Dell Computers. The Writer Explores Term Paper

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Electronics, Software & Accessories: (Programs for the computers including operating systems, games, accounting, publishing and other software is available for Dell consumers to use on their machines.)

Axim Handhelds & MP3 Players: (This is a relatively new market for Dell as the Market growth explodes.)

Monitors: This is used to view all things being done with the computer with the exception of printing. One can use the monitor to view word processing actions, play video games, watch news clips and other things)

COMPETITORS

Dell's principal competitors include Compaq, IMB and Hewlett Packard.

Compaq was the world's leading PC manufacturer, with a global market share of approximately 13%. Compaq's strategy was to sell almost exclusively through resellers -- distributors and PC retailers, particularly large computer stores like CompUSA. It was starting to build computers to order and operate its factories with smaller inventories of parts and components, but it had to soft-pedal direct sales so as not to alienate its worldwide reseller network (Profiles of Selected Competitors in the PC Industry (http://www.mhhe.com/business/management/thompson/11e/case/dell7.html)."

Dell consistently beats Compaq in speed of assembly and delivery of the product to the customer.

At one point in history IBM was considered the king of computers. People still ask friends today if they have an IBM or an Apple, meaning a PC or an Apple.

For many years it was considered the worldwide leader in mainframe computers but in the personal computer industry it fell short of the mark. While competitors fine tuned their consumer understanding and worked to meet those needs, IBM found itself slipping in the ratings until its current ranking of third or fourth at best.

Dell regarded Hewlett-Packard (H-P) as a strong competitor because of H-P's global leadership in printers (a 52% market share), strong reputation with corporate customers in most all parts of the world, and growing strategic emphasis on the PC segment (Profiles of Selected Competitors in the PC Industry (http://www.mhhe.com/business/management/thompson/11e/case/dell7.html)."

Dell consistently beats HP in sales.

INDUSTRY OPERATION

Projects changes in market need

Builds products to meet those needs

Sells to retail outlets for consumer purchase

Dell competes by removing the middleman from the equation (Dell, 1999). Dell built its company on the belief that hearing directly from the consumer wanted was superior to trusting a third party to project or to paraphrase what the customer wants. In addition the company does not build a computer until it is ordered which cuts down on storage needs for built but unsold machines as well as manpower hours to build yet unsold machines (Dell, 1999).

Two of the three Porter generic strategies can be applied to the methods of Dell Computers. The fact that Dell cuts out the middle man and keeps product prices competitive by doing so applies the Cost Leadership Strategy.

Differentiation Strategy is seen in Dell's unique marketing device by which customers order directly from the company and detail their computer needs. The computer is then custom built to the consumer's specification which makes the consumer feel that they are getting a better product.

The two primary competing attributes for Dell are ease of ordering and the fact that each product is custom built to the consumer's specifications.

References

____(1999) DELL COMPUTERS ABC Good Morning America; 5/10/1999; CHARLES GIBSON, DIANE SAWYER ABC Good Morning America 05-10-1999

____(2001) Dell Takes Title of Largest Personal Computer Sales Company from Compaq.

Knight Ridder/Tribune Business News

Mission statements (Accessed 8-21-06)

http://www.hhpublishing.com/_onlinecourses/study_strategies/BSL/motivation/E5.html

Profiles of Selected Competitors in the PC Industry (Accessed 8-21-06)

http://www.mhhe.com/business/management/thompson/11e/case/dell7.html.....