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Dell Direct and Not-So-Direct
Pages 3 (753 words)
Dell Direct and Not-So-Direct Case Summary The case study discusses the changes that have occurred at Dell during the past couple of decades. The company when it was founded utilized a direct sales model that attracted customers through online, phone, and catalog sales.
As a result Dell began to form alliances with retailers around the world to sell Dell products at their stores. Key Marketing Issues Branding – Dell was able to build a strong brand value in the United States, but the company has not been as effective at marketing its brand in other parts of the world. Dell was forced to change its business model to allow retailers to sell its products at retail outlets worldwide. Brand loyalty – The brand loyalty of the company is weak outside of the United States. Dell should increase its spending in advertising and marketing to solidify the brand value of the business entity. Channels of Distribution – Dell was effective at being the sole channel of distribution for its products for many years. As the business matured the company realized that further business growth required increasing its distribution channels. Retailers – Dell is now using retailers as a permanent strategy to achieve growth in market share. The firm has to identify the top retailers that can bring the company the maximum amount of sales. Wholesalers – Dell is using the wholesaling strategy to penetrate the market for business computers as well as governmental contracts. The firm has to adequately identify the required volume of sales and price per lot to ensure the firm maintains profitability. ...
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