Dell’s Marketing Strategy in China
Name Wei Zhang
Group Group of Marketing
Subject Strategic Marketing Topic Submit A Business Development Proposal
Lecturer Terry Johnson
Due Date 20th April 2102
Words limit: 2000
Dell’s Marketing Plan in China5
SWOT for Dell’s direct selling in China6
Guidelines and recommendations for Dell’s future strategic marketing activities8 Reference10
In this essay, I will analysis the marketing activities of the famous computer company Dell in China. 1. Product Condition:
As we all know, Dell is one of the Fortune 500 companies whose headquarters is located in Austin, Texas. Its founder Michael Dell holds a very simple philosophy for his company, which is make the computers that the costumers need. And the main way of selling person-to-person sales makes Dell can know what do customers need quite well and efficient, so shorten the time of reply. Through the network marketing, Dell could fully receive the needs and viewpoints from the customers about what kind of a computer does each one wants. From design to production, sales to service. This kind of business model cut out the middleman, thus cut out the unnecessary cost and time, so that Dell can invest more on technology and advertisement ,which make Dell win more reputation from customers and do make out the computers what the customers really need.
2. Market Condition
Even thought Dell achieved good results in the US market by using its direct selling mode. But in China this kind of selling way was not suitable for Chinese market condition, as its competitors, such as Lenovo and HP, all use distribution way of selling, Dell did not sell good when it entered Chinese market. After changing its marketing plan in China, the situation got better. Nowadays, in Chinese pc market, Lenove always take the championship that its market share is 28.7%, Dell and HP occupy 9% and 8.2% respectively.
The big competitors for Dell in China are HP and Lenovo. HP and Lenovo all have excellent quality, but high price. Dell can always cater what customers need to improve its function.
In China, Dell adopts direct selling model as its main selling way. It mainly includes online selling and through some sales agents to sell, which exclude a large amount of unnecessary cost for middleman.
5. Macro-environment Condition：
With the continuous change of Chinese market environment and the continuous decline of the price of computer raw materials, a series of preferential policies came out, and that boosts the come in of some new kind of jobs and employment. Meanwhile, along the development of global economy, the increasing of world population, and the rising of the per capita net income, so improve the consumption level, the percentage of the cost on entertainment, and the needs for computers.
Dell’s Marketing Plan in China
Dell entered into Chinese market in 1994, and in Sep. 1999 Dell began its direct selling way in China. When Dell announced to use its unchanged way of selling in China, it was criticized that the selling way did not suitable for China’s actual condition and it would not achieve any success. But the result turns out that even though Dell’s unchanged selling way exist drawbacks, direct selling is still Dell’s edged tool. In China, except using its reputation and brand effect, Dell’s low price also impress a lot of customers. Produce through bills, “Zero stock”, and abandon middleman all provide good conditions for its low price strategy. Even though Dell has achieved good results in China, but the data report of resent years demonstrates that Dell’s selling is...