1. Dell : ‘everything you need from start to finish, without overcomplicating IT’
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3. How has it been adapting its resources to current market conditions in such a competitive environment?We will be focusing on Dell’s competitive advantage based on: Their supply chain and distribution strategies (Adrian) Their pricing strategies (Aime) Their service offering (Georgiana) Their promotional efforts and the B2B aspect of the company (Israel) We will also be talking about their recent change of strategy and decide whether it was a sound decision.
4. Recent developments in the computer market Source: MINTEL (‘PC Retailing, UK’– July 2007)
8. Pricing strategies The two key price bands for laptops and desktops are £251-399 and £400-699, with well over half of all buyers falling into these two price groups.
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10. How do the others compare? ‘Sleek’ interface, but not as simple to use. The website focuses on upselling by attempting to add entertainment-focused items to the basket, such as speakers/headphones. Considerably more expensive than Dell.
11. How do the others compare? Toshiba: “BUY ONLINE FROM A TOSHIBA PARTNER.” Dell: “CONGRATULATIONS! YOUR SYTEM IS READY TO BE BUILT.” Which one sounds better?
14. Recent change of strategy – is it working? According to research carried out by MINTEL (2009), Dell has made a radical change to its business model. They are now… Distributing through 3rd party retailers such as Tesco and DSGi (Currysand PC World) Considering opening UK stores for the first time
15. HOWEVER… The bulk of their profits still comes from direct/online sales. (MINTEL, 2009) Despite increasing their reach through the use of popular retailers, the costs of involving a 3rd party (which extends the supply chain) are significant and the company may lose control over the way the brand is presented. Is it a wise decision to for Dell to move away from the very model that has brought it so much success and acclaim in the past?
19. Reliable and trusted brand which competes aggressively on price…but the brand needs to become more innovative due to the mature nature of the computer market.