Dell direct marketig strategies

“You actually get to have a relationship with the customer, and that creates valuable information, which, in turn, allows us to leverage our relationships with both suppliers and customers.” –by Michael Dell

In com101 Class 6 we spent plenty of time to talk about the marketing strategy, specifically, we took Dell as a successful example. Dell changed their marketing strategy and tried to avoid being stuck by a wide range of components but focus on creating values and delivering solutions for their customers. This allows them cut the cost of the middle man and they can earn more profit. More significantly, they can directly understand the market demand so they can fast react to the flexibility of the marketplace.

Indeed, the graph above illustrated that Dell has been through a rapid and dramatically increase since 90’. Especially after 94’ their revenue increased 21790 in short 5 years which is more than 7 times greater than the last five years. Also their inventory remarkably declined by this amends of their marketing strategy, providing them with high efficiency as well as quick returns to the investors. They created a $12 billion company in just 13 years. The success of Dell company points out the marketing problem existed for many years.

However, their combined new strategy also has drawbacks to be aware of before running their company in the future. They should continuously analyze the shortages and take action. First of all, which is likewise the most important one is their poor customer services compare with their “big dreams” in eliminating the retailers. The withdrawal of their retailers straight leads to the limit choices and limit customer experience. Clients are used to test and try the product in person to see if they truly want it. With the development of the technology, create a 3D model on the internet can be a really convenient way of solving the problem. This 3D model need to be exactly the same with the product s which grant customers Full-circle Appraisal of the product on the Internet to improve their on-line shopping experiences and to win a better patent among customers. The second weakness is although they can exclude the retailer employees, they should not rush to do it. Why? Their relatively new way of marketing needs more customer services to help people purchase their product and getting used to this way of buying experience.

References:

Magretta, J. (n.d.). The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell. Retrieved from http://hbr.org/1998/03/the-power-of-virtual-integration-an-interview-with-dell-computers-michael-dell/ar/1

What is the strength and weaknesses of Dell? (n.d.). Retrieved from http://www.answers.com/Q/What_is_the_strength_and_weaknesses_of_Dell