Dell Corporation, a privately owned multinational computer technology company in the United States, that develops, sells repairs & supports computers and related products and services. The company introduces the latest applicable technology a bit quicker as compared to its competitors. Dell Corporation has a very huge overall competitive double-edge over its competitors in terms of cost & sales and becoming a strong market leader in the field of computer technology.
Dell is the leading products and services provider required worldwide by customers for building their Internet communications and information-technology. Dell mostly focuses on providing their services directly to the customers. The model of direct-selling has made the company understand their customers in a very successful manner. The company has managed to save their inventory cost and applied new technology by using the just-in-time approach on their products.
Dell Corporation provides the selling of servers, personal computers, data storage devices, printers, cameras, MP3 players and many electronics built by other manufacturers. Dell Corporation not only provides these functions by different intermediaries, but also provides online retailing services to its customers, which makes it one of the most high profile companies of the world. It has developed a cost benefit framework. Dell has managed to have a better advantage over its rival companies like IBM, HP and Toshiba etc. Due to its double edge selling strategy, the Corporation has managed to capture a huge market and customers. Such strategy has made it so effective in terms of higher sales and reduced costs for the company. It demonstrates their social media activities, which has attracted so many customers and generated a good amount of revenue.
After reading the above case, what would you think that Dell has a competitive edge over competitors in terms of cost & sales and what should be the possible strategy for them if their competitors follow online marketing strategy?
- Having enough capital to invest on technology.
- Keep working on innovative ideas like practicing R&D.
- Through international market the company will be able to create brand image.
- having brand image this lead to consumers loyalty.
- Large companies will be able to lower its costs for short period of time to allow competitors out of market.
- Large businesses are benefits from economies of scale.
- Dell is offering offering its products through internet. another way to place order kind of direct selling, increases sales.
- The use of JIT lead to saving of warehouse cost for inventory. And consumers demands are met on time.
- The quality of products are being offerd result in increase in sales of product than competitors have.
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Direct marketing is cost effective in some of the ways e.g. when company sells products or services directly to its customers so it saves the cost of inventory which company just show they have, and secondly, company reduces the cost of extra or more intermediaries like wholesalers or retailers…. and Note reducing intermediaries can cause inconvenience for customers will be negative for convenience goods.