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  • 1. A CASE STUDY OF DELL GROUP-3
  • 2. SITUATIONAL AUDIT
    • Dell is the #1 computer systems company-Michael Dell
    • Company sells build-to-order computer systems directly to customers(consumer as well as corporate)
    • In 1993 the company began trying to sell to retailers because everyone else was ,but due to poor retail channel customers were dissatisfied and Dell finally abandoned the retail channel .
    • Dell put most of its resources into building relationships with its most profitable customers.
    • Dell manages its corporate clients with a top-notch sales team
    • Customers can chose what components they want for their computer, Dell assembles the order & ships it. This strategy improves customer satisfaction & reduces costs & risks to the company.
    • Through the use of PremierDell.com web page, the company has created a 24/7 order – entry system.
    • Michael Dell was invited by auto-manufacturers to speak.
  • 3.
    • SWOT
    • ANALYSIS
    • “ We have a tremendously clear business model “ kjbjkbk - MICHAEL S DELL
  • 4. STRENGTHS -
    • PC can be built & sold directly to customers ; by doing this Dell could address their specific needs & provide the best computing solutions to meet those needs leading to :-
    • a)Reducing marketing & sales cost by eliminating markups of distributors & retailers
    • b)Built-to-order reduces the cost of inventory & risk of retaining excess inventory.
    • Price for Performance - Efficient procurement , manufacturing & distribution process – hence powerful systems at low price.
    • Customization :– Built-to-order systems to meet specific needs according to customer specifications.
    • Reliability , Service & Support:-Direct customer interaction allows Dell to provide top-notch service before & after sale. This strategy improves customer satisfaction & reduces cost & risk to the company.
    • The money is received well in advance & hence financial stability is more.
    • PremierDell website where all information regarding products can be viewed(Automated 24//7 system built-to-order.
  • 5. WEAKNESSES
    • People who are not very tech-savvy could not use the order mechanism due to absence of technical know-how.
    • In case of massive orders Dell would be unable to produce at that instance due to unavailability of finished products in the inventory.
    • People did not get hands on experience on the finished product and hence the concept of trying out different products and then finalizing one did not arise.
    • Dell did not put much attention to the non-corporate sector and hence lost out on a major chunk of its prospective users.
    • Components are delivered just minutes before the order, hence if the time taken to get the components is more , the process of making the machine is delayed & hence dissatisfaction.
    • In spite of being a market leader , Dell acted more as an follower(“In 1993 the company began trying to sell to retailers, mainly because everyone else was”)
  • 6. Opportunities & Threats: -
    • Opportunity: -
    • A) Dell is the market leader in computers and it could well have used this brand image to tap the Non corporate segment.
    • B)When Michael Dell was invited by car manufacturers to speak, he could well have use that opportunity to tap a new segment ( eg. Computerized car navigation system ) & hence diversify its Portfolio.
    • Threats :-
    • Dell’s attitude to just concentrate on the corporate market was a threat as a part of the market segment remained untapped.
    • Dell did not have finished products .
    • Lack of proper distributor channel.
    • Competitors :-
    • a)They targeted all segments of the market
    • b)Had finished products
    • c)Had proper distributor channels.
  • 7. KEY ISSUES :-
    • Dell did not have a distributor channel & hence the concept of push- selling by retailer was not there.
    • Dell mainly targeted the corporate segment & hence a major segment of the market, i.e. non corporate remained unattended to.
    • Unavailability of finished products in the inventory could lead to not being able to deliver in time in case of massive orders bound by a strict timeline.
    • Dell could have been able to diversify their portfolio and delve into the automotive industry (by laying the foundation for Automated Car Navigation system)
    • Dell started retail because everybody was doing so and this very attitude made Dell more of a follower in spite of being a leader in the computer segment.
    • The whole build-to-order mechanism was suited for tech-savvy people and hence people not so conversant with computers faced difficulty while placing the order . Also ordering over the internet without seeing or trying out the product might lead to less number of buys.
  • 8. SOLUTIONS:-
    • First of all, Dell needs to target less tech-savvy people who don’t have good knowledge about computers as well as non-corporate clients.
    • Secondly, some stores can be opened wherein specialized personnel would be there , who would resolve all query regarding available components as well as help to decide on the final buy . Also few demo finished products can be there for customers to try hands on.
    • Third, add more information about the components so that even low-tech people could understand.
    • Fourthly the car market segment can be tapped as Michael Dell was a guest speaker there & they have faith in the brand called Dell & this faith can be used for portfolio diversification.
    • Fifth, Kiosks can be placed at strategic positions (eg. City centre or Town hall or Subways ) with option of placing the order as well as with detailed description of the components in simple language for the common people to understand.
    • Information workshops can be made for creating awareness.
  • 9. MEMBERS OF SEC A(GROUP 3 )--
    • ABHISHEK BHATTACHARYA
    • KHUSBOO GOLECHHA
    • MD. WASAY ALI CHOWDHURY
    • MOHAMMED SHAHID
    • OZMA AZMI
    • PRIYANKA MULLICK
    • RAVI MEHTA
    • SNEHA PUTATUNDA
    • SOHAM MAJUMDAR
  • 10. THANK YOU FOR YOUR PATIENCE…..