The Dell Company E-Business - Essay Example

 E-Business Introduction and background of E-Business In this age of extreme fluctuations in the taste and preferences of the customers, maximum extent of the organizations desire to offer high concentration over the concept of innovation. This might prove effective for any organization to retain its brand image and profitability to a significant extent as compared to many other rival players. However, in order to enhance the level of awareness of the customers, most of the organizations prefer to present their inventive product lines and services with the help of web or online sites. This is because; it might help the organization to increase its range of customers as well as profitability within a very short period of time (Beall, 2010). As a result of which, the reputation and dominance of the organization might also be increased in the entire globe among many other existing contenders. Similarly, the organization of Dell Company, tried to implement the e-business techniques in order to amplify its value and market share as compared to many others. The prime aim behind such tactic is to increase the level of sustainability and competitive advantage of the organization (Beall, 2010). E-business came into existence, only after the introduction of World Wide Web (WWW). Due to which, maximum extent of the business entrepreneurs try to offer the promotions of their product lines and services in web or online sites that declined the craze of traditional techniques. Therefore, due to the introduction of online web technology, the demand for e-business or e-commerce enhanced to a significant extent as compared to traditional methods. Discussion Porter’s five forces of Dell Company In order to analyse the organization of Dell Company, its micro environment need to be evaluated with the help of Porter’s five Forces. It is one of the most recognised analytical tools utilised in maximum organizations among others. Bargaining power of the Suppliers: the bargaining power of the suppliers is extremely high and so the organization of Dell Company had to communicate with varied suppliers in order to attain the raw materials (Bradley, 2007). Bargaining power of the buyers: the bargaining power of the buyers is also quite high in this segment due to the presence of numerous competitors such as IBM, Apple Inc, Acer etc. As a result, the level of switch over costs of the customers is also extremely high that may hinder the growth and dominance of the organization of Dell in the market to a considerable extent. Therefore, in order to retain the level of sustainability and supremacy in the market, the organization of Dell desired to offer inventive products and services to its customers (Bingham & et.al. 2005). This might increase the loyalty and consistency of the organization in the market among many others. Threat of new entrants: the threat of new entrants is also quite high in this sector due to effective government policies and lower economies of scale. Due to which, the organization of Dell had to offer high concentration over research and development. This might prove effective in developing newly inventive product lines so as to attract a wide range of customers towards the brand that may enhance its profitability. Along with this, such type of inventive product lines might also prove effective in amplifying the brand image and market share (Chaffey, 2011). Threat of substitutes: the threat of substitute products is extremely high in this age of extreme competitive rivalry. This is because; presentation of substitute products of the rival players might hinder the productivity and brand value of Dell in the market. As a result, the loyalty and consistency of the customers over the product lines of Dell is reducing significantly. However, in order to retain the dependency of the product lines, the organization of Dell need to offer inventive product lines as per the preferences of the customers (Chaffey, 2007). Competitive rivalry: the intensity of rivalry is extremely high in the sector of developing and designing inventive computers. This is mainly due to the presence of numerous rival players such IBM, Apple Inc, Acer etc. However, in order to retain its dominance and market share, the organization of Dell need to offer highly qualitative products at a value-added price (Drummond & Ensor, 2006). E-marketing analysis of Dell computers In this age, promotion is the most essential requirement of an organization. This is because; with the help of promotion, the level of awareness of the product lines enhances thereby amplifying its profitability (Guillén & García-Canal, 2012). However, in order to increase the range of customers, the organization of Dell computers decided to offer promotions in both online and offline sites such as televisions, newspapers, internet, direct emails, magazines, catalogues and social networking sites (Grant, 2005). In maximum cases, the promotions are presented with a slogan, ‘You may fulfil your requirement by customizations’. This strategy proved extremely effective for the organization thereby amplifying its brand value and portfolio in the market among others as presented in the below picture. Therefore, due to the implementation of above mentioned promotional strategy, the brad equity enhanced by 6845 m$ and it ranked as 61st global brands among many other rival players in the market (Gupta, 2004). Therefore, due to these above mentioned strategies, the brand image and popularity of Dell computers enhanced to a considerable extent as presented in the below figure. Source: (Hill, 2010) Therefore, due to high-ended online and offline advertisements, the organization of Dell Computers became successful in positioning itself as one of the reputed brand to sell its products through online sites. However, it is possible mainly due to its cost leadership strategy of Porter’s generic strategies (Johnson & et.al. 2011). According to cost leadership strategy, the organization of Dell Company tried to offer to its products at a quite lowest price as compared to others. By doing so, the rate of profitability and brand value of the organization of Dell Computers enhances by a significant extent thereby reducing its threats of upcoming challenges. Due to the success of cost leadership strategy, segmentation and targeting as well as 7p’s of Dell computers proved extremely effective in long run (Johansson, 1997). As the organization of Dell computers implemented cost leadership strategy, it enhanced the 7P’s. Product: the demand of the product lines of Dell computers such as laptops, ultra-books, desktops, printers, monitors and tablets increased by a significant extent. This proved extremely effective for the organization of Dell Computers to amplify its profitability and market share as compared to many other rival players (Kolb, 2008). Price: as the organization of Dell computers implemented lowest cost price, then the demand of its product lines increased. Therefore, due to the presence of this type of pricing strategy, the range of customers increased significantly. As a result of which, the dominance and popularity of the product lines of Dell computers enhanced significantly as compared to many other rival players. The demand of the product lines increased mainly due to the improvement of the level of awareness of the customers (Keegan, 2002). Place: due to the introduction of online sites, maximum extent of the purchase takes place mainly through internet. As a result, the delivery of products takes place just in exact time that amplified the reliability and dependability of the customers. Promotion: due to the implementation of social networking sites and buzz marketing, the total sale of the product lines of Dell computers increased significantly as compared to its rival players such as HP, IBM etc (Kotler & Keller, 2012). Physical evidence: the trust and loyalty of the products of Dell computers is extremely high within the minds of the target customers mainly due to its quality and warranty facilities. Process: the response time of the employees of the organization of Dell computers is extremely high as compared to others. Due to which, the level of consistency of Dell products is extremely high. People: the customer service facilities of the organization of Dell computers are extremely effective that improved its market share and portfolio among others. Therefore, it might be clearly stated that e-marketing facilities offered positive results thereby amplifying the effects of 7P’s over the product lines. Web design analysis of Dell Computers The success of E-marketing of Dell computers is entirely dependent over the design of the website and its usability features. The website of an organization needs to be aesthetic in look and attractive in nature (Kotler & Keller, 2012). Similarly, the attractiveness of the website design of Dell computers is mainly analysed by evaluating three features such as: Dell’s responsive and instant loading of the homepage: as the characteristic or features of the website of the organization of Dell computers get loaded instantly within 20 seconds, so it is highly preferred by the customers. Thus, with the help of minimal scrolling purpose, the website of the organization might get loaded. Dells’ functional site and HTML coding: as the HTML, CSS, Jqueries etc get instantly loaded, and so every component of Dell commerce sites operates effectively and quite quickly. Dell’s consistency and simple layout design: as the layout design of the website is extremely simple so its consistency within the minds of the customers enhanced significantly (Laudon & Travor, 2011). Thus, due to the introduction of internet technologies, the demand and portfolio of the organization of Dell computers increased to a considerable extent. Business to Business analysis of Dell computers The Dell computer offered high concentration over the concept of relationship marketing in order to amplify its total sale and dominance. This improved the brand image and reliability of the organization of Dell that amplified its profitability and efficiency to a significant extent (Grant, 2005). Other than this, the interpersonal relationships might also be enhanced due to effective communications systems resulting in improvement of the upcoming opportunities and strengths (Chaffey, 2007). As a result of which, the equity and distinctiveness of the product lines of the organization of Dell enhanced that improved its market value and position in the market. Therefore, due to the improvement of the relationship among the partners or individual, the processes of value chain such as hrm, technological development, procurement facilities, inbound logistics, operations, outbound logistics, marketing and sales etc enhanced to a significant extent. Apart from this, due to efficient relationship among the customers, the wants and desires of the consumers might be easily fulfilled by the organization of Dell. Moreover, in order to retain the effectiveness and portfolio of the organization, lowest cost price is maintained. It is highly preferred by the customers. Furthermore, communication proved extremely effective for the organization of Dell that enhanced its profit margin and distribution (Grant, 2005). Innovation The organization of Dell computer also desired to develop innovative product lines so as to amplify the total productivity and efficacy. Therefore, the organization of Dell computers develops the products in such a way, so that it enhances attention of the customers. Therefore, after enhancement of the attention of the customers, the interest and desire of the customers to purchase the product enhances to a significant extent that may lead to purchase of the product (Hill, 2010). Thus, it might be clearly depicted that AIDA model might prove extremely effective for the organization of Dell thereby amplifying its efficiency and portfolio in the market. Conclusion and Recommendations Conclusively it might be stated that the organization of Dell might offer high concentration over relationship marketing. This is because; relationship might enhance the rate of total sale and profitability of the organization thereby amplifying its equity and reputation. Along with this, the brand value and position of the organization of Dell also increases to a significant extent due to relationship marketing. However, in order to amplify the total sale and reputation of the organization of Dell, online website is the most important requirement. This is because, most of the customers desire to attain varied types of information through online sites and then make their purchase decisions. So, the organization of Dell need to offer high attention over online promotion and marketing of the product features so as to increase the total sales and brand value. Only then, the position and ranking of the organization of Dell might get enhanced to a significant extent as compared to other contenders in the entire globe. References Beall, A, E. 2010. 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