1. Dell’s Strategy for Growth*
Current Market Portfolio
* Business Model
2. Advantages of Dell Model
Cost efficiency of direct model
Customization & Responsiveness
Focus on detail
3. Three-Step Growth Strategy*
4. New Frontier for Dell: Consumer Electronics

2. Dell’s Strategy for Growth
5. Three Main Challenges for CE Market
No Customization and Less Responsiveness
Will People Buy CE Direct?
Dell’s Brand Equity for CE Product
Mike George’s two comments
6. Playing the OEM game (back page)
- Who are customers?
- Upside & Downside
- Response from resellers and small manufacturers

3. Dell’s Strategy for Growth
7. Recent Performance (FT article in 2005)
Slowing growth
“Now Dell is the market.”
Heavy Reliance on PC segment
Slipping Price Advantage and Built-to-Order System
Competitors have caught up
6. Dilemma for Dell
- Shoot low?
- Shoot high?
- Is Dell Model Obsolete for Now?

4. Dell To Rely Less on Direct Sales (WSJ article in 2007)
Dell’s Broad, Global Retail Push
Selling Dell PC through Wal-Mart
Why Go to Retail?
What is happening to Its Direct business model?
“The Direct model has been a revolution, but it is not a religion.”
- Michael Dell

5. Discounting Continues to Haunt Dell (WSJ article in 2010)
Revenue is up, but profit is down. Why?
HP: Revenue is up and profit is also up
Now no. 3 behind HP and Acer
Share of total revenue from consumer market: (???)  2010 (???)
Compete against “white box”
80  75

6. Ice Cream War Major Hindrance for Ice Cream Sales
Major Players: Unilever and Nestle
Changes in Competition: Dryer
New Market Segment to Pursue & Why?
Channel Strategy for the new market segment
Dryer’s competitive advantage
Dryer: “Our intent is to be the Frito-Lay of Ice Cream”
In-store location: Deli and Hot Food Section  Dinner + Dessert

7. Small Brand Hitch a Ride
Major Hindrance for Small Brands
How to overcome that hindrance?
Example: Honest Tea + Coke bottlers
What do small brands get?
What do Coke distributors get?*
New development: Distributor-developed drink brands
Key Takeaway: Strong Brand + Store Access  Success!
Side story: Pushback to Coke’s Betrayal
*pushback to Coke

8. Customer Health Care Problems of the current system
Current Healthcare Delivery System
Problems of the current system
Business Model of a walk-in clinic:
Accessible and affordable health care:
- limited service, lower prices, and using nurses
 90% satisfaction rate and cover uninsured
4. Challenges for this idea
Doctor Skepticism & Resistance
Recruiting Nurse Practitioners
Customer Awareness
State Regulation!

9. Wal-Mart To Expand In-Store Clinics
400 Clinics by year 2010
Service delivered by local health care practice  Co-branding
3. No proven track record so far  What do you think?
- Pros: Convenience and Cheap
- Cons: Can you trust them?

10. Move Over, Coke Describe Bikoff’s Product Strategy
Key Challenges for small guys
Describe Bikoff’s Product Strategy
Describe Bikoff’s Marketing Strategy
Describe Bikoff’s Marketing Channel Strategy
Structure: types of stores, intensity, level
Management: support & relationship
* Positioning of vitaminwater

11. After the Sale is Over
Brand Ownership Change
What happened to existing distribution network of Vitaminwater?
What is the problem here?
How would you solve the problem?
Learning from the past: Snapple

12. Ping Golf Club
Through what type of channel intermediary are Ping Clubs being sold?
What are key factors that drive Ping’s channel choice?
What is the intensity of their distribution?
How would you describe Ping’s channel
Relationship management?

13. The Monster that Ate Hollywood
Key Word: Channel Evolution
Supply side factor, demand side factor, technology
Changes in Movie Studios
Changes in Studios’ Competitive Strategy*
Movie Making Side
Revenue Model (Distribution and Exhibition)
Changes due to alternative movie distribution channels:
Marketing Channels:
Products:
Markets:
* Getting acquainted: student information form; WSJ