neeraj singh
DESCRIPTION
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EXECUTIVE SUMMARY
As one of the world's leading direct computer systems companies and a premier
supplier of technology for the Internet infrastructure, Dell's competitive advantage
is its direct customer focus. Constant interaction with its customers online and via
the telephone gives Dell the ability to understand unique computing needs that
drive individual and enterprise productivity. Even though growth rates for the
computer industry are expected to be less than previous years, Dell can still
successfully operate, enjoying healthy sustainable profits. A main problem is a
sagging US economy which Dell has no control over and a saturated PC market
with lower profit margins from industry price wars. Dell should focus on being a
“market taker”, instead of trying to be a market maker and capitalize on its ability
to enter new markets and quickly dominate, as it did in the low-end server and
workstation markets. It should pursue a multi-continental expansion of its middle
and high end server products. Dell should also pursue the external data storage
market through acquiring a leading company like the EMC Corporation. Having
already captured a large share of the US market, Dell should try and increase its
server, storage, and service segment penetration overseas to gain more
international market share, particularly in China and Latin America. Studies might
also be done on African and Russian markets as Dell has no physical presence in
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these regions. The only viable strategy in order to achieve Michael Dell’s goal to
double Dell Computers’ current revenue to $60 billion by 2007 is to work on
methods to improve sales in these 3 new areas. A combination of service, storage
and server product growth across newly established international markets will help
achieve this ambitious goal. While the US economy is in a recession, there is still
plenty of room to grow outside its borders.
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INTRODUCTION
Dell was founded in 1983 by Michael Dell, an 18 year old college freshman from
Texas who started out upgrading hard drives for IBM compatibles on nights and
weekends. Within a year, his service business had grown to an incredible $6
million from performing computer upgrades for local area businesses and he
dropped out of school to concentrate on the business. When Dell changed his
strategy and started offering custom built-to-order machines, the business
exploded, with $70 million in sales by the end of 1985. Evolving into an assembler
company, Dell was able to exploit certain events occurring in the industry and
swiftly adapted to meet market conditions. Five years later, total sales had grown
to an unbelievable $500 million and Dell became nationally known as a supplier of
state-of-the art desktop and portable computers. Dell continually achieved
phenomenal records in sales and profit growth, eventually making it the most
successful company ever in the PC industry, surpassing $25 billion in 2000. As one
of the world's premier providers of computer products and services, Dell was the
US market leader in its core products, the desktop and laptop markets by 2001.
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Dell’s Competitive Advantage:
Dell is officially the No. 1 computer systems company in the world. Dell is able to
sustain a competitive advantage over competitors in the computer industry because
of an extremely efficient supply chain/distribution system. Dell is able to achieve
superior profits in the industry because they are a knowledgeable user of
information, communication, e-commerce, e-business, internet, and web
technologies.
Michael Dell states that Dell is so successful because of “Knowledge
Management”. Mr. Dell defines that term by saying “physical assets are being
replaced by intellectual assets.” This relates to Dell’s inventory system. Dell
implements a Just-In-Time inventory system which operates on only 6 days of
inventory. Dell is able to achieve greater profit margins and increased profits
because of their inventory system. Inventory and labour are the highest liabilities
of a firm. Since Dell only operates with 6 days worth of inventory, they are able to
cut costs on warehousing, hiring people to track and maintain inventory, and avoid
holding on to obsolete technology. This allows Dell to free up cash flow to invest
in other value adding activities.
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Dell uses a JIT inventory system because Dell’s customers can only order
computers directly through Dell itself. Dell uses their website www.Dell.com to
take customer’s orders. Dell focuses on direct sales, cutting out other distribution
channels entirely. This allows for a deeper relationship with the customers
whereby Dell can offer their customer’s better service, savings, convenience, and
efficiency. A customer can order their own custom computer, have it built by Dell
in three days and have it delivered to the customer’s doorstep within one week.
Dell’s use of the internet has revolutionized the company. Dell makes their
website extremely consumer friendly to offer an easy order process to the
customers. Dell has also created their “Premier Page”. This page was made for
Dell’s larger accounts including corporations, the Government, and educational
institutions (i.e. Syracuse University). This webpage includes dynamic price
upgrades, easier navigability, and a greater range of available upgrades/options.
Customer relationship management software keeps close tabs on the types of
computers that customers are buying (Pizinger).
Not only does Dell use the internet to make the customer ordering process easier.
They also use the internet to build better relationships with their suppliers. In order
for Dell to work off of 6 days of inventory, their suppliers have to be very involved
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in the company to make sure superior service is met. Dell uses state of the art
production planning programs that forecast the quantities of components needed to
build the computers. After those forecasts are made, supply chain systems pass
those forecasts to suppliers, who respond with cost estimates and plan their
production as a result (Solis).
To achieve their supply chain superiority, Dell uses solutions from i2 Supply Chain
Management. “i2 streamlines the supply chain by providing component suppliers
and Dell planners with global views of product demand and material requirements.
It also provides real-time factory scheduling and inventory management, so
employees can generate key reports based on accurate and timely data, pinpoint
inventory on the factory floor, and receive supplier deliveries on a true just-in-time
basis (i2 supply chain management systems).”
This allows Dell to change their manufacturing schedule every two hours to keep
up with customer orders. Dell’s suppliers have access to this accurate, timely
information. Since the suppliers work with facts instead of forecasts, this allows
them to reduce waste and improve efficiency. Once suppliers receive this
information, they are directed to deliver needed materials to a specific dock door
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for assembly for specific product manufacturing. Dell uses the Windows NT
operating system and Intel-based servers for all of the i2 applications.
Dell’s e-commerce is a huge part of their competitive advantage. Their e-
commerce internet infrastructure is so advanced and knowledgeable that by using it
to determine trends and demands of their products, they have gained superiority
over their competitors.
Dell has set up strategic alliances with other companies to have their products sold
on Dell’s direct selling distribution channel. Back in 2000, Palm, Inc. made an
agreement with Dell to offer an expanded line of handheld Palm products and
accessories. This agreement allowed Dell to drive momentum for the Palm
operating system market (Dell: 2000, April 17). Along with Palm, Xerox also
partnered with Dell to take advantage of Dell’s e-commerce. Advantages to Xerox
were increased profits by offering the printers with the Dell computers.
Advantages to Dell include selling high quality printers along with their
computers, but more importantly, it allowed Dell to be involved in the customer
buying process for printers. Being involved in the decision making process is key
to Dell’s success because they see directly what the customers want and determine
their production schedule from that information.
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Dell achieves its competitive advantage over other firms in the industry by having
superior supply chain management. Dell utilizes technology to interpret
information. By being involved in the customer buying process they are able to
determine their customers’ needs. This allows Dell to streamline production and
have close relationships with their suppliers which results in getting timely
deliveries in order to mass customize customer’s computers.
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Analysis of Dell’s IT Tools:
Dell’s supply chain management success can be summed up in one idea. “Supply
chain management shortens the cycle between the component, the manufacturer
and the end customer. We are allowing them to almost touch each other, (E-
commerce)” according to Michael Chong, e-business Technology Manager of Dell
Computer Corporation. Supply chain management is the effective and efficient
movement of materials from suppliers, through a company and into products,
which eventually is received by consumers.
An important goal for Dell is to enable customers to process their own
transactions. Dell is known for their efficient and effective build-to-order business
model. This model allows customers around the globe to order customized
systems from the dell.com website. Dell’s online supply management allows Dell,
suppliers and customers to work together. As Michael Chong states, “Because we
work directly with customers, we have the ability to connect and understand what
products will be required and when (E-Commerce).” This helps Dell to inform
their suppliers what supplies are needed based solely on customer demand. As a
result, there is not an excess of supplies in warehouses that will decrease Dell’s
efficiency. As Dell is known for their exceptional service, ease in ordering and
responsiveness to customers needs, their competitive advantage is easily
distinguished.
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Dell’s internet presence through Dell.com is an important factor in Dell’s success.
By involving the customer from the beginning of the ordering process, Dell.com
makes it easier to do business for both parties and initiates customer relationships
while providing a means for ongoing customer service. With a number of links
focused primarily on certain groups and customers, purchases can be made easily
and efficiently. No matter what you are purchasing, Dell.com can assist the
customer in customizing and evaluating Dell’s offerings. Dell.com can help an
individual consumer purchase a single notebook or can help larger companies
purchase or lease products that will help them lower their costs. A new service,
launched in the year 2000, made it possible for customers to purchase refurbished
Dell PCs, notebook computers, digital cameras, scanners, printers and speakers
online. “The returned equipment comes from companies upgrading systems but
wishing to continue using Dell gear, or from cancelled order (Kelsey, 2000).”
Specifically, Dell has enhanced its supply chain by using i2 Supply Chain
Management to plan orders and communicate with suppliers every two hours. This
results in Dell’s efficiency in manufacturing and delivering exactly what its
customers want. Time to deployment and overall cost of ownership can be
achieved if i2 Pronto and/or i2 Solutions for Value Chain Management are utilized,
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along with Dell servers and storage. i2 Pronto is a rapidly deployed solution for
factory planning and collaboration. Dell possesses a competitive advantage in that
they are currently the only hardware platform certified for rapid deployment of i2
Pronto solutions. i2 Solutions enable Dell to reduce costs, lower total cost of
ownership and establish a reliable, stable operating environment. Dell’s own
implementation of i2 SCM solutions is known as the “DSi2 system”. DSi2 runs on
120 Dell servers and manages more than 250 suppliers delivering more than 3500
parts. As a result, Dell can deliver customized, replicable configurations, reducing
time to deploy and cost of ownership. i2 solutions also enable customers to put
Dell’s value chain to work in meeting company goals and attaining value (Jacobs,
2003). “i2 SCM streamlines the supply chain by providing component suppliers
and Dell planners with global views of product demand and material requirements.
It also provides real-time factory scheduling and inventory management so
employees can generate key reports based on accurate and timely data, pinpoint-
inventory on the factory floor and receive supplier deliveries on a true just-in-time
basis (Harrington, 2002).” This system allows Dell to achieve a new
manufacturing schedule every two hours which shows the latest customer orders,
backlog numbers, stock status and supplier commitments. Today, the supply chain
of Dell not only runs on 120 Intel-based Dell servers running Microsoft Windows
NT, but it also has four primary i2 software modules: i2 Collaboration Planner
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Demand Fulfilment, Global Supply Planning, Factory Planner and Supply Chain
Planner (Harrington, 2002). This success proves that Dell has the best of both
worlds. They achieve state-of-the-art performance at an economically attractive
price.
A competitive advantage is seen when a company, such as Dell, links supply chain
management with customer relationship management and supplier relationship
management. This link is known as DVCM (Dynamic Value Chain Management).
“DVCM requires synchronized, multi-enterprise collaboration based on
streamlined decision-making workflows across companies. It requires companies
to push planning and execution toward real-time or near-real time. DVCM's net
result is a fundamental change in the relationship between companies and their
trading partners--a change that creates tremendous value for companies, their
trading partners and their customers (Harrington, 2002).” When Dell utilizes its i2
SCM strategy, Dell “can model and monitor their business in real-time, and
analyze issues such as sourcing, distribution, resource and capacity constraints
(Harrington, 2002).” Some of the capabilities of DVCM are collaborative demand
planning with customers and suppliers, auto-replenishment of inventories, design
information sharing with strategic partners, content management and distribution
with management. After these are implemented, organizations are able to make
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decisions in a timely manner and implement those decisions for completion of the
products.
Another important role for Dell is the use of the Internet. The Internet helps Dell
to establish good relations with both their suppliers and their customers. Not only
does Dell’s use of the Internet allows customers to customize and purchase Dell
products online, the Internet also helps suppliers and Dell communicate and focus
on improving their efficiency. This method began in mid-1999 when Dell
introduced valuechain.dell.com. This website allows suppliers to follow their
material as it as used throughout Dell’s operations. Suppliers can log-on, drop off
invoices, check engineering change orders; review negotiated and forecasted cost
reports, and track their overall performances and progress. As a result of their
successful Internet system, Dell purchases almost 90 percent of its direct material
supplies online. Supplier hubs located near their manufacturing plants are used to
deliver supplies to the Dell plants when they are only a few hours old. As said by
Michael Chong, “We are trying to draw more value out of our supplier
relationship. That’s why the name ‘value chain.’ The applications themselves are
not replacing the business processes. The business processes are already defined
and well ingrained. It is just making the business processes more efficient (E-
Commerce).” By focusing on inventory control with their suppliers, Dell is able to
use industry price declines to their advantage and deliver those savings on to the
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customers. This also gives Dell a competitive advantage. According to Michael
Chong, “Our competition has a hard time trying to manage that type of model
because their inventory turns are fewer. They have more latent costs built into the
components in terms of their inventory (E-Commerce).” An efficient supplier
network is important to Dell. In order to increase efficiency between Dell and their
suppliers, Dell has reduced the number of suppliers they do business with. Three
years ago, Dell worked with more than 1,000 suppliers, but today they only work
with 100 suppliers. Dell also uses supply chain management software to reduce
inventories, improve material management and enhance relationships with
suppliers. This also helps Dell and their suppliers connect to share information
about inventory and improve efficiency, which gives Dell an additional
competitive advantage.
As a result of an alliance, Gen3 Partners and Arthur Andersen decided to work
with Dell in April, 2000. “Gen3 Partners will provide strategic business
development and technology consulting services to help Dell’s largest corporate
customers with headquarters in the United States leverage their existing assets to
create, architect and launch Internet-enabled enterprises (2000).” According to Jim
Sims, CEO of Gen3 Partners, “The next wave of Internet infrastructure will focus
on `brick-to-click' opportunities, as established companies integrate the Internet
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into their businesses. Gen3 Partners will provide a valuable service to Dell
customers by helping them use the Internet to improve their business-to-business
(B2B) capabilities and supply-chain processes." Dell has recently introduced
services to help customers conduct business over the Internet more efficiently,
including a Web hosting initiative called DellHost (www.dellhost.com) and the
upcoming introduction of a small and medium-sized B2B marketplace in
conjunction with Ariba (2000).” Ariba, Inc. provides solutions that allow
enterprises to manage efficiently the purchasing of all non-payroll goods and
services required to run their business. Ariba’s solutions, which include software
applications, services and network access, are designed to provide corporations
with technology and business process improvements to better manage their
corporate spending and, in turn, save money.
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Dell’s Business Model:
The four markets within an industry are defined as Business to Business, Business
to Consumer, Consumer to Business, and Consumer to Consumer. Dell focuses
on Business to Business and Business to Consumer commerce to satisfy their
business and individual customers. Dell differentiates between classes of
customers because the needs of their business customers, who buy large quantities
of computers, are different than the individuals who want to configure a single
unit. “Dell's business model is no secret, of course, and it's been emulated with
considerably less success by many of its competitors (Henricks, 2003).”
Dell’s initial success was due to its early use of the internet. “Dell's direct-to-the-
customer strategy presents a highly attractive cost advantage that's tough to ignore
(Banham, 2003).” Their direct interaction with their customers continues to be “a
key driver in sales for the quarter (2000).” Dell’s early work with using the
internet helped them get a jump on their competition while their competition was
finding it difficult to conduct successful Business to Business operations online
since “exchanges are still in their infancy and many haven't even gone live yet
(Memishi, 2001).” Matching customer ease of ordering and direct interaction
through the internet proved successful because Dell believes that it is the customer
that drives the business model.
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Dell recognized the challenge of dealing with the business and individual
customers as two distinct groups with different needs. Dell has done a phenomenal
job managing these two different types of consumers thus far. In the last couple of
years, Dell decided to split their operations into two different websites with
separate B2B sites. With separate sites, Dell planned to “simplify the Internet
procurement process for businesses and institutions of all sizes, generating savings
that can range to millions of dollars annually for large customers (1999).”
However, this idea failed, and “Dell had to shut down its B2B site, four months
after it launched. Dell said the site failed to attract more than three suppliers
(Schick, 2001).”
Dell controls its inventory and costs by being a demand-pull company, whereas
one of its top competitors, IBM, is strictly a supply-push company and operates in
a more traditional manner. IBM has to be good at forecasting what the customers
will need, while Dell makes the computers to order. Dell is more efficient and
therefore more profitable because it can buy its component parts based on the
customer’s demand and not have to worry about building up its supply of inventory
that may or may not be used. “The result was that the company wound up with
essentially no carrying costs for inventory while maintaining excellent turnaround
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on orders, because it sold what it had on hand, collected from customers in an
average of a few days, and didn't have to pay suppliers for several weeks
(Henricks, 2003).” Dell continues to use this successful formula to keep its
competitive edge over its customers.
Although Dell has been successfully operating according to its business plan, there
are some parts of IBM’s traditional business plan that has also proved successful.
In fact, “industry officials say that Dell could benefit from hiring IBM to support
Dell's customers with computer services (Auerbach, 1999).” Successful businesses
continue to monitor their industry and look for ways to improve to maintain or gain
a competitive advantage. This advantage is especially important in the economy
today, although Dell has “cited recent gains in customer requests for price quotes
and larger order sizes and expects a steady year of sales (McWilliams, 2004).”
“Dell is one of few firms left standing tall after the tech crash of the last two
years…[and its] growth comes as it has won over the consumer market, [but] Dell's
performance would be impressive in any year, but is even more so now
(Wasserman, 2002).” Dell’s success extends throughout the entire industry and
causes companies like “Compaq, IBM, Gateway, and Hewlett-Packard to grapple
with a lose-lose dilemma: concede market share to Dell or lower prices at the
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expense of already-flagging profitability (Pellet, 2001).” Other companies have
tried unsuccessfully to try these similar tactics.
With the spread of retail sales on the internet, “e-tailers” have fallen into two basic
groups; pure play or bricks and clicks. Pure play companies use only the internet
to sell its products and do not have a physical store. Bricks-and clicks companies
use their internet site in addition to maintaining one or more physical stores to sell
their products. Dell is a pure play internet company and does not have any
physical stores to sell its computers. “For Dell, however, the Web is more than a
sales vehicle (Thurm, 1998),” because customers can access the website for all
types of purchasing, service and support answers. Individuals and businesses can
check orders and obtain information, while businesses can make use of special
offerings and services through password-secured locations. Dell is also “offering
several flexible payment options to help make it easier to buy personal computers
online” (Pellet, 2001). Dell’s initial success as a pure play company was
evidenced by the fact that it “does more than $10 million daily in Internet sales
(1998).”
Another advantage to being an e-tailor is the reduced time it takes to adjust your
prices or modify your inventory. One of the most difficult tasks for retailers is
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managing your inventory based on your customer demand. Dell has minimized
this problem by matching finished products to orders received. Recently Michael
Dell was faced with a related question, “Do you consider yourself more of a
manufacturer or a retailer?” Dell’s innovative business plan left Dell to state,
“That's a great question. We often have that debate in-house. And frankly, there are
those who will always consider us a manufacturer, and those who will always think
of us as a retailer." While Dell claims “it is people who produce results (Cone,
2000),” it is also the strategies, organizational techniques, and the teaming up with
outside suppliers that produce mutually beneficial results. It was also extremely
helpful for Dell when “AOL announced an agreement to have its Internet access
and communications software distributed on Dell Computer Corp.'s personal
computers (Weiner, 1998),” because AOL is a leading pure play company. The
pure play also allows Dell to expand its product line more easily because of the
ability to adjust the site and add new products. This year, “the company is
bringing to the market printers that can be more easily configured to work with its
build-to-order PCs (Babcock, 2004).” As a pure play company, Dell will find it
much simpler and less costly to adjust their website for products and services in the
future. Dell Computer Corporation is the world's leading direct computer systems
company, and grows larger everyday. The success of its business plan has resulted
in "An increasing number of customers that have asked Dell to share its e-business
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expertise with them (Felice, 2000).” Felice continued to say that Dell's services
portfolio now spans from e-support to e-consulting, serving medium-sized
companies to some of the world's largest enterprises. Three years ago Dell
launched its “direct-sales model into India.” Founder Michael Dell stated, “This is
our 13th direct sales launch in Asia and we continue to grow at more than 30
percent globally (Lallpai, 2000).” Constantly growing here in the US and
continuing to grow all over the world it is no surprise that Dell reported revenues
of $41.4 billion in 2003.
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IT Infrastructure:
IT infrastructure and business-driven technology are extremely important to Dell.
IT infrastructure provides, through the use of technology, the underlying
foundation to support the organization's operations and future growth. This
principal is profoundly important within the computer industry.
One main goal of any successful company is maintaining employee productivity. A
major concern for companies relying heavily on a productive workforce that makes
extensive use of digital data, is the threat of a system failure. Since computer
based companies do a majority of their internal and external business through the
use of computers, a system failure would result in a loss of valuable human
resources and could decrease employee productivity. For instance, Michael
Lambert said recently of Dell’s new business workgroup server, “With the
PowerEdge 1300, Dell has introduced a highly reliable and manageable system
that redefines server value” (New Servers, 2004). The PowerEdge 1300 has the
ability to run dedicated server applications such as file and print, Internet/Intranet
and e-mail, therefore safely increasing employee productivity through the use of
secure workforce systems. Dell and IBM both protect themselves from this
potential problem with the use of specific intranets and backup/recovery systems.
Recently Altiris Recovery Solution has been selected by Dell for integrated
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delivery of backup and disaster recovery. Altiris along with Dell OpenManage
Client Administrator (OMCA) will provide “Direct integration of Altiris backup
and recovery technology with Dell OMCA [which] helps ensure business
continuity and helps provide additional cost savings for Dell customers through
proactive IT management” (Dell selects Altiris, 2004). These factors implemented
into a concrete disaster recovery plan provide Dell and IBM with the confidence to
scale and complex IT network.
Another way Dell and IBM protect themselves from a potential system crash is
through the use of the internet. Dell specifically does the majority of its business
through the use of the internet. This allows customers and suppliers to have a very
intimate relationship from anywhere in the world. This concept, known as global
reach, is one of the major competitive advantages that Dell has created. Through
the use of the internet, the customer has a much greater say in what decisions the
supplier makes. Dell announced a new Web-hosting initiative and alliance.
DellHost was designed for small and medium sized businesses to increase their
internet presence. Through DellHost, Dell has increased its customer base, “forty
percent of which are new to Dell” (Dell speeds web site hosting setup, 2004). By
allowing businesses to use their software they are also expanding their global reach
by having their customers increase their reliance on Dell products.
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Dell and IBM both have managed to maintain high employee productivity
consistently. One of the main ways in which they have managed to do this is to
provide near unlimited availability to their IT infrastructure. Dell and IBM both
keep consumer information lines open 24 hours a day, 7 days a week. They also
all have an easily accessible online help services. For example, the site's "Ask
Dudley" feature “allows users to pose natural-language questions. Created for Dell
by the firm that developed the popular "Ask Jeeves" Internet search engine, the
application now handles more than 150,000 questions a week” (Dell courts
customers online, 2004). Full time access is crucial to the support of the IT
infrastructure by allowing knowledge workers ease in admission to the source
regardless of varied schedule.
The majority of Dell's business is done through the internet. As was previously
stated, this allows the customer to customize his/her product directly for their
purposes. These factors give Dell a competitive advantage in its high scalability
and flexibility. Through a menu of many different system component options, the
customer defines how their company is going to grow, which makes scalability a
non-issue. “By the end of 1999 Dell was chalking up $40 million a day in online
sales-- accounting for 43% of the company's total revenue. Today Internet sales
alone would rank it among the 125 largest companies in the U.S” (Dell courts
customers online, 2004).
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In addition, the reliance on the internet for its business practices allows Dell the
luxury, to easily redefine its image by nearly dismissing the time necessary to
change the system (image, function, etc). This design saves untold amounts of
money because it is ready to adapt to nearly any market, business, or economic
change. Dell and IBM also implement a great deal of capacity planning when
determining what technology will be needed in future markets to stay competitive.
Manish Mehta, director of online support has said, “The paradigm shift we'd like to
see is fewer tech support phone calls, allowing our technicians to spend more time
solving the more complex problems” (Dell courts customers online, 2004). This
displays Dell’s intense dedication to capacity planning and adaptation, even in the
field of technical support.
Enhancing decision making is also a critical factor in the sustained life of a
computer company because technology is constantly changing. With today's fast-
paced computer market, innovation through customer feedback is key to the
success of its products. Dell and IBM both have a high degree of integration when
it comes to transferring data files from system to system effectively. It has been
Dell’s vertical integration model that, “has kept the company afloat despite the
industry downturn” (Schick, 2002). To stay competitive in today's computer
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market, the ease of integration would have to efficiently match the degree of
demand as to manage its resources properly. Also Dell's flatter organizational
structure heightens the ability for many sources to have input into the future of the
company as it deals with the evolving vision of what the market will call for.
Economic problems of late have spurred IBM to begin to adapt this organizational
structure and lessen time needed to change direction.
Dell and IBM both maintain very competitive business partnerships and alliances
through the use of electronic catalogs. Dell does nearly all of its business through
the use of electronic catalog and IBM continues to increasingly rely on the
business generated through them. The use of electronic catalogs gives a specific
competitive advantage because it presents products to customers or partners all
over the world. This is also a factor in Dell's and IBM's global reach enhancement.
Perhaps the biggest advantage of the electronic catalog is the search functionality.
The customer has a much more powerful search capability, making it easier for
them to find the proper product. Another major advantage of online shopping is the
speed in which customers can purchase their final product. A recent Dell customer
reiterates this concept, “Its information hierarchy is so clean that you can purchase
an entire unit in 10 minutes” (Dell.com, 2004).
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Increasing employee productivity, creating business partnerships and alliances,
enhancing decision-making, and enabling global reach are vital to the continued
success of Dell and IBM in today's fast-paced technology driven environment.
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Dell Products
Notebooks
ThinkPad Notebooks
Track record of success, cost-savings
Industry-leading capabilities that dramatically increase productivity and reduce
cost.
Features:
1. Business class technology
2. Thin, light widescreen designs
3. Extra long battery life
4. Advanced mobile workstations
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IdeaPad Notebooks
Engineered for a great user experience
Perfect for home/home office, with distinctive designs and features for
entertainment and multimedia.
Features:
1. Home/office versatility
2. 11.1 to 17 inches widescreen displays
3. Dolby home theatre audio
4. Touch sensitive controls
5. VeriFace face recognition securities
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Dell 3000 Notebooks
Worry-free computing at a great value
A smart choice for business computing needs and budgets. Plus, new models ideal
for home/home office.
Features:
1. Roomy, widescreen displays
2. Stylish silver colored top covers
3. Preloaded small business softwares
4. DellCare tools, support and services
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Desktops
ThinkCentre Desktops
Award winning quality and innovation
Industry-leading capabilities that dramatically increase productivity and reduce
cost.
Features:
1. Energy efficient desktops
2. Security on a corporate level at a small business price
3. Dual Independence Display (DID)
4. The ThinkCentre Energy Calculator
IdeaCentre Desktops
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New PCs for home/home office
Loaded with features for everything from family finance to multimedia and
entertainment.
Features:
5. VeriFace face recognition
6. Automatic brightness adjustment
7. Antibacterial keyboard
8. OneKey convenience
Workstations
ThinkCentre Workstations
Features:
1. User centric design
2. Cool and quiet
3. ISV certifications
4. Environment-friendly
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Servers
Tower Servers
Features:
5. Single and dual sockets
6. Easier cooling
7. Existing-network scalability
8. Hard disk drive optimization
Rack Servers
Features:
9. Single and dual sockets
10. Space-optimized design
11. Centralized cable management
12. Centralized server management
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Accessories and Upgrades
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SWOT Analysis
Strength – By offering superior telephone customer services such as Premier
Access, and outsourcing their shipping, Dell had the lowest operating cost in the
industry at 11.5%. It had a unique ability to predict which new high margin
technology product could be driven to scale w/lower priced products driven by its
direct model, which was continuously improving, making it hard to copy. Dell set
the industry standard for customer service/relations resulting in satisfied customers
and less downtime (Dell resolved 72% of problems remotely, which was twice the
industry average.)
Weakness – Dell was late getting into the Latin American market (5th place in
overall market share), resulting in lost sales. It also had weak international market
share in 2002 (Western Europe =3rd, Asia/Pacific = 7th, Japan = 8th, and 5th place
in the rest of the world. In addition, jumping into the laptop market too soon,
entering the workstation market late and signing unsuccessful retail agreements all
brought losses to the company. Dell doesn’t have robust products to support
mission critical environments and is shut-out of big enterprise storage accounts.
35
Opportunity – Dell can further capitalize on the remaining build-out of the
Internet infrastructure and increase market share in the external storage market (i.e.
SAN/DAS were expected to take 2/3rds of the market by 2005) and participate
more in the midrange and high-end server markets (2000 saw a 7% worldwide
increase from 1999.) It can develop itself into the premier Internet partner for
customers around the world by heavily targeting sales to first-time PC buyers and
introducing new product categories and services. With only a 5% global market
share, Dell can easily increase business revenues from international growth.
Threat – Computer industry consumers have traditionally been notoriously fickle
in their buying habits and trends, affected by the rapid pace of technology and the
bursting Dot.com Economy. While the growth of the Internet should produce more
demand for servers and storage, those markets will test Dell in areas that haven't
been its strong points: sophisticated product engineering and labor-intensive
services.
Current Strategy
“High Quality, More Powerful, Faster, Customized and Cheaper.” For every new
product or service it introduces to the market, Dell consistently implements its
startup mindset of “build-to-order computers” (referred to as the direct model
36
approach) from the very beginning of the development and production process.
Dell’s business was unique in that it was able to consistently make significant
profits in low margin product areas.
Its’ direct model approach evolves for every new product and service achieving
delivery of high quality PC’s in a very cost efficient manner; one of continuous
improvement. Dell is a continuous-growth model, constantly adapting, changing
and finding ways to master its environment, as opposed to just responding to it. In
addition, Dell has been able to take flexibility and speed, and build it into the
company’s DNA.
Positioning- Michael Dell portrays his company as “the good guy”, the Robin
Hood of the computer industry offering more for less. Their mantra is “better,
faster, cheaper” using brand name components, build to order manufacturing, and
customized customer service, which led to high quality and more powerful
computing power. Dell had a reputation for “effectively entering product markets
where core proprietary elements had become standardized and undercutting
existing players based on price.” Dell’s strategy was to choose the best in class
providers (like Intel and Microsoft) for each component and leveraging their scale
37
investment in R&D. By 2001, Dell had become the US market leader in Wintel
server sales.
Target Market – Dell’s main focus is on large corporations with secondary efforts
on small and medium sized businesses. In addition, they also target the global
consumer directly, but with minimal effort. Dell mainly focuses on the segments
that are already knowledgeable about computers.
Products - Dell currently has 6 main products: PC’s, laptops, customer service,
storage devices, workstations, and auxiliary services.
Pricing - When Dell decides to enter a particular market, it consistently uses the
Direct Model approach, pricing their product below that of their competitors.
These low prices are the result of multi-level leveraging and from achieving
economies of scale.
Promotion - On-line model, direct mail order, catalogues, Premier Pages, special
training and certifications, word-of-mouth, editorials, reviews, sales reps, and
awards
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Place - Direct from Dell: On-line, telephone, mail-order. (Dell does not use any
retailers or wholesalers to sell their products.)
In conclusion, Dell’s strategies do match the company’s 4 P’s, targeting, and
positioning and can be summarized as a low-cost, fast and efficient business
model, with superior customer value with virtual integration.
STRATEGIC OPTIONS
Market Penetration – Maintain status Quo and continue to do more of the same.
“If it isn’t broke don’t fix it”. Many people believe the recession will end soon, so
Dell could just ride it out and hope to hang onto the market share it currently has.
This option is not a proactive approach and could prove to be risky, resulting in
declining market share, lower profits, and the possibility of the competition
advancing while Dell stays stagnant.
Product Development –
1. Pursue Mid-Range Server Growth. By 2001, Dell was the market leader in
entry level servers, but had no presence in the mid-range server market.
Pursuing this growth option could result in increased market share and
higher profits due to the higher selling prices and markups of these units, but
39
could be risky if technology suddenly changes. Increased post sale costs are
also a concern, as server sales don’t just stop upon delivery, they require
continued service regarding reliability, serviceability, availability, and
manageability.
2. Increase product line : By introducing new products like a PDA, Dell can
capture new markets and increase sales and awareness. However, Dell’s
R&D budgets are well below that of its primary competitors. This option
contains increased risk and high initial start-up costs.
3. Pursue Associated Services Growth – within the US, 2000 service revenues
accounted for over 37% of $2 billion in total revenues. This business unit
was becoming an increasingly important part of Dell’s portfolio with
longevity, able to stand the test of time and market uncertainty, no matter
what turn technology took.
New International Market Development – Target new segments and enter new
markets with existing products. The Potential benefits of international expansion
are increased market share, revenues, profit, and buyer awareness. However, the
40
successful Dell Model might not work everywhere. The product chosen for
expansion should be a commodity where the demand is already in place and the
country must also value on-time delivery. In addition, terrorism, cultural barriers,
political systems, and longer ROI must be taken into consideration as well as limits
on foreign ownership and tariff barriers.
Diversification
Merger and Acquisitions: By 2000, the external storage market was growing at
23% per year. By acquiring an innovative leading company like the EMC
corporation, Dell can effectively enter the external storage and software market
previously untapped, leveraging EMC’s expertise and experience. Due to the
sagging economy, EMC’s stock price had fallen over 800% in 2001, meaning
now might be the perfect time to buy the company at a significant discount. The
Pros include increased market share and economies of scale, but cons are higher
costs and the need to re-train employees to learn Dell’s culture and mission.
After analyzing Dell’s IT and their competitive advantage as a result of their
advanced and successful IT, it was challenging to come up with recommendations
to help them achieve more success in an industry that they already prosper in.
41
However, even with Dell’s current success, we realize that in an ever-changing
technology industry, there is always room for improvement.
1) Dell should consider selectively adding other vendors to its supply chain
management system. Due to the increase in Dell’s global sales, Dell may need to
consider to selectively adding additional suppliers to their supply chain
management system. The additional suppliers should not result in any significant
cost to Dell and Dell might be able to negotiate better component costs from new
suppliers. New suppliers would want to participate in this exchange because they
would be seen doing business with a leading technology company
2) Use “Customer Surveys” to gain market share. Although Dell does well
in its markets overseas, Dell has lost some domestic market share and has more
potential overseas. It is important for Dell to advertise and get their products
noticed in international markets. In order achieve this goal, in-depth customer
satisfaction surveys should be used in markets where they trail their competition.
Even in the US, where they are ranked high against their competitors, Dell’s
margin of leadership has declined. Dell can send out questionnaires to previous
consumers to see how they can improve. By going directly to the consumers, they
can get feedback from sources they care most about. It also makes consumers feel
that Dell truly cares about how they feel about their products and service.
42
3) Invest more in Research and Development. With the growth of quality
competition, it is crucial for Dell to keep its competitive advantage by offering new
technology products and services. Dell should consider expanding into peripheral
product markets that would compliment their computer sales. This might include
specially designed systems for specific industries (architects, doctors, etc.) or
additional hardware for specific markets (gamers, music lovers, etc.) It is also
important for Dell to watch its competitors and see what new products and
techniques they introduce.
4) Dell could offer online data back-up capabilities. Another way to
increase revenue is to offer existing customers (business and individual consumers)
back-up capabilities on Dell’s own servers. This process will have advantages for
both consumers and Dell. For consumers, especially businesses, if something
happens to their plants and computer systems, they can always retrieve their data
from Dell who has their information backed up offsite on their system. By keeping
their data saved at another location that is maintained by Dell, Dell can make
money by charging for this additional service. Dell also has a built-in customer list
based on the sales that they make for computer systems.
5) Reduce errors in Dell’s direct Internet ordering system and create a
“Clearance” area on its website. It is important that Dell keeps their service of
DellDirect efficient by avoiding mistakes and making sure that purchases online
43
are correct. Since all purchases can be done on the Internet, it is easy for
consumers to click a wrong button when customizing their products. Therefore,
Dell should enhance its online ordering system with customer confirmation before
manufacturing starts. This would help reduce costs of production if there are
incorrect orders and it will also help increase consumer satisfaction. If there are
cancelled orders or completed orders that don’t get paid for, Dell can start a
clearance area on their website. This section can include these systems at lower
prices because they would be final sales on pre-configured systems. (This might
be the result of Dell’s unsuccessful mediation through its order resolution policy.
In addition to pre-made systems, Dell can offer discontinued items (older models
of components), that remain in Dell’s inventory. This will also help Dell keep its
revenues high by not experiencing extra costs because of items that were not sold.
If they place a section on their website titled, “Clearance Products,” they will
appeal to customers who want to buy a computer at a cheaper price and do not
have a strong preference on what features the product has. Therefore this
recommendation is a win-win situation for both Dell and the customer.
6) Enhance customer support services. Since successful customer support
and communications are crucial to Dell’s success, it is important that Dell keeps
enough well-trained people on the phones and on the Internet for customer support.
Based on the results of some surveys that say that Dell might be losing customers
44
because of actual or perceived decrease in support, Dell should do a cost-benefit
analysis to determine whether they should invest in more people who can answer
technical questions & support customers with their problems and needs. In
addition to more people, they should review their service support training and
quality control procedures. This is an area where possible over-staffing might be
worth the additional costs. Like many companies, Dell has taken advantage of the
cheaper labour in other countries by routing most of its technical support calls from
the US to headquarters in India. The only problem with this was that “Corporate
customers were telling us they didn’t like the level of support they were getting,
and in the normal course of business, we made some adjustments (Brewin, 2003),”
according to Jon Weisbatt, the company spokesman. As a result of prior
experience with Indian support staff, they need to either train Indian support staff
more effectively so they can take advantage of the cheaper labour in India or keep
support staff here in the US.
7) Increase Company recognition through a national advertising
campaign. In order to keep the name Dell out in the market, it may be helpful for
Dell to consider a national advertising campaign to increase Dell’s visibility. These
ads would probably be most effective for the small business and individual user
markets. This may include ads on the Internet, as well as commercial, magazine
and newspaper ads. Dell succeeded increasing its brand name recognition once
45
before with its “Dell guy” campaign. This will only help Dell get its good name
out there for all people to see, recognize and eventually result in purchasing Dell
products.
Server/Storage/Service Growth
The booming PC market seems to have bottomed out, with little signs of
improvement due to market saturation. Positive signs have come mainly in the
form of limited PC replacement programs at some large companies and sales of
notebook PCs. Any future PC market recovery will most likely be tied to an
improvement in the economy. Therefore, Dell should ramp its efforts in three non-
core areas as key for future growth: servers, external storage and services.
Meanwhile, it can carry on with its aggressive price-cutting strategy for all of its
products. Hopefully, these moves will allow them to gain traction in some markets,
and even overtake some competitors in others. Once Dell has used its lowest price
strategy to increase its installed base of clients in hardware sales, particularly in the
enterprise market, the company can leverage its expertise in customer support to
keep those clients. Even though Dell has already made some impressive progress
in server and storage developments, it still lags behind other server vendors in total
shipments and sales. The company needs to create a greater presence among
enterprise and service-provider customers. Dell can quickly grow its storage
46
business by providing simplified and standardized storage solutions to customers
ranging from small businesses to large, global corporations with enterprise-class
requirements. It can leverage its ties to Microsoft, Intel and other prestige
component vendors to focus on providing Windows-based storage and server
products. This move will make its high-end storage products work with IBM,
Hewlett-Packard and Compaq Computer Windows servers, as well as Dell servers.
This allows Dell to widen its customer base by appealing to customers that don't
have Dell servers, or have a mixture of servers from different vendors. With
comprehensive support for multiple platforms, Dell can also offer customers a
storage solution that leverages their existing Windows server investments, while
scaling to accommodate their growing data requirements.
An expansion of the services group should also be pursued based on customer
needs, which will vary from country to country. While Dell continues to partner
with third-party services firms in some areas, it should also bulk up on its own
services capabilities so it can provide customers with more complete services
offerings. Dell should realize that it would need to expand its services capability
significantly in order to be taken seriously by some global enterprise and service-
provider customers. Dell can also implement a fixed-price approach to services
that will boost its presence in that market. New services, such as migrating from
Unix-based servers to new ones based on Linux can be offered and combined with
47
Dell's hardware. A total of $2 billion to $3 billion in service revenue can be
achieved if this strategy is correctly implemented. Dell's three-pronged growth
strategy by no means guarantees a sure-fire path to future profitability, but Dell's
deliberate and measured steps to expand beyond its PC roots could result in
additional good news in the future.
International Expansion
As Dell looks at expanding into international markets, it needs to consider entering
the markets that are key to the region. For example, Germany in Europe, China in
Asia, and Brazil in South America. Dell needs to carefully study these types of key
markets and implement its Direct Model only after it understands how these
regions economically and politically function. However, this expansionary growth
will place extensive demands on Dell’s information infrastructure needed to
support such global operations. To be successful in these new markets, Dell must
update its websites in the particular languages and modify the accounting systems
to handle the specific currencies. Keeping these new employees in touch with one
another and with customers, suppliers, and partners will be a gigantic task
requiring the latest technology, increasing the demand for instant information. The
global market is huge and virtually untapped and Dell is in a great position to take
advantage of this market, especially with the use of the Internet and its advanced
48
online capabilities. Dell’s most important strategic advantage is the ability to sell
direct from Dell, eliminating all the middlemen in the normal distribution line.
Anyone who wants a Dell must order it through the mail, online, or over the phone,
which is a perfect method for doing international business. Dell just takes the order
and ships the computers via one of its many shippers. Dell should focus on
dominating the Asian market where they only have a 3.7% hold on a market with
over 19.9 billion units. Asia is a virtually untapped market and is expected to grow
rapidly in the next few years. Dell currently has two manufacturing plants and four
technical support offices in the Asia area. Dell should look for ways to optimize
these facilities and budget some advertising towards attracting enterprise and big
businesses in that region. If Dell can capture a few large clients in China, it may be
able to dominate the Asian market, drastically increasing its revenues.
49
Objectives of the study
1. To study the Effectiveness of the Marketing Analysis at Dell (India) Pvt.
Ltd. from the perspectives of the management.
2. To study the Effectiveness of the Marketing Analysis at Dell (India) Pvt.
Ltd. from the perspectives of the market.
3. To understand the shortcomings of the Marketing Analysis at Dell (India)
Pvt. Ltd.
To come out with solutions that will help the organization in formulating better
strategies for the development of the employees and the organization.
50
Limitations of the Study
1. In the project, non-random sampling has been used which is a non
probability sampling method; it therefore does not provide estimates of
precision.
2. The sample size is restricted to only those employees of Dell (India) Pvt.
Ltd.
3. The study was done for a short period of time, which might not hold true
over a long period of time.
51
RESEARCH PROBLEM
1. DELL Corporate selling and feedback and market share of DELL and
compared to other IT companies.
2. The business of DELL and the company through its researchers wants to
know the potential in order to expand and retain its market share.
RESEARCH DESIGN
1. Determined the Information Sources: The researcher gathered data through
secondary sources.
2. PRIMARY DATA is collected through questionnaire, search and
research through place where today's computer has been mostly used.
3. SECONDARY DATA is being search sites like magazines, newspapers,
journals, websites and the data has been collected through other
approaches.
52
DATA COLLECTION
The researcher collected information through the official websites, magazines
and journals.
DEVELOPED THE RESEARCH FRAME:
This included deciding upon various aspects for the project on which the entire
research is based. The research frame included:
NATURE OF STUDY
The project on which the researcher worked is descriptive and inferential in
nature.
DATA SOURCE:
The researcher took the help of both primary as well as secondary sources.
Secondary sources being interaction with various IT people of the selected and
has been chosen for the research by the researcher. Secondary sources being the
internet as the medium and the official sites of the companies of IT sectors and
corporate selling and feedback of DELL.
53
INSTRUMENT USED
The researcher for the research used a Questionnaire cum Schedule for market
research for both the segments horizontal and vertical. The Questionnaire was
prepared by the researcher and Schedule was provided by the company in
which the researcher did its research report.
SAMPLE SIZE
Sample size for the research is fixed. It counts to 55. That is the DELL
companies and corporate selling and feed of DELL in comparison between
other IT sectors.
54
DATA ANALYSIS
& GRAPHICAL DATA INTERPRETATIOIN
SAMPLE SIZE : 55
1. What type of computers do you use?
a.)Branded
b.)Assembled
Branded 37
Assembled 18
hospitals using brandedcomputershospitals usingassembled computers
It was observed that almost 67% of the people use branded computers or other
gadgets for their business purpose. Hence can be concluded that more people want
55
Using branded computers
Using assembled computers
HP
DELLacer
others
branded products as they are not ready to compromise with the quality and services
being provided.
2. What brand computers do you use?
a.) HP
b.) DELL
c.) ACER
d.)Others
Brand used Total Nos.
HP 7
DELL 14
Acer 13
Others 21
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This observation showed that DELL is among the top used brands. Major part
under the pie-chart goes to DELL. So DELL should continue making efforts to
attract new market and sustain the existing market.
3. What is the number of installed desktops?
1. <15
2. 15-50
3. 50-75
4. 75-200
5. 200-500
Installed desktops Total Nos.< 15 1915-50 2150-75 1175-200 3200-500 1
<15
15-50
50-7575-200
200-500
Most of the surveyed and found the use of computers within the 15-55 range. So it
can be inferred that the main target market is which lies in the middle range. Thus
we targeted mainly on SME (small and medium enterprise).
4. What is the number of used servers?
a. 1
b. 2
57
c. 3-5
d. 5
Servers usedTotal Nos.
1 102 11
3-5 21>5 13
1
23 to 5
>5
From this observation, it was concluded that number of servers were directly
proportional to the number of desktops used.
4. What is the number of installed laptops?
58
1. 1-5
2. 5-15
3. 15-30
4. >30
Number of laptops Total Nos.
1-5 20
5-15 22
15-30 8
>30 5
1 to 5
5 to 15
15 to 30>30
It was observed that maximum computers and laptop users ranging between 5-25.
This area can be focused.
5. What is the brand used for laptops?
1. DELL
59
DELLToshiba
lennovo
others
2. Toshiba
3. Lennovo
4. Others
Laptops brand Total Nos.
DELL 11
Toshiba 19
Lennovo 13
Others 12
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Observation showed that Toshiba was the major brand used in laptops. Various
other brands like HP and Samsung etc. are also used. DELL has also a good market
share.
6. Do you have AMC?
1. Yes
2. No
Total Nos.
Hospitals place having AMC 30
Hospitals place not having AMC 25
hospitals having AMC
hospitals not havingAMC
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According to above graphical data interpretation, that is the most important places
where computer has been used and it has been observation and showed that less
than 60% hospitals have their AMCs. This area can also be considered.
9. What type of company is having the AMC?
a.)Regional office of the company
1. Any other local player
Type of AMC company Total Nos.
Authorized regional office 24
Local players 6
regional office of thecompany
any local player
62
That the above graph shows that the use of AMCs in regional office and local
players prefers authorized regional offices to select for the service rather than
going for a local player.
10.Are you facing any problem with current used product line?
a.)Yes
b.)No
c.)Not yet
Total Nos.
Facing problem 15
Not facing problem 18
Not faced problems yet 22
hospitals facing problem
hospitals not facingproblem
not yet encountered
63
Facing problems
Not facing problems
Not yet encountered
That the above graph shows that the above observation showed that major number
of users are either not facing any problem or they have not being encountered with
any.
11. Are you planning to make any new purchase?
a.) Yes
b.) No
c.) Not yet planned
Planning about new purchase Total Nos.
Planning to purchase 9
No planning 17
Not yet planned 29
planning to purchaseno planning
not yet planned
64
That the above graph show that the most of the users have not planned about
making a purchase and a very few are planning to make a buy.
65
12. How do you find the DELL products?
a.) OK
b.) Good
c.) Satisfactory
d.) Outstanding
e.) Not tried yet
Reaction about DELL products Total Nos.OK 3Good 12Satisfactory 19Outstanding 7Not tried yet 10
OK
good
satisfactory
outstanding
not tried yet
According to above graph shows that the maximum of DELL user are satisfied
with the products and services provided. Very few have not tried yet DELL on a
business scale, but most of them have an experience about DELL.
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want info about DELLno info wanted
1. Do you want to know more about DELL products?
a.)Yes
b.)No
Wanted knowledge about DELL Total Nos.
Yes 42
No 13
That the above graph shows that the observation and the most of the people are
interested in knowing more about the brand and have the urge to buy.
67
14. Do you require demo for any product?
a.)Yes
b.)No
Total Nos.
Interested in demo 24
Not interested in demo 31
hospitals interested indemohospitals not interestedin demo
This observation showed that almost 45% of the sample was interested in demo.
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interested in demo
interested in demo
15.Do you want to buy any product? (Commercial proposal)
a.)Yes
b.)No
c.)Not yet decided
Commercial proposal Total Nos.
Yes 8
No 19
Not yet decided 28
hospitals interested incommercial proposalhospitals not interestedin commercial proposal
not yet planned
That the above graph shows that the above observation showed that almost a huge
chunk of hospitals surveyed either doesn’t want or they have not planned for any
commercial proposal.
69
Interested in commercial proposal
Not interested in commercial proposal
Not yet planned
FINDINGS & LIMITATIONS
Every project has some limitations even the researcher came across some
limitations while working on the project which made the analysis a little
inappropriate at times. Some of the basic limitations faced during the research
are listed below:
1. Only limited number of authorized, companies and other areas where it has
been found 55 players was covered in the study.
2. Most of the research was based on cold calls, so then visited many places
i.e. authorized and local areas and where it had not responded much.
3. There was a bias on the part of the respondents.
4. Companies that were contacted through telephone at times did not give
correct information to the researcher.
5. The IT manager or the person heading the IT Department did not have the
rights to give the authorized official information to people other then the
members of the official itself and the high officials.
70
6. At times there was a problem of non response from the hospitals,
companies and other authorized and unauthorized areas which affected
the result of the project being done by the researcher.
71
RECOMMENDATIONS/SUGGESTIONS:
1. DELL is having large number of channel partners but it is not supporting &
taking care all of them equally which results in increasing discontentment
among new channel partners because its not possible for company to
support all of them equally. Company should take some positive action
against it.
2. Company executive should visit dealers on regular basis.
3. They Should pay proper attention towards checking of various components
of PC before end user delivery. Otherwise it tends towards defame of brand
name in comparison to rivals.
4. Need to expend customer care center as the consumer base of DELL
Infosystem is increasing with tremendously fast pace.
5. Proper attention should be paid for advertisement planning otherwise it
may lead to problem for dealer as well as for company.
1. Company should tie up with some event management company to organize
various promotional activities like canopy, Carnival.
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2. Company should make policy for fixed end user price for all dealers so that
fair game will be played & dealer would not to compromise on their
margin.
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CONCLUSION
Marketing is a very crucial activity in every business organization. Every product
produced within an industry has to be marketed other wise it will remain as
unsold stock, which will be of no value. I have realized this fact after completion
of my summer training project. Despite of various difficulties and limitations faced
during my summer training project on the topic “Marketing Analysis of Dell
Computer”. I have tried my level best to find out the most relevant information
for the organization to complete the assignment that was given to me. After
completion of my summer training project I have gained several experiences in
the field or sales marketing. I have got the opportunity to meet various people,
which fluctuate in different situation and time. This summer training project has
given me the opportunity to have first experience in the corporate world.
Theoretical knowledge of a person remains dormant until it is used and tested in
the practical life. The training has given to me the chance to apply my theoretical
knowledge that I have acquired in my classroom to the real business world. I have
completed my summer training project in which are involved in its successful
completion. In spite of few limitations and hindrance in the summer training
74
project I found that the work was a challenge and fruitful. It gives enough
knowledge about the computers market and the distribution process undertaken
by an organization. This summer training project has enabled my capability in
order to manage business effectively and in my career in future.
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QUESTIONNAIRE
Name ____________________________________
Designation ____________________________________
Address ____________________________________
Contact No. ____________________________________
1. Do you use computers for your business purpose?
1. Yes
2. No
2. What type of computers do you use?
1. Branded
2. Assembled
3. What brand computers do you use?
1. HP
2. Dell
3. acer
4. Others
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4. What is the number of installed desktops?
1. <15
2. 15-50
3. 50-75
4. 75-200
5. 200-500
5. What is the number of used servers?
1. 1
2. 2
3. 3-5
4. >5
6. What is the number of installed laptops?
1. 1-5
2. 5-15
3. 15-30
4. >30
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7. What is the brand used for laptops?
1. Dell
2. Toshiba
3. Lennovo
4. Others
8. Do you have AMC?
1. Yes
2. No
9. What type of company is having the AMC?
1. Regional office of the company
2. Any other local player
10. Are you facing any problem with current used product line?
1. Yes
2. No
3. Not yet
78
11. How do you find the Dell products?
a.) OK
b.) Good
c.) Satisfactory
d.) Outstanding
e.) Not tried yet
12. Do you want to know more about Dell products?
1. Yes
2. No
79
BIBLIOGRAPHY
Books
1. Organizational behavior - Robbins, Stephen P
2. Personnel Management and Human Relations - Venkata Ratnam, C S and Srivastava, B K
3. Human Resource Management - Ashwathappa, K
4. Human Resource Management - Rao, V S P
Web sites
1. www.google.com
2. www.hrmguide.net
3. www.managementscience.org
4. www.londonexternal.ac.uk
5. www.hr.com
6. www.wikipedia.com
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