Dell Marketing Strategy

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

According to Michael Cannon, Dell's President of Global Operations, the key differentiators that have made Dell so effective for nearly two

Dell is a computer technology corporation that involves sells, repair, support computer and their parts. Dell has found out that supply chain is becoming more and very important for the success of nowadays business global world and they work consequently to retain a

sustain its profitability in light of the industry’s -10% growth rate and 50% reduction in profit margins in late 2000, or should it change its expectations and react to the commodity nature of the environment? Dell’s immediate challenge is to try and sustain its positive growth rate, spike its stock prices, and conquer new markets. But how does Dell choose its next product or service to offer the world ? It must make the right choices as to what is the next value proposition that really matters to its customers. Another challenge for Dell is how to cope in a new world where technology devices and components cost less and less (resulting in shrinking profit margins) that become obsolete practically overnight. Perhaps, Dell’s biggest challenge will be to have the discipline to know when and how to change strategies that have worked so well up to now. If Dell does not have the vision and adaptability, it will be just a matter of time before another company does a Dell on Dell.

But there is one company that has stood and fought its rivals. The name of that company is Dell. Started on November 4 1984 by Michael Dell, Dell grew by the early 90’s to become the largest seller of PCs and servers. The company currently sells personal computers,

Dell is a leading technology company that offers a wide range of products including desktop computers, networking products, servers, mobility products, storage, peripherals, software as well as general IT services. The company mainly operates in the United States and is headquartered in the city of Round Rock, Texas. In the financial year ended 2011, the company recorded a revenue of $61,494 million, a figure which indicated a 16.2 percent increase over the FY2010 figure. Its FY2011 operating profit was about $3,433 million, an amount which marked a 58.1% increase over the FY2010 value. Its FY2011 net profit was $2,635 million, a value which represented a 83.9 percent increase over the FY2010 value (Datamonitor,2011).

The close-knit relationships with customers that Dell maintains allow the company to determine what products

Dell is among the fastest growing companies in the IT world. Dell started out as a company manufacturing PC’s and slowly developed as a big giant in IT industry. Today, Dell has an IT division which takes care of the cyber security called Dell Secure works. Dell designs, develops, manufactures, services and supports a range of computer systems including, desktops, laptops and enterprise products. Dell went public in 1988, capitalization for Dell increased to $85 Million Dollars from $1,000.00 in 1984. By 1996, Dell had become the 3rd largest hardware vendor in the world. In the late 1980’s Dell started gaining advantage with its PC business in the late 90’s. IBM was one of the big player in the industry

Dell is the #1 personal computer provider in the USA and #2 worldwide. Dell has nearly two billion interactions with customers worldwide each year, and processes more than three million transactions daily. On average, over 140,000 Dell computer systems are shipped each day.2

Dell has positioned itself as a global provider of IT solutions and services over multiple years. This branding has shown that it is not simply an attempt to distance itself from the profitable but low-margin PC business, but instead, that it is a very real transition for both Dell as a company and the IT landscape, in which Dell operates. The current increase in cloud computing, big data, and connected devices, information technology is becoming more vital to the survival of business service sectors. These changes are rapidly moving down from huge enterprises into Dell’s ideal customer base of small and medium sized businesses. Dell has made multiple acquisitions over the years which has created many offerings and helped to position the

Although Dell (“Dell” or the “Company”) is one of the medium size players, the Company is one of the most profitable and fastest growing Companies in the industry. The industry is characterized by several different products such as computers, imaging, printing systems, information technology and services and solutions. The industry has seen double digit growth for the last 10 years but as 2001 came to an end, the industry is softening.

Price reasonability and the availability of support, after sales services and parts have alleviate Dell's position from others.

During the early 1990s, computer industry developed rapidly. With the entrance of Dell, the dynamic structure in the industry changed. Between 1994 and 1998, Dell 's growth was twice as fast as its major rivals (IBM, Compaq, Gateway, and Hewlett-Packard). Dell provides high performance PCs at low prices. Its competitive advantage is mainly established by the innovation of the Direct Model and other firm level strategies that enable Dell to utilize its resources and build up its capabilities more efficiently.

Dell Inc is a renowned multinational company in computer technology that manufacture, design, sells, and support computer related products and services. It was founded by Michael Dell in 1984 in Austin, Texas, and started selling personal computer with $1000. The company approached good marketing strategy that include low cost product, placing ads in computer magazines, and enable toll free number for placing orders. Within few years, the company touched the annual budget close to $1 billion per year that made the company as the largest technological corporation in the world.

Dell is considered doing well in the market segmentation in order to avoid unnecessary loss. The management carry out analysis and report to find out which part or area can let them make the most profit. They position themselves as a strategic vendor, which is important in the business. From this, they have the competitive advantage in order to compete with other IT big business. Dell is also trying to sell affordable or more cheaper product to the customer. Apple is the top IT business in the world nowadays. As a result, Dell can not compete with them at the moment. Therefore, Dell’s product strategy is more focus on developing one specific product that can satisfy the customer. Dell also provides variety of services to