Dell, Inc.

Paper Summary:

This paper explains that Dell's direct-to-customer business model, which does away with intermediaries and gives the customer more powerful and featured computer systems with enhanced capabilities compared to the majority of the rivals at the same price, is the secret behind the company's remarkable development and achievements. The author points out that Dell recently moved into consumer electronics and services including the Dell Music Store, a service to sell downloaded music; an integrated HDTV-compatible, 17-inch flat-screen TV and computer monitor with unified speakers, and the Media Experience, a software application for handling digital media. The paper relates that Dell uses a lean manufacturing model, which concentrates on the complete removal of waste, errors, and delays in supply, manufacturing, and distribution by using demand-driven, lean supply and near-zero defects principles together with the concept of the flexible enterprise.

Table of Contents
Introduction
Dell?s Product, Pricing, Distribution and Promotion Strategies
Product
Pricing
Distribution
Promotions
Dell?s Product Portfolio Strategy
Target Market Strategy
Market Penetration Strategy
Dell?s Key Competitors (Hewlett-Packard, Sun Microsystems and IBM)
Dell?s Direct-to-Consumer Distribution Model
Lean Manufacturing Model
Specific Advertising Campaigns, including the Well-Known ?Steven? (e.g. ?Hey, Dude, You?re Getting a Dell') Campaign
Conclusion

From the Paper:

"In order to comprehend customers' wants and to supply high quality computer products and services adapted to satisfy those wants, the Company builds and uses direct customer relationships. The customers who buy the products and services of Dell include huge corporate, government, healthcare and education customers, small-to-medium businesses and individuals. With regard to small-to-medium businesses and individuals, the Company maintains direct relationships with the help of account representatives, telephone sales representatives or Internet connection. A steady stream of information giving needs and strategies of customers received through these direct customer relationships helps the Company to understand the requirements of its customers and to match them with upcoming technologies. As an element of business agenda, at Western Michigan they have incorporated a plan with Dell letting business students to get the Dell products. They have aimed at the young students and have presently embarked on building a customer relationship with the greater part of the Western Michigan University business students."

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