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Dell Computer Firm Business Essay


In 1984 Michael Dell was the creator of dell computer to sell custom-made personal system right to customer. The business has been sell growth from $6 million to almost $40 billion in 25 years. In the world pc, supplier industry dell is on no 2nd and in the Lot of money 500 list company dell come on 38th position.

The headquartered of dell is within Austin, Tx. Dell is a leading specialist of product and services for customer. The primary strategy of dell is to give attention to deliver the perfect customer computing product and service. The income of company in last four quarters totalled $55. 43 billion and about 96, 000 employees work in solution like tech support team and commercial data centre. As per the company professional said by fiscal 2014 the business organization business might be reach $30 billion. (www. dell. com)


Before starting the business for any corporation, it is vital to check out the market scenario. Because analysing of market environment will feed the look for future. Marketing business environment made up of three factors (Lomax W and Raman A, 2005):

Internal Environment includes inner customers, wages and money, office technology.

Micro Environment includes challengers, exterior customers and suppliers.

Macro Environment includes Politics, Economic, Friendly and Technological makes are called Infestation analysis.


Political Makes:

This includes federal legislation results companies procedure. The dell has to face certain problems in some countries where there is no guaranty of politics stability. In many cases, rules of overseas countries may hold off the companies to joining in markets. To type in this market company have to establish partnerships with other company. However, Dell has a good opportunity where free from restrictions. For instance, they have opened up their market in china in 2001.

Economical Pushes:

The UK and the US both have high inflation rate 3. 4 and 1. 1 respectively. These will have an impact on the sales of the merchandise. As dell is import and export their part from international market so exchange rate will have an effect on the company. However, currency is not stable these will lead affect the income of company.

Social Factors:

Dell is dedicated to their customer. They use unique immediate online marketing strategy for business. Through the use of pervasive technology, people and industry are certain to get the great advantage of social and economical. To use these phenomena, dell is calling customer with new affordable technology. Because of this, dell began growing its international service to beat diverse facts and ability, add value to understanding the needs of global customer, to boost performance dell develop the network of global dealer and produce technological job.

Demand for computer is high in UK market as education is base on research. Education standard is high in UK so higher the demand of computer. Nowadays, Teen is start-using computer at early age. People are using cultural site for communication and almost all of technology is bottom on computer so for next technology it very difficult to live without computer at that time they are simply more surprise to see dell online marketing strategy not the same as its competitors by this more folks start-using dell computer.

Technological Factors:

Change in technology will more influence the organisations. Consumer's tendencies are change as technology change. Nowadays more consumers use online shopping. So company have to update every day with the existing market scenario who fail to do this have a problem to stand in market. Because computer is fastest, growing industry therefore the speed of equipment change by competitors will affects the business.

Change in federal interest will also help the organization for example authorities help the company for research and development.

SWOT Analysis of Dell Computer


Dell's strategies method is different from any other company they provide direct romantic relationship with customer. They also provide goods and services such as personalized internet and computer and telephone purchasing.

A strong industry development, financial performance and great customer support makes the company different from their rivals in the three reasons: Price for performance, customization, most advanced technology etc.


Dell will not get success in pupil segment. Dell mainly targets corporate and federal government marker that affect dell on romantic relationship with the educational market. Second, dell's customization method create problem. Because custom-built product take time to delivery to customer as compare to store.


Day by day demand for laptop is growing that is another gain for dell. Second time buyer more relied on dell due to its unique feature of customization. Dell offers its entire product on line so that it is convenient for customer to check the product online and place it.


In unstable market, there are great deal of dangers for computer industry. There are several competitors and regular change in new hardware. Therefore, it is necessary for dell to lookout for new things and introduces new laptop.

As dell offer customize laptop but biggest external threats for dell is charges. There isn't more different in price from their competitors. Therefore, customer might choose other brands rather than wait for customize computer to provide.

Porters 5 Causes:

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Michael Porters Five Causes Model

Power of Provider:

At today's, Dell changes its supplier-management process from manual to automate to react quickly on demand of customer. Using this method they reach to millions of customer with new product. Dell 90 percentage product is purchase online. Supplier place the order foundation on their necessity and then order go to Dell factory to assemble the merchandise. After receiving, draw indication from suppler it trigger the shipment to place the bottom on requirement. When the product made it straight through Dell assemble line service.

Threat of new Entrants:

New entrance in the market may create threat for the business because they come up with new product and service at low rate which could affect the other company whom already in the market. For example, if competition or new entrance come with new technology in hardware industry that influence the Dell.

Power of Clients:

As Dell offer their product and service through e-commerce. Therefore, it's very reliable to customer to buy product, as it is dynamic. On the other site, in the computer market their other dealer so the customer has choice to buy cheapest and best product.

Threat of Substitutes:

As services are coming everyday in the market, so this might decelerate the progress of computer industry for example, digital Television set, set-top container and Apple i-phone.

Competitive Rivalry:

In every market, there are lot of rivals. As Dell is relocated in new market, so its opponents are Apple, Sony, Phillips etc.

MARKETING Combination:

Marketing Segmentation

Dell divided sections in two major parts romantic relationship and transactional. In Relationship customer buys constantly and in much larger quality. On other part, transactional customer purchases smaller quality. Both are further divides in sub- segmented. Marriage segment is perfect for corporate, federal government and medium business while transactional portion is made for home and small company. In addition, to take care of all business customers dell has use account supervisor.

Dell currently divides the market in three parts matching to customer need as follow:

Section 1:-Includes educational corporations, Large Firms & government's uses FOR INSTANCE Optiplex Desktops and Latitude Notebooks.

Section 2:- Includes Small Businesses & Home Users FOR INSTANCE, Dimension Selection of PC's

Segment 3:- Individuals or Small to Medium size Business For Example, Inspiron range.

Targeting and Positioning

Targeting is the next component of online marketing strategy that defines competitive scope. Whom will dell sell service?

Positioning is the 3rd element of marketing. That defines: how heading to market their service?

Earlier, company has forgotten to target its market consequently they have difficult to identify basic need of customer. Nowadays, Customer is looking for valuable product as compare to spend money. Customer wants value added product and quality service. Therefore, to pay this problem dell has to portion different product and service as compare to market.

Dell proposition

The six main product dell offering are desktop PCs, machines and networking, storage area, range of motion, software and peripherals, enhance service and financial service.

Desktop PCS: To focus on different market dell using five lines desktop model. For example,

Optilex collection : To greatly help corporate and federal government customers dell design these model by offering security and steadiness.

Dimension lines: This model is design for home customer and small business because they need latest features for entertainment.

XPS tm and Alienware: This one is design for entertainment and games purpose.

Vostro tm: This one provides specific needs such as technology and service for small business.

Servers and Networking: Same as desktop computer dell have different options for servers. Such as for example tower servers for remote machines, small group and corporate and business customers. The main goal for design of machines is to provide customer better performance and scalability by using PowerEdge tm servers.

Storage: Such as for example network storage, removable disk backup, drive and tape backup system.

Mobility: To focus on customer dell design laptop to provide facility like entertainment.

Software and Peripherals: This includes software and hardware, digital camera models, tvs, printers etc.

Enhanced Service: Dell Customized service help the client to better environment service and profits on return. Main enhance service are infrastructure, deployment, recycling service and training.

Financial Services: This consists of joint business between Dell and CIT group, Inc.

Dell Marketing Strategy:

Dell vision is to provide different product and service that are reliable to use. They provide high- quality, custom-made system and relevant technology.

Core aspect:

Dell has unique customer service. For example, customer can make the order my using phone or website. Dell also offers customization for product. Like customer can choose any construction and price range from their product line.

Dell has simplified it for customers: Dell has implemented the information technology to provide direct relationship with customers about product and software solution.

Dell offer customer choice: They are various options for customer to make use of service and purchase produce such as website, phone and kiosks. Furthermore, customer can select any settings and cost range from their products track their order.

Customer can buy custom-built product and custom-tailored service: Dell is using just in time strategy. In that one, they do not make stock before however when customer makes order, they offer the customer with most advanced technology by these lowering inventory levels.

We are focused on being environmentally accountable in all regions of our business: For product recovery dell using environment concern in every level of its life routine.

Marketing Mixture of Dell:

Marketing mix include 4P's that are price, product, place and campaign.


Dell thinking is different from any other brand they believe provide more advantages to the customer according to their needs. They are doing offer verity of product for both business and home category. For customer requirement dell can personalize their product design, and foundation on this dell produces and sell Inspiron and Latitude laptop. Inspiron notebook computers are geared to customer who required powerful and on the other side Latitude geared to corporate and administration. Product can be purchased using phone or by website.


'A name, term, sign, icon or design, or a blend of these, intended to identify the products or services of 1 seller or band of seller and also to differentiate them from those of competitors(Kotler P, 2002). '

Dell uses several brand names for its different product ranges:

Optiplex for office desktop computer

Dimension for consumer desktop computer

Studio for student computer

Inspiron for consumer laptop

Latitude for commercially concentrated laptop

Product lifecycle of DELL:

Product life cycle means any product of the business enough time that introduce in market and before halts producing as it is no longer profitable.

The hardware company such as Dell, technology helps to keep changing according to customer required so the product and components have short life cycles. Therefore, company have to keep proper management of new unveiling product and keep bringing out new product to cope with competitive market. You will find four stage of product life benefits, growth, maturity and drop.

(http://www. scribd. com)

1. Introduction: First level of product life pattern where new product released and quantity is suprisingly low. At this time, technology is new in market so its remember to lead by this influence the delivery system of company. Dell correctly estimate the new components needs so they don't have too much time to lead in market for example Adoma.

2. Development: Second level volume progress is high. Therefore, Dell have to constantly keep record with suppliers to ensure position of parts and be sure supply chain is not influence by the part lack for example studio room.

3. Maturity: At this time, volumes are very huge but gains are lower because the competitors already produce new product. As demand are significantly less than the prior two periods. Here Dell has profit margin is less per components because there is price competition for example latitude

4. Decrease: At this time, Dell would soon to avoid producing his product because the product sales would drop. Dell has o take is decision to be able to technology is become more aged. Also, have to plan beforehand so that it would not impact the other level of sales and offer string for example Dell stop the development of inspiron.


Pricing is with respect to the product life pattern. As different products come in market everyday so there may be limit for company to stick to one price. Dell offer customer to low price and profitable Laptop or computer. Because of this dell, draw in local customer to product price. Because dell product price is basically depend on option and service as product are customize. Dell is maturing its market show price.


Goods and/or service are migrated from the manufacturer to provide goods/service to customer from a route. It is good for the customer to find dell in nearest point and always give for the assistance so its build the client trust to dell. Dell always give his best service to solve the customer problem so its boost the dell sales and profit. For example, dell latitude and inspiron series.

Distribution Strategy

For circulation, dell using resource string management process to offers the product to customer in offline methods via Internet or telephoning. For shipping the product to customer dell using DHL and FedEx services to fulfil the necessity of customer. Dell using immediate distribution strategy in this one they connection with purchasers discuss price with customer and do market research. In upstream of immediate distribution, dell using business to business and EDI technology to communicate with its supplier and in downstream, dell using business to consumer technology to communicate to telesales.


Promotion is a tool the company use for marketing communication. Previously, Dell did not focus on marketing but after trend in 1999 dell change its online marketing strategy. Dell market segments its product using internet, catalogs, mailing and customer news letters. Dell has started promoting using different retails shop such as Wal-mart, Best buy and Staples. Dell advertising is straightforward there is no hidden fee. Dell has started social press and blogging to direct contact with customer query by using wikis, tweets etc.

Marketing Communications:

Dell advertise its goods and service using internet, direct marketing publications such as publication and leaflet. They also put their kiosks in various shopping centres to allow customer to see product and buy online. Also, they are using blog aspect for communication as http://www. direct2dell. com/blogsite. Furthermore, http://www. dell. com/ website provides information about search and shopping. For customer to contribute ideas and recommendation they using http://www. ideastorm. com/.


Dell must start their physical shop in emerging country like India, Brazil and China because still customers are not aware of e-commerce and the latest marketing movements.

Now a day's HP follows new online marketing strategy such as they stop asking delivery charges on computes products so Dell has to follow the same strategy to compete in the e-market.

Dell should add some high quality and performance notebooks with limited model to eye catch visible customers as Apple is doing currently in Market.

Dell should offer to government authorities and private areas to sell computers in very cheaper prices as it'll attract middle class customers to buy their own from Dell because in day-to-day life they'll connect to those computers. For Dell it will be a free advert.

Dell should concentrate on computer accessories market where hp does product diversification.

Dell should look into promotional activities with an impressive methodology as other ecommerce outlets are providing to online customers.

The demand of online offering Notebooks for dell is increasing effectively however the resource is diminishing and there is a long longing time for customers to deliver, making customer dissatisfied.


Dell is the better hardware producer company on the planet in the conditions of earnings after HP because of their creator Michael Dell. Through the use of his unique marketing strategy, Dell makes his space in between Microsoft, Intel, Acer and Hewlett Packard.

As like there competition HP, Dell also need to expand for the reason that market. Utilizing the exterior market, Dell will make more revenue and opportunity.

Therefore, Dell must diversify its product and service to different sectors.

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