Dell Corporation –network marketing strategy
Corporation Overview
Dell is a diversified information technology providers and partners directly to
customers cover a wide range of global products and services. Dell in "Fortune"
magazine "America the most appreciated companies" rankings, and ranked No. 1 in
"Global most appreciated companies" rankings, ranked third. Dell commitment to
provide our customers design, build and deliver innovative customized based systems
in order to provide customers with outstanding value.
Spanning over 20 years, the company has always been associated with designing,
manufacturing and customizing products and services to satisfy a diversified range of
customers including individual customers to corporate and retailing businesses. The
company's philosophy to deal with customers one-on-one has become a management
model for other companies. Having gained the market leadership position in computer
products and services, Dell's team have always been careful in sustaining its
marketing strategy of providing standard-based computing solutions.
Marketing Environment
Dell's strategy is global. It realizes that being closer to the customers is essential
in carrying out its marketing strategies as well as in enabling it to build customer base.
First by establishing the Internet infrastructure for booking/orders related activities it
has been able to increased its customer base from existing markets. Using the same
infrastructure it has been able to carry out its marketing strategies in new offices as
well. However, Dell differentiate in its marketing tactics in that it believes in
establishing a brick and mortar market presence. This is why the company has
established sales offices and manufacturing outlets across North America, Europe,
Asia and South America. This way it has been able to gauge the local customers'
needs as well as services desired.
Apart from the above customer level niche marketing, Dell also believes in
reducing competition through collaboration. Unlike other leaders in the industry such
as HP and Compaq, Dell does not believe in taking over existing competitors to
eliminate competition. Instead the company have always pride itself in using
partnerships and associations for integrated marketing. For example Xerox's addition
to the company as a partner for providing printing products and services has served
the purpose of integrating one more technology to its lists of comprehensive business
services. As James Vanderslice, Vice Chairman of Dell says:"By adding Xerox to our
roster of preferred printing partners, we are even better equipped to serve our
customers with a full range of office printing technologies that provide end-to-end
solutions. The Xerox brand is synonymous with quality, technology leadership and
world-class services. We share these core values." ("Dell and Xerox Forge Strategic
Marketing Tie").
Not only Dell believes in industry wide collaboration but also in global
collaboration. It has based offices in different countries of the world as strategic plan
due to the fact that it would be able to reach the niche market effectively. By breaking
the dominance or monopoly of other computer companies, Dell would be able to
capture the market by providing products and services at competitive pricing
strategies.
SWOT Analysis
Strenths: Dell's dynamic organizational structure allows it to achieve diversified
targets. By allowing the components to directly become integrated in the
manufacturing process of Dell, it has been able to reduce middle channel costs. These
components, such as OEMs, CMs, logistics, system integrators, repair and support
companies, component suppliers, third party HW and SW suppliers and distributors
have become each of the company's manufacturing processes so that ease of provision
to the customers is possible. This reverse organizational process structure differ from
other industry leaders.
Weaknesses: Within the strengths lies Dell's weaknesses. Much of its strategies
have to rely on the capacity and capability of these manufacturing components.
Continuous updates and process improvement is required so that they can keep up
with Dell's pace of development.
Opportunities: Having established an integrative and virtual network, Dell has
been able to achieve the high level of corporate outcome that challenged most of the
industry leaders. The established value web corporate model have also allow Dell to
have global wide access to customers and market. Reaching any niche market in any
continent is therefore not a problem for Dell's marketers.
Threats: However, due to the integration of components in Dell's organization
structure, Dell compete not only compete at the final product level but also at the
suppliers level. Third party software for example have great competition for price and
product categorization which could eventually affect Dell's position in the market.
Marketing Strategy
Product: Dell's unique approach to manufacturing separates the different
processes so that Dell is not reliant on singular production or supplier's chain for
equipment production. Though there is no segregation of the different products and
services but nevertheless in separating the components enabled it to target the
customers based on the regions in which the products are manufactured. By
assingning each regionalized production center particular component for production
not only have diversified the risk of concentration of labor and production costs but
also depending on particular infrastructure.
Price: Dell's product pricing reflect the affordability of the local consumers. For
example basing plants in Xiamen, China Dell has been able to provide products and
services at the local prices without incurring additional costs to price. Price
reasonability and the availability of support, after sales services and parts have
alleviate Dell's position from others.
Place: Dell has been able to affect the location strategy aspect of its marketing
campaign. As Dell's products are always available at the nearest dealers customers
develop trust for the "local Dell" thereby achieving the objective of gaining their trust
in Dell products and services, and forming a large and diversified consumer base.
Promotion: Dell in the past have not concentrated on extensive marketing campaigns
but this revolutionarized in 1999 when Dell changed its tactics by engaging in
extensive marketing campaigns. The "Be Direct" attitude has changed the way
consumer view Dell as the local producers.
Sales promotion
1．Broken down market
Dell computer companies will be in accordance with the product range of its
products, respectively, in different areas of application or market classification
classification, a different strategy.
2．Pricing strategy
Through direct sales, Dell than in the other major manufacturers of low cost 100
to 200 U.S. dollars, which use low-cost marketing strategy.
3．Advertising strategy
Advertising in Dell website, but no. Dell website contains a wide range of
multimedia pictures, and many more performance charts, and even made some
advertising in the form of slides. These customers can purchase fully stimulate desire.
Distribution channels
Direct modes in compressed product production lines, supplemented by online
purchase at great development of its direct sales model.
Customer Service
1．Online orders, and by a single production
Dell companies to enable customers to purchase computer Dell.com and
PremierDell.com for enterprise customers, the company has provided more than
60,000 customized web site to allow customers to track orders for the purchase and
implementation. Valuechain.dell.com orders through direct transmission to the
supplier of raw materials Dell companies, such suppliers will be able to receive
real-time information on raw materials, thus contributing to Dell companies control
inventory.
2．Video distribution and delivery guarantee
Dell particularly unique is that the company provided a special specialized
services : network users can choose in accordance with their own preferences and
needs of the computer, the company provides distribution of the final outcome of the
hardware, and system performance forecasts. As a result, the network of shops in the
best possible selection, Dell sites in the forefront in computer networks.
Dell
customers at the center of the customer requirements for different customers different
custom, personalized products. In all customers choice, the website also provides the
corresponding price, payment method and delivery address and the identification and
door-to-door in two days.
3．Online technical services and technical support
Dell companies provide online services and technical support is very broad, users
answer questions, the escalation on Windows, software upgrades informed, and so on.
A wide range of services not only to increase the intrinsic value of their products, can
also be user satisfaction, and enhance the competitiveness of our products.
4．Online forums , help and Search services
Not only large customers, small enterprises, a large number of persons were also
attract home office in Dell brands around. From the autumn of 1998, Dell established
executives and customers online forum "had breakfast with Dell" extended to small
business users, the topic of this live chat server market trend not only includes such
large topics, but also for general users the opportunity to make a wide variety of
issues, then adopted Dell online knowledge base in artificial intelligence software to
help automatically answered.
Dell also provides comprehensive search services. A user-friendly search service
can find their desired product and technical support. The scope is very wide search,
the search is on the hardware, but also software for the search; Both assembled whole
sets of search; There are various parts of the search, and so on.
5．Orders enquiry and Purchase logistics and delivery logistics
Customers only in the number of Internet customers of six figures or purchase orders
numbers, a few minutes, will receive a detailed report on the progress of
orders.Delivery logistics, the same achieved its online electronic payment, "customers
trolleys" and transport management, etc. functions. Purchase of logistics
enterprise-enterprise e-business, not reflected in the website, presumably in the
company's internal network will be involved.