to earn more profits. However, company also needs to understand its own capabilities and environment needed to fulfill the specific customer needs. Thus, situation analysis is also known as the analysis of internal and external environment.
The internal environment can be described in terms of micro-environmental factors that...
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Dell Computers presents a useful company to perform a strategic management analysis upon. The personal computer industry has changed and evolved considerably in the past years and the market conditions today are also presenting new and exciting problems for this organization. The purpose of this essay is to examine Dell and its industry in terms of its current strategic outlook. The essay will present information on the personal computer industry,
Dell Corporation Dell computers Company Background Michael Dell is a global icon, especially on his college-based business of building personal computers using available parts, which he used to create a global business. The Dell Computer Company officially became a global corporation in 1984 (Dell, 2009). The priority of Dell Corporation was the build to order strategy, whereby clients ordered computers; their orders routed via credit check, and then the manufacturing followed (Qurechi and
Dell Inc. The head office of Dell is at Austin, Texas at the same place where the company was based. Dell Americas is also located in Texas, which is the regional business unit for the United States, Canada and Latin America. The regional headquarters offices of the company are in England, for Europe Middle East and Africa; in Singapore catering to Asia-Pacific; and in Kawasaki, Japan, to serve the market for
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Part I. Company Overview Dell Technologies Inc is a computer designer and marketer based in Hopkinton, MA. Dell is the third-largest computer hardware company by global market share. It holds a share of 15.9%, trailing HP (21.8%) and Lenovo (20.4%), but ahead of Apple (7%) and Acer (6.8%) (Dunn,2017). Dell Technologies was created with the merger of Dell Inc and EMC Corporation. Dell Inc was founded by Michael Dell in 1984 in
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