Professional Documents
Culture Documents
Use of SOCIAL
MEDIA by
Organizations as
a e-business
strategy
JAN
10 2012
DELL
VINAY
RAMAMURTHY
P120536
E-BUSINESS
DELL
INDEX
Executive Summary...........................................................................................................2
1. Introduction....................................................................................................................4
1.1 E-business, E-commerce and its relevance to Social Media..................................4
1.2 Organization DELL (Background).........................................................................5
2. Aims and objectives.......................................................................................................5
3. Critical Review, Findings and analysis..........................................................................6
3.1 Literature Review on social media...........................................................................6
3.2 Use of Social Media by DELL..................................................................................7
3.3 How and what is DELL trying to accomplish through social media?.......................8
3.4 What are the results of their accomplishments?......................................................9
3.5 Comparison with other organization.......................................................................10
3.6 Benefits...................................................................................................................11
3.7 Limitations...............................................................................................................11
4. Conclusions.................................................................................................................13
5. Recommendations.......................................................................................................13
6. Appendices..................................................................................................................14
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DELL
Executive Summary
This report provides a summary of how organizations of the present day are
utilizing the powerful tool called The Social Media to enhance their productivity,
profitability and at the same time create a reputation online. We discuss how social
media is bringing about change in the business processes? How businesses are
influenced in driving sales?
business tool, how the effective use of social media can help businesses to get
competitive advantage? How social media is influencing other e-business themes like
customer relationship management (CRM), e-learning, Supply chain and inventory
management. Even though the future of social media is questioned by few authors,
what influence is social media is having on organizations at the present moment of time.
This report considers DELL as an organizational case study to aid us in better
understanding of the e-business theme. How Dell is using social media, what are they
trying to accomplish? What are the results of their accomplishments? And comparing it
with other organizations to figure out benefits and limitations of the medium at present.
The Reports concludes with the key findings drawn from the research activity and a few
recommendations for Dell as an organization to consider for further development in the
area of SOCIAL MEDIA.
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1. Introduction
1.1 E-business, E-commerce and its relevance to Social Media
E-business is aimed at improving the competitiveness of an organization by
arraying innovative information and communication technologies throughout a business
and beyond, through links to partners and customers (Chaffey, 2011).
According to Kalakota and Whinston (1997), categories E-Commerce as
The Social
Media buzz all over the globe is driving many businesses and organizations to go
Social. It helps businesses listen to the people, engage with customers, reach new
potential markets, maintain online brand reputation and also globalize, which makes the
medium a core element for e-business.
It is todays most transparent, engaging and interactive form of public relations which
combines the true grit of real time content with the beauty of authentic peer to peer
communication(heidicohen.com). Tools like Twitter, Facebook, Skype, LinkedIn and You
tube are the most popular ones amongst the many others which exist as social media
platforms. Using these tools does not mean that an organization has a social media
strategy in place; the tools just help as a tactic to aid the implementation of the strategy.
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other organizations?
To what extent they need to focus on social media as a business strategy
leading to innovation and growth of the organization.
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E-BUSINESS
DELL
must
implement
new
paradigms,
they
must
not
fright
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DELL
On Facebook they maintain pages namely Dell for business, Dell Lounge,
Cares, Dell Sales, Dell Storage, Dell Home UK, Dell Home US etc.
They have verified accounts, blogs and websites (See Appendix-4).
As social media is global it is very important to segment the market, research and
analyze before using these tools, as different segments prefer different data to be
presented. But, some parts of the globe do not have access to all the tools, like for
example No Facebook access in china. It is important as an organization to use the
right tool to reach all its customers and DELL has a good SOCIAL MEDIA
STRATERGY to get all the things right and make it work, thus enhancing their
productivity and capability as an organization. Social CRM is a relatively new
terminology which defines a broad scope of social media across the customer life cycle
and value chain. A process of managing C2C conversations, to engage existing
customers, prospects and stakeholders with the brand enhances Social CRM (Chaffey,
2009). So social media has its effect on CRM building processes, the number of
followers can be utilized as a database in order to spread the word to reach many
people with very little effort and no investment on mass e-mail campaigns or
advertising.
According to Joe Kennan (Emarketingandcommerce.com, 2010) Dell uses social
media in different ways to enhance, drive sales and improve customer experience
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By listening to what its customers have to say, learning from them gives the
organization a clear picture of what is expected by people. It initiates development
processes also helps the company measure the success rates of their products in the
market and indicates where further improvement is necessary.
DELL uses its own website called Dell IdeaStorm.com as part of their Web 2.0
strategy to go social and engage with its customers online. This helps the company to
grow its existing customer base, acquire new markets and provide customer
satisfaction. These factors lead to customer acquisition, a way Dell stands out from its
competitors to gain the competitive advantage in the global market place.
They have setup a social media listening command center that monitors more than
22,000 Dell related topics, identifies customer service issues as well as brand
evangelists(Info graph: See Appendix-3 ). So social media has forced the company to
innovate and experiment in a new way by structuring a new business unit, which is like
adding a new dimension to how things were done traditionally. It creates opportunities
for e-learning, innovation, research and development which are vital for growth of any
organization.
3.3 How and what is DELL trying to accomplish through social media?
The company is able to manage itself better by listening and responding to the
feedback. They are adapting these tools in almost all functional departments of the
organizations which shows the impact that social media has on them as a business.
As companies embark on social media, the key is to embed it throughout every facet of
the organizationfrom sales to marketing to engineering to customer service to HR to
finance (EBSCO, CRM magazine 2011).
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Dell is breaking down walls literally to get its key customer-facing employees
working together over social media and ensure that customers stay loyal to the Dell
brand. It filters conversations pouring into its new Listening Command Center to
determine the nature of each comment, tweet, or post. The dedicated Social Outreach
Services team, working next to the command center, then does what it needs to do to
keep customers happy (Dayon and Savitz, 2011).
Clearing stocks, by sales offering discounts on social media can also add as
another dimension. In an interview with the executive director of online marketing for
Dell Rishi Dave says B2B social media focuses on managing multiple decision makers
at a single company and working with them through a multi-step sales process.
Companies must have the ability to amplify thought leadership content on a regular
basis to keep high-level decision makers engaged and conversing on their brand's
differentiated value. (clickz.com). Thus it is giving the competitive advantage alongside
with value added which is beneficiary.
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Ideastorm It received more than 13,000 suggestions out of which 430 were
implemented.
Twitter- more than 1.5million followers.
Facebook- Reached more than 200,000fans.
YouTube- More than 4000 subscribers.
The idea storm website allows people to give ideas on products which turn out to be an
important aspect for innovation. Head of digital media communications Kerry Bridge
says there have been 417 ideas the computer manufacturer has acted on (Hargrave,
2010).
Dell feels that, for any company to be successful they must renovate into social stream
and then nurture and defend its brand (Dayon and Savitz, 2011). It is a continuous
ongoing process to build a social media strategy and Dell has taken it to the next level.
They have recently created a social media training and certification program directed at
employees (marketaire.com, 2011).
E-BUSINESS
DELL
3.6 Benefits
Social media is made of people; the buying behaviors of the public are changing
fast, so being on top of social media is a key. A report said contemporary consumers
use social media to help make purchases because they rely on recommendations from
friends (The Economist, 2009).
According to Beynon-Davies (2004) the benefits are
Dell is saving a lot of money which was prior invested in advertising through the print
media. Now through the social media and their twitter account @Dell outlet it is just a
140 character text message, a link which does all the work. It has reflected in the
increase in revenue incomes too (inc.com, 2011).
3.7 Limitations
The draw-back of social Media is to measure the results. Marketers are making two mistakes in
the process (Farb, 2011)
No goals set, and if you as a marketer are not measuring your social media efforts it is
But, Dell has overcome this and become one of the few companies to measure the
return on investment. In the past 2 years the company claims to have sold more than
4m worth of goods just through Twitter (Hargrave, 2011).
However, there are limitations on part of social media as far as consumers
attitudes on advertising using these platforms. According to studies only 22% have a
positive attitude and 8% abandoned social networking sites due to lots of adverts (Ad
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4. Conclusions
So from the report we can conclude that social media at present is a very
powerful tool for organizations and marketers. It has significant effect on driving sales,
increasing Brand awareness and maintaining online social reputation. It creates a need
for change in business processes, aid learning from customers which leads way to
innovation to gain competitive advantage in the market.
It is interlinked with other themes of e-business and impacts areas like supply
competitive advantage.
Dell as an organization is leading the social media for a competitive advantage.
They successfully achieved customer acquisition and retention value which in
turn increased the number of customers to be brand loyal.
5. Recommendations
Dell must look for innovative ideas like the IBMs sharing of social media success
stories by small businesses, and reach out to them as B2B partners which helps
earliest.
Prevent or stop further circulation of images posted which says: Friends dont let
friends buy DELL (See Appendix-5). They organization must take action by
either reporting such images as spam if they really are. If not, try to solve the
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users issue who really faced problems and got annoyed with improper support
from the company. Such images are a threat and they dent the brand reputation
of the organization.
Build new and advanced tactical tools like the idea storm to get customers
6. Appendices
6.1 Appendix -1
Weaknesses
Opportunities-
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Rising markets will dominate the worldwide IT spending marking strong growth.
Threats
Concentrated competition.
6.2 Appendix -2
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6.3 Appendix-3
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6.4 Appendix-4
Source: fastgush.com
6.4 Appendix-5
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