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Dell’s Strategy for Growth*

Dell’s Strategy for Growth*. Current Market Portfolio * Business Model 2. Advantages of Dell Model Cost efficiency of direct model Customization & Responsiveness Focus on detail 3. Three-Step Growth Strategy* 4. New Frontier for Dell: Consumer Electronics. Dell’s Strategy for Growth.

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Dell’s Strategy for Growth*

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  1. Dell’s Strategy for Growth* Current Market Portfolio * Business Model 2. Advantages of Dell Model Cost efficiency of direct model Customization & Responsiveness Focus on detail 3. Three-Step Growth Strategy* 4. New Frontier for Dell: Consumer Electronics

  2. Dell’s Strategy for Growth 5. Three Main Challenges for CE Market No Customization and Less Responsiveness Will People Buy CE Direct? Dell’s Brand Equity for CE Product Mike George’s two comments 6. Playing the OEM game (back page) - Who are customers? - Upside & Downside - Response from resellers and small manufacturers

  3. Dell’s Strategy for Growth 7. Recent Performance (FT article in 2005) Slowing growth “Now Dell is the market.” Heavy Reliance on PC segment Slipping Price Advantage and Built-to-Order System Competitors have caught up 6. Dilemma for Dell - Shoot low? - Shoot high? - Is Dell Model Obsolete for Now?

  4. Dell To Rely Less on Direct Sales (WSJ article in 2007) • Dell’s Broad, Global Retail Push • Selling Dell PC through Wal-Mart • Why Go to Retail? • What is happening to Its Direct business model? • “The Direct model has been a revolution, but it is not a religion.” - Michael Dell

  5. Discounting Continues to Haunt Dell (WSJ article in 2010) • Revenue is up, but profit is down. Why? • HP: Revenue is up and profit is also up • Now no. 3 behind HP and Acer • Share of total revenue from consumer market: 2003 (???)  2010 (???) • Compete against “white box”

  6. Customer Health Care Current Healthcare Delivery System Problems of the current system Business Model of a walk-in clinic: Accessible and affordable health care: - limited service, lower prices, and using nurses  90% satisfaction rate and cover uninsured 4. Challenges for this idea Doctor Skepticism & Resistance Recruiting Nurse Practitioners Customer Awareness State Regulation!

  7. Wal-Mart To Expand In-Store Clinics 400 Clinics by year 2010 Service delivered by local health care practice  Co-branding 3. No proven track record so far  What do you think? - Pros: Convenience and Cheap - Cons: Can you trust them?

  8. Move Over, Coke * Positioning of vitaminwater Key Challenges for small guys Describe Bikoff’s Product Strategy Describe Bikoff’s Marketing Strategy Describe Bikoff’s Marketing Channel Strategy Structure: types of stores, intensity, level Management: support & relationship

  9. After the Sale is Over Brand Ownership Change What happened to existing distribution network of Vitaminwater? What is the problem here? How would you solve the problem? Learning from the past: Snapple

  10. Ping Golf Club Through what type of channel intermediary are Ping Clubs being sold? What are key factors that drive Ping’s channel choice? What is the intensity of their distribution? How would you describe Ping’s channel Relationship management?

  11. The Monster that Ate Hollywood • Key Word: Channel Evolution • Supply side factor, demand side factor, technology • Changes in Movie Studios • Changes in Studios’ Competitive Strategy* • Movie Making Side • Revenue Model (Distribution and Exhibition) • Changes due to alternative movie distribution channels: • Marketing Channels: • Products: • Markets:

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