Description
Strategic management analyzes the major initiatives taken by a company's top management on behalf of owners, involving resources and performance in internal and external environments.[1] It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs.
Marketing Strategy of Dell
Module Code: MKT 4100 Module Title: Strategic Marketing Management Assignment Title: Marketing Report
1
Executive Summary Product diversification is a key strategy for Dell as it seeks to maintain a competitive advantage in the declining PC market. Dell needs to restructure its core business priorities and develop new structures that can help it to gain leverage in a highly competitive industry. It needs to develop a comprehensive strategy, which can be based upon achieving key targets through the focus on innovation and creativity. The development of a comprehensive approach is essential because it can lead to competitive advantage in the future.
Product diversification should focus on smart phones, tablet PCs, software, storage management solutions, enterprise services, and supercomputers, which can help the organization to attain growth within short periods of time. Dell's corporate branding strategy is also essential because it must be restructured so that it helps to target home users as well as corporate users. It should create a competitive strategy, which should help it to offer value proposition to its customer.
Dell's key competitive advantages, which include a lean, supply chain management system and lowered costs through its direct distribution model need to be reinvented so that they can offer value added services to home users.
Introduction Dell is one of the largest organizations in the world with respect to its personal computer products. The success of the organization has been because of its ability to reduce costs and create a streamlined supply chain management system. The organization has been able to offer cost effective personal computers to customers. It has a direct business model that ensures that computers can be configured according to customer specifications and directly delivered to them. This has helped Dell to become an industry leader for many decades. It has created the conditions for loyal customer base and ensured its success in a competitive industry.
Dell faces significant threats in the form of declining PC sales. It cannot focus on limited products while it has to rebrand itself so that it can invest in software and enterprise solutions. Dell needs to have clear and precise goals. It needs to have a complete strategy for success, which is based upon efficiency and effectiveness. It needs to develop a comprehensive approach, which is based upon attaining strategic excellence within a short period of time.
Phase 1: Situational Analysis Internal Analysis Dell's business model is based upon creating a direct model according to the requirement of its customer segments. This is done as a means of ensuring that the organization maintains its competitive advantage in the computer industry. Dell knows 3
that it cannot afford to own different parts of the value chain. The direct business model ensures high levels of speed and reliability. It reduces the inventory while bypassing the need for dealers. It sells products directly according to the customers' specifications. This has enabled the organization to reduce the costs and risks of moving large finished goods inventories. (Smith, 2012)
Competitor Analysis Dell's primary competitors include HP, Acer, and Lenovo. All of these organizations have sought to find ways in which they can reduce prices. They have ensured that innovative strategies are designed as a means of combating the low costs of Dell. The price differential, which Dell has been known for, is slowing eroding because of innovative strategies. (Haag, 2006)
The competition within the computer industry is very swift which means that Dell might lose its future competitive advantage. Dell currently has 18% share of the personal computer market when compared with HP, which has overall 15% share. It is considered to be the third largest personal computer vendor in the world. HP is slowly eroding the competitive advantage of Dell through its innovative strategies. Additionally, Dell is suffering from a decline in PC shipments while its share in the server market has also reportedly decline. (Cooper, 2006)
Dell is also suffering from competitors like Apple which is a market leader in technology and innovation. Apple's emphasis on tablet computers and smart phones is
slowly eroding the competitive advantage of Dell, which continues to focus on personal computer products.
Market Analysis Dell has been successful in the market because of its loyal customer base and diversified product portfolio. The organization's main products are personal computers, servers, network equipment, software, and computer peripherals. It also offers cameras, printers, and other electronics. (Matear, 2002)
Dell has created a flexible supply chain management system so that its key goals can be attained. It has been using online commerce to increase its sales and revenues. Its build-to-order processes ensure that customers receive products according to their specifications. (Halldorsson, 2003)
Customer Analysis Dell's customers belong to diverse sectors but the youth represent its main customers. It has aggressive marketing strategies in order to target the young people. This is in line with its belief that technology can be easily promoted among the young customers. Dell has used clear and specific objectives in order to achieve its critical goals. It has crafted a superior business strategy that is based upon achieving efficiency and effectiveness. (Halldorsson, 2007)
5
Environmental Analysis Dell's business environment has become highly competitive because of the changes in social, political, and economic trends. The ongoing economic recession has reduced customer spending and forced businesses to cut down their costs. Dell has also suffered from this and has been forced to scale down its operations.
Another serious threat is that new players are emerging in the market with the popularity of tablet PCs and smart phones. These devices are new generation, which offers computing power in a versatile and smart manner. Hence companies like Dell are forced to make changes that will enable them to compete effectively in the market. (Munroe, 2011)
SWOT Analysis Strengths Dell is the largest PC maker in the world while it is a powerful and loyal brand among customers. It uses a direct to customer business model that leverages technology in order to achieve the key goals of the organization. It helps to establish direct relationships between customers. It also provides top-notch customer services before and after the sales process. This is an innovative mechanism that enables Dell to have competitive advantage. (Dell, 2009)
Besides that, it has an efficient supply chain management system with respect to procurement, manufacturing, and distribution. It leverages technology as means of
creating streamlined distribution channels. Dell does not manufacture its own products, which means that it assembles its products using cheap labor and components from suppliers. This helps it to achieve strategic competitive advantage as it can assemble and distribute products in an efficient manner.
Weaknesses Dell is dependent upon large number of suppliers in different countries for its products and components. It does not have any dealer or retailer relationships, which can offer significant disadvantages. In addition to that, it does not have any commercially developed technology, which can be its own patents. This is a disadvantage when compared with other competitors. (Zeithaml & Bitner, 2003)
Dell's direct method is problematic for customers who do not have high levels of awareness and perception. The process of developing computers according to customer specifications can cause delays for customers who want the product urgently. (Mendelson & Ziegler, 2009)
Opportunities Dell can ensure product diversification as means of ensuring success. For instance, it can offer maintenance and repair services for old products. It can also increase Internet stores for convenience, satisfaction, and timeliness of customers. This strategy can help it to achieve high levels of success with an emphasis on attaining key goals through innovation. 7
Software is another area where Dell can introduce its expertise as means of combating declining sales in personal computers. Dell can also target population segments in poor countries by offering cheap computers. Small businesses are another niche market for the organization. (Mendelson & Ziegler, 2009)
Threats Substitute products like smart phones and tablet PCs pose serious threats to Dell, which has limited product categories. Competitive rivalry is strong in the PC market throughout the world. The new entrants into the market have the potential to challenge the hegemony of the organization. Dell's direct model might be unsuitable for future growth as organizations devise new strategies to lower down their costs and pass the benefits to the customers. The growth of the personal computer industry is slowing which means Dell needs to focus on product diversification. This approach can help the organization to achieve its critical goals in an efficient and effective manner. (Dell, 2009)
Phase 2: Objectives and Strategy Development Marketing Objectives The following are the marketing objectives of the organization:
•
Dell should work on corporate branding so that it can retransform itself from a PC manufacturer to a firm that provides products and services to different niche markets. Corporate branding is extensive and Dell should focus on enterprise level solutions, storage networks, and supercomputers, which will target the corporate sector.
• • •
Dell needs to be cohesive through acquisitions and mergers. Product diversification should be supported by innovation in the field of software, enterprise solutions, tablet PCs and smart phones. Innovative technologies can be developed so that they can be sold at lower costs. This is the backbone of the organization, which has been successful because of its ability to manage its logistics.
• • •
Dell should enhance its relationships with its customers as means of ensuring high levels of success. (McDonald, 2002) It should not abandon its PC hardware business but find ways to develop innovative devices that are in accordance with current market conditions. Dell should employ its key strengths to remove weaknesses
Targeting and Positioning Dell needs to restructure itself so that it can create the image of a diversified technology solution provider. Services and software will be the main backbone of its new marketing strategy. Besides that, its core business, which is hardware, will remain but it will provide technological and innovative solutions. Dell needs to target home users as well as different corporate customers. The development of a comprehensive business strategy is critical for success as it will lead to long-term growth. (Graham, 2005)
Dell needs to conduct an analysis of the cash flows from the profitable products and services. This will help the organization to attain strategic competitive advantage.
9
Dell should focus on its key strengths, which are to reduce costs, which can be helpful, as it will ensure innovation, and low costs with respect to new technology. (Jobber, 2001)
Growth Strategy Product diversification is a key strategy for Dell as it seeks to maintain a competitive advantage in the declining PC market. Dell needs to restructure its core business priorities and develop new structures that can help it to gain leverage in a highly competitive industry. The development of a comprehensive approach is essential because it can lead to competitive advantage in the future. (Khan & Khan, 2009)
Product diversification should focus on smart phones, tablet PCs, software, storage management solutions, enterprise services, and supercomputers, which can help the organization to attain growth quickly. Dell's corporate branding strategy is also essential because it must be restructured so that it helps to target home users as well as corporate users. It should create a competitive strategy based upon the lenses of customers and competitors. This can help it to offer value proposition to its customer.
Dell's key competitive advantages, which include a lean supply chain management system and lowered costs through its direct distribution model need to be reinvented so that they can offer value added services to home users. The home users remain the most profitable segments for Dell. (Bennett, 2003)
Cloud computing is another area where Dell can foster growth and development. It can employ the power of software and storage technologies through the Internet as means of attaining clear leverage in a highly competitive industry. Supporting the cloud computing industry is another innovative way for growth in the market.
Dell needs to appear cohesive through its mergers and acquisitions. This will help it to have a centralized strategy for attaining growth. It should focus outwards so that its business processes are flexible, reliable and agile. It needs to redefine its priorities and make investments in the areas where there are potential for increased cash flows. This will help the organization to attain success by leveraging its key products and strengths. (Phillips, 2005)
Selection of Competitive Advantage Dell can attain competitive advantage by using following strategies:
• • • •
Product diversification should continue but its core products of hardware should be given priority so that it can determine profitable markets. Niche markets need to be targeted by the organization for success. It needs to focus on branding itself into a complete IT services and devices provider. Dell needs to revamp its marketing and business strategies through efficiency, competence, and professionalism.
11
Marketing Mix Product Dell's products should offer tangible and intangible benefits to its customer segments. New products and services can offer significant advantage and choice to the customers. They can also provide increased loyalty and brand image for the organization, which is needed by Dell in order to ensure that it can secure its future. (Yasin & Zimmerer, 2005) Price Dell's pricing strategies should not exclusively focus on lower prices. But it can devise ways to find products and services that are innovative but at low prices. In other services, the organization needs to have clear choices so that it is able to achieve its critical targets in a proficient manner. (Webb et al, 2000)
Place Dell should focus on online commerce as the means to reduce its costs. This can help the organization to offer an online business model that offers convenience, satisfaction, and excellence for the customers. (Wilson, 2002)
Promotion Social media is another way to promote its products and services. Moreover, the Internet should remain the main medium for the success of the organization. The use of different promotional strategies over the Internet and social networking sites will help the organization to attain strategic leverage within a short span of time. (Holloway, 2006)
Conclusion Dell has been successful in the PC market because of its supply chain management and direct business model. It has a flexible and reliable supply chain management system that reduces inventory and costs. It reduces risks of operating in a competitive industry. Dell has a brand image among its customers because of its cost effective rates. All of these factors have made the organization very popular among the customer segments.
However, Dell has been facing stiff competition as the trend in the PC markets has changed. It has faced new entrants and new technologies that erode its traditional competitive advantage. Dell needs to devise a vibrant business strategy that is based upon product diversification. It should also continue with its primary model of computer hardware. Furthermore, it is through the emphasis on a strategic edge that the organization can attain success in the long term. The long-term growth should be based upon using its competitive advantages.
13
REFERENCES
Bennett, R. (2003). International Marketing Strategy, Planning, Market Entry & Implementation. London: Kogan Page Limited.
Chris Phillips, I. D. a. R. L. (2005). International Marketing Strategy Analysis, Development and Implementation. London and New York: Routledge.
Cooper, M.C., Lambert, D.M., & Pagh, J. (2006) Supply Chain Management: More Than a New Name for Logistics. The International Journal of Logistics Management Vol 8, Iss 1, pp 1-14
Graham, P. R. C. J. L. (2005). International Marketing (twelfth ed.). New York
H. Mendelson and J. Ziegler, (2009). Survival of the Smartest: Managing Information for Rapid Action and World Class Performance, Wiley & Sons
Haag, S., Cummings, M., McCubbrey, D., Pinsonneault, A., & Donovan, R. (2006), Management Information Systems For the Information Age (3rd Canadian Ed.), Canada: McGraw Hill Ryerson
Halldorsson, A., Kotzab, H., Mikkola, J. H., Skjoett-Larsen, T. (2007). Complementary theories to supply chain management. Supply Chain Management: An International Journal, Volume 12 Issue 4, 284-296.
Halldorsson, Arni, Herbert Kotzab & Tage Skjott-Larsen (2003). Inter-organizational theories behind Supply Chain Management - discussion and applications, In
Seuring, Stefan et al. (eds.), Strategy and Organization in Supply Chains, Physica Verlag. Holloway, J.C. (2006) The Business of Tourism (5th edition), Harlow: Longman
Jobber, David. (2001), Principles & Practice of Marketing, 3rd ed. London: McGraw-Hill.
Khan, M., Khan, M.A. (2009), "How technological innovations extend services outreach to customers", International Journal of Contemporary Hospitality Management, Vol. 21 No.5, pp.509-22. Matear, S., Osborne, P., Garrett, T., Gray, B. (2002), "How does market orientation contribute to service firm performance? An examination of alternative mechanisms", European Journal of Marketing, Vol. 36 No.9/10, pp.1058-75. McDonald, Malcolm. (2002), Marketing Plans: How to Prepare Them. How to Use Them, 5th ed. Oxford: Butterworth-Heinemann. Michael Dell (2009). Direct from Dell: Strategies that Revolutionized an Industry, Harper Business
Munroe, Robert (2011). Dell Case Study. Research Market Reports
Smith, R (2012). Dell's Market Analysis. Research Markets Webb, D., Webster, C., Krepapa, A. (2000), "An exploration of the meaning and outcomes of a customer-defined market orientation", Journal of Business Research, Vol. 48 No.2, pp.101-12. Wilson, A. (2002), The Marketing Audit Workbook - Tools, Techniques and Checklists to Exploit Your Marketing Resources, Kogan Page, London, . 15
Yasin, M. M. and Zimmerer, T. W. (2005). "The role of benchmarking in achieving continuous service quality", International Journal of Contemporary Hospitality Management, Vol. 7 No. 4, pp. 27-32. Zeithaml, V., Bitner, M. (2003), Services Marketing - Integrating Customer Focus across the Firm, 3rd ed., McGraw-Hill, New York, NY .
doc_846208026.docx
Strategic management analyzes the major initiatives taken by a company's top management on behalf of owners, involving resources and performance in internal and external environments.[1] It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs.
Marketing Strategy of Dell
Module Code: MKT 4100 Module Title: Strategic Marketing Management Assignment Title: Marketing Report
1
Executive Summary Product diversification is a key strategy for Dell as it seeks to maintain a competitive advantage in the declining PC market. Dell needs to restructure its core business priorities and develop new structures that can help it to gain leverage in a highly competitive industry. It needs to develop a comprehensive strategy, which can be based upon achieving key targets through the focus on innovation and creativity. The development of a comprehensive approach is essential because it can lead to competitive advantage in the future.
Product diversification should focus on smart phones, tablet PCs, software, storage management solutions, enterprise services, and supercomputers, which can help the organization to attain growth within short periods of time. Dell's corporate branding strategy is also essential because it must be restructured so that it helps to target home users as well as corporate users. It should create a competitive strategy, which should help it to offer value proposition to its customer.
Dell's key competitive advantages, which include a lean, supply chain management system and lowered costs through its direct distribution model need to be reinvented so that they can offer value added services to home users.
Introduction Dell is one of the largest organizations in the world with respect to its personal computer products. The success of the organization has been because of its ability to reduce costs and create a streamlined supply chain management system. The organization has been able to offer cost effective personal computers to customers. It has a direct business model that ensures that computers can be configured according to customer specifications and directly delivered to them. This has helped Dell to become an industry leader for many decades. It has created the conditions for loyal customer base and ensured its success in a competitive industry.
Dell faces significant threats in the form of declining PC sales. It cannot focus on limited products while it has to rebrand itself so that it can invest in software and enterprise solutions. Dell needs to have clear and precise goals. It needs to have a complete strategy for success, which is based upon efficiency and effectiveness. It needs to develop a comprehensive approach, which is based upon attaining strategic excellence within a short period of time.
Phase 1: Situational Analysis Internal Analysis Dell's business model is based upon creating a direct model according to the requirement of its customer segments. This is done as a means of ensuring that the organization maintains its competitive advantage in the computer industry. Dell knows 3
that it cannot afford to own different parts of the value chain. The direct business model ensures high levels of speed and reliability. It reduces the inventory while bypassing the need for dealers. It sells products directly according to the customers' specifications. This has enabled the organization to reduce the costs and risks of moving large finished goods inventories. (Smith, 2012)
Competitor Analysis Dell's primary competitors include HP, Acer, and Lenovo. All of these organizations have sought to find ways in which they can reduce prices. They have ensured that innovative strategies are designed as a means of combating the low costs of Dell. The price differential, which Dell has been known for, is slowing eroding because of innovative strategies. (Haag, 2006)
The competition within the computer industry is very swift which means that Dell might lose its future competitive advantage. Dell currently has 18% share of the personal computer market when compared with HP, which has overall 15% share. It is considered to be the third largest personal computer vendor in the world. HP is slowly eroding the competitive advantage of Dell through its innovative strategies. Additionally, Dell is suffering from a decline in PC shipments while its share in the server market has also reportedly decline. (Cooper, 2006)
Dell is also suffering from competitors like Apple which is a market leader in technology and innovation. Apple's emphasis on tablet computers and smart phones is
slowly eroding the competitive advantage of Dell, which continues to focus on personal computer products.
Market Analysis Dell has been successful in the market because of its loyal customer base and diversified product portfolio. The organization's main products are personal computers, servers, network equipment, software, and computer peripherals. It also offers cameras, printers, and other electronics. (Matear, 2002)
Dell has created a flexible supply chain management system so that its key goals can be attained. It has been using online commerce to increase its sales and revenues. Its build-to-order processes ensure that customers receive products according to their specifications. (Halldorsson, 2003)
Customer Analysis Dell's customers belong to diverse sectors but the youth represent its main customers. It has aggressive marketing strategies in order to target the young people. This is in line with its belief that technology can be easily promoted among the young customers. Dell has used clear and specific objectives in order to achieve its critical goals. It has crafted a superior business strategy that is based upon achieving efficiency and effectiveness. (Halldorsson, 2007)
5
Environmental Analysis Dell's business environment has become highly competitive because of the changes in social, political, and economic trends. The ongoing economic recession has reduced customer spending and forced businesses to cut down their costs. Dell has also suffered from this and has been forced to scale down its operations.
Another serious threat is that new players are emerging in the market with the popularity of tablet PCs and smart phones. These devices are new generation, which offers computing power in a versatile and smart manner. Hence companies like Dell are forced to make changes that will enable them to compete effectively in the market. (Munroe, 2011)
SWOT Analysis Strengths Dell is the largest PC maker in the world while it is a powerful and loyal brand among customers. It uses a direct to customer business model that leverages technology in order to achieve the key goals of the organization. It helps to establish direct relationships between customers. It also provides top-notch customer services before and after the sales process. This is an innovative mechanism that enables Dell to have competitive advantage. (Dell, 2009)
Besides that, it has an efficient supply chain management system with respect to procurement, manufacturing, and distribution. It leverages technology as means of
creating streamlined distribution channels. Dell does not manufacture its own products, which means that it assembles its products using cheap labor and components from suppliers. This helps it to achieve strategic competitive advantage as it can assemble and distribute products in an efficient manner.
Weaknesses Dell is dependent upon large number of suppliers in different countries for its products and components. It does not have any dealer or retailer relationships, which can offer significant disadvantages. In addition to that, it does not have any commercially developed technology, which can be its own patents. This is a disadvantage when compared with other competitors. (Zeithaml & Bitner, 2003)
Dell's direct method is problematic for customers who do not have high levels of awareness and perception. The process of developing computers according to customer specifications can cause delays for customers who want the product urgently. (Mendelson & Ziegler, 2009)
Opportunities Dell can ensure product diversification as means of ensuring success. For instance, it can offer maintenance and repair services for old products. It can also increase Internet stores for convenience, satisfaction, and timeliness of customers. This strategy can help it to achieve high levels of success with an emphasis on attaining key goals through innovation. 7
Software is another area where Dell can introduce its expertise as means of combating declining sales in personal computers. Dell can also target population segments in poor countries by offering cheap computers. Small businesses are another niche market for the organization. (Mendelson & Ziegler, 2009)
Threats Substitute products like smart phones and tablet PCs pose serious threats to Dell, which has limited product categories. Competitive rivalry is strong in the PC market throughout the world. The new entrants into the market have the potential to challenge the hegemony of the organization. Dell's direct model might be unsuitable for future growth as organizations devise new strategies to lower down their costs and pass the benefits to the customers. The growth of the personal computer industry is slowing which means Dell needs to focus on product diversification. This approach can help the organization to achieve its critical goals in an efficient and effective manner. (Dell, 2009)
Phase 2: Objectives and Strategy Development Marketing Objectives The following are the marketing objectives of the organization:
•
Dell should work on corporate branding so that it can retransform itself from a PC manufacturer to a firm that provides products and services to different niche markets. Corporate branding is extensive and Dell should focus on enterprise level solutions, storage networks, and supercomputers, which will target the corporate sector.
• • •
Dell needs to be cohesive through acquisitions and mergers. Product diversification should be supported by innovation in the field of software, enterprise solutions, tablet PCs and smart phones. Innovative technologies can be developed so that they can be sold at lower costs. This is the backbone of the organization, which has been successful because of its ability to manage its logistics.
• • •
Dell should enhance its relationships with its customers as means of ensuring high levels of success. (McDonald, 2002) It should not abandon its PC hardware business but find ways to develop innovative devices that are in accordance with current market conditions. Dell should employ its key strengths to remove weaknesses
Targeting and Positioning Dell needs to restructure itself so that it can create the image of a diversified technology solution provider. Services and software will be the main backbone of its new marketing strategy. Besides that, its core business, which is hardware, will remain but it will provide technological and innovative solutions. Dell needs to target home users as well as different corporate customers. The development of a comprehensive business strategy is critical for success as it will lead to long-term growth. (Graham, 2005)
Dell needs to conduct an analysis of the cash flows from the profitable products and services. This will help the organization to attain strategic competitive advantage.
9
Dell should focus on its key strengths, which are to reduce costs, which can be helpful, as it will ensure innovation, and low costs with respect to new technology. (Jobber, 2001)
Growth Strategy Product diversification is a key strategy for Dell as it seeks to maintain a competitive advantage in the declining PC market. Dell needs to restructure its core business priorities and develop new structures that can help it to gain leverage in a highly competitive industry. The development of a comprehensive approach is essential because it can lead to competitive advantage in the future. (Khan & Khan, 2009)
Product diversification should focus on smart phones, tablet PCs, software, storage management solutions, enterprise services, and supercomputers, which can help the organization to attain growth quickly. Dell's corporate branding strategy is also essential because it must be restructured so that it helps to target home users as well as corporate users. It should create a competitive strategy based upon the lenses of customers and competitors. This can help it to offer value proposition to its customer.
Dell's key competitive advantages, which include a lean supply chain management system and lowered costs through its direct distribution model need to be reinvented so that they can offer value added services to home users. The home users remain the most profitable segments for Dell. (Bennett, 2003)
Cloud computing is another area where Dell can foster growth and development. It can employ the power of software and storage technologies through the Internet as means of attaining clear leverage in a highly competitive industry. Supporting the cloud computing industry is another innovative way for growth in the market.
Dell needs to appear cohesive through its mergers and acquisitions. This will help it to have a centralized strategy for attaining growth. It should focus outwards so that its business processes are flexible, reliable and agile. It needs to redefine its priorities and make investments in the areas where there are potential for increased cash flows. This will help the organization to attain success by leveraging its key products and strengths. (Phillips, 2005)
Selection of Competitive Advantage Dell can attain competitive advantage by using following strategies:
• • • •
Product diversification should continue but its core products of hardware should be given priority so that it can determine profitable markets. Niche markets need to be targeted by the organization for success. It needs to focus on branding itself into a complete IT services and devices provider. Dell needs to revamp its marketing and business strategies through efficiency, competence, and professionalism.
11
Marketing Mix Product Dell's products should offer tangible and intangible benefits to its customer segments. New products and services can offer significant advantage and choice to the customers. They can also provide increased loyalty and brand image for the organization, which is needed by Dell in order to ensure that it can secure its future. (Yasin & Zimmerer, 2005) Price Dell's pricing strategies should not exclusively focus on lower prices. But it can devise ways to find products and services that are innovative but at low prices. In other services, the organization needs to have clear choices so that it is able to achieve its critical targets in a proficient manner. (Webb et al, 2000)
Place Dell should focus on online commerce as the means to reduce its costs. This can help the organization to offer an online business model that offers convenience, satisfaction, and excellence for the customers. (Wilson, 2002)
Promotion Social media is another way to promote its products and services. Moreover, the Internet should remain the main medium for the success of the organization. The use of different promotional strategies over the Internet and social networking sites will help the organization to attain strategic leverage within a short span of time. (Holloway, 2006)
Conclusion Dell has been successful in the PC market because of its supply chain management and direct business model. It has a flexible and reliable supply chain management system that reduces inventory and costs. It reduces risks of operating in a competitive industry. Dell has a brand image among its customers because of its cost effective rates. All of these factors have made the organization very popular among the customer segments.
However, Dell has been facing stiff competition as the trend in the PC markets has changed. It has faced new entrants and new technologies that erode its traditional competitive advantage. Dell needs to devise a vibrant business strategy that is based upon product diversification. It should also continue with its primary model of computer hardware. Furthermore, it is through the emphasis on a strategic edge that the organization can attain success in the long term. The long-term growth should be based upon using its competitive advantages.
13
REFERENCES
Bennett, R. (2003). International Marketing Strategy, Planning, Market Entry & Implementation. London: Kogan Page Limited.
Chris Phillips, I. D. a. R. L. (2005). International Marketing Strategy Analysis, Development and Implementation. London and New York: Routledge.
Cooper, M.C., Lambert, D.M., & Pagh, J. (2006) Supply Chain Management: More Than a New Name for Logistics. The International Journal of Logistics Management Vol 8, Iss 1, pp 1-14
Graham, P. R. C. J. L. (2005). International Marketing (twelfth ed.). New York
H. Mendelson and J. Ziegler, (2009). Survival of the Smartest: Managing Information for Rapid Action and World Class Performance, Wiley & Sons
Haag, S., Cummings, M., McCubbrey, D., Pinsonneault, A., & Donovan, R. (2006), Management Information Systems For the Information Age (3rd Canadian Ed.), Canada: McGraw Hill Ryerson
Halldorsson, A., Kotzab, H., Mikkola, J. H., Skjoett-Larsen, T. (2007). Complementary theories to supply chain management. Supply Chain Management: An International Journal, Volume 12 Issue 4, 284-296.
Halldorsson, Arni, Herbert Kotzab & Tage Skjott-Larsen (2003). Inter-organizational theories behind Supply Chain Management - discussion and applications, In
Seuring, Stefan et al. (eds.), Strategy and Organization in Supply Chains, Physica Verlag. Holloway, J.C. (2006) The Business of Tourism (5th edition), Harlow: Longman
Jobber, David. (2001), Principles & Practice of Marketing, 3rd ed. London: McGraw-Hill.
Khan, M., Khan, M.A. (2009), "How technological innovations extend services outreach to customers", International Journal of Contemporary Hospitality Management, Vol. 21 No.5, pp.509-22. Matear, S., Osborne, P., Garrett, T., Gray, B. (2002), "How does market orientation contribute to service firm performance? An examination of alternative mechanisms", European Journal of Marketing, Vol. 36 No.9/10, pp.1058-75. McDonald, Malcolm. (2002), Marketing Plans: How to Prepare Them. How to Use Them, 5th ed. Oxford: Butterworth-Heinemann. Michael Dell (2009). Direct from Dell: Strategies that Revolutionized an Industry, Harper Business
Munroe, Robert (2011). Dell Case Study. Research Market Reports
Smith, R (2012). Dell's Market Analysis. Research Markets Webb, D., Webster, C., Krepapa, A. (2000), "An exploration of the meaning and outcomes of a customer-defined market orientation", Journal of Business Research, Vol. 48 No.2, pp.101-12. Wilson, A. (2002), The Marketing Audit Workbook - Tools, Techniques and Checklists to Exploit Your Marketing Resources, Kogan Page, London, . 15
Yasin, M. M. and Zimmerer, T. W. (2005). "The role of benchmarking in achieving continuous service quality", International Journal of Contemporary Hospitality Management, Vol. 7 No. 4, pp. 27-32. Zeithaml, V., Bitner, M. (2003), Services Marketing - Integrating Customer Focus across the Firm, 3rd ed., McGraw-Hill, New York, NY .
doc_846208026.docx