Marketing strategy of Dell: From an unorthodox PC start-up to an international technological leader The common thread throughout Dell’s history is an unwavering dedication to its customers. As a leading company in technology, Dell has a fantastic long-term market long-term expansion plan and has an unwavering focus on the needs of its customers. It was among the first laptop manufacturers to provide massive customization on its laptops.
Did You Know About Dell?
Company : Dell
CEO: Michael S. Dell
Founder: Michael S. Dell
Year founded: February 1, 1984
Headquarters: Round Rock, Texas, US
Annual Revenue : US$94 billion
Products & Services: personal computers (PCs), servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, and electronics
Dell Fun Fact : Michael Dell built and sold computers by himself in 1984, right out of his dorm room. He was all of 19 years of age at that time. The founder initially named the company PC’s Unlimited and the name was changed to Dell Inc only in 2003.
STP in the Marketing strategy of Dell
DELL categorizes its products according to psychographics and Demographics elements. It is targeted at technologically savvy individuals professionals and executives. Additionally, it makes the customer interaction channel powerful to be able to compete with other businesses.
An effective connection with customers and the ability to provide service are the key factors that will win in the hardware and software industry, and that’s exactly the focus of Dells. Dell’s strategy is global. It recognizes that being geographically close to its customers is crucial in executing the company’s advertising strategies as well as helping it build its customer base.
Dell places itself on User and benefit-based position strategies to stand out from other competitors on the market.
“Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of the highest quality. Leading technology.
Dell’s vision statement is “It’s the way we do business. It’s the way we interact with the community. It’s the way we interpret the world around us– our customers’ needs, the future of technology, and the global business climate
“The Power to do more”.
Competitive Advantage in the Marketing strategy of Dell
Dell has manufacturing facilities within developing markets such as China, India, Ireland, etc. as well as the major developed economies of the world. The main advantage that Dell has over Dell is its ability to service customers i.e. quick response time, superior quality customer support, and its value-added channels.
One of the main reasons behind Dell’s early competitive advantage is its well-known direct-selling and build-to-order strategy. The just-in-time (JIT) method of operation allowed it to maintain the lowest inventory levels within the market. Dell uses customer-driven strategies through collaboration with its customers to discover ways to utilize technology for the company.
BCG Matrix in the Marketing strategy of Dell
A majority of Dell items are popular due to the fierce competition in the tech segment. Personal computers are a segment in which DELL is an absolute star. Because of the widespread acceptance of Smartphones, the majority of people are moving to smartphones because they are convenient and portable. Yet, a lot of tech-savvy individuals are awed by Dell’s unique offerings, such as Alienware and XPS series.
DELL’s Enterprise Solution is among the top-of-the-line as they implement the “Build to Order” strategy to meet the enormous B2B B2B market.
Recently, it has ventured into the smartphone market, but isn’t able to make its mark and remains a mystery in the matrix of BCG.
Distribution strategy in the Marketing strategy of Dell
DELL operates on a build-to-order business model and utilizes the Just-in-Time strategy to offer its products at the best prices by reducing costs of inventory and delivery time. Dell has also its retail stores. However, the majority of sales are carried out by modern retailers as well as eCommerce.
Dell is one of the companies that direct orders on the website are excellent. This is because Dell allows you to create your laptop according to the specifications you desire and provide you with an individual laptop.
To assist its hardware business, it has DELL Solution Centres to offer support 24 hours a day for its customers.
Brand equity in the Marketing strategy of Dell
DELL has seen a massive increase in 2013 climbing from the fifth position to second place in terms of brand equity. Although it is the third most popular brand which has a 12.8 percent market share according to Gartner’s (2013) research the company relies on its customers’ trust to create a constantly evolving image for its brand. Customers trust Dell to provide technology solutions that allow them to do and accomplish more, no matter if they’re at work, school-home, or anywhere else they are.
Competitive analysis in the Marketing strategy of Dell
DELL faces a tough challenge from competitors such as Lenovo, Hewlett Packard, and Hewlett Packard, as well as assembly line manufacturers and Chinese makers, and price wars, which have also affected the market shares of these companies. Smartphones pose the biggest risk to the PC market which is impacting the whole industry. The choice of the supplier is the most significant element that impacts a company’s profit in the IT hardware market, as well as the software industry is influenced by serviceability.
Market analysis in the Marketing strategy of Dell
The market is competitive, with numerous brands as well as non-branded companies in the market which keeps Dell on its. The benefit of Dell is the fact that it has distribution channels that include some big competitors. The internal market is ripe for competing brands, with many trying to come up with new ideas and differentiating. On the other hand, in the market for external products the popularity of smartphones has slowed the sales of laptops significantly.
Customer analysis in the Marketing strategy of Dell
Customers of Dell are young and tech-savvy professionals who use DELL products to make their lives simpler. DELL offers different SKUs for various customers, each with its advantages. For instance, premium customers are offered Alienware and XPS available. The enterprise solution business vertical focuses on companies that offer custom services.
You May Also Like:
- Marketing Strategy of Foster’s – Foster’s Marketing Strategy
- Hard Rock Cafe Marketing Strategy
- Marketing Strategy of Forever 21 – Forever 21 Marketing Strategy
- Fiat Marketing Strategy – Marketing Strategy of Fiat
- Marketing Strategy of Fevicol – Fevicol Marketing Strategy
This is the Marketing Strategy of Dell. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.