Celine, Robin, Cassie, and Danyi. Competitive Forces 3 major competitions Hewlett-Packard, IBM, Sun-Microsystems Rival companies Compaq, Gateway, and.

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Presentation transcript:

Celine, Robin, Cassie, and Danyi

Competitive Forces 3 major competitions Hewlett-Packard, IBM, Sun-Microsystems Rival companies Compaq, Gateway, and Apple

Hewlett-Packard Major rival in the future, 25.1% increase in one- year sales. Dell has 13.6% increase. Ranks fourteen in fortune 500, Dell ranks 36. Hewlett-Packard lowering prices as has Dell. Structure of computer field different from any other business. Dell realized that stale items on shelves are useless and that they needed to customize items.

Economic Forces Recession But stocks are looking up People using caution in purchasing products Dell lowering prices Offering upgrades Discounting colleges and universities Businesses are the majority of buyers and buy on Dell credit

Technological Forces Up-to-date Cheap/low cost Sell direct using warehousing Innovative customization

Sociocultural forces Be aware of ethical issues Child pornography E.P.A regulating the disposal of products Treating employees Running the business

Identification of Target Market Educated, middle income, young to middle aged, professionals, early majority in adapting stage Not overly wealthy Computer savvy Used daily

Needs analysis Cost to be down Customized with the latest technology Fast Easily accessible 599

Strengths Direct selling keeps cost low No inventory build Proactive approach to latest technology Fast inventory enabling Dell to introduce new technology Keep up-to-date with build-to-order Intranet and extranet (continuous communication)

Weaknesses High dependency on component suppliers and manufacturers Lack of solid dealer relationship

opportunities Internet as powerful marketing tool Potential market in China, Europe, and India Low costs and advanced technology

Threats IBM and Compaq have stronger brand names Currency fluctuations outside the U.S. Tariff trade barriers Regulation and law changes Recession

Marketing objectives Dell ventures Formed in 1999 Advantage over competitors Repeatedly reevaluated online performance

Performance analysis 14% Market Share Performance of industry declining Choosy buyers Finance restriction because of recession

Dell Offer customer enhanced multitasking capabilities Products Handhelds, software, peripherals, & services Offers Development, professional training, certification, support, and integrated solution services

Pricing leaders accomplish Appealing to highly segmented markets Incentives to behave how you want Pricing structures align with cost

Distribution Headquarters in Austin, Texas 3 main divisions Europe/Middle-East Africa, North/South Americas, Asia- Pacific/Japan 37 operating subsidiaries headquarters

Promotion Internet Pop-up ads Newspaper & magazines Commercials (radio&television) Billboards Dell