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Dell Case Summary

This was done to help transition the customer to the system. Dell is very aware that helping and supporting the customer is a direct way of continued success. .
             MARKETING ISSUES.
             Michael Dell has proposed specific strategic targets for Dell Computers to obtain over the next few years. This strategic direction places a stronger emphasis on Dell's online efforts and calls for significant investments in restructuring of the direct business model. Dell faces three major marketing issues related to the strategic decision.
             The first issue is that Dell is plagued with internal PR issues, including differing strategies among managers and skepticism of the Online Model. Some managers believe that a niche has been set, and the full potential should be realized before Dell continues to expand. Other managers believe that the strong pull of resources to the consumer market will adversely affect the business market. In effect these managers are still waiting to see results of the apparent cost savings of the Online Model, and how the change in market segment direction will affect their departments' resources.
             Secondly, Dell is concerned with their price strategy. In particular, international markets have yet to show results of direct sales strategies. Dell has not proven whether their overseas consumers are willing to buy direct, and if the increased focus on this market segment will increase profits.
             Finally, Dell's competitive edge must be reevaluated. What once differentiated Dell - direct model, service efficiencies, Premier Pages, etc. - are now techniques which competitors are quickly adapting into their business models. Dell must remain a step ahead and continue to differentiate in this highly competitive industry. .
             (Internal Issue).
             In dealing with their PR issue Dell has three alternatives that they could implement. Dell can do nothing and wait to see how the online model pans out. Dell can commit extensive financial resources towards a marketing campaign for the new online channel.


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