Dell

Aybey Boran

DELL

Dell is among the world's leading computer manufacturers that has transformed and diversified into variety of business segments over the years. Products range from Dell PowerEdge servers, Power Vault, Dell EMC storage systems as well as PowerConnect switches for corporate clients. For individuals and professional customers products range from Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offer products and services range including printers, projectors, Axim handhelds, and other accessories. More recently, the company has announced intentions to explore LCD television/computer monitors as well as digital music players.

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 has always been careful in sustaining its marketing strategy of providing standard-based computing solutions.

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 assigning each regionalized production center particular component for production not only has diversified the risk of concentration of labor and production costs but also depending on particular infrastructure.

As you see from the chart, segment 1 prefers highly flexible PC’s. Flexibility refers in this situation to a PC’s ability to run several different kind of software, to be easily connected to printers and other peripherals, suitability for business as well as educational or game use. The brand nearest to segment1’s ideal point is HP but none of the brands really that close. Segment 2 which has the 50 percent of market size, seems to be satisfied with either IBM or Dell. Segment 2 likes High performance machines. Performance, by contrast, referred to speed of internet connection and internal calculations, support of the highest-end software programs, and reliability and accuracy of calculations. If we are talking about performance, Dell’s most serious competitor is IBM. Actually all brands have the same rate about the performance except IBM. Compaq and Hp seem more flexible than Dell. But still Dell is one of the closest brand to the segment 2(50% of market size).

According to our research, there is also the issue of global positioning. Dell's consumer base is not a typical American or Canadian but a wide range of customers from Asia, Latin America, and Europe as well each with distinct needs and requirements. The difference in corporate culture as well as professional attitudes towards IT products and services create a difficult need/requirement profile that would be challenging for Dell. As more and more consumers in developing regions like China, Brazil, France, and India grow to appreciate computerized environment, they also have complex needs. This way Dell would have a difficult time to incorporate a pervasive marketing strategy. Instead, it should maintain differential but integrative marketing strategy so that the company has a niche in each of the markets in which it manufactures products.