Case Study: Dell

Case Study: Dell

Dell can be one of the most successful companies mostly due to its direct marketing strategy. Unlike other computer companies which sell their product through retailers, Dell provides their computer and service directly to customers. The direct-selling model makes the company understand their customers better and eliminates the retailer cost. What is more, each PC is customized to the customers who can specify what components they want. Dell also holds little or no inventory and assembles products as soon as an order placed. The company can save inventory cost and apply new technology on their product quickly by using the just-in-time approach. In 1996, Dell became the e-commerce leader, for its website is not only some pages describing the details of products but also an online shop specializing computers for consumers. People can buy computer on the website which covering 80 countries, 27 languages/dialects, and 40 currencies without leaving home.

Therefore, direct marketing strategy with low cost (low price), customization and e-commerce is the key factor for Dell’s success.

Blois et al (2000.p.20) argued that marketers have been making increasing efforts to integrate direct-marketing activities within their overall communications mix. For instance, when a new computer comes into the market, the company should integrate every aspect of its campaign like TV Ads, online promotions, sending emails and brochures to the potential customers and so forth. Such Integrated marketing communications which can generate the awareness of the new product are likely to become popular in the future. Furthermore, in order to remain its top position, Dell has to develop new market such as camera and printer.