Dells Marketing Case, Dillema

How would you describe dells current distinctive competencies? What other potential sources of distinctive competency expertness dell work to develop? Answer concord to the case, dingles Current distinctive competencies are Mass customization by cerebrate on this strategy (which they followed as their core differentiation strategy), dell has winningly been able to transform the direction consumers shop for technology. Customer could place customized orders for their PCs according to their unique needs and wants.Which at that time seemed to be a very attractive, innovative and hence successful strategy. However while concentrating too a great deal on its distinctive strategy of mass customization for too long, Dell gravely failed to adapt to the changing world of technology which luck was promptly grabbed by its current and emerging competitors like HP, Sony, Leaner, Apple and others. They quickly managed to reap the benefits of the fast developing marketplace for technolo gical products like PCs and notebooks. Direct Sales Channel- Dell has proved to be extremely successful at coming up with a very efficient and smart supply chain, by do Its customers able to place orders for their PCs online, wrought e commerce. Dell used direct sales via Internet, whereas traditional PC manufacturers previously assembled PCs to make them ready for purchase at retail stores. Thus, Dell enjoyed early-to-market advantage. This eliminated the need for retailers that would add superfluous time and price for Dell and Dell has enjoyed this competency for a pro-longed period of time. Dells cost efficiency Dell was able to provide PCs at a low cost for quite a period of time, until salaried a low price for a standard PC was no more attracting the potential customers who were earlier lured y the more technologic aloney advanced products falseered by Dells competitors like Hewlett-Packard. However continuing with its cost cutting strategy cost them their customers in l ater years when HP emerged as the market leader and attracted all the consumers and business clients to themselves. barely, Dells extremely efficient supply chain management aided In keeping Its be low and hence being cost effective. Dells strong market position due to its strong stag value as one of the top 100 brands In the world (In the IT systems market), provided It with a competitive advantage. Dell has a strong market presence in IT systems market. Despite losing market share to other players in the recent past, Dell continues to remain a strong player in the IT systems market.In the fast growing market for technological products Dell should have obviously gone for innovating their product lines. Dell should go for product development. It faculty work to launch faster and more attractive versions of PCs and laptops. Most Importantly Its marketing strategy should be changed, In order to reap benefits from Its distinctive competencies. Being Innovative could have obviously p aid off as a good extinctive competency, because then competitors like HP and Apple would get as much opportunity to grab the market share.Moreover, Dell could go for making OFF silent changes In Its organizational culture Day encouraging Its employees to De more creative and to think out of the box so as to get rid of the monotonous feeling in them which would also enhance the productivity and would obviously bedspread a good word of mouth regarding Dell as a ready to innovate and help company, which would work as another great distinctive competency. Question 2) Dell is currently engaged in a cost leadership strategy. If Dell decided to move more toward a differentiation strategy, what might be some sources of differentiation Dell could explore?Answer 2 Emphasizing on the cost leadership strategy for too long has caused Dell to lose it market share and not to appoint has lead it to earning lower lettuce. Thats because the same strategy would not work forever. Dell has not exp lored in fortune their customers with variety in their oblations for PCs and notebooks, neither did it do much to upgrade its features and technology. Dell has not re-invested any of its profits into going for a different racketing strategy other than cost leadership.A differentiation strategy incorporates the development of a product or service so that it washbowl offer a customer perceived singularity in the marketplace that seems to be better than or different from the products of the competition. Dell has to focus more on providing additional value for their customers if they want to differentiate their brand form the others in the market, to do so, they have to reference point their customers not yet raised demand for reinvigorated technology say for example, delight their customers by offering new software and applications for their PCs.Dell apprize also go for sales promotion that is they can provide scant(p) term offers where they would be providing free upgrades for software in their current customers PCs and offer discounts on certain software Just so as to attract their customers lost interest. Launching and promoting different complimentary products made by Dell can be a good idea to enhance the sales of Dell PCs.For character if Dell came up with a product line for gaming computers, to attract a certain plane section of its potential clients, and along with that if it issued games made by Dell one of which would be provided for free with the gaming PCs, it deafening be a great way of differentiating their brand as innovative in the mind of customer, especially since no other competitor at that time came up with gaming PCS. Question 3 According to Nations Product-Market expansion grid which strategy is applicable for Dell computers offerings?Explain the strategy in your own quarrel in the context of the case. Answer 3 Nations model is based upon four types of strategies which are market perspicacity strategy, market development strateg y, product development strategy and diversification strategy. The diagram below illustrates the Nations Product-Market expansion grid. In my opinion, Dell should primarily go for product development strategy and then market development strategy. By going for product development strategy, Dell would be issuing new, developed and modified versions of its products.By doing so, Dell can show it to the industry that they are all ready to launch innovative products and solutions for their clients both Business and consumer. Moreover given the strong and well established brand name Dell has, it would not be a problem to beat its competitors Like HP, IT Dell can offer new Ana developed products to Its customers. For example by considering software as an product/service to offer, Dell can assemble a services portfolio that would entangle e-mail disaster recovery, spam/virus filtering and archiving via its Message acquisition.Moreover Dell can come up new models of its PC, and notebook, more lighter ones, faster ones, PCs specially made for gaming, and PCs which are specially made lighter and littler for office going executives and students. Just like Google developed a new browser Chrome for the active Internet user. Going for a market penetration strategy would be bad session for Dell since it has proved to be a failure Just because it refused to be innovative about its products and was only think on a single strategy of mass customization.However, Dell can also go for a market development strategy if that is feasible giving the transportation and set up costs associated with climb up business and dealerships in developing countries like Pakistan and Bangladesh, or it can focus on a different demography, like the elderly people by creating easy to use and simple light laptops for them, which they can also afford with a little portion of their savings.