About DELL :

Dell at a Glance

Globally 2nd in computer hardware design, manufacturing and distribution with a market
share of around 16%.
Founded by Michael Dell in 1984.
In 1985, the company produced the first computer of its own design — the "Turbo PC",
sold for US$795.
The volume of sales are Greater than $50 Million per day through the internet with yearly
revenue of $55.908 Billion with employee base of 78,000.
Ventured in areas of storage products, workstation systems, online technical support,
appliance servers, network switches, standards-based point-of-sale offering for retail
customers.
Board of Directors
1. Michael Dell
Chairman of the Board and Non-Independent Director
2. James W. Breyer
Finance, Leadership Development and Compensation (Chair)
3. Donald J. Carty
Non-Independent Director
4. William H. Gray, III
Governance and Nominating (Chair); Leadership Development and Compensation
5. Judy C. Lewent
Finance (Chair), Audit
6. Thomas W. Luce, III
Audit, Governance and Nominating
7. Klaus S. Luft
Audit
8. Alex J. Mandl
Audit (Chair), Governance and Nominating

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9. Shantanu Narayen
Leadership Development and Compensation
10. Samuel A. Nunn
Presiding Director, Finance ,Leadership Development and Compensation
11.Ross Perot, Jr.
Governance and Nominating
Vision Statement:
Its the way we do business. It's the way we interact with the community. It's the way we
interpret the world around us-- our customers needs, the future of technology, and the
global business climate.
Mission Statement:
Dell's mission is to be the most successful Computer Company in the world at delivering
the best customer experience in markets we serve.
Financial position:
As of 2010, Forbes estimates Dell's net worth at $13.5 billion.
Net Income $1,433 million in 2009
Major competitors:
Major competitors of dell are
Apple
Hewlett-Packard (HP)
IBM
Samsung
Sun Microsystems
Gateway
Lenovo
Sony
Acer
Toshiba
Asus
Hcl
Lg

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Product mix:
1.Laptops

Dell™ Inspiron Mini 10 Dell™ Inspiron 15R New Laptop

Dell(TM) Studio 15 Laptop Alienware Laptops

2.Desktops

Studio One 19 InspironTM One 19 Desktops

3. Monitors

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4. Acessories

3. Projectors

Brands :
Dell uses several brand-names for its product ranges, including:
OptiPlex for office desktop computer systems
Dimension for consumer Desktop computer systems
Latitude for commercially-focused laptops, Adamo – Luxury, high style, first class

Inspiron for consumer laptops, Studio – student computer

Precision for workstation systems and high-performance laptops

PowerEdge for larger corporate servers
PowerVault for direct-attach and some network-attached storage (NAS)
Dell EMC for storage area networks
XPS for enthusiast/high-performance systems
Axim for PDAs utilizing Microsoft's Windows Mobile
Dell Digital Jukebox (DJ) MP3 Players
Dell monitors LCD/ plasma TVs and projectors for HDTV and monitor use
Dell On Call - extended support services (mainly for the removal of spyware and of

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viruses) Mini Notebooks – portable, low cost
Alienware – performance at any cost, high style points for unique design

Product lifecycle of DELL:

Product Life Cycle stages in the company – Below is the product life cycles that any product
goes through from the time it is introduced till and till the time the company stops producing
it as it is no longer profitable.

For a company in the hi-tech hardware industry like Dell, technology keeps changing
very regularly which means that products and components have very short life cycles.
Therefore proper management of the product life cycle and constantly keep introducing
new products is one of the keys to remain competitive in this industry.

a. Introduction – This is a time when the product has been introduced and volumes are
low. However since the product technology is new at this point, the components maybe
on long lead times that affect the delivery schedules of the system. At this time, the most
important thing for Dell would be top correctly estimate the new components needed so
that these new systems are not on too long a lead time. Ex Adoma

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b. Growth – This is time where the volume growth takes place very fast. So the challenge
for Dell would be to work closely with its suppliers to ensure that no they are in a
position to supply these parts and ensure that the supply chain isn’t affected due to parts
shortage. Ex studio

c. Maturity – This is the time when there are huge volumes but the profits are lower as
competitors have also come up with similar products. Also demand is more predictable
than in the previous two stages. Here Dell should work to lower the per unit costs of the
components as there is price competition and also ensure that it has proper supply as well.
Ex latitude
d. Decline – This is the stage where the product’s sales would be dipping and Dell would
soon need to stop producing this product. The decision that Dell would need to take at
this stag would be to ensure that prices of components are at their lowest as this is old
technology. Dell would also need to plan for this stage in advance so that other parts of
the sales/supply chain are not affected when Dell stops production of that product.
Ex inspiron

Product life cycle management:

Because Dell's customers were largely high-end repeat buyers who rapidly adopted new
technology, Dell's marketing could focus on managing product lifecycle transitions. The
company's direct marketing provided real-time customer feedback, which led to the rapid
rounds of learning essential to product development and crisp lifecycle timing. Dell
became expert at curtailing the end-of-life tail of its six-to-nine-month product cycle.

Pricing of DELL with its competitor HP:

In 2006, Dell cut its prices in an effort to maintain its 19.2% market share. However, this
also cut profit-margins by more than half, from 8.7 to 4.3 percent. To maintain its low
prices, Dell continues to accept most purchases of its products via the Internet and
through the telephone network, and to move its customer-care division to India and El
Salvador

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According to me dell can maintain its pricing of products at the same level which help the
dell to maintain and expand its present market.
Dell can discount certain products in maturity stage to gain market share and can sell
most of the products
It is currently following low pricing mechanism which may affect the profit in longer run
PRODUCT DELL DELL HP HP PRICE
NAME PRICE
MINI $279.00 $279.99*
LAPTOP

Everyday $449 $429.99*

computing .00
Laptops

Ultra- $510.00 $529.99

Portable
Laptops

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ENVY ADAMO model $1134 $1,299.99
Laptops

Marketing strategy:

Dell’s marketing strategy research papers point out that Dell Computer Corporation is
defined by its direct model approach to selling, which is in turn dominated by the
company’s intent to generate as many sales as possible on the Internet.

Dell's marketing strategy sees the Internet as the purest and most efficient form of the
direct model for sales, service, and support, as well as the most efficient means of
customer communication both presently and in the future.

Currently the company receives more than 2.6 million visits each week to its more than
80 country-specific sites. This resulted in more than $40 million in revenue per week
being generated by the online marketing of Dell.

The company touts its site as allowing existing and potential customers to access
information regarding its products, configure computers to the customers liking, and then
make the purchase. Dell sees this process as the most efficient method of selling because
it allows the consumer to guide the process.

While the consumer is choosing and configuring their Dell computer, as well as after the
purchase at the Internet site, the customer has access to volumes of support and technical
information.

Instead of sales people answering questions, the customer is left to find their own
answer. This presupposes a base line of technical knowledge in the customer, which

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guides the information-gathering process. Without this base line of knowledge, the
customer will have difficulty making sense of computer hardware jargon that defines the
capabilities of PC units.

In addition, such a technically unsophisticated customer may have difficulty in even

formulating the questions that should be asked in order to evaluate if a particular Dell
computer will meet their needs. Individuals who are making their first computer
purchase are unlikely to have access to the Internet or the navigational expertise to find
Dell’s site.

The marketing model of Dell Computers, however, does not differentiate between types
of customers, and instead treats each potential customer as if they have equal technical
knowledge.Dell’s Direct Method provides two distinct advantages: 1. reducing marketing
and sales cost by eliminating markups of distributors and retailers and 2. building to order
reduced inventory costs and risks of retaining inventories.

Dell’s Direct Model is the main reason why it has achieved its stellar status in business
today. This strategic model enables Dell to interact with customers directly providing
them with fast, reasonably-priced and friendly means of production and distribution.

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Dell Market Structure

Dell classified the market into 2 categories namely

1. large customers (B2B model)
2. small customers (B2C model)

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Market share of laptop manufacturers

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Distribution of dell products:

Manufacturing
Dell has a general policy of manufacturing its products close to their customers. The
assembly of desktop computers for the North American market takes place at Dell plants
in Austin, Texas and in Winston-Salem, North Carolina, with servers built in Nashville,
Tennessee. Dell, Inc. assembles computers for Europe in Limerick, Ireland.
Dell's assembly plants in Penang, Malaysia, and in China assemble 95% of Dell laptops;
the remaining percentage comes from Dell European Manufacturing Facilities 1, 2, and 3
in Limerick. Dell plans to consolidate manufacturing to Malaysia and China in 2007 and
has also decided to enlarge its plant in Malaysia. For additional quality, Dell routes these
computers through 'fulfillment centers' in the United States.

Distribution:
Dell entered the PC industry at a time when most companies sold through small,
specialized, high-cost dealers which provided customers with support on both how to
purchase and how to use computers. This high-cost channel was quickly obsolete and
most PC suppliers switched to large, megastore retail chains (CompUSA, Computer City,
etc.).

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While the other suppliers were struggling with retail channel evolution, Dell took a
radically different path by finding a means to sell products which normally required both
significant customer assistance and local stocking without a dealer or distributor network.
Dell created a new channel option by bringing new technology to traditional roles played
by the distribution channel. Dell takes orders over the telephone, internet it allows
purchasers to customize products to their own needs, it assembles products largely to
order, and it achieves rapid delivery. The combination provides a high degree of
customer service at a previously unattainable cost structure. With this distribution change
as a major element of its strategy, Dell grew to a profitable $7.8 billion business at the
time when many larger computer companies were giving up on the PC market.
Dell shows how a company can meet most of the same end customer needs as its
competitors through a radically different distribution approach. As enabling technologies
(telephone communications, call centers, shipping logistics, etc.) evolve, more suppliers
will supplant traditional sales and distribution approaches and, therefore, gain
competitive advantage.
However, simply copying a model which has worked once is not a guaranteed path to
success. No other “mail order” computer company has managed to match Dell’s growth
in sales and profits. Dell built a strong overall business model and established its position
before others had a chance to copy the model.
According to me dell can make shipment free for certain products since the competitor is
having this strategy. Dell can have physical shops in India and china since the direct sell
through internet is not up to the level in those regions
Dell use RFID in manufacturing and shipping which is helpful to check the status of the
product
According to me
Dell’s success is a combination of:
 Direct Sales
 Build-to-order
 Supplier Integration
Together these allow for maximum effectiveness with minimum cost

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Promotion:

Dell advertisements have appeared in several types of media including television, the
Internet, magazines, catalogs and newspapers. Some of Dell Inc's marketing strategies
include lowering prices at all times of the year, offering free bonus products (such as Dell
printers), and offering free shipping in order to encourage more sales and to stave off
competitors.
The biggest area of expansion for Dell is the consumer market. In order to
develop more sales in this market Dell needs to focus more advertising on the
needs and wants of the consumer. Dell promotes its direct model,
which is a key factor Dell needs to create a better position for itself in the
consumer market. With all of the PCs in the market being more or less equal,
Dell needs to focus on what differentiates its products from the competition,
namely service and support.
The advertising campaign need to focus on the
emotions of the PC users as oppose to merely their logical side. With a strong
emotional ad campaign focusing on the anxieties and fears of the consumers
when it comes to making the decision for a computer purchase Dell can
reassure the consumers that we are there for them. The direct model and more
importantly the virtual integration should be the focus of the campaign as
oppose to a "teen-age" part-time employee at your local mall.
Why would anyone want to go into a super store where the salesperson pitches
everything under the sun to you before you finish telling them what it is you need. With
the build-to-order direct way Dell operates "you tell us what you want, we don't
tell you what you want."
In 2007, Dell switched advertising agencies in the US from BBDO to Mother. In July
2007, Dell released new advertising created by Mother to support the Inspiron and XPS
lines. The ads featured music from the Flaming Lips and Devo who re-formed especially
to record the song in the ad "Work it Out".
Dell recently began using the slogan "Yours is here" to show that it customizes computers
to fit customers' requirements.

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Various dell ads are:

SWOT Analysis of Dell Computer

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Strengths
Dell's Direct Model approach of enables the company to offer direct relationships with
customers such as corporate and institutional customers. Their strategic method also
provides other forms of products and services such as internet and telephone purchasing,
customized computer systems; phone and online technical support and next-day, on-site
product service. This extensive range of products and services is definitely one of Dell’s
strengths.
Dell Computer's award-winning customer service, industry-leading growth and
consistently strong financial performance differentiate the company from competitors for
the following reasons:
Price for Performance – Dell boasts a very efficient procurement, manufacturing and
distribution process allowing it to offer customers powerful systems at competitive
prices.
Customization - Each Dell system is built to order to meet each customer’s specifications.
Reliability, Service and Support – Dell’s direct customer allows it to provide top-notch
customer service before and after the sale.
Latest Technology – Dell is able to introduce the latest relevant technology compared to
companies using the indirect distribution channels. Dell turns over inventory for an
average of every six days, keeping inventory costs low.
The company's application of the Internet to other parts of the business --including
procurement, customer support and relationship management -- is growing at a rate of 30
percent. The company's Web site received at least 25 million visits at more than 50
country-specific sites.
Weaknesses
Dell’s biggest weakness is attracting the college student segment of the market. Dell’s
sales revenue from educational institutions such as colleges only accounts for a measly
5% of the total. Dell’s focus on the corporate and government institutional customers
somehow affected its ability to form relationships with educational institutions. Since
many students purchase their PCs through their schools, Dell is obviously not popular
among the college market yet.

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For home users, Dell’s direct method and customization approach posed problems. For
one, customers cannot go to retailers because Dell does not use distribution channels.
Customers just can’t buy Dell as simply as other brands because each product is custom-
built according to their specifications and this might take days to finish.
Opportunities
Personal computers are becoming a necessity now more than ever. Customers are getting
more and more educated about computers. Second-time buyers would most likely avail of
Dell’s custom-built computers because as their knowledge grows, so do their need to
experiment or use some additional computer features.
Demand for laptops is also growing. As a matter of fact, demand for laptop has overtaken
the demand for desktops. This is another opportunity for Dell to grow in other segments.
The internet also provides Dell with greater opportunities since all they have to do now is
to visit Dell’s website to place their order or to get information. Since Dell does not have
retail stores, the online stores would surely make up for its absence. It is also more
convenient for customers to shop online than to actually drive and do purchase at a
physical store.
Threats
In a volatile market such as personal computers, threats abound. Computers change in a
constant sometime daily basis. New software, new hardware and computer accessories
are introduced at a lightning speed. It is essential for Dell therefore to be always on the
lookout for new things or introduce new computer systems.
The threat to become outmoded is a pulsating reality in a computer business. Not only
that, companies must produce products that are high in quality but low in price. This is
one challenge that Dell contends with.
One of the biggest external threats to Dell is that price difference among brands is getting
smaller. Dell’s Direct Model attracts customers because it saves cost. Since other
companies are able to offer computers at low costs, this could threaten Dell’s price-
conscious growing customer base. With almost identical prices, price difference is no
longer an issue for a customer. They might choose other brands instead of waiting for
Dell’s customized computers.

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The growth rate of the computer industry is also slowing down. Today, Dell has the
biggest share of the market. If the demand slows down, the competition will become
stiffer in the process. Dell has to work doubly hard to differentiate itself from its
substitutes to be able to continue holding a significant market share.
Technological advancement is a double-edge sword. It is an opportunity but at the same
time a threat. Low-cost leadership strategy is no longer an issue to computer companies
therefore it is important for computer companies to stand out from the rest.
Technology dictates that the most up-to-date and fastest products are always the most
popular. Dell has to always keep up with technological advancements to be able to
compete.

My Suggestion :

If I were the marketing manager of DELL, I would like to adopt following strategies;
1. Dell can open physical shops in India, china, brazil. Since e marketing in this place
cannot increase it volume of sales
2. Dell can introduce high priced product with limited edition which can make dell to get
a competitive gain in prestigious market where apple are present.
3. Nowadays hp introduces a concept of no shipping cost on certain products. Similarly
dell can implement it.
4. Dell can also try to bag many government contracts in which the new comers are
bagging it.
5. Dell can concentrate on desktops, printers, projectors, accessories where hp os going
for product diversification
6. Dell can look into promotional activities with an innovative approach.
7. Dell can improve its B2B market whereas presently it has more market on B2C
market.
8. The demand for dell is growing .but the supply is somewhat low, thus it can look into
demand rather than order.

References:

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Dell.com
Cio.com
Idc.com
Wikipedia
Google.com
Quest.com
I2.com
Center for research on information technology , University of California, Irvine.
Businessweek.com
http://www.intel.com/ebusiness/pdf/affiliates/i2-dell.pdf

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