Dell Corporation Computers Essay
Dell Corporation was formed in 1984 and the purpose of Dell was to directly serve their customers and this organization was formed to meet the needs of the customers. At the early days the organization was known as PC’s limited and Michael Dell was a student at that time. AT that time Dell initiated their first computer which was known as Turbo and the ultimate goal of Dell was to produce the personal computer systems. The system that was developed at that time was IBM compatible. Their approach was entirely customized and their differentiating point was to individually assemble the computers individually.
The company grown slowly and gradually and it actually grossed 73 million dollars in the first year and they even went public in the year 1988 and offered a share price of $8. 50 a piece. The company after that specialized in laptops and the first Dell laptop made its debut in 1991. After that they never looked back and in their initial years Dell become the top five computer companies in the world. In the year 1997 Dell shipped its ten millionth systems. They changed their selling strategy and started selling the computers through their website and as
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Dell was considered as a leader in the laptop business so they extended their brand and introduced their printers for the public. These printers were targeted for individuals and small businesses. Therefore, the history of Dell is quite rich and they have a long track record of customer satisfaction and their customer base is increasing every year (Printcountry , 2009). Financial performance of the last five years The financial performance of this organization has increased in the previous years and this organization has progressed at a rapid pace.
The financial performance of the last five years suggests that the company have experienced stable growth as far as the financials of the company are concerned. The figure from the last five years indicates that the performance of the organization has gone up and down several times. The year 2006 was quite good for the company because net income of the company increased to about 19. 35% and this was a huge increase in the net income of any organization. However, due to stiff competition the company suffered losses and its net income decreased to about 28. 29%. However in the year 2008 the performance improved and net income increased to 14.
09% but this increase was sabotaged in the next year when the organization suffered losses which changed the figures and net income was decreased to 15. 91%. Other figures and changes are listed in the chart above (MSN, 2009). SWOT Analysis Strengths The direct model approach is considered to be the biggest strength of the company and this direct approach helps the organization to offer direct relationships with the corporate and institutional customers. The online technical support and their onsite product service can be considered as on the strengths of the company. Also learn Dell human resources management
The customer service of Dell is renowned around the world and different organizations have followed Dell’s model of customer service. Their approach of customization is considered to be a novel idea and this idea is loved by many customers. The prices of Dell are very competitive and it offer very competitive rates at every element of the supply chain. The reliability and support systems are above the part and they offer top notch service before and after the sales. The technological orientation of the company is quite and they develop their computer systems with direct distribution channels.
Similarly, Dell believes in the phenomenon of changing the inventory on a faster pace that is the reason why Dell turns over the inventory for an average of every six days. Finally the website of the organization is very interactive and a customized approach is used by the company even in their website.
The target market of the organization can be considered as their biggest weakness and their core target market is college students and they generate only 3% sales revenue from educational institutions. Dell is not popular among the educational market because students usually purchase computers through their institutions. Learn about Dell Marketing Strategy
In certain cases the direct method of Dell and the customized approach created many problems. Dell doesn’t have the distribution channels therefore customer don’t go for retailers and their direct approach in certain cases are creating problems for the organization. Opportunities The demand for personal computers is increasing and organizations are spending more and more on personal computers that is the reason why this can be considered as an opportunity for organization. The demand for laptop has increased and customers are shifting from desktop computers to desktops.
Dell can grow into other segments and this can treated as an opportunity for Dell computers. Other opportunities are provided by the internet in terms corresponding with the customers is concerned and customers can directly interact with the organization and they can purchase online. Threats There are hefty amount of threats in the computer markets that is the reason why Dell also faces certain threats. The technology is changing quite constantly that is the reason why Dell has to change its approach and they have to respond proactively in all the changes.
There are different external threats to Dell and one of the most common threats is the price difference among different brands and the competition between the brands are getting stiffer and closer. Since the prices are getting closer and closer customers are forgetting the concept of brand and they are easily shifting towards other brands. Similarly, the element of technological advancement can be considered as a double edged sword. Key Competitors Analysis The computer industry is filled in with competition and the major competitors of Dell include Apple, Hewlett-Packard (HP), Gateway, Acer, Sony, Asus and etc.
However, IBM, Apple and Hp are considered as the main competitors of Dell. The market share is shared usually between these two three companies and in the year 2006 the market share of Dell was between 18 to 19% of the worldwide personal computer market. However, the share of HP was 15%. Dell is believed to change its strategy and that is the reason why dell offers more competitive offers to its customers in terms of personal computers and other related equipment. However, Dell lost the share in the year 2008 and Hp turned to be the powerhouse at that time (Dell & Fredman, 2006).
Therefore, one can easily say that the competition in this industry is quite stiff and whoever comes up with a different plan succeed in both the short and the long run. Analysis of branding strategies of company and the selected product Alignment of branding strategy of the company and the product The branding strategy of Dell is quite customer centric and the entire focus of the branding strategy is to develop powerful brands which can be developed as the major products of the computer industry.
Similarly, emphasis is laid on the interaction and customization that is the reason why the organization involves a lot in brand activation and brand building activities. For e. g. The Dell city is most viable example of the brand building in which giant and high tech computers are placed and an individual has an opportunity to enter the Dell factory and he/she can easily witness the construction of their own laptop or the desktop computer (Nissim, 2007). That is reason why it can said quite easily that Dell follows a forward looking approach as far as developing a brand is concerned.
The brand that is selected for discussion is Vostro 1520 laptop. This brand is quite a famous one and it is usually targeted to specific target market and this brand is of a customized nature. This brand is among the top notch brands of Dell. The core target market of this brand is business oriented individuals and who are mobile and they don’t comprise on quality. The price of this machine is high and the brands core focus is to ensure the quality. Customers feel privileged with this machine because it is also related with social class of the customers (Dell, 2009).
Importance of social responsibility and credibility in preserving the brand integrity of your organization Public relations are quite an important element for every organization and organization that focuses on corporate social responsibilities are the one that benefits in the long run. One of the most viable strategies for this purpose is brand publicity and it is the use of non paid public messages to deliver persuasive messages (Duncan. T, 2004). The brand integrity is an essential part of every organization and organizations stresses on brand integrity.
Short term and long term benefits can be attained through relating the brand with the social responsibility. The brand integrity of an organization is closely linked with the social responsibility of an organization and the element of competition may drive capitalism but cooperating with the stakeholders and addressing the social and the environmental issues in a proactive manner must affect the organization and it must affect the brand integrity of an organization.
That is the reason why organizations are focusing on branding activities that are linked with social and environmental issues and for that reason organizations like Dell are joining and amalgamating not only with their competitors but they are combining and collaborating with organizations that are linked with social , human and environmental issues (Baue, 2007). Therefore, it can be said quite easily that brand integrity of Dell can easily be preserved and customers would move towards the brand if the company is more into social responsibility.
Dell integrates its brand name with different strategies of CSR like their “Plant a Tree for Me” campaign. Stake holder Relationships in the Brand building process Stakeholders are of utmost importance to every organization and Dell focuses a lot in maintaining healthy and proactive stakeholder relationship. In order to create a healthy brand relationship the organization must focus on the brand and manage its customers accordingly. Proper brand image and brand awareness must be created. Dell focuses a lot in their stakeholders and emphasis is laid on the relationship of stakeholders with the brands.
An element of brand champion is created within the organization and every stakeholder acts as marketing individual and the employees and all the related stakeholders adds value to the brand. Thus the stakeholders are linked with the brand and they are motivated enough to work for the organization. Dell focuses a lot on building brand relationships with the stakeholders. The brand is strengthened when emphasis is laid on the brand building process. Brand awareness and perception of Dell Brand awareness is considered to be an important aspect and customers must be aware of the brand and they must recall the brand when it is necessary.
Besides brand awareness perception is also important. An important point is that how customers perceive the brand in their eyes and how they are attached with the brand. The strategy and advertising depicts that customers view this brand as a powerhouse in the computer industry and the customers are usually aware about the brand and they have positive perceptions about the brand. In the market place this brand is regarded as the top notch brand for laptops and printers.
Baue, B. (2007, January 19). From Competition to Cooperation: Companies Collaborate on Social and Environmental Issues. Retrieved May 6, 2009, from Social funds: http://www. socialfunds. com/news/article. cgi/2208. html
Dell. (2009). Vostro 1520 laptop. Retrieved May 6, 2009, from www. dell. com: http://www. dell. com/content/products/productdetails. aspx/laptop-vostro-1520? c=us&cs=04&l=en&s=bsd
Dell, M. , & Fredman, C. (2006). Direct from Dell: Strategies that Revolutionized an Industry . Collins Business .
Duncan. T. (2004). Principles of Advertising and IMC. Mcgraw Hill.
MSN. (2009). Dell Inc: Financial Statement. Retrieved May 6, 2009, from moneycentral. msn. com: http://moneycentral. msn. com/investor/invsub/results/statemnt. aspx? symbol=dell
Nissim, B. (2007). Virtual World Transition: What SL Business Model Works Best? Retrieved May 5, 2009, from Ibranz: http://www. ibranz. com/article15. html
Printcountry . (2009). The History of Dell. Retrieved May 5, 2009, from printerinkcartridges. printcountry. com: http://printerinkcartridges. printcountry. com/printer-company-histories-press-releases/the-history-of-dell/