Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Dell's marketing strategy
Dell computer business model
Overview of dell
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Dell's marketing strategy
Case Study: Matching Dell
Introduction:
Dell corporation is a well known computer company incorporated in 1984. Dell Computer Company is the pioneer of the highly publicized business model called "Direct Model" in the personal computer industry. It had launched a method which attracted millions of customers across the world starting from personal use to small and medium size corporation use. Dell customized its computers to the individual need.
1) Describe and analyze Dell's process strategy (management philosophy, efficiencies, bottlenecks, supply chain partners, etc.). What's the advantage and disadvantage of their process model?
Dell computers
2) Discuss why Dell's competitors, such as IBM and HP, would stick to their process models.
3) As usual, the last part of the case study will focus on the current PC markets. Do some research in this market and pick up one major player (Dell, HP or IBM) to analyze their development strategies. For example, the merge of HP and Compaq, the deal between IBM and Leveno, or Dell's middle-age problems (decreasing marginal profits, product recalls, etc.)
Four Steps in the Cycle:
Value Identification:
Value identification concentrates on creating customer base. Identifying customers and looking into their needs. It focuses on how to fulfill these customer's needs with the best way possible. Benihana's value was created from the showmanship of the chef. Hiroaki Aoki after coming to the US grasped quickly the importance of offering to customers something different from any other restaurant in the country. He was in New York, the city of Broadway shows. Theatre is what people come here for and to get theatrical experience with their lunch or dinner, what better one would ...
... middle of paper ...
...ucceeded. All the advertising emphasizes the chef and the food, but is that really what the public comes for? Absolutely yes, that's what people come for. As an evidence of the above statements, I have shown the chart of last 10 years Net Sales of Benihana which has almost tripled. The net income has risen from $4.95 million in 1997 to $14.56 in 2006.
To summarize the case, I think Benihana is extremely successful Japanese Restaurant chain of the United States. They have predicted the future of Benihana in 70's as we read in the case study and today it all seems to be turning in to reality. Global economy being the focal point of any business, they need to keep the whole world in mind without excluding any country. I think Benihana can continue to grow with even greater rate if they keep their originality with them which is the authentic hibachi-style cooking.
When different kinds of menu for lunch and dinner are included, there is an opportunity for attraction of more clients in the new outlet
PC industry is affected by two opposite forces: technological advance that pushes the industry forward and the industry sensitivity to economical stagnation (if the economical situation is bad customers won't upgrade their computers).
Sociological concepts pertaining to age, gender, and appearance were also noted and applied. The reason why “We love Banhmi” was chosen to be an ideal observation place is because of its location: very close to Astoria, thus making it accessible to local members like students, business people as well as travelers and visitors. Thanks to its reputation for traditional sandwiches and other tasty Vietnamese street foods along with fast serving process, the restaurant is getting more and more popular, and attracts customers from different cultural backgrounds to come and enjoy Vietnamese cuisine. No alcoholic drinks are sold here. It is also supposed to be a fairly inexpensive place to eat, with its classical décor, cozy atmosphere, and relaxed environment, making it a perfect place to observe and record the interactions....
Capital requirements to set up an assembly line to produce PC's are also relatively low, estimated at roughly a million dollars (Rivkin & Porter,1999 pg. 5) which means that virtually any firm can enter the market easily. Despite sky rocketing demands for PC's, PC producers are unable to capitalize due to increasing number of competitors. The PC industry is also affected by environmental turbulence due to price fluctuations of its components. Constant innovation in PC technology causes older components to be rendered obsolete and prices of older versions to plummet. PC producers who are stuck with inventory of obsolete products incur high costs of dumping these components.
Dell's strengths were oriented around listening to the customers, responding to the customers, and delivering what the customer wanted. The direct relationship was first through telephone calls, then through face-to-face interactions, and now through the internet. It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers.
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
Dell Inc. has realized that the most efficient path to the customer is through a direct relationship, with no intermediaries to add confusion and cost. With the power of their direct model and their team of talented people, they are able to provide to their customers high-quality, relevant technology, customized systems, superior service and support, and products and services that are easy to buy and use. HISTORICAL REPORT Dell Inc, was founded as “PC’s Limited” in 1984 by Michael Dell, while still a student at the University of Texas at Austin, with just $1000. From Michael Dell's off-campus dorm room at Dobie Center, the startup aims to sell IBM-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs.
Michael Dell founded the company Dell to offer network servers, workstations, storage systems, Ethernet switches, desktops, and notebook PCs after successfully selling his computers to customers directly in Texas. Over the course of three years his sales volume warranted the opening of an international sales office in 1987. In 1988 he began selling to large customers including several government agencies and Dell became a publicly traded company.
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.
Historically, personal computer companies produced most of the components for a computer which they assembled into their final products and distributed to resellers. The manufacturing of these components was vertically integrated into the organisation. Dell, as a small start-up, could not build this infrastructure. Instead, they developed a model where they developed relationships with organisations that could provide these components, allowing Dell to focus on selling and delivering computers. By selling directly to customers, initially through mail orders and later by using the internet, Dell avoided reseller mark-up. Dell also enabled customers to order customised computers, which Dell then assembled after receiving the order (Magretta, 1998, p.73-74). “Customers got exactly the computer they wanted and Dell saved money making the computers only when they were ordered” (Hill & Seggewiss, 2008)....
The Dell Model was understood what IT and JIT could do for the computer. His idea of how purchasing a computer should become simple and easy. Mr. Dell’s business model was to make sure that all computers were able to get to their customers fast. Dell started out as a direct seller, first using a mail-order system, and then taking advantage of the Internet to develop an online sales platform.
One of the most known Regional Cuisines in Okazaki, their restaurant is just 5 minutes away by car from the JR Tokaido Main Line Okazaki Station (East Exit). They're mostly crowded during dinner time, but their 90-seat branch is capable enough to serve just anyone and anytime during their operational hours. Their average rate for lunch is around 1,800JPY while dinner does around 2,800JPY.
“The Dell Theory of Conflict Prevention,” is a theory that is approved by multiple famous authors. The theories main points are valuable and the theory should be looked upon more seriously. In Thomas Friedman’s essay, “The Dell Theory of Conflict Prevention,” he gives examples of how global supply chains would be constructive to promoting world peace. Friedman feels that if everyone is an ally to each other in some shape or form, then no one will want to engage in war. Madeline Albright would agree with Friedman’s theory according to her writings in “Faith and Diplomacy.” Albright felt that religion should play a factor in the diplomatic system of America, in order for us to maintain some kind of peace with other nations. Friedman and Albright both were looking for a solution to world peace. Albright would agree with this theory from the religious perspective. Appiah argued that an ideal global citizen would be essential to America, in his essays “Making conversation” and “The Primacy of Practice.” Appiah felt that people must have an understanding of each other in order to get along with each other. Both Appiah and Albright would agree with “The Dell Theory of Conflict Prevention.” “The Dell Theory stipulates: No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain”(Friedman 125).
This chain is “T.G.I Friday's”. It was established in New York in 1965 and had only one small restaurant which was serving American-style food and alcoholic beverages. The food, which was served become very popular because of its taste and slowly the “T.G.I Friday's” start growing as a chain. After only 50 years they have more than 900 restaurants in 60 countries around the world. Based on this facts it is logically to say that it become so popular because of the food, which they are suggesting to customers and looking at the base of the situation the following means that this success was achieved with a help of standard recipes and food specifications (Fridays.mediaroom.com,
Nevertheless, the Japanese diplomatic project is differentiated by its will to attract a younger audience notably through the development of a “cool” culture. The Japanese cuisine or washoku is ergo at the centre of the Japanese Ministry Of Foreign Affairs public gastronomic diplomacy. In his article in the Public Diplomacy magazine, Bestor points out the close link between the “Cool Japan” initiative and the Japanese gastronomy. “Cool Japan” is directed towards the promotion of Japanese culture and creativity in the world. It includes the showcasing of meals such as “ramen”, “miso soup”, “soba noodles” or even “sushi and sashimi” commonly mentioned in contemporary japanese pop culture. Another objective of the Japanese government is to transmit a great image of Japan by promoting and proveing “the essence of culinary authenticity, internationally and domestically” recalling the importance of shokuiku in the Japanese culture of