Dell Inc.pptx

7/30/2019 Dell Inc.pptx

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To be the most successful computercompany in the world at delivering the bestcustomer experience in market we serve. In

doing so, Dell will meet: Customer expectations of highest quality; Leading technology; Competitive pricing;

Individual and company accountability; Best-in-class service and support; Flexible customization capability; Superior corporate citizenship;


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Its the way we do business; its theway we interact with the community. Its

the way we interpret the world around usour customers needs, the future oftechnology, and the global businessclimate. Whatever changes the future

may bring our visionDell Visionwillbe our guiding force.


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Superior service and support, easy tobuy, easy to use


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Late 2006, early 2007


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Aaron Loke, Director of marketing


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Major problem

How can Dell sell its products in China

through direct selling strategy?


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Must or Short-range Objective

To implement a direct selling strategy

that would attract Chinese customers tobuy their products


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Want or Long-range Objective

To become a leading PC company in

China and to deliver the best customerexperience in the market.

To have a strong brand equity and

gain high customer satisfaction inChinese market.


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1. Supply chain efficiency

2. Strong brand name

3. Price competitiveness

4. Customize products


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1. Lack of core competence in innovativeproduct design

2. Low market share in the largestemerging market of the Asia-PacificregionChina

3.Marketing strategy


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4. Low quality of its PC component(batteries)

5. The business model, to some degree iscontradicted to the consumer culture inChina.


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1. Large market of China could increaseDells market share

2. Changing lifestyle of people3. Product innovation

4. Increased online services such as music,

applications, videos, etc.


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1. Changing customer preferences inmethod of buying products

2. Negative impact on Dells reputation ofthe biggest battery recall with individualcustomers


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3. Threat of local competition

4. Government regulations of China


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S3. Price competitiveness

O1. Large market of China could increase

Dells market share

Sell products at a low price


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S4. Customize products

O2. Changing lifestyle of people

Differentiation strategy


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S3. Price competitiveness

S4. Customize products

T3. Threat of local competition

Sell products at a low price


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S2. Strong brand name

T3. Threat of local competition

With its strong brand name, Dell

has advantage over itscompetitors.


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W1. Lack of core competence ininnovative product design

O3. Product innovation

Give more importance on

research and development.


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W2. Low market share in the largestemerging market of the Asia-PacificregionChina

O1. Large market of China could increaseDells market share

Take advantage of the largemarket of China to increasemarket share through marketpenetration


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W4. Low quality of its PC component(batteries)

T2. Negative impact on Dells reputationof the biggest battery recall withindividual customers

Outsource to other manufacturerof battery


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W3. Marketing strategy

T1. Changing customer preferences in

method of buying products

Organize a computer convention

in malls.


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Dell HP Lenovo Apple


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Dell HP Lenovo AppleCritical Success

Factors W R WS R WS R WS R WSE commerce 0.07 4 0.28 4 0.28 4 0.28 4 0.28

Price

Competitiveness 0.13 4 0.52 3 0.39 4 0.52 1 0.13Product Quality 0.1 4 0.4 4 0.4 4 0.4 4 0.4Market Share 0.1 2 0.2 3 0.3 4 0.4 1 0.1

Innovation 0.13 2 0.26 4 0.52 4 0.52 4 0.52Distribution channel 0.1 2 0.2 3 0.3 4 0.4 3 0.3

Financial Position 0.1 4 0.4 4 0.4 4 0.4 3 0.3Brand Name 0.1 4 0.4 4 0.4 4 0.4 4 0.4

Customer

Satisfaction 0.1 3 0.3 4 0.4 4 0.4 4 0.4Local Knowledge

and Culture 0.07 3 0.21 3 0.21 4 0.28 3 0.21


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2006 2005


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Liquidity RatiosCurrent Ratio 1.11 1.20Quick Ratio 1.08 1.16Leverage RatiosDebt to Total Assets Ratio 0.71 0.63Debt to Equity Ratio 3.98 2.26Long Term Debt to Equity Ratio 12% 8%Activity RatiosInventory Turnover 110.74 98.56Fixed Assets Turnover 27.88 29.10Total Assets Turnover 2.42 2.12Accounts Receivable Turnover 12.41 13.33

Average Collection Period 29 27


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Profitability RatiosGross Profit Margin 18% 18%Operating Profit Margin 8% 9%Net Profit Margin 6% 6%Return on Total Assets (ROA) 15% 13%

Return on Stockholders Equity

(ROE)87% 47%

Earnings Per Share (EPS) $1.46 $1.18Price-Earnings Ratio 28.12 28.34Growth RatiosSales 13.62% 18.73%Net Income 17.38% 15.05%Earnings Per Share $1.46 $1.18


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Servers, storage, printing, workstations,notebook computers, desktopcomputers, electronics and accessoriesproducts, managed services.


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0

10000

20000

30000

40000

50000

60000

2006 2005 2004

Net Revenue

Net Income


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The current PC market has beendominated by some big PC makers ofLenovo, Dell, and HP with big scale.

The top PC makers in China haveestablished their mature distributionchannel and it is easy for them to selltheir products to the consumers.


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Digital television combines the functionsof both PC and TV that people can use

The intelligent mobile phone also beginsto have the functions of PC and it hasthe advantages of smaller size andconvenience for carrying comparedwith the PC.


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HP- Adopts the different strategies in thedifferent markets of high-end users andlow-end users.

Lenovo- The strategies of Lenovo are lowprice and brand.


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Apple -Apples strategy is to become thedigital hub that connects all ofconsumers digital devices togetherthrough the computer, using softwaredeveloped by Apple that works with alldigital devices, no matter who they are

made by.


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Dell forayed into the UK, and then toAustralia and Japan in 1993. It set up itsown manufacturing facilities in Limerick,Ireland (to serve European, Middle Eastand Africa), Penang Malaysia (1996),Eldorado do Sul, Brazil (1999, to serve

Latin America), and Texas andTennessee in United States.


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Dell business is subject to regulation byvarious federal and state governmentalagencies in region where they operate.


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ADVANTAGES:

Businessrepresentatives could

have the opportunityto see and examinethe product of Dell.

Possible increase of

sales as well as marketshare.

Dell will be known inChinas corporateworld.

DISADVANTAGES:

Additional cost

Requires demoproducts to be used.


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ADVANTAGES:

Dells products

would be known bythe users ofcomputer in thecompany (this might

help them spreadwords about Dell)

DISADVANTAGE:

One time transaction

only.


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ADVANTAGES:

No inventory will be

required. Chinese Business

Companies wouldbe attracted to buy

the products of Dell.

DISADVANTAGES:

Additional Cost

Requires an expertprogrammer


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WEIGHT5 This criterion of weight is not the consideration of

the company.

10 This weight has a moderate consideration in thedecision making of the company.

15 This weight of 15 is the main focus of considerationof the company to their decision making.

CRITERION 3 2 1


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Gain Market Share The company could gainhigh market share in

Chinese market

The company could gain

average market share in

Chinese market

The company could have

low possibility to market

share in Chinese market

Strong Brand Equity Dell brand will berecognized in China

Moderate or Average

Brand Recognition gainDell brand will not be

known in China

Attract More Sales High possibility toincrease sales

Average possibility to

increase market shareLow possibility to

increase sales

Addressing Direct Selling

Method in China

Dell could greatly

enhance its direct selling

strategy in China

Partially enhance its

direct selling strategy in

China

Dell could not enhance its

direct selling strategy in

ChinaMaintenance of Supply

Chain EfficiencyDell can still maintain its

operation efficiently.Dell can fairly maintain its

supply chain efficiency.Dell cannot maintain its

supply chain efficiency

ACA 2 ACA 3


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DECISION MATRIXACA 1

Computer

Convention

ACA 2Partnership

with Chinese

Businesses

ACA 3Develop specific

computer lines

for big retailersW R S R S R S

Gain Market Share 15 3 45 3 45 2 30Strong Brand Quality 15 2 30 3 45 3 45

Attract More Sales 10 3 30 2 20 1 10Addressing Direct Selling

Method in China15 3 45 3 45 2 30

Maintenance of Supply Chain

Efficiency5 2 10 3 15 1 5

TOTAL

60

160

170

120


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Based on the given AlternativeCourses of Action (ACA) and furtheranalysis of the advantage anddisadvantages of each, we concludedthat the ACA #2, which proposes tosend proponents to Chinese businesses

to promote their products and createcontracts with them, is the bestalternative.


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In further study and survey, wetherefore conclude that Dell could gainmore influence and increase its marketshare in Asia-Pacific region mostespecially in China by building andcreating a partnership with the largest

Chinese businesses. Dell will be theirmajor supplier of PCs and other servicesof those companies.


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ACTIVITIES

RESPONSIBILITY

TIME FRAME

Selection of target market (Large

companies).Marketing Department 2 weeks

Prepare or conduct a good proposal. Marketing department 1 monthApproval of top management. Top management 2 weeksSet appointment with the top management of

large companies.Marketing department 2 months

Make a contract or deal with them regarding

the terms of payments, shipments of

products etc.

Top management 1 week


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Dell Financial Statement fiscal year 2006

www.dell.com

www.lenovo.com http://www.interbrand.com

http://www.fortune.com

www.hp.com www.wikipedia.com

www.google.com

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Dell Inc.pptx

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