1) SWOT ANALYSIS

Strengths

Worlds largest PC maker.

One of the best known brands in the world.

First PC maker to offer next-day, on-site product service.

Direct to customer business model. Uses latest technology.

Dell has remarkably low operating cost relative to revenue because it cuts out the
retailer and supplies directly to the customers.

Dells Direct Model approach enables the company to offer direct relationships
with customers such as corporate and institutional customers.

Dells direct customer allows it to provide top-notch customer service before and
after the sale.

Each Dell system is built to order to meet each customers specifications.

Reliability, Service and Support.

Dell boasts a very efficient procurement, manufacturing and distribution process

allowing it to offer customers powerful systems at competitive prices.

Dell is able to introduce the latest relevant technology compared to companies

using the indirect distribution channels.

Dell is not a manufacturer; Components are made by the suppliers and Dell
assembles the computers using relatively cheap labor. The finished goods are then
dropped off with the customer by courier. Dell has total command of the supply chain.

Dell turns over inventory for an average of every six days, keeping inventory costs
low.

Dell is enhancing and broadening the fundamental competitive advantages of the

direct model by increasingly applying the efficiencies of the Internet to its entire
business.

Weakness
A huge range of products and components from many suppliers from various countries.

Computer maker and not the computer manufacturer, making DELL unable to
switch supply.

Dell lacked solid dealer / retailer relationships.

No propriety technology

Not attracting the college student segment of the market. Dells sales revenue
from educational institutions such as colleges only accounts for a merely 5% of the total.

Dells focus on the corporate and government institutional customers somehow

affected its ability to form relationships with educational institutions.

For home users, Dells direct method and customization approach posed
problems. For one, customers cannot go to retailers because Dell does not use
distribution channels.

Customers just cant buy Dell as simply as other brands because each product is
custom-built according to their specifications and this might take days to finish

Opportunity
Diversification strategy by introducing many new products to its range.

Personal computers are becoming a necessity now more than ever. Customers are
getting more and more educated about computers. Second-time buyers would most
likely avail of Dells custom-built computers because as their knowledge grows, so do
their need to experiment or use some additional computer features.

The internet also provides Dell with greater opportunities since all they have to
do now is to visit Dells website to place their order or to get information.

Since Dell does not have retail stores, the online stores would surely make up for
its absence. It is also more convenient for customers to shop online than to actually
drive and do purchase at a physical store.

Threats
Competitive rivalry that exists in the PC market globally.

New entrants to the market pose potential threats.

The threat to become outmoded is a pulsating reality in a computer business.

Price difference among brands is getting smaller.

Dells Direct Model attracts customers because it saves cost. Since other
companies are able to offer computers at low costs, this could threaten Dells priceconscious growing customer base.

With almost identical prices, price difference is no longer an issue for a customer.
They might choose other brands instead of waiting for Dells customized computers.

The growth rate of the computer industry is also slowing down. Today, Dell has
the biggest share of the market. If the demand slows down, the competition will become
stiffer in the process. Dell has to work doubly hard to differentiate itself from its
substitutes to be able to continue holding a significant market share.
Technological advancement is a double-edge sword. It is an opportunity but at the same
time a threat. Low-cost leadership strategy is no longer an issue to computer companies
therefore it is important for Dell to stand out from the rest.

2) MARKETING MIX
Product:

Dell believes that, Marketing is not about providing products or services it is

essentially about providing changing benefits to the changing needs and demands of the
customer.

Dell provides a wide variety of both business class and home/consumer class
products and services.

Dell designs, develops, manufactures, markets, sells, and supports a wide range
of products that in many cases are customized to individual customer requirements.

A few examples of products for individual and professional customers are Dell
Precision workstations, OptiPlex desktops, Dimension desktops, and Inspiron and
Latitude notebooks.

Price:

Pricing strategies usually change as the product passes through its life cycle,
because there is constrains on the companys freedom to price a product at different
stage.

The main objective of Dell is to produce the low price and profitable PC for the
customers.

For the above reason Dells product pricing reflects the affordability of the local
consumers.

Because Dell products are so customizable, the price is largely dependent on the
options and services added to the product.

Dell is undercutting competitors in price to rapidly gain market share.

Place:

Place is also known as channel, distribution, or intermediary. It is the mechanism

through which goods and/or services are moved from the manufacturer / service
provider to the user or consumer.

Dell has been able to affect the location strategy aspect of its marketing
campaign.

As Dells products are always available at the nearest dealers customers develop
trust for the local Dell thereby achieving the objective of gaining their trust in Dell
products and services, and forming a large and diversified consumer base.

Promotion:

Another one of the 4 Ps is promotion. This includes all the tools available to the
marketer for marketing communication.

Dell in the past have not concentrated on extensive marketing campaigns but
these revolutionaries in 1999 when Dell changed its tactics by engaging in extensive
marketing campaigns.

Dell markets its products primarily by advertising on television and the Internet,
advertising in a variety of print media, and mailing or emailing a broad range of direct
marketing publications, such as promotional materials, catalogs, and customer
newsletters.

Dell has recently started promoting its products through retailers like Best Buy,
Staples, Wal-Mart, GOME, and Carrefour.

3) PRICING
STRATEGY

Pricing strategies usually change as the product passes through its life cycle,
because there is constrains on the companys freedom to price a product at different
stage.

The main objective of Dell is to produce the low price and profitable PC for the
customers.

For the above reason Dells product pricing reflects the affordability of the local
consumers.

Because Dell products are so customizable, the price is largely dependent on the
options and services added to the product.

Dell is undercutting competitors in price to rapidly gain market share.

4) PROMOTIONAL
STRATEGY

Dell markets its products primarily by advertising on television and the Internet,
advertising in a variety of print media, and mailing or emailing a broad range of direct
marketing publications, such as promotional materials, catalogs, and customer
newsletters.

Dell has recently started promoting its products through retailers like Best Buy,
Staples, Wal-Mart, GOME, and Carrefour.

5)PRODUCT MIX
Definition:

Product of a company are called

Product Mix
important:
Any companys product mix has 4 dimensions

1)Length
2)Width
3)Depth
4)Consistency
1)Length:
Total number of items in product line.

2)Width:
Number of different product lines carries
bythecompany.

3)Depth:
Number of version offered of each product in the
line.

4)Consistency:
Closely related the various product line.

HISTORY AND LOGO

Bottom of Form

Justin Sullivan/Getty Images News/Getty Images

Michael Dell, Inventor of Dell Computers, Founder of Dell Inc.:

Michael Dell first built and sold personal computers from his dorm room at the University
of Texas in 1984 at the age of 19. The original name of the company was PCs
Unlimited.
Michael became the youngest CEO to head a Fortune 500 company when the company
was first included on the list in 1992.
After leaving his CEO role in 2004, Dell worked with the Michael & Susan Dell
Foundation.
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He returned as CEO in 2007.

The Dell family home in Austin, TX is reported to be the 15th largest home in the world,
with eight bedrooms, 21 bathrooms, a conference room, a gym, and a total of 22,000
square feet on 60 acres.
History of Dell Inc. and Dell Computers:
The company was started with $1000. Four years later, shares of Dell stock were sold
for $8.50, and the IPO raised $30 million.
From the start, Dell sold custom built computers directly to end-users.
Dell has employed as many as 78,000 people worldwide, which is five times as many
people employed at the University of Texas, where the company was born.
Dell products are now also sold in Wal-Mart, Staples, and other retail outlets.
Dell Mission Statement:
"Dell's mission is to be the most successful computer company in the world at delivering
the best customer experience in markets we serve. In doing so, Dell will meet customer
expectations of:

Highest quality

Leading technology

Competitive pricing

Individual and company accountability

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Best-in-class service and support

Flexible customization capability

Superior corporate citizenship

Financial stability"

Dell Computers, Laptops, Outlet, and Online Store:

As a pioneer in e-commerce, Dell.com sold $1 million per day just seven months after
its launch. In 2007 Dell.com was the fourth largest U.S. e-commerce site, with $4.2
billion in sales.
Dell had 13.6% of the global PC market in the third quarter of 2008, and is second in
global computer sales, behind Hewlett-Packard.
Dell was ranked #33 in Business Weeks Top 100 Brands, #34 on the 2008 Fortune 500
list, and was received 400 product awards in 2007.
Dell Coupons, Specials, and Other Marketing Strategies:
Dell has been focusing on m-commerce and social media strategies to reach customers
and potential customers with marketing offers. One mobile phone campaign that
advertised a sweepstakes received a better response rate in four hours than a
comparable direct mail campaign had received in 30 days.
Dell reportedly earned $1 million in revenue from transmitting messages about sales
and discounts to its Twitter followers.
DigitalNomads.com was launched by Dell to connect with mobile computer users that
work virtually and remotely.
Dell Philosophies and Michael Dell Quotations:

It's through curiosity and looking at opportunities in new ways that we've always mapped
our path at Dell. There's always an opportunity to make a difference.

Well, we started the company by building to the customer's order... we didn't do it

because we saw some massive paradigm in the future. Basically, we just didn't have any capital.

Sometimes you just have to belly up to the bar and take a chance. We made some
mistakes, but we also had the strength to work our way out.

It's customers that made Dell great in the first place... if we're smart enough and quick
enough to listen to customer needs, we'll succeed.

Dell World Headquarters:

Dell World Headquarters Contact Information
1 Dell Way
Round Rock, TX 78682
512-338-4400
800-289-3355
Dell's global headquarters campus is a 2.1 million square foot facility powered
completely by wind-power and gas energy converted from a landfill. On-site employees
have access to a fitness center, banking centers, employee store, a mother's room, and
notary publics.
39,500 people are employed in the Americas region, with manufacturing facilities in
Austin, TX; Nasville, TN; Winston Salem, NC; and Eldorado do Sul, Brazil.
Dell Global Region Offices and Manufacturing Facilities:
Dell's Asia-Pacific Regional Headquarters
Dell Singapore Pte Ltd
180 Clemenceau Avenue
#06-01 Haw Par Center
Singapore 239922
32,100 employees are employed in the Asia-Pacific region. Manufacturing facilities are
in Malaysia, India, and China Regional offices in 13 countries

Europe, Middle East & Africa Regional Headquarters

Milbanke House
Western Road
Bracknell, Berkshire
RG12 1RW
Manufacturing facilities are in Limerick, Ireland, and Lodz, Poland, and regional offices
are in 30 countries. (In 2008, Dell announced that it would close its Ireland facilities and
move all manufacturing to Poland.)