B2b Dell Presentation

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B2b Dell Presentation

  1. 1. B2B Project: A Study Of The Dell Server Market Dell headquarters ; Roundrock ,Texas
  2. 2. Aims Of Our Project <ul><li>To understand Dells B2B structure in the server market </li></ul><ul><li>To analyze the Server / IT market </li></ul><ul><li>including Dells major rivals </li></ul><ul><li>● To outline how Dell market their servers to Corporate customers </li></ul><ul><li>● To highlight Dells successes / failures and to make relevant recommendations </li></ul><ul><li> </li></ul>
  3. 3. Dells Background <ul><li>Michael Dell established Dell Computers in 1984 </li></ul><ul><li>Headquartered in Roundrock, Texas </li></ul><ul><li>Dell pioneered the concept of selling PCs and complimentary products directly </li></ul><ul><li>Dell led commercial migration to the Internet, launching www.dell.com in 1994 </li></ul><ul><li>Dell became the first company to record $1 m in online sales </li></ul>▲ Michael Dell, CEO ▲
  4. 4. Dells Business Model
  5. 5. The Server Market <ul><li>Research firms can't seem to agree who is top dog in the market in terms of revenue, with IDC giving the number one place to HP, while Gartner said IBM came out the winner </li></ul><ul><li>The overall server market is now worth US$12.29 billion worldwide, IDC </li></ul><ul><li>IDC claim global sales revenue increased 4.9 percent on the same period a year earlier </li></ul><ul><li>&quot;The server market continues to experience solid growth as businesses of all types look to enhanced IT capabilities in order to help drive additional business efficiency, improved customer satisfaction, and accelerated revenue growth,&quot; said Matt Eastwood, program vice president of Enterprise Platforms at IDC </li></ul>
  6. 6. Product <ul><li>PowerEdge servers: designed for medium-large business customers </li></ul><ul><li>affordable performance, reliability, and is fully upgradeable </li></ul><ul><li>Dell has introduced Project Hybrid which includes the production of new blade servers that will leapfrog the competing servers in terms of performance and efficiency in size </li></ul><ul><li>Dell recognises that the market’s needs have changed from: “who can give me the cheapest box the fastest” to “I have a problem, how can you help me fix it.” </li></ul><ul><li>Oliver Freaney and Co a medium sized company require: </li></ul><ul><li>1) High processing Speed </li></ul><ul><li>2) Large RAM( random access memory) </li></ul><ul><li>3) Large Hard Disk Space </li></ul><ul><li>4) RAID, this is a feature that is there in case the hard disk crashes, this feature will save the information on the hard disk and enables it to be transferred to another disk . </li></ul><ul><li>Dell delivered their requirements </li></ul>
  7. 7. Pricing <ul><li>Delivery charge </li></ul><ul><li>€ 38 </li></ul><ul><li>VAT at 21% </li></ul><ul><li>Dell utilize a low cost leader pricing strategy: </li></ul><ul><li>For example -> </li></ul>€ 4776.98 € 6031.24 € 4092.38 € 2803.57 Fujitsu Siemens Primergy BX 600 IBM Blade centre H HP c-Class Dell PowerEdge
  8. 8. Packaging <ul><li>Security in transit is a necessity in Dells packaging </li></ul><ul><li>All servers are wrapped in protective irrigated plastic wrapping, Styrofoam and secured in place in their boxes to avoid damage </li></ul><ul><li>The packaging in the server market is functional and does not require the aesthetic qualities that a chocolate bar or MP3 player would </li></ul><ul><li>It’s far less time consuming to unpack its contents than competitors thus saving the prchasing firm precious time and money </li></ul>
  9. 9. Critical Issues <ul><li>Dell’s most prominent problem is the continuation and expansion of its direct model </li></ul><ul><li>Increased competition from rival “copy-cats” i.e. IBM and HP </li></ul>
  10. 10. Promotion and Advertising <ul><li>Dell uses a combination </li></ul><ul><li>of up to at least ten </li></ul><ul><li>marketing strategies to </li></ul><ul><li>grow the business. </li></ul><ul><li>They include </li></ul><ul><li>Telephone Marketing </li></ul><ul><li>Direct Mail </li></ul><ul><li>Internet </li></ul><ul><li>Email marketing </li></ul><ul><li>Direct Sales </li></ul><ul><li>PR </li></ul><ul><li>Strategic Alliances </li></ul><ul><li>Lead Response Marketing </li></ul>
  11. 11. Target Market • Corporate Clients • Mass customization means the product is generically suitable/ adaptable to any business
  12. 12. Conclusion and Recommendations <ul><li>Dell should consider adding showrooms to detail and portray physical operation of their servers to ever demanding business customers </li></ul><ul><li>Use more “Customer Surveys” to gain market share by better understanding what exactly business users want </li></ul><ul><li>New methods of advertising should be devised to target business customers more specifically </li></ul><ul><li>Invest more in Research and Development </li></ul><ul><li>They should aim to increase company recognition through a national advertising campaign </li></ul><ul><li>Enhance customer support services </li></ul><ul><li>Dell could offer online data back-up capabilities </li></ul>

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