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. Personal Case Analysis Dell Computers was one of the biggest success stories in the high tech industry during the 1990’s and early part of the 21st century. The direct selling method was innovative because it allowed the customers the ability to customize their computers. The business model was helping the company achieve higher profit margins, while offering very competitive prices due to the fact that Dell eliminated the intermediaries. The strategy was tremendous, but it had an inert flaw that eventually caught up to the company. The strategy was not effective at attracting international clients. Once Dell reached the maturity stage the firm had to seek expansion outside the United States. It became cheaper for Dell to outsource the selling function to retailers than to sell directly to customers in foreign countries because the company did not have the marketing expertise to target customers outside the United States. Case Questions 1. Is Dell using intensive, selective or exclusive distribution for its market coverage? Dell is using selective distribution is its market coverage of different parts of the world. The company has identified specific retailers they have targeted as business partners. The company has control over which retailers sell the firm’s products. Some of the retailers Dell has selected for distribution of its products include: Wal-Mart, Carphone Warehouse’s U.K. Stores, Bic Camara Japanese Stores, and Gome’s Chinese Store. 2. How does dell's preference for direct channels affect its decisions about physical distribution? The preference of Dell of selling directly to customers positively influenced the entire supply chain of the company. Dell was able to centralize its warehouses in strategic positions in the United States to be able to deliver the final product to its customers as fast as possible. The direct sale approach saved the company money because the firm had a lower obsolesce rate than other competitors. 3. What issues in channel conflict might arise from Dell's current distribution arrangements? The new channel approach Dell is using could cause ...
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(“Dell Direct and Not-So-Direct Case Study Example | Topics and Well Written Essays - 750 words”, n.d.)
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(Dell Direct and Not-So-Direct Case Study Example | Topics and Well Written Essays - 750 Words)
“Dell Direct and Not-So-Direct Case Study Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.net/marketing/57789-week.
The decline in sales was attributed to many factors that the corporation has long since tried to cope up with. The solutions derived aimed at revitalizing its image and improve on sales. Factors that led to decline in sales are internal and external issues.
A detailed SWOT analysis for the company's extended business in the sub-continent is done to identify and develop strategies of operations in this region. The core strategy and the marketing mix that it is considering are also evaluated for framing the marketing strategy.
Therefore the company cannot continue with its business as it has been doing. It needs to come up with a new strategy in the market.
In order to come up with a new strategy in the market, Dell has to take a close look at how it has been performing in all its operation from the production part to the market part of the process.
The management principles, strategy and its vision are responsible for all the success of Dell.
It was founded in the year 1984 as PC's limited. In June 1988, when its first stock offering entered the market, the name officially changed to Dell Computer Corporation.
Whenever we talk about a strong supply chain, the name of the PC Giant "Dell" comes to our mind. Dell has, over the period of time; build a very strong and efficient supply chain management system by improving on it continuously. Although Dell has a well-managed supply chain, but when we talk about so much of the positive aspects of the system, it does not definitely means that the negatives don't exist.
The Internet like all other means of communication is prey to 'information overload'. A nave user who was searching perhaps for 'a computer for my kids' on google.com on 2006-02-16 would receive over 91m hits:
Note that Dell placed top in the sponsored links on the right hand side of the page, which is no mean feat given the monies being spent on sponsored search.
The main idea is to find out why the computers of Dell Inc. are so popular among the people of UK. Customer contentment is always related to the quality of the product and the affordability. In case of consumer electronic goods, especially in computer and related products, support and after-sales service is of huge importance.
These ideas and answers are then utilized to obtain personal findings and reach conclusions so that future strategies could be formulated and recommendations made. This approach towards analyzing a situation is based on productive and critical mind-set, and involves several steps in its execution.
The author of this research paper describes that the company applies the principles of resource savings through the following strategies: recycling, it has environmental responsibility goals, forest stewardship. The company uses workplace health and safety program and recycles or reuses 99 percent of waste from manufacturing operations.
As the author of the text puts it, through different strategies like ‘The Dell Direct Model’, the company has been able to improve upon their relationship with the customers and thereby enhancing customer satisfaction and boosting up sales. Thus, this model focuses on direct relationships with the customer and enhancing sales through customer care.
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