Critical Marketing Issues of Dell - Research Paper Example

Download file to see previous pages Based on the research, Dell, from its very early years, focused on providing computers as quickly as possible backed by great services (p. 4-6) With its marketing mission to provide customers with superb value and high-quality computers, Dell could rank 34th in the Fortune 500 companies by 2008. Dell employs more than 63,000 people in more than 170 countries. Dell has been selling its computer products using a direct-sales model with the help of internet or telephone network to both its end-use or corporate customers. With direct model distribution strategy, Dell has been eliminating middlemen mark-ups, inventory handling expenses and risk associated with it and thus it benefited substantial cost advantages. This direct model marketing strategy led Dell directly to achieve great success in the worldwide PC market. By 2008, Dell held the second spot in the worldwide PC market behind the Hewlett-Packard Company. The direct model, as a result, uses innovative information technology and customer relationship management in order to capture data about its customers. Dell’s marketing concept has been primarily driven by Virtual Integration in which specific marketing ingredients like customer focus, supplier partnership, just in time manufacturing are well organized. Dell applied negative cash conversion cycle which means that Dell was able to receive payments from customers well before it has o pay for the materials needed. This report presents a case analysis of marketing strategies that have been practiced by Dell in order to gain competitive advantages. It is mainly based on the interview held by Joan Magretta (1999) with Michael Dell regarding the marketing strategies and success keys of Dell. This work finds out most important strategic keys direct business model, Virtual integration and customer focus of Dell from the interview and these are underpinned with the help of relevant marketing theories. ...Download file to see next pagesRead More