Dells Marketing Case, Dillema

How would you describe dingles f starting time rate classifiable competencies? What former(a) capableness sources of distinctive might might dingle work to develop? settle According to the case, dells Current distinctive competencies ar Mass customization by focusing on this outline (which they followed as their marrow squash assortediation strategy), dingle has happyly been able to transform the way consumers fund for technology. Customer could place customized orders for their PCs according to their unique contends and wants.Which at that age seemed to be a very attractive, innovative and hence successful strategy. even while concentrating too much on its distinctive strategy of muddle customization for too long, dell gravely failed to adapt to the changing world of technology which opportunity was promptly grabbed by its watercourse and emerging competitors akin HP, Sony, Leaner, apple and others. They quickly managed to reap the benefits of the fast growi ng market for technological crops like PCs and notebooks. Direct Sales Channel- Dell has proved to be extremely successful at coming up with a very efficient and trendy return chain, by making Its customers able to place orders for their PCs online, wrought e commerce. Dell used direct sales via Internet, whereas traditional PC manufacturers previously assembled PCs to make them deposit for purchase at retail stores. Thus, Dell enjoyed early-to-market advantage. This eliminated the need for retailers that would add unnecessary time and cost for Dell and Dell has enjoyed this competency for a pro-longed conclusion of time. Dells cost efficiency Dell was able to erect PCs at a low cost for quite a period of time, until paying a low price for a standard PC was no more attracting the potential customers who were rather lured y the more technologically advanced outputs cracked by Dells competitors like Hewlett-Packard. However continuing with its cost baseball swing strategy co st them their customers in later years when HP emerged as the market leader and attracted all the consumers and business clients to themselves.Moreover, Dells extremely efficient supply chain management aided In keeping Its costs low and hence being cost effective. Dells real market position repayable to its strong trade name value as one of the top snow brands In the world (In the IT systems market), rund It with a competitive advantage. Dell has a strong market presence in IT systems market. Despite losing market share to other musicians in the recent past, Dell continues to remain a strong player in the IT systems market.In the fast growing market for technological productions Dell should nonplus obviously gone for innovating their product lines. Dell should go for product development. It might work to launch faster and more attractive versions of PCs and laptops. Most signifi dirty dogtly Its marketing strategy should be changed, In order to reap benefits from Its disti nctive competencies. Being Innovative could have obviously paid off as a good extinctive competency, because then competitors like HP and Apple would pulsate as much opportunity to grab the market share.Moreover, Dell could go for making OFF silent changes In Its organizational culture mean solar day encouraging Its employees to De more creative and to think out of the box so as to get rid of the monotonous feeling in them which would as well as stir the productivity and would obviously spread a good term of mouth regarding Dell as a ready to innovate and go to company, which would work as another great distinctive competency. Question 2) Dell is currently engaged in a cost leadership strategy. If Dell decided to move more toward a differentiation strategy, what might be some sources of differentiation Dell could explore?Answer 2 accentuation on the cost leadership strategy for too long has caused Dell to lose it market share and not to mention has lead it to earning toler antze off profits. Thats because the same strategy would not work forever. Dell has not explored in serving their customers with variety in their offerings for PCs and notebooks, neither did it do much to gain ground its features and technology. Dell has not re-invested any of its profits into breathing out for a different racketing strategy other than cost leadership.A differentiation strategy incorporates the development of a product or service so that it tail offer a customer perceived uniqueness in the marketplace that seems to be split than or different from the products of the competition. Dell has to focus more on providing special value for their customers if they want to differentiate their brand form the others in the market, to do so, they have to address their customers not yet raised demand for brand-new technology say for example, delight their customers by offering new software system and applications for their PCs.Dell can also go for sales promotion that is t hey can provide short term offers where they would be providing free upgrades for software in their current customers PCs and offer discounts on certain software Just so as to attract their customers lost interest. Launching and promoting different complimentary products made by Dell can be a good idea to enhance the sales of Dell PCs.For instance if Dell came up with a product line for gaming computers, to attract a certain segment of its potential clients, and along with that if it issued games made by Dell one of which would be provided for free with the gaming PCs, it loud be a great way of differentiating their brand as innovative in the mind of customer, e particularly since no other competitor at that time came up with gaming PCS. Question 3 According to Nations Product-Market expansion grid which strategy is applicable for Dell computers offerings? develop the strategy in your own words in the context of the case. Answer 3 Nations model is based upon four types of strategies which are market acumen strategy, market development strategy, product development strategy and diversification strategy. The plot below illustrates the Nations Product-Market expansion grid. In my opinion, Dell should primarily go for product development strategy and then market development strategy. By going for product development strategy, Dell would be issuing new, developed and modify versions of its products.By doing so, Dell can show it to the industry that they are all ready to launch innovative products and solutions for their clients both Business and consumer. Moreover given the strong and well established brand name Dell has, it would not be a problem to beat its competitors Like HP, IT Dell can offer new Ana developed products to Its customers. For example by considering software as an product/service to offer, Dell can assemble a services portfolio that would accept e-mail disaster recovery, spam/virus filtering and archiving via its Message acquisition.Moreover Dell can come up new models of its PC, and notebook, more lighter ones, faster ones, PCs specially made for gaming, and PCs which are specially made lighter and smaller for contribution going executives and students. Just like Google developed a new web browser Chrome for the existing Internet user. Going for a market discernment strategy would be bad session for Dell since it has proved to be a failure Just because it refused to be innovative about its products and was further focusing on a single strategy of mass customization.However, Dell can also go for a market development strategy if that is feasible giving the transportation and set up costs associated with put up business and dealerships in developing countries like Pakistan and Bangladesh, or it can focus on a different demography, like the elderly sight by creating easy to use and simple light laptops for them, which they can also afford with a little portion of their savings.