To what extent do you think dell company is marketing oriented? assignment

Dell Computer is growing more than twice as fast as any of its competitors (Serwer, 1998). Fortune 500 ranks Dell number seven in return on stockholders’ equity, ahead of world leading brands like Coca-Cola, Intel and Microsoft (Serwer, 1998) While other computer companies struggled due to economic problems in Asia in 1998, Dell Computer had sales increases of 35 percent in Japan and the Asia Pacific and 73 percent in Europe, the Middle East and Africa. Overall revenue and net income increases 54 and 62 per cent for these markets in the first half of fiscal 1999 (Verespej, 1998).

In 1998, only 32 percent of dell’s sales were outside of America. In recognition of expansion opportunities, it opened a plant in China in 1998 and one in Brazil in 1999, to complement existing plants on Austin, Ireland and Malaysia (Verespej, 1998). The split adjusted stock value of Dell stocks increased over 35, 000 per cent, from 1, 000 USD at the time of its initial public offering in 1984 to 373, 588 USD on 2 November 1998 (Verespej, 1998). Dell Computer has not been success, success all the way.

More reliable figures though show that, in 1999, Dell’s market share was 23 per cent, up from 21 per cent the previous year, while Compaq’s market share dropped from 27 per cent to 25 per cent over the same period (Littlewood, 1999). Because of the high sales Dell Computer ranked fourth worldwide behind Compaq, IBM, Apple and NEC. The other major contenders in the desktop PC market are IBM, Hewlett Packard, Toshiba and Apple. IBM’s share is down to 17 per cent, and Hewlett Packard’s is 16, Toshiba’s 10 per cent, and Apple’s 9 per cent (Littlewood, 1997).

Despite Dell’s competitors trying to copy much of what it does, it has managed to stay ahead of the pack, although how much longer it can maintain its structural advantages is not precisely known. Unlike some of its competitors, Dell is highly reliant on partnerships for component manufacturing, and field service and support. The stakeholders in the computer industry market consist of: =; computer manufacturers =; component and parts suppliers =; software developers =; distributors and wholesalers =; retailers (hardware and software) =; business and personal and customers ; after-sales and service companies =; telecommunications companies and electricity suppliers The interrelationships between these stakeholders determine the structure of the industry. Hardware manufacturers such as Dell, IBM, Apple, make computers that facilitate the use of software- Microsoft and Macintosh- by customers for business and end-user consumer needs. The industry comprises strong interrelationships and increasingly alliances are formed, yet the different elements of the value chain encourage competition in other segments as this provides market benefits for them.

Dell also provides comprehensive search services. A user-friendly search service can find their desired product and technical support. The scope is very wide search, the search is on the hardware, but also software for the search; both assembled whole sets of search; There are various parts of the search, and so on. Market segmentation ). Dell has segmented its market into two segments and employs different marketing strategies to meet their needs. These two segments comprise the: Transactional market-consumers and small business

Relationship market- corporations, government, educational organizations In the transactional market, it pays little attention to first-time buyers and ignores the low-margin, sub-USD 1000 market, instead concentrating on the higher profit experienced computer users seeking more advanced replacement PCs. Dell estimates that 30-40 per cent of second-time private buyer buy direct (Bird, 1997). This is because they are more likely to know what they want and are prepared to order by phone, fax or Internet.

DELL Marketing decisions generally fall into the following four controllable categories: Product, Price, Place and Promotion. {draw: frame} Product: 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 these is no segregation of the different products and services but nevertheless in separating the components enable it to target the customers base 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. Price: Dell’s product pricing reflect the affordability of the local consumers. For example basing plants in Xiamen, China Dell has been able to provide products and services at the local prices without incurring additional costs to price. Price reasonability and the availability of support, after sales services and parts have alleviated Dell’s position from others.