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Dell Presentation


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Dell Presentation

  1. 1. Dell : ‘everything you need from start to finish, without overcomplicating IT’<br />
  2. 2. Aims<br /><ul><li>How does Dell differentiate itself from other multinational IT corporations?
  3. 3. How has it been adapting its resources to current market conditions in such a competitive environment?</li></ul>We will be focusing on Dell’s competitive advantage based on:<br />Their supply chain and distribution strategies (Adrian)<br />Their pricing strategies (Aime)<br />Their service offering (Georgiana)<br />Their promotional efforts and the B2B aspect of the company (Israel)<br />We will also be talking about their recent change of strategy and decide whether it was a sound decision. <br />
  4. 4. Recent developments in the computer market<br />Source: MINTEL (‘PC Retailing, UK’– July 2007)<br />
  5. 5. Dell – intro and figures<br />
  6. 6. Competitors<br />
  7. 7. Distribution and supply chain<br />
  8. 8. Pricing strategies<br />The two key price bands for laptops and desktops are £251-399 and £400-699, with well over half of all buyers falling into these two price groups.<br />
  9. 9. Service and support<br />Dell shows a clear competitive advantage by providing distinctive customer support and comprehensive after-sale services, which help it “tailor its offerings to the needs and desires of its customers.” (Hollensen, 2009, pp. 398)<br />“Dell's phone support has very long hold times, but the web support is so good you may never have to call in. Toshiba's website, on the other hand, is poor - but calls were answered in less than five minutes and customer service representatives were helpful.” <br />– Matthew Smith, blogger and PC reviewer<br /><ul><li>Dell has been at the forefront of online marketing development and CRM, featuring a blog that allows customers to communicate directly with the company (Direct2Dell). This is crucial for a company that doesn’t have any dedicated shops. (MINTEL, 2009)</li></li></ul><li>The screenshot illustrates the level of customisation customers can reach. Dell provides essential technical information about each component without creating information clutter.<br />
  10. 10. How do the others compare?<br />‘Sleek’ interface, but not as simple to use. The website focuses on upselling by attempting to add entertainment-focused items to the basket, such as speakers/headphones. Considerably more expensive than Dell.<br />
  11. 11. How do the others compare?<br />Toshiba: “BUY ONLINE FROM A TOSHIBA PARTNER.”<br />Dell: “CONGRATULATIONS! YOUR SYTEM IS READY TO BE BUILT.”<br />Which one sounds better?<br />
  12. 12. Promotion<br />
  13. 13. B2B Marketing<br />
  14. 14. Recent change of strategy – is it working?<br />According to research carried out by MINTEL (2009), Dell has made a radical change to its business model. They are now…<br />Distributing through 3rd party retailers such as Tesco and DSGi (Currysand PC World)<br />Considering opening UK stores for the first time<br />
  15. 15. HOWEVER…<br />The bulk of their profits still comes from direct/online sales. (MINTEL, 2009)<br />Despite increasing their reach through the use of popular retailers, the costs of involving a 3rd party (which extends the supply chain) are significant and the company may lose control over the way the brand is presented.<br />Is it a wise decision to for Dell to move away from the very model that has brought it so much success and acclaim in the past?<br />
  16. 16. Recommendations<br />"We know what we are and what we're not. We are a really superb product integrator. We're a tremendously good sales-and-logistics company. We're not the developer of innovative technology.” <br />– Michael Dell, CEO<br />Dell is a…<br /><ul><li>Mass-market brand which enables a high degree of customisation
  17. 17. Corporation that provides high quality aftercare packages
  18. 18. Company that maintains a high value-for-money positioning
  19. 19. Reliable and trusted brand which competes aggressively on price</li></ul>…but the brand needs to become more innovative due to the mature nature of the computer market.<br />
  20. 20. Bibliography<br />
  21. 21. Thank you for listening. Do you have any questions for Aime? :D<br />