2. Business For example, it reduced reliance on direct sales by selling through retail channels and launched laptops and netbooks. Dell is renowned for its direct sales model that provides lots of customizability. On the other hand, differentiation is when “a company has a range of clearly differentiated products which appeal to different segments of the market” (Ogden and Wersun, 2007, p.282). This following diagram allows a more definitive insight into how Dell’s value chain operates: Dell, unlike their competitors, actually eliminates the need for distributors and retailers to sell their product, which as mentioned earlier creates ‘cost leadership’. Positioning is a marketing concept that outlines what a business should do to market its product or service to its customers.The positioning is created through the use of promotion, price, place, and product. This close relationship with suppliers and the direct selling model has allowed Dell to balance demand and supply remarkably well. Product differentiation, Target market, Target audience 1386 Words | (Information Systems Management, unknown date). the PCs value after the PC has been delivered, are the key primary elements of Porter’s Value Chain in which Dell uses. Customers trust us to deliver technology solutions that help them do and achieve more, whether they’re at home, work, school or anywhere in their world” (Dell, 2010(c)). Dell does not want to outsource its manufacturing operations entirely so as to prevent the unintended creation of competitors. preferences are increasing, the necessity of marketing also raised. 3. Instead of seeking ways to improve sales through retail channels, Dell could enhance its direct sales model by using social media.
Demographic and Geodemographic 1
This will then pave show how these added values create a distinctive competence within Dell, which, overall, have lead to competitive advantage since the company began to aggressively cut its costs and prices to increase their global market share in the 2000s (Jones and George, 2009,p.195). In the past, customers in India would have to wait for up to a month for their computers, which were manufactured in Malaysia. By orchestrating a SWOT analysis of Dell, we can clearly see the key components which.
Our academic experts are ready and waiting to assist with any writing project you may have. Dell was not able to gain a sustained competitive advantage due to its reliance on the direct sales model and traditional business strategies. To elaborate, there may be differences in culture, beliefs, language, political landscape, and infrastructure that can affect Dell’s global supply chain. The software solutions provide valuable real-time information about changes in demand and the market. This essay is aimed to explain the concept of market segmentation and its benefits as a substitute to a mass marketing approach. The next advantage is proximity to important markets. Because Spar falls under the South African food market, their approach would be to satisfy the. You can view samples of our professional work here. Premium Nevertheless, Dell’s hybrid strategy was a clever one; not only did it conjunctively produce cost effective manufacturing policies and customised products, but it also overcame the barrier of having access to new suppliers or distributers which can be arduous for companies gaining and sustaining success within an online market. 7 Pages. Some advantages are lower labour costs and a highly productive workforce. Segmentation analysis 1
Dell’s choice in the location of its manufacturing plants operations and decisions in its outsourcing operations are also discussed. Notably the inbound logistics element is important since the correct parts have to be delivered but since the holding of stock isn’t necessary with Dell due to their JIT system, then it becomes less meaningful.
Hence, Dell’s direct sales model has allowed it to differentiate its PC products by allowing “customers to design their own computer system and offering complementary services such as online customer support, three-year-on-site warranty, web hosting, installation and configuration of customers’ hardware and software” (Grant, R.M, 2005, p272).Furthermore, Timmers (1999, p.227) stated how Dell, on their website, don’t merely offer the ‘best PC offer of the month approach’ but rather an approach which offers discounts for large purchases which are tailored to that particular individual or company, as well as having support which is customised to users’ needs (Dell, 2010 (c)). The geographical distance makes control over the manufacturing operations even more difficult. purchasing of stock, play a pivotal role in executing these strategies of BTO and JIT, both, before and after the product has been sold. Bartlett & Beamish (2011) identify the distance and the liability of foreignness as two of these disadvantages. Strayer University Strategies and measures that Dell undertook to address its loss of market share were many. However, without the marketing and sales aspect these primary activities couldn’t be executed since customised orders wouldn’t be known and this has a direct link to the support activities of technology and procurement, as technology i.e. *You can also browse our support articles here >. Such uncertainties take up 60% of the supply chain cost due to a lack of available information. The manufacturing operations are also in close proximity to important regional markets to minimize delay between purchase and delivery. Overall the report is structured into four parts. market trends, sales data, etc.)
However this whole concept could be challenged as many people would be reluctant to buy a Dell PC without testing it in store first, however this argument becomes less relevant as more and more of us know people who have bought a Dell computer, since we can inspect theirs (Ogden & Wersun, 2007, p.61). Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Dell chose to locate its manufacturing plants close to such regional markets for better market access, lower shipping costs, and improved responsiveness in delivery. Coca-Cola, Psychographic, Product differentiation 692 Words | If such an accident were to happen to Dell’s global manufacturing plants and caused disruptions in its supply chain, the consequences would be disastrous.
This encompasses how companies use cost reduction and/or differentiation within their product and services to appeal to a particular broad or narrow segment of the market, in order to gain this competitive advantage. This originally led to soaring profits, as the internet has, ultimately, allowed Dell to extend the scope of their sales at a reasonably low marginal cost. A traditional firm usually incorporates a make-to-forecast strategy in which products are produced from long-term demands of consumers. Consequently, Dell have lower manufacturing and distribution costs than most of their competitors, thus they have achieved a cost leadership strategy over their rivals. This is because each customers have different needs and wants, so that by segment the market, the organization can identify which customers that can match with their products and services. market segmentation Introduction :
This also has the advantage that if “a supplier such as Intel, launches a new computer chip, then Dell is not caught with high stocks of the old chip” (Lynch, 2009, p.789), allowing the company to efficiently keep up with changes in technology. The market, market is divided into similar segments of people who have similar needs, it can be referred to as an approach that subdivides a market along some commonalities or kingship (i.e.) Dell SWOT Analysis; Dell Strengths: Below are the Strengths in the SWOT Analysis of Dell: 1.