celine, robin, cassie, and danyi. competitive forces 3 major competitions hewlett-packard, ibm,...
TRANSCRIPT
Celine, Robin, Cassie, and Danyi
Competitive Forces
3 major competitions Hewlett-Packard, IBM, Sun-Microsystems
Rival companies Compaq, Gateway, and Apple
Hewlett-Packard
Major rival in the future, 25.1% increase in one-year sales. Dell has 13.6% increase.
Ranks fourteen in fortune 500, Dell ranks 36. Hewlett-Packard lowering prices as has Dell. Structure of computer field different from
any other business. Dell realized that stale items on shelves are
useless and that they needed to customize items.
Economic Forces Recession
But stocks are looking up People using caution in
purchasing products Dell lowering prices
Offering upgrades Discounting colleges and
universities Businesses are the majority
of buyers and buy on Dell credit
Technological Forces
Up-to-date Cheap/low cost Sell direct using
warehousing Innovative
customization
Sociocultural forces Be aware of ethical
issues Child pornography E.P.A regulating the disposal of products
Treating employees Running the business
Identification of Target Market
Educated, middle income, young to middle aged, professionals, early majority in adapting stage
Not overly wealthy Computer savvy Used daily
Needs analysis Cost to be
down Customized
with the latest technology
Fast Easily
accessible 599
Strengths Direct selling keeps cost low No inventory build Proactive approach to latest
technology Fast inventory enabling Dell to
introduce new technology Keep up-to-date with build-to-order Intranet and extranet (continuous
communication)
Weaknesses High dependency
on component suppliers and manufacturers
Lack of solid dealer relationship
opportunities Internet as
powerful marketing tool
Potential market in China, Europe, and India
Low costs and advanced technology
Threats IBM and Compaq have
stronger brand names Currency fluctuations
outside the U.S. Tariff trade barriers Regulation and law
changes Recession
Marketing objectives Dell ventures
Formed in 1999 Advantage over competitors
Repeatedly reevaluated online performance
Performance analysis 14% Market Share Performance of
industry declining Choosy buyers Finance restriction
because of recession
Dell Offer customer enhanced
multitasking capabilities Products
Handhelds, software, peripherals, & services
Offers Development,
professional training, certification, support, and integrated solution services
Pricing leaders accomplish Appealing to highly segmented markets Incentives to behave how you want Pricing structures align with cost
Distribution Headquarters in
Austin, Texas 3 main divisions
Europe/Middle-East Africa, North/South Americas, Asia-Pacific/Japan
37 operating subsidiaries
headquarters
Promotion Internet Pop-up ads Newspaper &
magazines Commercials
(radio&television) Billboards
Dell