That is whycompanies need to build for themselves a very solid marketing strategy and musthonor the most important and basic value of all their products and services, and atthe same time
THE OVERVIEW
Process of formation and developmet
Dell Inc is a technology company based in the United States The company develops, sells, repairs, and supports computers and related products and services. Dell is a subsidiary of Dell Technologies.
Dell was founded in 1984 by Michael Saul Dell as PC's Limited while he was a student at the University of Texas at Austin The company rebranded to Dell in 1988, quickly establishing itself in the US information technology market with high-quality computer products Over 36 years, Dell has grown into a globally recognized brand, employing over 165,000 individuals worldwide.
Some milestones in the formation and development of DELL:
- 1984: Michael Dell founded Dell Computer Corp.
- 1985: The company released its first complete PC designed by themselves.
- 1990: Ranked sixth among the largest computer manufacturers in the United
- 1991: Dell started manufacturing its first laptop with the goal of becoming a leading provider in this promising new market.
- 1993: Dell became the fifth-largest company worldwide in manufacturing and selling personal computers, with sales exceeding $2 billion.
In 1996, Dell revolutionized the personal computer market by enabling customers to purchase PCs online, moving away from traditional phone orders Through Dell's website, users could easily access the company's online inventory, customize their computer configurations, compare prices, and place orders of any size, enhancing the overall shopping experience.
- 2000: Led the nation's sales volume, capturing a 17% market share ahead of
Compaq, becoming the second-largest in sales.
- 2001: Surpassed Compaq Computer to become the world's leading provider of personal computers.
- 2003: Dell Computer Corp dropped "computer" from the company name and became Dell Inc.
- 2006: Dell Inc was listed by Forbes magazine among the 25 largest corporations in the world.
- 2016: Dell Inc and EMC merged and officially changed the name to Dell
Vision and mission
Our goal is to establish ourselves as a premier technology company in the United States, expanding our international presence in retail distribution We focus on developing online sales channels and creating retail stores that feature high-tech products tailored for major clients, including offices, universities, educational institutions, and large corporations, with a particular emphasis on Dell laptop products.
- Establishing a corporate culture with a professional style akin to advanced Western countries.
- Building a highly knowledgeable and disciplined team, united in spirit, dynamic, and innovative in thinking and action.
- Collaborating with partners both within and outside the country to master and lead the latest technologies in the technology industry.
Dell's mission is “To be the most successful computer company in the world at delivering the best customer experience in markets we serve”.
Field operations
Initially, Dell focused on direct sales of PC computers to businesses, becoming a leading computer company globally in revenue and profit As it grew, Dell expanded into the consumer market and consumer electronics, enhancing its retail presence nationwide, especially in major cities like New York and Washington The company primarily targets university students and businesses, addressing their needs for work, entertainment, and education Currently, Dell is diversifying by collaborating with software companies to develop hardware and software solutions for memory and data management Additionally, through its merger with EMC, Dell has transformed from a personal computer company into a comprehensive IT solutions provider for large enterprises.
Products
Dell has established a strong brand reputation among customers by offering a diverse range of technology and electronic products The company's main offerings include various high-quality devices that cater to different consumer needs.
- Electronic accessories (keyboards, mice, adapters, etc.)
Among these, Dell is renowned in the market for its laptops, which meet the following criteria:
With a desire to be a leading customer-centric company, Dell has been a pioneer in installing free application software, as well as providing technology solutions and services to its customers.
- Services such as Consulting Services, Deployment Services, Support Services, Education Services, Residency Services, Managed Services, Virtustream Cloud Services, etc.
- Solutions such as Infrastructure Solutions, Workforce Solutions, IndustrySolutions, Edge Solutions, OEM Solutions, Midmarket Solutions, etc.
Strategic objectives
Dell emphasizes the importance of connecting with customers to effectively implement marketing strategies and expand its customer base Consequently, the company prioritizes understanding customer needs to enhance value, foster relationships, and build trust.
Their goal is to provide high-tech products with Dell's brand characteristics to customers worldwide.
SITUATION ANALYSIS
Market overview
In Q2 2022, global computer shipments fell by 12.6% year-over-year, totaling 72 million devices, as reported by Gartner Lenovo maintained its position as the market leader with a 24.8% share, shipping over 17,800 units, although this represented a 12.5% decline compared to the previous year.
In the competitive landscape of the computer market, HP leads with an 18.8% market share, closely followed by Dell at 18.5% Apple, holding an 8.8% market share, stands out as the only manufacturer to experience an increase in shipped devices, while Acer and Asus hold 7.1% and 6.5% market shares, respectively.
In 2022, Vietnam's laptop market experienced notable fluctuations, with a 30% month-on-month increase in sales during the social distancing period, driven by the rise in remote work and online learning This surge resulted in nearly a 100% year-on-year growth in total laptop sales Laptops priced above 20 million VND saw the most significant growth, with a 70% increase from the previous month and approximately 200% compared to the same period last year Conversely, laptops under 12 million VND represented only 3% of total sales in August, declining from July due to inventory shortages, despite an overall sales increase of nearly 50% month-on-month.
Following the pandemic boom, the laptop market experienced a decline in Q2 2022, largely due to an oversupply of low-priced products stemming from shopping trends in Q4 2021 The sharp decrease in demand for remote learning and work resulted in reduced consumer interest, leading to increased inventory levels at retailers Consequently, many laptop models from brands like Apple, Asus, Lenovo, HP, and MSI have seen significant price reductions, varying from a few hundred thousand to several million VND, depending on their specifications.
In 2022-2023, the laptop market in Vietnam faced notable fluctuations due to the effects of the Covid-19 pandemic, resulting in decreased consumer demand and an overall market decline In response, laptop manufacturers have focused on diversifying their product offerings, lowering prices, and improving service quality to draw in customers Despite these challenges, the laptop market continues to present significant growth potential moving forward.
Picture 2 IDC Quarterly Personal Computing Device Tracker
Dell differentiates its marketing strategy by establishing a direct sales system.
Dell strategically operates branches, sales offices, and manufacturing facilities in key markets to effectively understand and meet local customer needs The company's management structure is organized geographically, focusing on three primary regions: the Americas, Europe, and Asia-Pacific.
Dell provides an extensive selection of laptop models tailored to meet diverse customer needs, including mainstream, business, premium, and gaming options The company strategically segments the market based on various demographic factors to effectively cater to different user preferences.
Dell designs its laptops without gender differentiation, yet offers models that cater to specific preferences For instance, the Inspiron 14 5000 2-in-1 series features colors like silver and light pink, appealing to female customers, while the Alienware Area-51m R2 series boasts an angular design in black, which may attract male customers.
Dell provides a diverse range of laptop models tailored to various age groups and needs The budget-friendly Inspiron 3000 series is ideal for students and recent graduates, while the premium XPS series, featuring advanced configurations and higher price points, is designed for professionals and business users.
Dell offers a diverse range of laptop lines tailored to various professions The Vostro series is specifically aimed at small businesses, emphasizing durability and robust security features In contrast, the Precision series caters to professionals in graphic design, engineering, and scientific disciplines, boasting high-end configurations and ISV certifications.
Dell provides a diverse range of laptop models priced between 7 million VND and 100 million VND, catering to various income levels Budget-conscious consumers can select from the Inspiron 3000 or Vostro series, while those with higher incomes may prefer the premium XPS or Alienware series This extensive pricing strategy enables Dell to meet the needs of all customers.
Using this segmentation approach, Dell's customers are divided into various groups based on their knowledge level, attitude, usage preferences, and reactions to the products For example:
- Those who prefer affordable, powerful, and durable laptops: Dell Vostro
- Those who like stylish designs: Dell Inspiron 1320,
- Those who seek style and individuality to express themselves: Dell Inspiron 1440N, Dell Inspiron 15R N5110,
In addition, Dell's products are equipped with biometric security systems, making them suitable for individuals who prioritize absolute security in their computer usage.
The laptop market in Vietnam has seen unprecedented growth due to the rising demand for remote learning, entertainment, and work, particularly during the fluctuations of 2021 The Covid-19 pandemic significantly boosted the need for laptops, custom-built PCs, and accessories like mice, webcams, and keyboards This surge in demand led to a notable shortage of supplies in retail stores, exacerbated by social distancing measures under Directive 16 Consequently, prices for laptops and related products increased by approximately 20-30% as the market struggled to meet consumer needs.
In Vietnam, the laptop market was valued at over 10,000 billion VND in 2020, marking a 10.4% growth from the previous year, driven by heightened demand for remote learning and work amid the Covid-19 pandemic Globally, the total number of personal computers, tablets, and smartphones is projected to reach 6.2 billion units in 2021, with laptops and tablets increasing by 125 million units compared to 2020 By 2022, this global figure is expected to rise to 6.4 billion units, reflecting a 3.2% growth from the previous year.
In Q2 2022, the global laptop market faced a significant decline of 12.6% in device shipments compared to the previous year Lenovo maintained its leadership with a 24.8% market share, followed by competitors HP, Dell, Apple, Acer, and Asus Notably, Apple was the sole manufacturer to report an increase in the number of laptops shipped during this period.
The laptop market in Vietnam has faced a decline following significant growth during the pandemic years of 2020-2021, as user demand has diminished This downturn is largely due to a reduced need for products that facilitate online learning In 2020, the market was valued at over 10,000 billion VND, reflecting a 10.4% increase from the previous year.
SWOT analysis
Dell Technologies is a globally recognized brand with a diverse portfolio of computer products, contributing to its billion-dollar brand value The company has strategically invested in acquisitions and mergers, leading to the introduction of innovative patents and the expansion into new industry segments Despite its extensive offerings, the brand's popularity initially stemmed from its iconic Dell computers.
Dell provides a diverse range of high-quality laptops designed with a focus on functionality, catering to various market segments Their offerings meet the needs of a wide array of users, from business professionals to gamers.
Dell achieves competitive pricing through strategic cost reductions in product design while maintaining a strong focus on quality Their laptops deliver an excellent price-performance ratio, recognized for their durability, impressive battery life, stable configurations, and versatile features, which can be easily upgraded to meet individual preferences.
Dell has excelled in building customer relationships through their customer care system, aiming for friendliness, speed, and attentiveness The majority of Dell customers feel satisfied with their service.
Dell Technologies has simplified its global distribution system by eliminating intermediaries, which helps control operations and reduce costs The company has also streamlined its product portfolio, narrowing it from seven business sectors to three key areas: computers, servers, and storage devices This strategic focus makes reward calculations for partners more straightforward, according to Mr Tian Beng Ng, Senior Vice President and General Manager for Distribution Channels in the Asia-Pacific and Japan region.
Effective application of direct modeling
Dell's direct model fosters strong relationships with both enterprise and organizational clients, enabling the company to maintain full control over its supply chain By leveraging the Internet across its operations, Dell continually enhances and expands the competitive advantages inherent in this direct approach.
Poor customer support for international customers
Dell's decision to outsource customer support led to a noticeable decline in service quality, resulting in customer dissatisfaction Despite Dell Technologies recognizing this error and investing resources to improve the situation, consumer responses have been tepid.
Limited spending on research and development
Dell Technologies has opted not to invest heavily in research and development for new products, potentially due to their established position in the industry This strategy, however, has led to missed opportunities, particularly in the smartphone and tablet markets, where competition is fierce and dominated by numerous other companies.
Lack of proprietary technology, excessive reliance on suppliers
Dell's reliance on numerous suppliers for small components complicates its supply chain management, despite having assembly plants To enhance product uniqueness and elevate their offerings, Dell must focus on researching and developing proprietary technology in the future.
Weak relationships with agents/retailers
Although Dell operates on a global scale, it has struggled to build robust connections with agents and retailers, as evidenced by the relatively few official retail locations and distribution outlets in comparison to its competitors.
As a result, seeking technical support might take more time and effort for customers.
Personal computers are increasingly vital in today’s world, as consumers are becoming more knowledgeable about technology This growing understanding leads many to prefer Dell computers, as they seek to explore and utilize advanced features that enhance their computing experience.
Convenience of using the website primarily
As the Internet continues to expand, Dell will become a preferred choice due to its direct sales system, and consumers can simply access the website and place orders.
Too many competitors in the market
The computer and laptop industry is highly competitive, with brands vying for customer attention through pricing strategies and promotional offers, particularly targeting the student demographic This segment represents a significant market opportunity, as students increasingly require computers for their educational needs.
Cheap price is no longer an advantage
With similar price ranges, price differences are no longer a significant concern for customers They can choose other brands instead of waiting for a Dell computer.
In a highly competitive market with sluggish growth, Dell faces increasing pressure to stand out To thrive and sustain its market presence, the company must intensify its efforts to differentiate its products from alternatives and uphold a substantial market share.
The cost of raw materials is rising, making the purchase and production ofDell's products more expensive, further reducing their profits.
Competitive advantage
Dell leverages its inherent strengths to ensure product success by emphasizing differentiation and sustainable value through a direct sales model, which enables the company to offer customers the lowest prices.
Dell remains a leading laptop brand, consistently holding the third position in LaptopMag's rankings for three consecutive years Known for its innovative approach, Dell excels in the premium Windows laptop segment, particularly with its XPS series Additionally, the company offers some of the slimmest and most visually appealing laptop designs available today.
Dell operates manufacturing facilities not only in the US but also in cost-effective countries like Brazil, Malaysia, and China These locations offer high labor productivity, enabling Dell to reduce product costs while enhancing productivity, sales volume, and profit margins, thereby establishing a significant global competitive advantage.
Targeting market goals effectively requires a strategic location that minimizes transportation costs and ensures quick delivery Consequently, Dell enhances its supply chain across key regions, including Northern Europe, Asia, and South America, by establishing efficient connections and interactions.
Products tailored to each need, quick order processing due to an efficient supply chain (with around 200 suppliers, more than half of them located outside the
Dell sources its components externally, relying on suppliers in the US and Asia, which allows the company to significantly reduce costs by minimizing intermediaries This strategy not only lowers expenses but also provides Dell with a competitive price advantage in the market compared to its rivals.
Dell's business model centers on customer satisfaction, focusing on delivering exceptional value and experiences To enhance this commitment, Dell has launched a suite of financial services and provides free resources on its website Additionally, the company has established global toll-free call centers to assist customers effectively Dell also offers three user-friendly tools: ESupport, Dell Talk, and Ask Dudley, ensuring comprehensive support for its clientele.
Direct selling has enabled Dell to achieve significant cost advantages, evolving from a technology warehouse into a leading industry giant with the highest brand recognition and sales volume With hundreds of sales representatives linked directly to the parent company, Dell serves major corporations like Sony, Toyota, and Unilever This direct-to-customer business model eliminates intermediaries such as wholesalers and retailers, allowing Dell to provide high-quality computers at more competitive prices.
MARKETING STRATEGY
Strategy introduction
End-to-End (E2E) refers to a system or service that offers a complete production process without relying on third-party support Essentially, E2E providers can manage a project from inception to completion, delivering an all-inclusive solution that encompasses hardware, software, manpower, documentation, and processes, with minimal involvement from intermediaries.
Since the early 2000s, Dell has distinguished itself as the sole provider of the End-to-End strategy, which is built on four key pillars: workforce transformation, IT transformation, digital transformation, and security transformation This approach integrates seven subsidiaries of Dell Technologies—Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream, and VMware—marking a significant collaboration among all members of this technology family under a unified strategy.
Dell's End-to-End strategy focuses on creating a secure and scalable infrastructure that is continuously supported For customers hesitant to invest in new data centers, Dell provides solutions through its shared cloud capabilities and dedicated private cloud options, enabling effective management and support of their data center needs.
Dell's End-to-End security strategy utilizes top-tier products to protect customer devices, networks, and application access via e-commerce platforms like Android Play and Apple Store The company is dedicated to delivering a robust framework for managing and securing data from the cloud to customer machines.
Dell employs an End-to-End strategy to efficiently address infrastructure needs and adapt to shifts in the IT sector This approach allows Dell to oversee all aspects of the system's hardware and software, covering installation, deployment, and maintenance while integrating every element from the client interface to data storage and more.
Mission and goal
The growing trend among enterprises to seek innovative and secure technology solutions is driven by the need for novelty and differentiation in the tech landscape However, achieving these advancements demands considerable time, effort, financial investment, and a skilled workforce.
Dell aims to be a top global provider of data center infrastructure and equipment as markets converge and industries digitize The company has developed the ability to deliver end-user applications within a secure and managed framework, catering to various client devices and application delivery methods By utilizing its data center infrastructure, Dell enhances these client devices with a combination of comprehensive software and professional services.
Maintaining strong customer relationships, generating substantial profits, and providing powerful, feature-rich computers worldwide that users can easily operate without any technical assistance are always Dell's priorities.
• Mission: To provide technology solutions that enable people everywhere to develop and unleash their full potential.
Dell is dedicated to enhancing its customers' IT transformation journeys by offering comprehensive End-to-End solutions and services, ensuring they have the optimal data center platform to meet their needs.
Target customer
Dell leverages customer segmentation as a crucial element of its marketing strategy, focusing on specific market segments to create tailored products and special offers This targeted approach ensures that Dell effectively meets the unique needs of each segment, enhancing customer satisfaction and driving sales.
Dell has strategically segmented its market into the United States/Americas, EMEA, and Asia Pacific-Japan regions, employing tailored marketing strategies and pricing for each area While there is no demographic bias regarding age, gender, or race, factors such as income, occupation, and education significantly influence customer needs and product offerings Additionally, Dell emphasizes the benefits sought by consumers, including affordability, quality, and excellent service By targeting customers with predictable purchasing behavior and low service costs, Dell has developed key capabilities in effectively reaching and retaining specific customer segments.
➢ Dell targets two customer segments:
The first segment of Dell's customer base includes enterprise clients like large corporations, governments, and educational institutions, which generate the highest profits To cater to these valuable customers, Dell provides dedicated sales representatives and account managers A significant portion of Dell's revenue is derived from long-term relationships with these companies, for which the company has created customized websites to enhance service and support.
"Premier Pages," with predefined technical specifications and budgets This allows them to access product designs, order status, and product support and service information.
The second segment comprises price-sensitive customers looking for value-added products, reliable services, and quality at low costs These individual customers often prefer online shopping to meet their product needs To effectively engage this segment, Dell leverages advanced technology products aimed at frequent upgrade buyers who need minimal technical support and favor credit card payments.
Target market
Dell Technologies is committed to a global strategy aimed at becoming a leader in the computer technology market The company has been steadily reinforcing its brand presence across continents, with its primary business markets being the United States, Europe, and the Asia-Pacific region.
- Identifying suitable cloud strategies for general-purpose applications, native cloud, and critical applications.
- Providing IT infrastructure to support digital transformation.
- The transformation revolves around services and consumption Dell offers individual customers, enterprise customers, and diverse partners various options for purchasing and consuming IT.
Positioning strategy
Dell is a leading provider of popular desktop computers and laptops in the PC market Despite its strong position, Dell encounters significant competition from rivals such as HP, Lenovo, and other manufacturers offering comparable products and features.
Dell is a leading name in the computer technology industry, known for its superior features, powerful performance, and reliable build quality With premium hardware components and advanced features, Dell products effectively meet user needs The company's 36 years of experience in the market enhances its reputation as a modern and trustworthy brand.
Dell's "End-to-End" strategy enhances customer satisfaction by optimizing product attributes for various segments, allowing tailored choices Committed to superior quality and continuous improvement in hardware and design, Dell offers a diverse range of products with updated technological features With prices that vary based on usage, styles, and configurations, Dell effectively caters to all customer needs, solidifying its reputation for "competitive pricing with superior quality."
Business leaders globally are continually exploring innovative technology solutions to set their products and services apart Effective and secure solutions are essential for tackling critical business challenges, enhancing efficiency, and managing time, budget, and resources effectively However, many organizations encounter limitations in areas like capital, resources, and specialized expertise, prompting the rise of various solution providers to help overcome these obstacles.
Dell effectively utilizes the Internet to set itself apart in the service sector, enabling customers to customize their computer configurations As one of the leading server providers globally, Dell has a solid foundation in server technology and offers a range of supplementary products, including storage, data center networking, management, security, and modern services, allowing the market to dictate their importance Customer feedback on popular products drives Dell's continuous product development Additionally, Dell is recognized for its outstanding customer service and its capability to deliver end-user applications in a secure, managed environment, focusing on leveraging the best existing products for its customers' devices rather than inventing entirely new solutions.
EXECUTION
Action plan
The company reported a revenue of $24.5 billion, marking a 12% increase from the previous year and surpassing analysts' expectations of $23.4 billion Product revenue reached $18 billion, also up by 12%, while service revenue grew by 10% to $6.5 billion.
Dell reported non-GAAP earnings per share of $2.13, surpassing expectations of $1.61 The company achieved a net income of $1.13 per share, with operating income rising by 96% to $1.4 billion The gross profit margin remained steady at 31% compared to the previous year Additionally, Dell noted a record cash flow from operating activities, totaling $14.4 billion over the past 12 months.
In its revenue from its business segments:
- Dell recorded a revenue of 13.3 billion USD from its PC business, a 20% increase.
- Orders for Alienware gaming laptops increased by 76%.
- The group's operating income was 1.1 billion USD, an 84% increase.
- Consumer revenue rose by 42%, while commercial customer revenue grew by 14%.
- Infrastructure solutions generated a revenue of 7.9 billion USD, a 5% increase.
- Server and networking revenue reached 4.1 billion USD, up by 9%, while storage revenue was 3.8 billion USD.
- The VMware business segment contributed a total revenue of 2.99 billion USD, a 9% increase compared to the same period last year.
Dell and VMware will continue their strategic relationship, as Dell transferred81% ownership to Dell Technologies' shareholders in the fourth quarter of 2021.
Dell faces diverse and competitive rivals in the IT and personal computer industry, coming from various different brands Here are some key competitors that Dell encounters in the market:
- HP (Hewlett-Packard): HP is one of Dell's strong competitors They offer a range of laptops and desktop computers for both individuals and businesses, along with diverse customer support services.
- Lenovo: Lenovo is a Chinese brand with a strong global presence They specialize in manufacturing laptops, desktops, tablets, and other mobile devices for various customer segments.
Apple competes in both the personal computer and mobile device markets, offering products such as the MacBook, iMac, and iMac Pro that rival similar offerings from Dell.
- Acer: Acer is a manufacturer of laptops and desktop computers originating from Taiwan They offer mainstream products at competitive prices, targeting average consumers.
- Asus: Asus, also a Taiwanese brand, is renowned for high-quality products, especially in gaming and ultra-thin laptops.
- Microsoft: Microsoft is a notable competitor for Dell in software and technology services They provide products like Surface computers and Azure cloud computing services.
- Samsung: Samsung, a well-known brand with a variety of products, including laptops and tablets, directly competes with Dell in the mobile devices and computer market.
Dell faces significant competition that impacts its market share, necessitating continuous improvements in product quality, services, and responsiveness to global customer needs To effectively counter rivals, Dell's strategy centers on innovation, customization, competitive pricing, high-quality offerings, and exceptional customer support By prioritizing these elements, Dell strives to reinforce its position within the IT and personal computer sectors.
Dell's marketing objectives focus on enhancing brand development, boosting sales, and sustaining a competitive edge in the IT and personal computer markets Key goals include strategic directions aimed at fostering brand loyalty and increasing market share.
Dell is dedicated to establishing and sustaining a robust brand that embodies distinct values aligned with customer needs, striving to be recognized as one of the most trustworthy and favored brands in the technology sector.
Dell is committed to enhancing vision and driving product innovation, aiming to continuously improve and develop new offerings that cater to the evolving needs of consumers and businesses Their focus lies in creating groundbreaking, innovative products while prioritizing performance and quality.
- Enhancing pricing strategy effectiveness: Dell targets optimizing pricing strategies to compete effectively in the market They aim to provide high- value products and attractive pricing for consumers and businesses.
- Expanding global influence: Dell aims to expand its market share and increase global influence by expanding business operations into new markets and enhancing online presence.
Dell prioritizes customer focus and exceptional customer service by delivering reliable, high-quality products that meet customer needs and desires Their goal is to foster long-term relationships with customers, ensuring satisfaction throughout the buying and usage experience.
Dell emphasizes the development of digital marketing channels to effectively engage with customers and promote their products By harnessing the potential of social media, online advertising, and various digital content platforms, Dell aims to enhance its brand visibility and foster meaningful interactions with its audience.
Picture 4 Dell's business model 4.1.4 Marketing mix (4P)
Dell consistently enhances its product lines to address customer needs, stay competitive, and diversify its offerings Through continuous innovation and upgrades, the company aims to solidify its position in the IT and personal computer sectors Dell's product development process emphasizes innovation, research, and technological advancement while closely aligning with customer demands and market trends.
There are several key differentiators in Dell's products compared to competitors in the IT and personal computer market Below are some highlights of Dell's products:
Dell is well-known for its commitment to customization and flexibility, enabling customers to tailor products to their specific requirements With a wide range of configuration options available, users can select features that align with their needs and budget, ensuring a personalized experience that caters to individual preferences.
Dell provides a diverse product range, including standard laptops, gaming laptops, desktops, workstations, and servers, effectively meeting the needs of various market segments and specific customer groups.
- Quality and durability: Dell's products are often highly rated for quality and durability They use high-quality components and materials to ensure stability and reliability in daily use.
Dell prioritizes modern and attractive design, ensuring that its products feature appealing aesthetics that resonate with user trends and preferences This commitment to enhancing design reflects their dedication to meeting the evolving needs of consumers.
- Advanced technology: Dell utilizes advanced technology to provide notable features and performance in their products They integrate the latest technological advancements to enhance user experiences and optimize performance.
Dell prioritizes exceptional customer support by offering comprehensive technical services, reliable warranties, and regular software updates, ensuring a seamless and hassle-free experience for customers throughout their purchasing and product usage journey.
Dell stands out in price competition against rivals such as Apple and IBM, primarily due to its efficient Just-In-Time (JIT) system and direct marketing strategy By selling directly to consumers, Dell minimizes costs associated with intermediaries, enabling it to offer products at prices that are generally 10-15% lower than those of its competitors.
Control plan
➢ Make a sales promotion plan to handle the excess inventory from the end of
In the first half of 2023, the Vietnamese laptop market has experienced a downturn, primarily due to inventory backlogs from 2022 and a decline in purchasing power amid an economic recession Representatives from Thế Giới Di Động noted that many consumers had already purchased laptops during the pandemic, delaying the need for replacements This situation has led to a significant surplus in supply, as demand continues to lag Furthermore, accessories for personal computers, including mice, 3G/4G USBs, and graphics cards, are also struggling, with only about 25% of imported stock sold this year and prices dropping by 20-30% weekly.
The computer market usually sees significant growth in the third and fourth quarters, driven by the back-to-school season and year-end shopping As a result, computer retailers are optimistic about market recovery in the latter half of 2023 Consequently, Dell should implement promotional sales strategies to address the inventory backlog from late 2022.
➢ Develop a website to help customers find where to buy products.
The website will function like Dell Store, enabling customers to search for products online effortlessly When users click on the search option, they will receive links to purchase items from various e-commerce platforms, complete with selling prices This feature allows consumers to easily compare prices across different sites and make swift purchasing decisions.
+ Add a "Retailer Search" button below each product.
+ Link to various e-commerce platforms (Tiki, Lazada Mall, Shopee Mall, etc.) to display product availability and prices.
The website identifies the customer's location and presents a list of nearby retail stores, enabling easy access for customers to explore and experience products firsthand Additionally, in-store staff are available to assist with any questions or concerns.
+ Add a "Store Locations" tab alongside "Products," "Contact," and "News" on the homepage.
+ Request the customer's location information.
+ Display the nearest retail store locations based on the customer's location.
EVALUATION
Strategic assessment
Dell Technologies' End-to-End strategy stands out as a unique and effective approach that has been successfully executed in the global market for an extended period This strategy enables Dell to deliver significant value to enterprise customers by providing comprehensive solutions, which in turn fosters a loyal customer base Furthermore, it positions the company to stay ahead of emerging trends and strategies in the information technology sector.
Dell's End-to-End strategy ensures comprehensive integration by overseeing every stage of the process, from product design and manufacturing to distribution, sales, and after-sales support This holistic approach allows Dell to maintain consistency and quality management across all facets of their products and services.
Dell's comprehensive management of the supply chain enables stringent quality control throughout the manufacturing process, ensuring that all products adhere to high standards of performance and reliability.
Dell prioritizes an enhanced customer experience by offering a holistic approach that encompasses product design tailored to customer needs, alongside exceptional after-sales service and support This commitment fosters satisfaction and builds trust among its clientele.
Dell enhances customer engagement by utilizing multiple distribution channels, allowing for a deeper understanding of customer needs This approach enables Dell to provide tailored and effective solutions that meet individual customer requirements.
However, besides the above strengths, Dell's End-to-End strategy still has a few weaknesses:
Implementing a comprehensive process from design to after-sales support can impose significant resource demands and complex procedures on Dell, limiting its flexibility This challenge may hinder the company's ability to swiftly adapt to evolving market demands and changes.
Dell's End-to-End strategy requires substantial investment in resources and systems to effectively manage the entire supply chain, resulting in increased costs that can affect the final pricing of its products.
Limited scalability poses a significant challenge for large-scale companies like Dell, particularly those operating across multiple markets Maintaining an End-to-End strategy can become increasingly complex, potentially hindering the company's ability to expand and penetrate new markets effectively.
Proposing marketing solutions for the strategy
In today's fast-paced technological landscape, businesses must recognize the importance of timely improvements to avoid product obsolescence To enhance product consumption and engage consumers, Dell has focused on upgrading quality, design, and services By leveraging data center infrastructure and providing comprehensive software and professional services, Dell aims to deliver secure and managed end-user applications across diverse customer devices This marketing strategy is essential in addressing customer needs, necessitating Dell's commitment to effective execution and enhancement of these initiatives.
With the Marketing strategy, Dell can further boost sales by:
Dell enhances customer experience by offering additional services alongside its products After selecting a product, customers can benefit from services like antivirus protection, extended warranties, and accessories Additionally, Dell provides premium color options at discounted rates, ensuring a comprehensive and tailored purchasing experience.
- Utilizing direct sales and marketing systems can help Dell reduce costs and enable them to offer competitive prices for all their products.
Expanding direct sales channels through physical stores and distribution agents, rather than relying solely on online sales, offers significant advantages However, intermediary channels have limitations, as they do not provide a direct connection between consumers and the manufacturer's services, which is particularly critical for Dell's campaigns To address this gap, Dell must establish physical retail locations and offer direct services, enabling customers to access essential support without depending exclusively on the website's scheduling system This issue remains unresolved, highlighting the necessity for global development of direct sales channels and services To succeed, Dell should prioritize continuous innovation and actively respond to customers' practical needs, as staying attuned to customer trends is vital for the company's growth.
In new markets, to reach customers quickly, Dell should establish multiple direct stores for product distribution This method of direct delivery to consumers is the most efficient.
Dell should enhance its customer care network by establishing warranty centers and customer support services at all locations where Dell computer stores operate, ensuring high product quality for distributed items.
If customers are unable to visit in person, Dell's technical experts will provide remote advice over the phone for any product issues, thereby building trust with customers.
In today's evolving society, advertising is crucial for the growth and sustainability of both products and businesses It stimulates customer demand, generates interest, and boosts purchasing power while enhancing market share By quickly conveying product characteristics and features, advertising effectively supports sales and lowers distribution costs, as customers actively seek out the promoted products.
With the current social development, we have various ways to bring Dell's products closer to consumers Some effective forms of advertising include:
- Advertising on banners, flyers, billboards
To position the brand in the minds of consumers, apart from advertising, the best way is to carry out PR activities.
Public Relations (PR) is a cohesive system of principles and activities designed to shape an image, impression, perception, or trust level Recently, many businesses in our country have increasingly recognized PR as a vital tool for marketing and brand development.
Therefore, to do PR and develop the brand, Dell needs to implement the following activities:
- Engage in community sponsorship activities.
- Direct non-commercial activities with customers.
Lessons and management implications
In the rapidly evolving IT industry and the era of Industry 4.0, technology companies like Dell must consistently innovate and enhance their products and services to meet the fast-paced market changes and growing customer demands Marketing managers play a crucial role in this process by staying updated on market trends to develop effective marketing and business strategies tailored to customer needs and preferences As Michael Dell, the founder and CEO of Dell Technologies, emphasized, "The key to success is the customer."
Despite numerous challenges and crises, Dell has successfully navigated its path to growth through timely business reforms, product enhancements, and strategic customer policy changes These efforts have led to a consistent increase in revenue, solidifying Dell Technologies' position as a leading corporation in the global computer technology industry.
Building and implementing effective strategies is essential for organizational success, as managers must understand these aspects to make informed investments Without clear strategies, businesses struggle to find direction and execute activities that align with their goals In a competitive market economy, a well-crafted operational strategy is crucial for maintaining a strong market position Therefore, establishing robust strategies is vital for every organization, requiring managers to possess vision and provide appropriate guidance for sustainable growth and development.
Dell's "End-to-End" strategy exemplifies its commitment to understanding customer needs and priorities, resulting in the creation of valuable products and services This approach has not only optimized production and supply processes, enhancing productivity and reducing waste, but has also fostered strong customer relationships that build trust and support sustainable growth To sustain its success, Dell must remain flexible and ready to adapt to changing environments while continuously improving processes and technology within its supply chain This ongoing focus will enable Dell to further enhance customer value, boost productivity, and establish a robust foundation for future development.
Thị trường laptop đang chứng kiến sự tăng trưởng mạnh mẽ do nhu cầu vượt quá nguồn cung Sự thiếu hụt này đã dẫn đến tình trạng khan hiếm sản phẩm, khiến giá cả tăng cao và người tiêu dùng gặp khó khăn trong việc tìm kiếm thiết bị phù hợp Các nhà sản xuất đang nỗ lực để cải thiện tình hình cung ứng, nhưng vẫn chưa thể đáp ứng kịp thời nhu cầu ngày càng gia tăng của thị trường.
Dell đã công bố doanh thu kỷ lục 24,5 tỷ USD trong quý đầu tiên của năm 2021 Sự tăng trưởng này phản ánh nhu cầu mạnh mẽ về sản phẩm công nghệ trong bối cảnh chuyển đổi số toàn cầu Công ty tiếp tục khẳng định vị thế hàng đầu trong ngành công nghệ với những giải pháp đổi mới và dịch vụ chất lượng cao.
In the first half of 2023, the laptop market experienced a significant decline in sales, leading to increased pressure on inventory levels This downturn has raised concerns among manufacturers and retailers as they navigate the challenges of excess stock and shifting consumer demand The situation underscores the need for strategic adjustments in marketing and production to adapt to the evolving market landscape.
[4] Mạnh Tuấn (2007, September 15) Người khai sinh thương hiệu Dell Retrieved from VnEcocnomy: https://vneconomy.vn/nguoi-khai-sinh-thuong-hieu-dell.htm
The laptop and assembled computer market experiences a vibrant surge during the year-end season, driven by increased consumer demand and holiday shopping trends Retailers are focusing on promotions and product diversity to attract buyers This period is crucial for both manufacturers and sellers, as they aim to capitalize on the festive spirit and the growing need for technology in everyday life The dynamic nature of this market highlights the importance of staying updated with the latest trends and consumer preferences.
[6] TranceM2 (2021, November 23) End-To-End Là Gì? Ví Dụ Về Quy Trình End
To End Retrieved from https://www.transed2015.com/end-to-end-la-gi-vi-du-ve- quy-trinh-end-to-end/
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