The main elements of Dell’s strategy
Dell’s main strategic elements are built around a variety of core fundamentals which give Dell the competitive advantage it needs to regain its position as the leading manufacturer of IT products and services. Dell’s build-to-order manufacturing strategy is one of the main areas that differentiate it from its competitors in the IT industry. By introducing this strategy Dell were able to keep inventory to a minimum of six to seven days which enabled the company to operate as efficiently as possible and pass on the cost savings they made to the customer. Dell’s mass customisation strategy was its unique selling point as it offered customers the ability to modify a computer to their personal requirements e.g. RAM capabilities. In order to reduce costs and gain competitive economic advantage Dell’s strategy was to build long term relationships with its suppliers to minimise component inventories by using just-in-time and working in conjunction with nearby suppliers to improve quality control measures. A zero-level distribution strategy was implemented by Dell to cut out middle men in order to be price competitive as it shortened the supply chain to the customer. To make their advertising campaigns more effective Dell introduced a market segmentation strategy to reduce unwanted, costly leakages in their campaigns e.g. the introduction of Kiosks. By introducing a market segmentation strategy Dell targeted customers that were likely to purchase their broad product range and therefore increase sales. To facilitate customer retention and sustain the companies reputation Dell put a strong emphasis on its CRM strategy to get a better understanding and knowledge of their customers present needs and demands to aid future development of its products as well as its services. To build loyal, trustworthy relationships with its customers Dell uses an information sharing strategy that gives current Dell customers’ updates on new products,...
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