Dell's Company Background
Dell was founded in 1984 by a university dropout, Michael Dell, in his teenage years. In 1987, Dell was recognized as among the top mail-order firms in America. After a decade, Dell started to expand its business operations to international markets. In the late 1990s, the company was acknowledged as the top personal computers direct seller across the universe. Dell is the world's biggest PC supplier with a thriving revenue of billions of U.S dollars. They are selling the devices to clients directly by utilizing mail-order catalogs and the internet. To cut down expenses and drive the entire supply chain, Dell has enhanced its manufacturing, design, procurement and logistics. Ultimately, it has successfully manufactured notebooks and server product lines and penetrated the overseas markets. After 14 years, Dell recorded its total revenue to $18.2 billion whereby it accrued $1.46 billion of profits.
Dell's Product and Service
A portfolio of products and services are provided by Dell Company to its esteemed clients. The examples of products offered are notebooks, desktops, workstations, network servers, printers, monitors, computer peripherals, and software. In addition, the organization offers a diversity of PC accessories and electronics products such as digital cameras, LCD televisions, gaming consoles, projectors, and camcorders. The esteemed clients of Dell Company have the freedom to choose the requirements, venue and custom configuration of the order. In addition, the company has purchased a lot of convenience to clients as they offer simple services to fit the customer' lifestyles. Dell offers client's service and back up tool to assist clients on maintenance, continuous care, troubleshooting and computer repair. The support tool has been instrumental in keeping clients system operational in perfect condition and safeguard clients' data. The technicians of Dell can remotely access the computers of their clients to resolve the issues promptly.
Dell's Market Segmentation
Dell has segmented the worldwide market into three parts: Asia Pacific, America, whereas Europe, Middle East, and Africa are classified together. Based on lifestyle and age segmentation, Dell offers the assortment of products relying on the income status and age of its clients. In terms of gender segmentation, the company can consider the gender variable as a significant percentage of women has drastically increased in the social status and the economic interdependence. Arguably, women will depict the distinct appearance designed of the computer. In terms of behavioral segmentation, Dells develops distinct types of computer range to the distinct group of individuals including students, business people, and individual clients looking for the home use. In terms of income segmentation, Dell concentrates on middle-level income group. Dell has decided to pay consideration of low-end products when it begins businesses in the third world nations constituting India, China, and Africa.
Dell's Target Customers
The target clients of Dell are grouped as transactional and relationship clients. The public sector established corporations and medium business form the relationship customers. These clients emphasize vendor reputation, medium business, consistency, and focus on service. Transactional clients constitute the small business and personal clients who make a transaction-by-transaction purchasing decision. The clients in this category are sensitive to prices in that they buy less when the products prices increase. They are often looking for trustworthy, low prices and value-added products. Michael Dell declared that the primary clients for Dell are large volume clients and corporate purchasers. The large volume clients do not require many services from the dealer, and the corporate purchasers have good experience in terms of technology and price. The firm focuses on business, institutions, and government as these groups are the main contributors to total sales.
Mission, Vision, Values, and Philosophy
Dell aim to "Become the most successful computer industries at offer customers a remarkable experience in the markets they serve around the world and meet customer expectations of the highest quality, leading-edge technology, competitive pricing, individual and corporate responsibility, the best-in-class service and support, and flexible customization capabilities, outstanding corporate citizenship and financial stability" (Farfan, 2009).
The vision of Dell Company is that "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. Whatever changes the future may bring our vision -- Dell Vision -- will be our guiding force" (Farfan, 2009). This vision is generating a functional and structural efficiency computer to clients and build a computer system to fit the personal need (Coca, 2017).
The company values are that "superior service and support, easy to buy, easy to use" and "provides excellent experience at a great values, promised to direct relationships, providing good products with standards-based technology outperforming the competition with value and superior customer experience."
"We'll listen, and we'll respond...It's about the customer. It's that simple" is the philosophy for the Dell Company. They are often listening to clients require and want and take action promptly to attain clients require. Clients are often welcomed to contact them directly if clients have any inquiry on the system. The responsibility of the firm is to complete and satisfy client satisfaction (Coca, 2017).
Analysis of Current Business and Competitive Environment
Dell's Current Business Environment
PESTLE analysis is utilized to examine the client's present external factors. Political and legal factors are the regulations decide and set by government rules, and Dell requires to adhere. The economic factors are impacted by the buying power of potential clients and capital expenses. Client's demand and the likely market size are defined by the social (S) elements including the society cultural, demographic change, value, and attitude. The technological aspects constituting the quick change and implementation of new technologies by other firms impact the effectiveness of the Dell Company. Environment factors including resources influencing company production.
Dell's Competitive Environment
Porter's five forces analysis is utilized to evaluate and determine the competitive strength and firm's position. The bargaining power of buyer is high because clients are sensitive to high prices and are often searching for the lowest price particularly huge market share of the company in the computer accessories sector. Rivalry among coexisting company is as high as the computer industry striving to generate low expense with better quality. Hence, Dell out to focus in the different area to compete with their business rival. Dell Company does not associate with the similar suppliers. They will change suppliers are meeting the requirements. Hence, this illustrates that the bargaining power of suppliers is high. The growing smartphone and tablet industry which are forecasted affect the sales of PCs and laptops as it provides the same advantages with personal computers. However, Dell's laptop and personal computer provide various unique applications and software. Therefore, the threat of substitutes is moderate. The new entrants are problematic to penetrate into the personal computer market as the organization enjoys a significant market share and economic scale which restrains the new entrants.
Dell's Business Strategies
The business strategy of Dell needs to demonstrate that it is different from others to succeed in the competitive market. The bargaining of the customers is relatively high. The company requires to form a business strategy to retain its sustainability, achieve client satisfaction and build up the client's loyalty by having a competitive edge. Dell is distinguishable from other firms in the computer accessories industry. The organization is utilizing its website (www.dell.com) selling goods to clients directly and offer customized goods based on clients orders.
Dell has selected a different business strategy to serve its clients which is ingrained on build-to-order and direct sales strategy. However, Dell has a clear comprehension of their client's needs and capability to projection clients' future demand. Moreover, Dell can understand the whole business process and the client's activities from buying, order, repairing, upgrading and replacement. It assists Dell to provide after-services to meet the client's needs and wants, coordinate with maintenance and technician to help the clients in personal computer repairing. This makes it easier and convenient for clients to purchase Dell. Moreover, other primary benefits of utilizing lean manufacturing are decreased stock, lower expenses to specified better price and value to the client, quick adaptation to new technology and alteration f demand, and quick arrival of new goods.
Build-to-order process constitutes the entire supply chain and production cycle. Hence, Dell computer designed to decrease the production of human beings touch, chosen suppliers...
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