University of Phoenix
Dr. Dominic F. Minadeo
September 10, 2009
Market Trends and Changes in Dell Computer
This paper will describe market trends that Dell Computer may face in the near future. Possible changes will be identified within the following areas; market structure, technology, government regulation, production, cost structure, price elasticity of demand, competitors, supply and demand. This paper will also touch on the impact that new companies may have on Dell.
As plans are made for Dell, a monopolistic competition seems to remain the most practical marketing structure for them. Even with adding new products to their PC trend, Dell is still competing against other companies with similar products such as laptops, desktops, game systems and many other electronics allowing for the market structure to remain constant.
Dell is starting to have a new take on technology as they work on future designs and thoughts. While traveling overseas, Michael Dell stated that he and his staff are exploring smaller-screen devices. “Speculation is, Dell is planning a smart-phone that would compete with Research in Motion’s (RIMM) BlackBerry, Apple’s (AAPL) iPhone, and the various devices running software from Microsoft (MSFT), Nokia (NOK), or the Google (GOOG)-backed Open Handset Alliance” (Kharif, Olga, 2009). Another possibility that Dell is considering, if the smart-phone does not succeed, would be a mobile internet device, or MID. This device is larger than a smart-phone but lighter than the smallest notebook computer known as the netbooks. According to recent surveys of consumers, most would be in agreement to replace the smart-phone idea with the MID. In addition, after research was conducted on other cell-phone makers, a struggle is found to be going on in the smart-phone market regarding whether or not the smart-phone is even a successful possibility.
Going green is a technology that has been going on for some time and will remain one of Michael Dell’s strongest passions. Dell is looking at introducing several new greener services in the near future that will help to assess complexity and simplify IT environments as it will keep Dell in compliance with the government environmental regulations. The first will be the “greenprint” which will help organizations identify inefficient process and develop ways of fixing them. “Dell is simplifying its client and data center infrastructure, and is also offering services that let organizations assess complexity in their IT environments” (McLaughlin, Kevin, 2007). Dell is also planning to sell PowerEdge servers with Solaris installed direct to customers. This device will be 23 percent more energy efficient than similar offerings from competitors. According to Dell, another service called Image Direct will let customers develop one’s own custom PC images and upload them to Dell to be installed on the machines they buy. Dell is hoping that these new services will not only create stronger customers relations but also will stay strong in helping to save the environment.
Another future technology that Dell is introducing is the XFR E6400 Latitude. This laptop is geared toward military and construction uses, meets military specifications and can withstand being drenched with a fire hose. According to Dell spokesperson Patrick Burns, this laptop can endure the harshest of environments such as first responders, field service technicians and those who require systems that meet 13 military specifications including drop tests, sea fog, temperature extremes, thermal shock, explosive environments and many more. This new technology will be funded through a government stimulus package while targeting the military as they are now fighting wars. “The XFR E6400 Latitude can be used by the military to assist in the live updates of satellite maps, enabling satellite-based telecommunications and troops using...