Operating Environment

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Operating Environment and Competition|
MARKETING MANAGEMENT - I|
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Submitted By: Submitted To:

Mr. Khem Singh(191090) Prof. Freda J Swaminathan Mr. Anshul Kaul(191077) Fore School Of Management
Mr. Anjan Chakrabarty(191072)
Mr. Jasbir Singh(191088)
Mr. Shrey Gupta(191114) Mr. Hemanth Reddy(191101)

FMG-XIX B

EXECUTIVE SUMMARY
Listen, Commit, Deliver — more than a tag line, this is how DELL does business.From a company that values a direct relationship with their customers, employees and each other, to delivering some of the world’s most energy-efficient products, it strives to continuously meet and exceed its own expectations. [1]

DELL Computer Corporation was established in 1984 and today ranks among the world’s largest computer systems companies. DELL pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service.

DELL International started in India by opening a customer contact center at Bangalore in 2001. In 2003, the second contact center was opened at Hyderabad. After the U.S., DELL India is the second biggest center with 13,000 employees. The strategic importance of India to DELL is evident from the fact that India was one among three locations (the other two being US and UK) where DELL’s Latitude E series and Precision notebooks were launched.

DELLhas snatched away the top spot from HP in the notebook PC segment in the country with a market share of 26.3 per cent for the first time in the fourth quarter of the calendar year 2009.“DELL’s ascent in the India notebook PC market in the fourth quarter of CY09 can be attributed to their consistent marketing efforts over the previous quarters. Availability of a wide product portfolio with appealing aesthetics and branding helped DELL connect with ‘Gen X’ buyers - students as well as young executives”[2]

DELL’s built-to-order boxes mean lower inventories, so the company can offer the latest technologies. Lower inventories also translate to lower costs and, therefore, higher margins for the company. DELL looks at Indian Small and Medium business segment as a big opportunity. According to recent industry reports, India has 7.6 million SMBs. There is an opportunity and headroom to grow in this segment as the small and medium business owners continue to seek the right technology at the right prices for their growth which DELL can provide.

The report gives brief overview of DELL Computers. Then it analyses the effects of macro environment and micro environment elements on the future of DELL Laptops. The following section mentions the existing opportunities related to market demand, consumer and industry. Also analysis of competitor’s behavior has been carried out and the study of product and marketing strategy they may come up with has been done.

Source: DELL’s Executive Summary, www1.ap.DELL.com; www.ciol.com Dell Laptop Overview

DELL is a leading competitor (innovative follower) in Indian PC market. In 2001, DELL, the world's largest PC manufacturer, set up its first fully-owned subsidiary in India. In 2003, DELL India witnessed sharp decline in its business as it had to encounter the anti-outsourcing backlash in the US. However, it bounced back within a short span of time and has emerged as the biggest contributor to DELL's strategic vision of global dominance in the PC market. By the end of 2005, DELL India became DELL's biggest base outside the US and it is believed to play a stellar role to help DELL achieve its goal of becoming an $80 billion company by 2010. DELL is...
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