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