B2B Project: A B2B Project: A Study Of The Study Of The Dell Server Dell Server MarketMarket

Dell headquarters ; Roundrock ,Texas

Aims Of Our Project To understand Dells B2B To understand Dells B2B

structure in the server structure in the server marketmarket

To analyze the Server / IT To analyze the Server / IT marketmarketincluding Dells major rivalsincluding Dells major rivals

● ● To outline how Dell market To outline how Dell market their servers to Corporate their servers to Corporate customerscustomers

●● To highlight Dells successes To highlight Dells successes / failures and to make / failures and to make relevant recommendationsrelevant recommendations

Dells Background Michael Dell established Michael Dell established

Dell Computers in 1984 Dell Computers in 1984 Headquartered in Headquartered in

Roundrock, TexasRoundrock, Texas Dell pioneered the concept Dell pioneered the concept

of selling PCs and of selling PCs and complimentary products complimentary products directly directly

Dell led commercial Dell led commercial migration to the Internet, migration to the Internet, launching www.dell.com in launching www.dell.com in 1994 1994

Dell became the first Dell became the first company to record $1 m in company to record $1 m in online salesonline sales

▲Michael Dell, CEO ▲

Dells Business ModelDells Business Model

The Server Market Research firms can't seem to agree who is Research firms can't seem to agree who is

top dog in the market in terms of revenue, top dog in the market in terms of revenue, with IDC giving the number one place to with IDC giving the number one place to HP, while Gartner said IBM came out the HP, while Gartner said IBM came out the winnerwinner

The overall server market is now worth The overall server market is now worth US$12.29 billion worldwide, IDC US$12.29 billion worldwide, IDC

IDC claim global sales revenue increased IDC claim global sales revenue increased 4.9 percent on the same period a year 4.9 percent on the same period a year earlier earlier

"The server market continues to "The server market continues to experience solid growth as businesses of experience solid growth as businesses of all types look to enhanced IT capabilities in all types look to enhanced IT capabilities in order to help drive additional business order to help drive additional business efficiency, improved customer satisfaction, efficiency, improved customer satisfaction, and accelerated revenue growth," said and accelerated revenue growth," said Matt Eastwood, program vice president of Matt Eastwood, program vice president of Enterprise Platforms at IDCEnterprise Platforms at IDC

ProductProduct PowerEdge servers: designed for medium-large PowerEdge servers: designed for medium-large

business customers business customers affordable performance, reliability, and is fully affordable performance, reliability, and is fully

upgradeable upgradeable Dell has introduced Project Hybrid which includes the Dell has introduced Project Hybrid which includes the

production of new blade servers that will leapfrog the production of new blade servers that will leapfrog the competing servers in terms of performance and competing servers in terms of performance and efficiency in sizeefficiency in size

Dell recognises that the market’s needs have Dell recognises that the market’s needs have changed from: changed from: “who can give me the cheapest box “who can give me the cheapest box the fastest” to “I have a problem, how can you help the fastest” to “I have a problem, how can you help me fix it.”me fix it.”

Oliver Freaney and Co a medium sized company Oliver Freaney and Co a medium sized company require:require:

1) High processing Speed1) High processing Speed 2) Large RAM( random access memory)2) Large RAM( random access memory) 3) Large Hard Disk Space3) Large Hard Disk Space 4) RAID, this is a feature that is there in case the hard 4) RAID, this is a feature that is there in case the hard

disk crashes, this feature will save the information on disk crashes, this feature will save the information on the hard disk and enables it to be transferred to the hard disk and enables it to be transferred to another diskanother disk..

Dell delivered their requirementsDell delivered their requirements

PricingPricing

• Delivery charge€38

• VAT at 21%

•Dell utilize a low cost leader pricing strategy:

•For example→Dell

PowerEdgeHP c-Class IBM Blade

centre HFujitsu Siemens Primergy BX 600

€2803.57 €4092.38 €6031.24 €4776.98

PackagingPackaging Security in transit is a necessity in Dells Security in transit is a necessity in Dells

packaging packaging All servers are wrapped in protective irrigated All servers are wrapped in protective irrigated

plastic wrapping, Styrofoam and secured in plastic wrapping, Styrofoam and secured in place in their boxes to avoid damageplace in their boxes to avoid damage

The packaging in the server market is functional The packaging in the server market is functional and does not require the aesthetic qualities that and does not require the aesthetic qualities that a chocolate bar or MP3 player woulda chocolate bar or MP3 player would

It’s far less time consuming to unpack its It’s far less time consuming to unpack its contents than competitors thus saving the contents than competitors thus saving the prchasing firm precious time and money prchasing firm precious time and money

Critical IssuesCritical Issues

Dell’s most prominent problem is the Dell’s most prominent problem is the continuation and expansion of its direct continuation and expansion of its direct model model

Increased competition from rival “copy-Increased competition from rival “copy-cats” i.e. IBM and HP cats” i.e. IBM and HP

Promotion and Advertising Dell uses a combinationDell uses a combination

of up to at least tenof up to at least ten

marketing strategies tomarketing strategies to

grow the business.grow the business.

They include They include Telephone MarketingTelephone Marketing Direct MailDirect Mail InternetInternet Email marketingEmail marketing Direct SalesDirect Sales PRPR Strategic Alliances Strategic Alliances Lead Response MarketingLead Response Marketing

Target MarketTarget Market

•Corporate Clients

•Mass customization means the product is generically suitable/ adaptable to any business

Conclusion and Recommendations

•Dell should consider adding showrooms to detail and portray physical operation of their servers to ever demanding business customers

•Use more “Customer Surveys” to gain market share by better understanding what exactly business users want

•New methods of advertising should be devised to target business customers more specifically

•Invest more in Research and Development

•They should aim to increase company recognition through a national advertising campaign

•Enhance customer support services

•Dell could offer online data back-up capabilities