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Business and Institutional Marketing - Coursework Example

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Business and Institutional Marketing

Since information technology is potential enough to reduce the cost of production to a clear extent, every major company tends to acquire IT products and services despite the implementation costs. This paper will examine the Dell, Inc. in the context of its market segment strategies and communication activities. Dell, Inc. and IT industry Dell, Inc. is a Texas based American multinational IT corporation which deals with the development and sales of IT products and services. Currently, Dell is one of the world’s largest technological corporations with a potential of more than 103,300 employees (Dell, 2011). The company has been ranked at 41st in the Fortune 500 list. Development of customer base and mergers and acquisitions are the major expansion strategies of Dell and its major mergers and acquisitions include Alienware (2006) and Perot Systems (2009). As of 2009, the company’s product lines include personal computers, data storage devices, computer peripherals, and software. The Dell is well known in the IT industry for its innovativeness in supply chain management and e-commerce sector. According to Fortune Magazine, the Dell, Inc. is the sixth largest company in Texas on the basis of total revenue (CNN Money, 2011). While analyzing the competitive landscape of Dell, it seems that the company is facing stiff market competition. The firm’s major competitors are Acer, Toshiba, Sony, IBM, Apple, Samsung, HP, Gateway, and Lenovo. Among these competitors, Acer, IBM, and Apple raise potential challenges to the business sustainability of Dell as they have been well established in the industry. The revenues from the IT industry represent a huge portion of the US GDP. According to the United States Department of Labor (2010), IT related “employments increased by 616,000 over the 1994-2004 periods posting a staggering of 8.0 percent annual growth rate”. The US labor department also expects that 1.6 million jobs will be created in IT sector for the period 2004-2014. In addition, it is also predicted that the employment rate of IT managers will grow between 18 to 26 percent by 2014 (ibid). Market segmentation strategies While analyzing the corporate strategies of Dell, it seems that the company is trying to root its business through market segmentation. Dell mainly targets two market segments; corporate firms and other consumers. It is obvious that business houses spend more money on computer products and services than individuals consumers are willing to spend. Corporate firms are frequent and bulk purchasers whereas individual consumers probably buy a single home computer which may be used for several years. The company’s financial data indicate that Dell’s corporate consumers constitute its 85% sales. While analyzing the purchase habit of corporate consumers, it seems that they are too much sensitive to quality rather than price. They are willing to pay more if the computer products and services offer innovative features and ease upgrade options. In addition, the company can ensure huge volume of sales with less promotional expenses when it deals with corporate consumers. Hence, the company focuses more on corporate consumers while framing its marketing tactics. Dell also segments its markets on the basis of national culture since cultural differences greatly affect ...Show more


Dell: Business and Institutional Marketing Introduction The last few decades witnessed dramatic growth in information technology and currently it has become one of the most robust industries in the world. Since the IT sector has a high rate of productivity, particularly in the industrially developed world, it plays a great role in driving the overall global economic growth…
Author : vivien54
Business and Institutional Marketing essay example
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