Dell Rob Rochester
Dell • Dell is the industry leader in direct sale of personal computers to consumers. • Since its start Dell has looked to over simplify its business for its customers. Offering a huge range of products and services, which can all be accessed by the consumers from home or from the office very easily.
Supply chain management • Dell revolutionized the way people in the united states buy computers. • Markets its direct sales model. • No intermediaries • No warehousing • No physical store presence • Dell eliminated the need for central warehousing as well as the need for a physical store presence. Instead Dell attracts customers to its site and then builds bonds with them there rather than investing in a physical relationship. • Saves money and time. • Sales • Production • Warehousing
For customers this means… • Reduced price • The money saved from selling products directly to the customers is then passed on to them. • By selling directly to the customer Dell removes all the cost that they would have incurred during the holding and marketing of the products. • Total customization of their personal computers. • Dell offers a totally hands on experience when its comes to purchasing your next computer. • Allows customers to pick and choose every little thing that will be added to there computer. • This not only give the customer added value because they are getting exactly what they want and are not being forced to purchase anything extra that they will not be needing. • Helps dell to get the clearest picture as to what there customers are buying. • Higher level of communication between customer and company. • Dell is free to collect customer information directly from there customers rather than having an intermediary try to do this. • This allows Dell to not only track its customers but also helps to retain them.
History • 1982 • Dell was created by Michael Dell. • Started with the idea to sell directly to consumers. • 1985 • Released the “Turbo”, Dell’s first computer. • 1989 • Dell released its first notebook computer. • 1993 • Dell shifts busies over seas to try to gain market share. • Ireland • Europe • Middle-East • African markets • Australia • Japan • 1996 • Started selling products on its website.
History • 1997 • Recorded 1 million in sales generated from the internet. • 2000 • Dell was ranked 1 world wide in shipment of Workstations • 2003 • Dell is made the official name of the company • Continually expanding overseas. • 2005 • Dell records one of its poorest years in company history. • 2006 • Dell acquires AlienWare
U.S. Market • Dell is struggling to stay on top of its competitors. • The U.S. personal computer market. • Over-crowed with stiff competition. • Cannon inc. • HP • Sun Microsystems Inc. • Gateway • Expansion has slowed considerably. • Huge losses are normal. • Commoditized product.
International Market • The international market is in a much different stage of growth than the united states. • Rapid growth stages. • Similar to our dot.com explosion.
Slumping Business • American computer market has slowed considerably. • People are still buying computers. • Refurbished • Ebay • ubid
The Plan • By lowering prices even more in 2006, Dell planed to capture additional market share and hoped to force competition out of business. • Offered many of its products at much lower than market standard as far as price. • Notebooks for under six-hundred dollars. • Dell believes that that they can rely on other aspects of there business to carry them through when other areas are lacking.
Value Bubble • Attraction • Dell uses many different areas to attract people to there site. • Dell uses television adds and magazines to get the word out on how easy it is to customize your own computer on the dell website. • Uses B2B customers to attract B2C customers and vice versa. • Customers are also attracted to the site via the numerous links that get you there from different places on the web.
Value Bubble • Engaging • Having many different tabs seamlessly integrated in the main Dell page allows for customers to not only access the information they are seeking but to do so easily and in most cases under two clicks of the mouse. • Dell Blog • Used to gather information from the customers directly • Customers can post pretty much anything they want at the Dell site using the build in Blog. • Other areas that engage the customer. • Search options. • “My Account”.
Value Bubble • Retaining • Dell targets people that are searching for customization, which they offer at a level that is not rivaled by there competition. • “My Account” • Allows customers to further customize there shopping experience. • “My Cart” • Allows customers to view and modify the items that they are going to be purchasing. • The “Track Order” • Allows customers to track the orders that they have made to determine the exact delivery date.
Value Bubble • Learn • This is a very important phase for dell because they are constantly changing based on customer wants and needs and if they did not gather the proper information from there customers they would fail. • They are very good at this phase due to the direct sales model, which gives them direct access to there customers. • Information is constantly gathered from the site. • account information • Click streams • Blog information • Suggestion forms • Customer service representatives.
Value Bubble • Relating • Dell puts the information that they collect from various sources into use. • My Account • Allows customers to totally customize there shopping experience and give Dell the chance to show the customer things they might be interested in. • Usability information is constantly being checked and updates are constantly being added to the site. • With the only presence being an online one the attention paid to the actual site is crucial.
Conclusion • Dell started as a market leader and still retains that trait in some areas. With there slipping sales in the U.S. they are being forced to look at alternative ways of brining revenue to the company, which is a process that they are used to. I think that they will continue to gain market share and continue to be a large player in the personal computer industry for years to come.