Dell Writeup

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Table of Content:
A. Objective
B. Brief Background of Dell
a) Strategic Vision
b) Product Offerings
c) Product Levels
d) Current Market Situation
i. Customer Segmentation of Dell
ii. ESL & The Higher Education Planning Team
iii. Higher Education Market (HEM)
iv. Microcenters
e) Competitor Analysis
f) SWOT Analysis - Dell in HEM
C. Current Problem & Alternatives
D. Our recommendation & Action plan
E. Intended Learning Outcome
A. Objectives
The main objective for this marketing analysis is to explore the opportunity of Higher education Market (HEM) for Dell and to formulate a marketing plan in order to achieve its revenue target. After identifying current problems faced by Dell, we will analyze the pros and cons of each alternative and decide the best solution for the company. Given Year 96/97 budget and revenue targets, we will also suggest the approach for marketing implementation and contingency plan through various calculations. This marketing analysis hopefully will help Dell eliminate the obstacles to achieving successful business in Higher Education Market (HEM).

B. Brief Background of Dell
Dell Computer Corporation was established by Michael Dell in 1988. It mainly designs, manufactures, markets, and provides services and supports to computer systems including desktop personal computers (PCs), notebook computers, and network servers. Being the world’s leading direct marketer of PC systems, Dell Computer had approximately 8,400 employees distributed over 130 countries worldwide[1]. It was ranked 250th on the Fortune 500 list at the beginning of 1996. a) Strategic Vision

Dell Computer aims at developing customized, high-performance but low-price PCs which are directly marketed to end users. Its key strategic concept is to provide consumers an exceptionally high value through combining “relatively high performance” with “relatively low price.” b) Product Offerings

To fulfill the needs of different target customers, Dell has manufactured several product lines consisting desktop computers, notebook computers, and network servers. They are named OptiPlex, Dimension, and Latitude. OptiPlex line is designed base on industry standard with high performance and is easily upgradeable for networking purpose. Dimension computers, on the other hand, possess more advanced features and are aggressively priced to suit individual and smaller purchase groups. Latitude, a high-end notebook model, is specially designed for customer segment that look for desktop alternative and powerful multimedia tools. c) Product Levels

The core product of Dell is personal computer. Its actual products are: (1) relatively high and reliable performance justified by relatively low price; (2) highly customer-configured PC feature; and (3) well-established brand name known worldwide. Its augmented products include: (1) satisfactory after-sales services such as industry-leading warranty packages, installation, maintenance, repair services and user support; (2) timely delivery that is built-to-order and shipped within 3-5 days; and (3) convenient order placement, which only requires a phone number or post office box. Different from core product, actual and augmented products are mostly intangible. However, they are Dell’s distinctive competencies that essentially differentiate the company from other manufacturers in today’s competitive PC market. d) Current Market Situation

i. Dell’s customer segmentation
By behavioral and benefit segmentation, Dell’s customers could be divided into three distinct groups. They are: (1) the major corporate, government, medical, and education accounts (the “major accounts”); (2) the individuals; and (3) the small and medium-sized businesses. The major accounts require many computers, large-scale computing capacity and networking capabilities. They comprise of 64% to 67% of Dell’s revenue in the PC systems...
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