Dell Goes Back to Its Pc Roots
Dell Goes Back to its PC Roots Case Summary
Dell is a computer company that made its name by first selling personal computers directly to customers through their website, catalogs, and over the phone. As time passed, Dell expanded into related product lines while battling aggressive rivals such as Hewlett Packard and Apple, striving to be the number one consumer brand in the United States. Despite considerable research and marketing investment, Dell’s strategy to expand into other related product lines did not succeed, and the company was forced to regain its focus on PC sales. This case includes the steps taken by Dell to uphold its legendary PC roots.
Key Marketing Issues
• Brand – A name, term, design, symbol, or other feature that identifies one marketer’s product as distinct from those of other marketers. Dell is shining up its brand by improving customer service, which is especially important as PC sales grow more slowly throughout the industry and competitors dig in to defend market share.
• Early Adopters – People who adopt new products early, choose new products carefully, and are viewed as “the people to check with” by later adopters. Dell is not looking to pioneer revolutionary new lines for early adopters, but has gone back to their PC roots, emphasizing related home office products.
• Innovators – First adopters of new products.
• Line Extensions – Development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs. Over the years, Dell has expanded into related product lines while battling rivals, hoping to obtain larger revenues.
• Product Line – A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations. Over the years, Dell has expanded into related product lines while battling aggressive rivals, hoping to derive an ever-larger portion of revenues and profits from a wider mix of products for use
Dell is a computer company that made its name by first selling personal computers directly to customers through their website, catalogs, and over the phone. As time passed, Dell expanded into related product lines while battling aggressive rivals such as Hewlett Packard and Apple, striving to be the number one consumer brand in the United States. Despite considerable research and marketing investment, Dell’s strategy to expand into other related product lines did not succeed, and the company was forced to regain its focus on PC sales. This case includes the steps taken by Dell to uphold its legendary PC roots.
Key Marketing Issues
• Brand – A name, term, design, symbol, or other feature that identifies one marketer’s product as distinct from those of other marketers. Dell is shining up its brand by improving customer service, which is especially important as PC sales grow more slowly throughout the industry and competitors dig in to defend market share.
• Early Adopters – People who adopt new products early, choose new products carefully, and are viewed as “the people to check with” by later adopters. Dell is not looking to pioneer revolutionary new lines for early adopters, but has gone back to their PC roots, emphasizing related home office products.
• Innovators – First adopters of new products.
• Line Extensions – Development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs. Over the years, Dell has expanded into related product lines while battling rivals, hoping to obtain larger revenues.
• Product Line – A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations. Over the years, Dell has expanded into related product lines while battling aggressive rivals, hoping to derive an ever-larger portion of revenues and profits from a wider mix of products for use
Cited: “Early Adapter”, wsu.edu. http://www.wsu.edu/~brians/errors/early.html. “Product Mix”, enotes.com. http://www.enotes.com/business-finance-encyclopedia/product-mix. “What is a Product Life Cycle”, answers.ask.com. http://answers.ask.com/Science/Psychology/what_is_a_product_life_cycle.