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Dell : ‘everything you need from start to finish, without overcomplicating IT’,[object Object]
Aims,[object Object],[object Object]
How has it been adapting its resources to current market conditions in such a competitive environment?We will be focusing on Dell’s competitive advantage based on:,[object Object],Their supply chain and distribution strategies (Adrian),[object Object],Their pricing strategies (Aime),[object Object],Their service offering (Georgiana),[object Object],Their promotional efforts and the B2B aspect of the company (Israel),[object Object],We will also be talking about their recent change of strategy and decide whether it was a sound decision. ,[object Object]
Recent developments in the computer market,[object Object],Source: MINTEL (‘PC Retailing, UK’– July 2007),[object Object]
Dell – intro and figures,[object Object]
Competitors,[object Object]
Distribution and supply chain,[object Object]
Pricing strategies,[object Object],The two key price bands for laptops and desktops are £251-399 and £400-699, with well over half of all buyers falling into these two price groups.,[object Object]
Service and support,[object Object],Dell shows a clear competitive advantage by providing distinctive customer support and comprehensive after-sale services, which help it “tailor its offerings to the needs and desires of its customers.” (Hollensen, 2009, pp. 398),[object Object],“Dell's phone support has very long hold times, but the web support is so good you may never have to call in. Toshiba's website, on the other hand, is poor - but calls were answered in less than five minutes and customer service representatives were helpful.” ,[object Object],– Matthew Smith, blogger and PC reviewer,[object Object],[object Object],[object Object]
How do the others compare?,[object Object],‘Sleek’ interface, but not as simple to use. The website focuses on upselling by attempting to add entertainment-focused items to the basket, such as speakers/headphones. Considerably more expensive than Dell.,[object Object]
How do the others compare?,[object Object],Toshiba: “BUY ONLINE FROM A TOSHIBA PARTNER.”,[object Object],Dell: “CONGRATULATIONS! YOUR SYTEM IS READY TO BE BUILT.”,[object Object],Which one sounds better?,[object Object]
Promotion,[object Object]
B2B Marketing,[object Object]
Recent change of strategy – is it working?,[object Object],According to research carried out by MINTEL (2009), Dell has made a radical change to its business model. They are now…,[object Object],Distributing through 3rd party retailers such as Tesco and DSGi (Currysand PC World),[object Object],Considering opening UK stores for the first time,[object Object]
HOWEVER…,[object Object],The bulk of their profits still comes from direct/online sales. (MINTEL, 2009),[object Object],Despite increasing their reach through the use of popular retailers, the costs of involving a 3rd party (which extends the supply  chain) are significant and the company may lose control over the way  the brand is presented.,[object Object],Is it a wise decision to for Dell to move away from the very model that has brought it so much success and acclaim in the past?,[object Object]
Recommendations,[object Object],"We know what we are and what we're not. We are a really superb product integrator. We're a tremendously good sales-and-logistics company. We're not the developer of innovative technology.” ,[object Object],– Michael Dell, CEO,[object Object],Dell is a…,[object Object],[object Object]
Corporation that provides high quality aftercare packages
Company that maintains a high value-for-money positioning

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