Core competencies

Core competency has three characteristics: it is a source of competitive advantage in that it makes a significant
contribution to perceived customer benefits, it has applications in a wide variety of markets, and it is difficult for
competitors to imitate. (Kotler 24) In other word, core competencies refer to a company¡¯s critical and unique capabilities
that make the company successful and distinctive from the others.
One of Dell’s core competencies, direct sale and build to order, allows Dell to keep high inventory turnover, reduced
overhead, and cash conversion. Outsourcing is another competency for Dell. It works closely with external partners to
produce its PC products and to offer its customer an array of products and services. Dell coordinates a global product
network to manufacture its products, combining in-house final assembling with high reliance on outside suppliers and
contract manufacturer. It also relies on outside partners for services, such as system integration, installation, on-site
repairs, and consulting. Because of the direct sale model and outsourcing, Dell can lower the cost of products and
handling expenses. Therefore Dell is able to provide competitive price and reliable products for its customers.
Strategic business units
A strategic business unit (SBU) has three characteristics: it is a single business or collection of related businesses that
can be planned separately from the rest of the company; it has its own set of competitors; and it has a manager
responsible for strategic planning and profit performance who controls most of the factors affecting profit. (Kotler 28) SBU
is a significant organization segment, and it varies from organization to organization. In large companies, SBU could be a
company division, a single product, or a complete product line; in small companies, SBU might be the entire company.
Dell, which defines its business as manufacturer of personal computers would have both individual and business buyer
as its customer group; computers and accessories as its customer need; and advanced computers as its technology.
Dell¡¯s SBUs includes large customer unit and small customer unit. The large customer unit includes large and medium
business, and government, education and healthcare; meanwhile, small customer unit is in charge of small business,
home and home office.

|Dell Advantage |

Easy as Dell
Around the world millions of business customers have confidence in Dell. They know Dell delivers value, powerful
performance and reliable services.
Easy to Deal With
From initial ordering to trouble-free system enhancements and upgrading, our professional business service doesn't stop
after the sale and is always there for you when you need it.
Easy to Trust
We provide you industry-standard, tried and tested components. So quality and reliability always come built in.
Easy on the Budget
No middleman and no stock gathering dust means our cost savings pass direct to your business, helping your budget
work harder. And, our great deals get even better when you place your order online.
Easy to Order
Our website means you can take the direct route to your new IT solution. Simply browse then choose exactly what you
need by ordering online. Or, call one of our IT specialists who can help you to decide which PC solution will best fit your
needs. It couldn't be simpler.
Easy to Customise
Your business is not like everyone else's. Why should your hardware be? Every Dell system is custom built which means
technology that does exactly what you need it to. Customise your system online or speak to one of our IT specialists to
work out your requirements.

Marketing and its role in the corporation

Marketing deals with identifying and meeting human and social needs. (Kotler 3) In shortest words, marketing is
¡°meeting needs profitably¡±. People have needs for all kinds of stuffs and services, and to find out what people need
and then satisfy their needs is what a business do. In exchange for the products and services provided, businesses get
profits. According to American Marketing Association, ¡°marketing is an organizational function and a set of processes for
creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit
the organization and its stake holders¡±. (Kotler 3) Marketing is almost everything.
Marketing plays an important role in each corporation. What a business needs to do is to create customers and satisfy
their needs. Management is responsible for control, oversee, and allocate the resource and whole process; however,
management can not work without marketing. Marketing is the basic but core function of a business. Marketing helps a
business selling its products and service, putting a business¡¯s name out there, and connecting a business with its
customers. Without marketing, a business is meaningless.
Marketing mix
Marketing mix is the combination of all elements a business uses to market its products, and it includes product, price,
place, and promotion. Good products market themselves because they benefit customers. Making good products is
essential to a business. A good product requires variety, quality, design, features, brand name, packaging, sizes,
services, warranties, and returns. Setting a price for the products is another important process. Price includes list price,
discounts, allowances, payment period, and credit terms. Promotion helps a business to attract customers, it includes
sales promotion, advertising, sales force, public relations, and direct marketing. Place is about where the customers are
located and how to deliver products to customers. Place includes channels, coverage, assortments, locations, inventory,
and transport.
The company of our team is Dell. Dell has variety of products: notebooks, desktops, service, storage, networking,
printers, ink and toner, TVs, software, and accessories. Dell also carries products of other brands, such as Fuji digital
cameras, SanDisk MP3 players, etc. Expanding to unprofessional areas like TVs and selling other brands is not
favorable for Dell. Dell features online shopping and it allows customers to build their own computers to satisfy their
unique personal needs. Dell computers have average quality, not stylish design, fine brand name, below average
service, phone-based warranty, and not easy return policy. Dell uses low price strategy, which means its price is lower
than other famous brand, such as IBM, HP, Sony, etc. Discounts and financing are also available. Dell offers rebates,
free accessories, and other promotions periodically. Dell¡¯s advertising expenditure is $1.1 billion in 2005, making it the
world¡¯s #28 advertiser. Dell bypasses reseller channel and make directly sales through internet, phone, and mail order.
It usually delivers products to customer within 5-7 days. It keeps high inventory turnover. Central location to all of the
U.S. is Texas.

Marketing Strategies and Plans

Corporate mission
An organization exists to accomplish something. An organization develops a mission statement to share with managers,
employees, and customers. A clear thoughtful mission statement provides employees with a shared sense of purpose,
direction, and opportunity and guides geographically dispersed employees to work independently and collectively toward
realizing the organization¡¯s goals. (Kotler 27) Corporation mission is considered as a daily activity guide for all people in
the organization.
Dell's mission is ¡°to be the most successful computer company in the world at delivering the best customer experience
in markets we serve¡±. (Dell) In doing so, everyone in Dell needs to work hard to meet customers¡¯ expectations and
bring them pleased shopping experience. The ¡°best customer experience¡± includes highest quality, leading technology,
competitive price, best service and support, flexible customization capability, superior corporate citizenship, financial
stability, etc.
Core competencies
Core competency has three characteristics: it is a source of competitive advantage in that it makes a significant
contribution to perceived customer benefits, it has applications in a wide variety of markets, and it is difficult for
competitors to imitate. (Kotler 24) In other word, core competencies refer to a company¡¯s critical and unique capabilities
that make the company successful and distinctive from the others.
One of Dell¡¯s core competencies, direct sale and build to order, allows Dell to keep high inventory turnover, reduced
overhead, and cash conversion. Outsourcing is another competency for Dell. It works closely with external partners to
produce its PC products and to offer its customer an array of products and services. Dell coordinates a global product
network to manufacture its products, combining in-house final assembling with high reliance on outside suppliers and
contract manufacturer. It also relies on outside partners for services, such as system integration, installation, on-site
repairs, and consulting. Because of the direct sale model and outsourcing, Dell can lower the cost of products and
handling expenses. Therefore Dell is able to provide competitive price and reliable products for its customers.
Strategic business units
A strategic business unit (SBU) has three characteristics: it is a single business or collection of related businesses that
can be planned separately from the rest of the company; it has its own set of competitors; and it has a manager
responsible for strategic planning and profit performance who controls most of the factors affecting profit. (Kotler 28) SBU
is a significant organization segment, and it varies from organization to organization. In large companies, SBU could be a
company division, a single product, or a complete product line; in small companies, SBU might be the entire company.
Dell, which defines its business as manufacturer of personal computers would have both individual and business buyer
as its customer group; computers and accessories as its customer need; and advanced computers as its technology.
Dell¡¯s SBUs includes large customer unit and small customer unit. The large customer unit includes large and medium
business, and government, education and healthcare; meanwhile, small customer unit is in charge of small business,
home and home office.

SWOT
SWOT analysis is the overall evaluation of a business¡¯s strengths, weaknesses, opportunities, and threats. Each
business needs to evaluate its internal strengths and weaknesses in marketing, finance, manufacturing, and
organizational capabilities; it also needs to identify the associated marketing opportunities and threats in the external
environment. The opportunities include three sources: something in short, existing products or services in a superior way,
and a totally new product or service. The threats could be unfavorable external trends or competitions from others.
SWOT Analysis of Dell:
Strengths

Leading market position

Effective business model
Wide product portfolio
Weakness

Poor customer service

Weak performance in high value segment

Opportunities Threats

Expanding PC market in the US

Increasing demand for mobility products
Acquisition of Alienware Threats

Strong competition
Component price fluctuations
Commoditization of PCs

Positioning
Positioning and its importance
Positioning starts with a product, but positioning is not what you do to a product. Positioning is what you do to the mind of
the prospect. That is, you position the product in the mind of the prospect. (Trout 2) Marketers use positioning to create
an image or identity in the minds of potential markets for their products, brand, or organization. Positioning is a
competition for buyers¡¯ minds and sympathies.
The society is overcommunicated, and too many products and companies are out there. If a company can¡¯t position
itself accurately, it even won¡¯t be noticed by the market. Positioning clearly identifies what you sell and who you want to
sell to. Positioning helps a company to concentrate on selective narrow targets.
How Dell is positioned
Dell used to position itself the top online computers vendor which sells directly to consumers. However, it seems that Dell
is working on to be positioned as a diverse supplier of technology products and services. On the front page of Dell¡¯s
website, it states ¡°More than Just PCs: discover over 20,000 electronics and accessories from a wide array of brands¡±.
(Dell) For example, Dell is now selling LCD TV online. It only carries 40 kinds of TV while BestBuy online store has
hundreds of TVs available. It¡¯s hard for Dell to create an online TV vendor image in consumers¡¯ mind by only carry a
few kinds and brands. Dell can be more than just PCs, but it shouldn¡¯t develop too many product categories with limited
choices for each categories. It¡¯s better to be professional in a few areas than to be vague in too many areas, such as
TVs, MP3 players, digital cameras, etc. Dell should use its online PC vendor expertise to develop certain related
products.
New positioning statement for Dell
We are the top online PC and PC accessories vendor, and we offer not only competitive prices but also high end
products. Dell should narrow down its products categories and broaden various products for every single category.
Besides low price PCs, Dell also needs to develop a series of high end PCs.
Marketing Research
Marketing research & How it helps the company
Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific
marketing situation facing the company. (Kotler 42) The first step of marketing research is to define the problem, decision
alternatives, and research objectives. Then the company needs to develop the research plan and collect the information.
After analyze the information, the company is able to present the findings and make the decision.
Marketing research is essential to each company. A company will be successful only if it knows what the customers need
and how the market works. For example, in order to improve the quality of service, a hotel will prepare comments card
for customers. After reviewing and analyzing the comments from customers, the hotel is able to identify the problems and
respond to the problems promptly. Marketing research helps a company to improve the quality of products and service,
to identify problems, to catch the market trends, and to generate new ideas.
The output of marketing research
The output of marketing research is used by managers, in other words, decision makers. One major reason for using
marketing research is to identify market opportunities and existing problems. Once the research is complete, marketers
must measure and forecast the size, growth, and profit potential of each market opportunity. On the other hand, the
output of marketing research helps managers to identify the specific problems and respond to it. The output of market
research gives managers a blueprint of the whole business and market situation. It¡¯s a scientific and effective tool for
decision makers.
Researching tools
First I will use survey research to learn about people¡¯s knowledge, beliefs, preferences, and satisfaction, and can
measure these magnitudes in the general population. (Kotler 45) I will go to a shopping mall and distribute out my survey
question to different people to find about what they like or dislike about Dell. A small group of diversified people can
represent general population, and it¡¯s easier and less expensive to get response from a small group of people.
Second I will use focus-group research, which is a gathering of six to ten people who are carefully selected based on
certain demographic, psychographic, or other considerations and brought together to discuss at length various topics of
interest, assisted by a professional research moderator. (Kotler 45) Focus-group research allows researchers to obtain
more information in a shorter time and more perspectives about the same topic. The interaction between participants
gives researcher a broader and deeper understanding of the issues.
Third I will use experimental research. As I know Dell¡¯s service is not good, I can pretend to be a customer and call
them with many questions to test their service quality. The experimental research method is more reliable and practical.
Even though the results may vary every time, it is still a good way to reach a fair conclusion after testing several times.
Experimental research is the most scientifically valid research.

Customer Creation and Market Targeting

Five-Stage Model
Problem recognition: I need a laptop for school
Information search: search online / ask friends / observe what laptops my classmates use / visit stores to learn about
the laptop / try friends¡¯ laptops / read PC magazines
Evaluation of alternatives: what is the most important attribute (design, function, price, battery capacity, etc.) / ranks / the
highest perceived value / go shopping
Purchase decisions: If my best friend favors the brand and mode I pick, I will buy; otherwise, I need to think it over / what
is more urgent: buy a laptop or a TV / after the purchasing, do I still have sufficient money for the following month / do I
really need the laptop
Market segment of Dell
Dell divides their market into four segments ¨C home & home office; small business; medium & large business;
government, education & healthcare. When you visit Dell¡¯s website, you need to identify the segment of yourself before
seeing products.
Home & home office consumers are interested in custom PCs, and they don¡¯t need much technical supports
afterwards. The price matters a lot to them. Small business usually has particular requirements but limited budgets, and
they need more service. Medium and large businesses are willing to spend more for professional products and services.
They usually purchase to an agreed plan and they repeat purchases. Government, education & healthcare have strict
requirements for PC and PC systems. They spend large amount of money for certain quantity and variety. They require
special technical support and lifecycle management.
Market segmentation criteria
To be useful, market segments must rate favorably on five key criteria: measurable, substantial, accessible,
differentiable, and actionable. From home & home office to government, education, and healthcare, Dell¡¯s segments¡¯
size, purchasing power, and characteristics is ascending. Each is the largest possible homogeneous group worth going
after with a tailored marketing program. The segments can be effectively reached and served as the other segments. All
the segments are distinguishable and effective programs can be formulated for attracting and serving the segments.
(Kotler 128) Overall, Dell has effective market segmentation.

Bibliography:
Kotler Philip, A framework for marketing management. Pearson/Prentice Hall, 2007
Dell, www.dell.com

The Competitive Advantage Of Easing Upgrades

ZDnet’s David Berlind complains that upgrades are painful:

Upgrading to new systems is one of the most painful things you can possibly do. If you’re a vendor of desktop/notebook
systems, it also represents that point where you can keep or lose a customer. Today, most system vendors have pretty
much nothing from a technology point of view that “encourages” loyalty. Upgrading from an old Dell to a new Dell is no
easier than upgrading to a system from a competing vendor. The system vendor that figures out how to make it less
painful to upgrade to their own systems than to their competitors’ is the one that will get more loyalty out of their
customers