Presentation on Dell's E-Business Strategy

1. Dell, Inc.
E- commerce

2. Dell Inc.
• Dell, Inc. is a global information
technology company, which
designs,
develops, manufactures and
distributes computer systems

3. Business activities
Large Enterprise
Public
Small and Medium
Business
Consumer

4. Organizational
Environment
• Economic Factor
Throw out the Legend brand PC
Built a factory in Xiamen(China)
next day
delivery too 400
cities
O 4.4%
to

5. Organizational
Environment
• Long Term Objectives
focusing on markets
globally
20% of the
Asia market
take over
globalize the company
through
e-business

6. Organizational
Environment
• Operating Environment
offers
free
technical support
Online order brings convenience
superb relationships with
their suppliers
the suppliers win every
time
Dell wins

7. Organizational
Environment
• Remote Environment
Expanding
internet market
VARIED by market segment
Globalize the company successfully is
through e-business

8. Functions
Enterprise
computing
Businesses
&
organizations
Dell
PowerEdge
servers
OptiPlex
desktops
Power Vault
Latitude
notebooks
Dell | EMC
storage
systems
Precision
workstations
Individuals
and smallbusinesses
Desktops
Inspiron
notebooks

9. Competitive Analysis
IBM
Sun
HP
Microsystems
Dell

10. Competitive
Advantages
“Virtual
Integration”
Real value
customer service
features
Tailoring
Manufacturing to
customer needs

11. Impact of E-Commerce
• Dell was quick to set up the ecommerce
processes
• Selling online allows the whole process to be
automated and more efficient
• 1997 the company recorded $1 million in
online sales
• By 2000 the company’s internet sales had
reached $50 million a day

12. Definable market
• Targeting and sequencing
Dell
individual and home users
small and medium size business
large enterprises
public sectors

13. Payment Method
Payment
Method
Credit/debit card
Pay with PayPal
Pay with dell business
credit
Gift card

14. Dell.Inc,
MARKETING STRATEGY

15. Product:
• Dell is not reliant on singular production or
supplier's chain for Equipment production
• . By assigning each regionalized production
center particular component for production
not only have diversified the risk of
concentration of labor and production costs
but also depending on particular
infrastructure

16. Price
• Reflect the affordability of the local
consumers
• Xiamen (China)
• to provide products and services at the local
prices

17. Place
• Always available at the nearest dealers
• Objective of gaining their trust in Dell
products

18. Promotion
• “Be Direct"
attitude

19. Sales promotion
• 1．Broken down market
• 2．Pricing strategy
• 3．Advertising strategy

20. Distribution Strategy
Direct modes in compressed product
production lines, supplemented by online
purchase at great development of its direct
sales model.

21. Online
technical services and technical support
• users answer questions
• escalation on Windows
• software upgrades informed

22. SWOT Analysis
•
•
•
•
•
•
Strengths:
Agility
the master of customization
the power to the consumer
directly selling to the consumer
to implement the latest technology

23. Weaknesses
• no proprietary technology
• is not creating something based on
technology that is exclusively theirs
• their high dependency on component
suppliers

24. Opportunities:
• expanded markets of Europe, China, and
India.
• flourish with its low-cost leadership
• growth in the business, education, and
government markets.

25. Threats:
• Competition
• entry into the low-cost leading segment
• another company will do something similar