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Strategic Brand Analysis Dell Inc

2837 words - 12 pages

Dell Incorporated was founded by Michael Dell in 1984 and went on to public in 1988 at NASDAQ. The company employs approximately 89,100 team members around the globe. (Dell 2007a; Dell 2007b) Dell believes the concept of build-to-order and direct contact with customer has advantages to compete with most of the manufacturer in the personal computer industry. By offering low cost products and quality services directly to customers had assisted the company to capture most of the market share among its competitors at the early 1990s. (Dell 2007a; Wikipedia 2008)Today, Dell is one of the largest computer manufacturers in the market and their mission of providing excellent experience to customer ...view middle of the document...

Sales office in other regions also adapts the practice of direct marketing with little adjustments according to different culture. (Dell 1999, p. 31)This direct selling model has helped Dell to understand what customer really needs and wants. Their orders are made by phone, Internet or fax which provided the company with first hand comments and preferences on specific models or services. By collecting all this valuable information from customers to database, Dell could evaluate and adjust their products to suit the market latest trends and to avoid mistakes happen twice in the future. This information will also share with suppliers and designers which provide them with opinions and comments come from the end users. For that reason, future designs will be more customer-oriented other than just the desire that comes from the industry. (Dell Online Case 1999) In this business model, customer is at the beginning and end of the process. As a result, Dell can deliver high quality products to customer with satisfaction.Dell's segmentation approach not only towards their products but also customers as well. The company splits the segments into three categories - large and medium sized companies, educational and government organizations, and small businesses and consumers. These approaches have helped the sales team to focus on the required knowledge and also customize the service level to each of the target segments. (Krames 2003, pp. 70-1)The direct selling strategy allows the company to customize each of the computer/servers base on the requirements of different users among different segments. This ensures customers are receiving what they are expected and also satisfaction are met. Dell builds its computers by using the just-in-time (JIT) and build-to-order (BTO) systems, thus no inventory will be kept at the warehouse so cost can be minimized. Unlike the traditional practice, new models produce by competitors will not launch to the market until retailer's stock has clear out. Furthermore, Dell response quicker than competitors whenever there is new technology or technique problems. Customer who requests specific new items can be customized at Dell rather than purchase an already-built machine from retailer which might not 100% suitable for the user. (Dell Online Case 1999)In 2002, Dell Direct Stores were launched throughout shopping malls of United States. By now, they have claimed this strategy is reaching more than 50 percent of the US population. (Dell 2007d) The idea of Dell Kiosks is to provide personal service and real time experience of products to customers who preferred this shopping method. Despite the fact that it increases the cost for operation compare to sell products online, the price they are offering is still competitive to other retailers. In early 2008, Dell has closed all kiosks due to expansion to super store such as Wal-Mart and Best Buy in order to create greater brand awareness to customers. (Wikipedia 2008)Concluding from...

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