Neeraj Singh
Neeraj Singh
Neeraj Singh
As one of the world's leading direct computer systems companies and a premier
supplier of technology for the Internet infrastructure, Dell's competitive advantage
is its direct customer focus. Constant interaction with its customers online and via
the telephone gives Dell the ability to understand unique computing needs that
drive individual and enterprise productivity. Even though growth rates for the
computer industry are expected to be less than previous years, Dell can still
successfully operate, enjoying healthy sustainable profits. A main problem is a
sagging US economy which Dell has no control over and a saturated PC market
with lower profit margins from industry price wars. Dell should focus on being a
market taker, instead of trying to be a market maker and capitalize on its ability
to enter new markets and quickly dominate, as it did in the low-end server and
workstation markets. It should pursue a multi-continental expansion of its middle
and high end server products. Dell should also pursue the external data storage
market through acquiring a leading company like the EMC Corporation. Having
already captured a large share of the US market, Dell should try and increase its
server, storage, and service segment penetration overseas to gain more
international market share, particularly in China and Latin America. Studies might
also be done on African and Russian markets as Dell has no physical presence in
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these regions. The only viable strategy in order to achieve Michael Dells goal to
double Dell Computers current revenue to $60 billion by 2007 is to work on
methods to improve sales in these 3 new areas. A combination of service, storage
and server product growth across newly established international markets will help
achieve this ambitious goal. While the US economy is in a recession, there is still
plenty of room to grow outside its borders.
INTRODUCTION
Dell was founded in 1983 by Michael Dell, an 18 year old college freshman from
Texas who started out upgrading hard drives for IBM compatibles on nights and
weekends. Within a year, his service business had grown to an incredible $6
million from performing computer upgrades for local area businesses and he
dropped out of school to concentrate on the business. When Dell changed his
strategy and started offering custom built-to-order machines, the business
exploded, with $70 million in sales by the end of 1985. Evolving into an assembler
company, Dell was able to exploit certain events occurring in the industry and
swiftly adapted to meet market conditions. Five years later, total sales had grown
to an unbelievable $500 million and Dell became nationally known as a supplier of
state-of-the art desktop and portable computers. Dell continually achieved
phenomenal records in sales and profit growth, eventually making it the most
successful company ever in the PC industry, surpassing $25 billion in 2000. As one
of the world's premier providers of computer products and services, Dell was the
US market leader in its core products, the desktop and laptop markets by 2001.
Dell uses a JIT inventory system because Dells customers can only order
computers directly through Dell itself. Dell uses their website www.Dell.com to
take customers orders. Dell focuses on direct sales, cutting out other distribution
channels entirely.
whereby Dell can offer their customers better service, savings, convenience, and
efficiency. A customer can order their own custom computer, have it built by Dell
in three days and have it delivered to the customers doorstep within one week.
Not only does Dell use the internet to make the customer ordering process easier.
They also use the internet to build better relationships with their suppliers. In order
for Dell to work off of 6 days of inventory, their suppliers have to be very involved
5
in the company to make sure superior service is met. Dell uses state of the art
production planning programs that forecast the quantities of components needed to
build the computers. After those forecasts are made, supply chain systems pass
those forecasts to suppliers, who respond with cost estimates and plan their
production as a result (Solis).
To achieve their supply chain superiority, Dell uses solutions from i2 Supply Chain
Management. i2 streamlines the supply chain by providing component suppliers
and Dell planners with global views of product demand and material requirements.
It also provides real-time factory scheduling and inventory management, so
employees can generate key reports based on accurate and timely data, pinpoint
inventory on the factory floor, and receive supplier deliveries on a true just-in-time
basis (i2 supply chain management systems).
This allows Dell to change their manufacturing schedule every two hours to keep
up with customer orders. Dells suppliers have access to this accurate, timely
information. Since the suppliers work with facts instead of forecasts, this allows
them to reduce waste and improve efficiency.
information, they are directed to deliver needed materials to a specific dock door
for assembly for specific product manufacturing. Dell uses the Windows NT
operating system and Intel-based servers for all of the i2 applications.
Their e-
Dell has set up strategic alliances with other companies to have their products sold
on Dells direct selling distribution channel. Back in 2000, Palm, Inc. made an
agreement with Dell to offer an expanded line of handheld Palm products and
accessories.
operating system market (Dell: 2000, April 17). Along with Palm, Xerox also
partnered with Dell to take advantage of Dells e-commerce. Advantages to Xerox
were increased profits by offering the printers with the Dell computers.
Advantages to Dell include selling high quality printers along with their
computers, but more importantly, it allowed Dell to be involved in the customer
buying process for printers. Being involved in the decision making process is key
to Dells success because they see directly what the customers want and determine
their production schedule from that information.
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Dell achieves its competitive advantage over other firms in the industry by having
superior supply chain management.
information. By being involved in the customer buying process they are able to
determine their customers needs. This allows Dell to streamline production and
have close relationships with their suppliers which results in getting timely
deliveries in order to mass customize customers computers.
systems from the dell.com website. Dells online supply management allows Dell,
suppliers and customers to work together. As Michael Chong states, Because we
work directly with customers, we have the ability to connect and understand what
products will be required and when (E-Commerce). This helps Dell to inform
their suppliers what supplies are needed based solely on customer demand. As a
result, there is not an excess of supplies in warehouses that will decrease Dells
efficiency. As Dell is known for their exceptional service, ease in ordering and
responsiveness to customers needs, their competitive advantage is easily
distinguished.
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Specifically, Dell has enhanced its supply chain by using i2 Supply Chain
Management to plan orders and communicate with suppliers every two hours. This
results in Dells efficiency in manufacturing and delivering exactly what its
customers want.
achieved if i2 Pronto and/or i2 Solutions for Value Chain Management are utilized,
10
along with Dell servers and storage. i2 Pronto is a rapidly deployed solution for
factory planning and collaboration. Dell possesses a competitive advantage in that
they are currently the only hardware platform certified for rapid deployment of i2
Pronto solutions. i2 Solutions enable Dell to reduce costs, lower total cost of
ownership and establish a reliable, stable operating environment.
Dells own
manufacturing schedule every two hours which shows the latest customer orders,
backlog numbers, stock status and supplier commitments. Today, the supply chain
of Dell not only runs on 120 Intel-based Dell servers running Microsoft Windows
NT, but it also has four primary i2 software modules: i2 Collaboration Planner
11
Demand Fulfilment, Global Supply Planning, Factory Planner and Supply Chain
Planner (Harrington, 2002). This success proves that Dell has the best of both
worlds. They achieve state-of-the-art performance at an economically attractive
price.
A competitive advantage is seen when a company, such as Dell, links supply chain
management with customer relationship management and supplier relationship
management. This link is known as DVCM (Dynamic Value Chain Management).
DVCM
requires
synchronized,
multi-enterprise
collaboration
based
on
decisions in a timely manner and implement those decisions for completion of the
products.
Another important role for Dell is the use of the Internet. The Internet helps Dell
to establish good relations with both their suppliers and their customers. Not only
does Dells use of the Internet allows customers to customize and purchase Dell
products online, the Internet also helps suppliers and Dell communicate and focus
on improving their efficiency.
introduced valuechain.dell.com.
material as it as used throughout Dells operations. Suppliers can log-on, drop off
invoices, check engineering change orders; review negotiated and forecasted cost
reports, and track their overall performances and progress. As a result of their
successful Internet system, Dell purchases almost 90 percent of its direct material
supplies online. Supplier hubs located near their manufacturing plants are used to
deliver supplies to the Dell plants when they are only a few hours old. As said by
Michael Chong, We are trying to draw more value out of our supplier
relationship. Thats why the name value chain. The applications themselves are
not replacing the business processes. The business processes are already defined
and well ingrained. It is just making the business processes more efficient (ECommerce). By focusing on inventory control with their suppliers, Dell is able to
use industry price declines to their advantage and deliver those savings on to the
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As a result of an alliance, Gen3 Partners and Arthur Andersen decided to work with
Dell in April, 2000. Gen3 Partners will provide strategic business development
and technology consulting services to help Dells largest corporate customers with
headquarters in the United States leverage their existing assets to create, architect
and launch Internet-enabled enterprises (2000). According to Jim Sims, CEO of
Gen3 Partners, The next wave of Internet infrastructure will focus on `brick-toclick' opportunities, as established companies integrate the Internet into their
14
15
because the needs of their business customers, who buy large quantities of
computers, are different than the individuals who want to configure a single unit.
Dell's business model is no secret, of course, and it's been emulated with
considerably less success by many of its competitors (Henricks, 2003).
Dells initial success was due to its early use of the internet. Dell's direct-to-thecustomer strategy presents a highly attractive cost advantage that's tough to ignore
(Banham, 2003). Their direct interaction with their customers continues to be a
key driver in sales for the quarter (2000). Dells early work with using the
internet helped them get a jump on their competition while their competition was
finding it difficult to conduct successful Business to Business operations online
since exchanges are still in their infancy and many haven't even gone live yet
(Memishi, 2001). Matching customer ease of ordering and direct interaction
through the internet proved successful because Dell believes that it is the customer
that drives the business model.
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Dell recognized the challenge of dealing with the business and individual
customers as two distinct groups with different needs. Dell has done a phenomenal
job managing these two different types of consumers thus far. In the last couple of
years, Dell decided to split their operations into two different websites with
separate B2B sites.
procurement process for businesses and institutions of all sizes, generating savings
that can range to millions of dollars annually for large customers (1999).
However, this idea failed, and Dell had to shut down its B2B site, four months
after it launched. Dell said the site failed to attract more than three suppliers
(Schick, 2001).
Dell controls its inventory and costs by being a demand-pull company, whereas
one of its top competitors, IBM, is strictly a supply-push company and operates in
a more traditional manner. IBM has to be good at forecasting what the customers
will need, while Dell makes the computers to order.
therefore more profitable because it can buy its component parts based on the
customers demand and not have to worry about building up its supply of inventory
that may or may not be used. The result was that the company wound up with
essentially no carrying costs for inventory while maintaining excellent turnaround
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Although Dell has been successfully operating according to its business plan, there
are some parts of IBMs traditional business plan that has also proved successful.
In fact, industry officials say that Dell could benefit from hiring IBM to support
Dell's customers with computer services (Auerbach, 1999). Successful businesses
continue to monitor their industry and look for ways to improve to maintain or gain
a competitive advantage. This advantage is especially important in the economy
today, although Dell has cited recent gains in customer requests for price quotes
and larger order sizes and expects a steady year of sales (McWilliams, 2004).
Dell is one of few firms left standing tall after the tech crash of the last two
years[and its] growth comes as it has won over the consumer market, [but] Dell's
performance would be impressive in any year, but is even more so now
(Wasserman, 2002). Dells success extends throughout the entire industry and
causes companies like Compaq, IBM, Gateway, and Hewlett-Packard to grapple
with a lose-lose dilemma: concede market share to Dell or lower prices at the
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With the spread of retail sales on the internet, e-tailers have fallen into two basic
groups; pure play or bricks and clicks. Pure play companies use only the internet
to sell its products and do not have a physical store. Bricks-and clicks companies
use their internet site in addition to maintaining one or more physical stores to sell
their products. Dell is a pure play internet company and does not have any
physical stores to sell its computers. For Dell, however, the Web is more than a
sales vehicle (Thurm, 1998), because customers can access the website for all
types of purchasing, service and support answers. Individuals and businesses can
check orders and obtain information, while businesses can make use of special
offerings and services through password-secured locations. Dell is also offering
several flexible payment options to help make it easier to buy personal computers
online (Pellet, 2001). Dells initial success as a pure play company was evidenced
by the fact that it does more than $10 million daily in Internet sales (1998).
Another advantage to being an e-tailor is the reduced time it takes to adjust your
prices or modify your inventory. One of the most difficult tasks for retailers is
managing your inventory based on your customer demand. Dell has minimized
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launched its direct-sales model into India. Founder Michael Dell stated, This is
our 13th direct sales launch in Asia and we continue to grow at more than 30
percent globally (Lallpai, 2000).
continuing to grow all over the world it is no surprise that Dell reported revenues
of $41.4 billion in 2003.
IT Infrastructure:
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provide near unlimited availability to their IT infrastructure. Dell and IBM both
keep consumer information lines open 24 hours a day, 7 days a week. They also all
have an easily accessible online help services. For example, the site's "Ask
Dudley" feature allows users to pose natural-language questions. Created for Dell
by the firm that developed the popular "Ask Jeeves" Internet search engine, the
application now handles more than 150,000 questions a week (Dell courts
customers online, 2004). Full time access is crucial to the support of the IT
infrastructure by allowing knowledge workers ease in admission to the source
regardless of varied schedule.
The majority of Dell's business is done through the internet. As was previously
stated, this allows the customer to customize his/her product directly for their
purposes. These factors give Dell a competitive advantage in its high scalability
and flexibility. Through a menu of many different system component options, the
customer defines how their company is going to grow, which makes scalability a
non-issue. By the end of 1999 Dell was chalking up $40 million a day in online
sales-- accounting for 43% of the company's total revenue. Today Internet sales
alone would rank it among the 125 largest companies in the U.S (Dell courts
customers online, 2004).
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In addition, the reliance on the internet for its business practices allows Dell the
luxury, to easily redefine its image by nearly dismissing the time necessary to
change the system (image, function, etc). This design saves untold amounts of
money because it is ready to adapt to nearly any market, business, or economic
change. Dell and IBM also implement a great deal of capacity planning when
determining what technology will be needed in future markets to stay competitive.
Manish Mehta, director of online support has said, The paradigm shift we'd like to
see is fewer tech support phone calls, allowing our technicians to spend more time
solving the more complex problems (Dell courts customers online, 2004). This
displays Dells intense dedication to capacity planning and adaptation, even in the
field of technical support.
market, the ease of integration would have to efficiently match the degree of
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26
27
Dell Products
Notebooks
ThinkPad Notebooks
28
IdeaPad Notebooks
Features:
1
Home/office versatility
29
Features:
1
30
Desktops
ThinkCentre Desktops
IdeaCentre Desktops
31
Antibacterial keyboard
OneKey convenience
Workstations
ThinkCentre Workstations
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Features:
1
ISV certifications
Environment-friendly
Servers
Tower Servers
Features:
5
Easier cooling
Existing-network scalability
Rack Servers
Features:
9
10
Space-optimized design
11
12
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SWOT Analysis
and less downtime (Dell resolved 72% of problems remotely, which was twice the
industry average.)
Weakness Dell was late getting into the Latin American market (5 th place in
overall market share), resulting in lost sales. It also had weak international market
share in 2002 (Western Europe =3rd, Asia/Pacific = 7th, Japan = 8th, and 5th place
in the rest of the world. In addition, jumping into the laptop market too soon,
entering the workstation market late and signing unsuccessful retail agreements all
brought losses to the company. Dell doesnt have robust products to support
mission critical environments and is shut-out of big enterprise storage accounts.
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Current Strategy
High Quality, More Powerful, Faster, Customized and Cheaper. For every new
product or service it introduces to the market, Dell consistently implements its
startup mindset of build-to-order computers (referred to as the direct model
approach) from the very beginning of the development and production process.
Dells business was unique in that it was able to consistently make significant
profits in low margin product areas.
Its direct model approach evolves for every new product and service achieving
delivery of high quality PCs in a very cost efficient manner; one of continuous
improvement. Dell is a continuous-growth model, constantly adapting, changing
and finding ways to master its environment, as opposed to just responding to it. In
37
addition, Dell has been able to take flexibility and speed, and build it into the
companys DNA.
Positioning- Michael Dell portrays his company as the good guy, the Robin
Hood of the computer industry offering more for less. Their mantra is better,
faster, cheaper using brand name components, build to order manufacturing, and
customized customer service, which led to high quality and more powerful
computing power. Dell had a reputation for effectively entering product markets
where core proprietary elements had become standardized and undercutting
existing players based on price. Dells strategy was to choose the best in class
providers (like Intel and Microsoft) for each component and leveraging their scale
investment in R&D. By 2001, Dell had become the US market leader in Wintel
server sales.
Target Market Dells main focus is on large corporations with secondary efforts
on small and medium sized businesses. In addition, they also target the global
consumer directly, but with minimal effort. Dell mainly focuses on the segments
that are already knowledgeable about computers.
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Products - Dell currently has 6 main products: PCs, laptops, customer service,
storage devices, workstations, and auxiliary services.
Pricing - When Dell decides to enter a particular market, it consistently uses the
Direct Model approach, pricing their product below that of their competitors.
These low prices are the result of multi-level leveraging and from achieving
economies of scale.
Promotion - On-line model, direct mail order, catalogues, Premier Pages, special
training and certifications, word-of-mouth, editorials, reviews, sales reps, and
awards
Place - Direct from Dell: On-line, telephone, mail-order. (Dell does not use any
retailers or wholesalers to sell their products.)
In conclusion, Dells strategies do match the companys 4 Ps, targeting, and
positioning and can be summarized as a low-cost, fast and efficient business
model, with superior customer value with virtual integration.
STRATEGIC OPTIONS
39
Market Penetration Maintain status Quo and continue to do more of the same.
If it isnt broke dont fix it. Many people believe the recession will end soon, so
Dell could just ride it out and hope to hang onto the market share it currently has.
This option is not a proactive approach and could prove to be risky, resulting in
declining market share, lower profits, and the possibility of the competition
advancing while Dell stays stagnant.
Product Development
Pursue Mid-Range Server Growth. By 2001, Dell was the market leader in
entry level servers, but had no presence in the mid-range server market.
Pursuing this growth option could result in increased market share and
higher profits due to the higher selling prices and markups of these units, but
could be risky if technology suddenly changes. Increased post sale costs are
also a concern, as server sales dont just stop upon delivery, they require
continued service regarding reliability, serviceability, availability, and
manageability.
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Increase product line: By introducing new products like a PDA, Dell can
capture new markets and increase sales and awareness. However, Dells
R&D budgets are well below that of its primary competitors. This option
contains increased risk and high initial start-up costs.
Pursue Associated Services Growth within the US, 2000 service revenues
accounted for over 37% of $2 billion in total revenues. This business unit
was becoming an increasingly important part of Dells portfolio with
longevity, able to stand the test of time and market uncertainty, no matter
what turn technology took.
New International Market Development Target new segments and enter new
markets with existing products. The Potential benefits of international expansion
are increased market share, revenues, profit, and buyer awareness. However, the
successful Dell Model might not work everywhere. The product chosen for
expansion should be a commodity where the demand is already in place and the
country must also value on-time delivery. In addition, terrorism, cultural barriers,
political systems, and longer ROI must be taken into consideration as well as limits
on foreign ownership and tariff barriers.
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Diversification
Merger and Acquisitions: By 2000, the external storage market was growing at
23% per year. By acquiring an innovative leading company like the EMC
corporation, Dell can effectively enter the external storage and software market
previously untapped, leveraging EMCs expertise and experience. Due to the
sagging economy, EMCs stock price had fallen over 800% in 2001, meaning
now might be the perfect time to buy the company at a significant discount. The
Pros include increased market share and economies of scale, but cons are higher
costs and the need to re-train employees to learn Dells culture and mission.
suppliers. New suppliers would want to participate in this exchange because they
would be seen doing business with a leading technology company
2) Use Customer Surveys to gain market share. Although Dell does well
in its markets overseas, Dell has lost some domestic market share and has more
potential overseas. It is important for Dell to advertise and get their products
noticed in international markets. In order achieve this goal, in-depth customer
satisfaction surveys should be used in markets where they trail their competition.
Even in the US, where they are ranked high against their competitors, Dells
margin of leadership has declined. Dell can send out questionnaires to previous
consumers to see how they can improve. By going directly to the consumers, they
can get feedback from sources they care most about. It also makes consumers feel
that Dell truly cares about how they feel about their products and service.
3) Invest more in Research and Development. With the growth of quality
competition, it is crucial for Dell to keep its competitive advantage by offering new
technology products and services. Dell should consider expanding into peripheral
product markets that would compliment their computer sales. This might include
specially designed systems for specific industries (architects, doctors, etc.) or
additional hardware for specific markets (gamers, music lovers, etc.) It is also
important for Dell to watch its competitors and see what new products and
techniques they introduce.
43
Another way to
be the result of Dells unsuccessful mediation through its order resolution policy.
In addition to pre-made systems, Dell can offer discontinued items (older models
of components), that remain in Dells inventory. This will also help Dell keep its
revenues high by not experiencing extra costs because of items that were not sold.
If they place a section on their website titled, Clearance Products, they will
appeal to customers who want to buy a computer at a cheaper price and do not
have a strong preference on what features the product has.
Therefore this
In
addition to more people, they should review their service support training and
quality control procedures. This is an area where possible over-staffing might be
worth the additional costs. Like many companies, Dell has taken advantage of the
cheaper labour in other countries by routing most of its technical support calls from
the US to headquarters in India. The only problem with this was that Corporate
45
customers were telling us they didnt like the level of support they were getting,
and in the normal course of business, we made some adjustments (Brewin, 2003),
according to Jon Weisbatt, the company spokesman.
As a result of prior
experience with Indian support staff, they need to either train Indian support staff
more effectively so they can take advantage of the cheaper labour in India or keep
support staff here in the US.
7) Increase Company recognition through a national advertising
campaign. In order to keep the name Dell out in the market, it may be helpful for
Dell to consider a national advertising campaign to increase Dells visibility. These
ads would probably be most effective for the small business and individual user
markets. This may include ads on the Internet, as well as commercial, magazine
and newspaper ads. Dell succeeded increasing its brand name recognition once
before with its Dell guy campaign. This will only help Dell get its good name
out there for all people to see, recognize and eventually result in purchasing Dell
products.
Server/Storage/Service Growth
The booming PC market seems to have bottomed out, with little signs of
improvement due to market saturation. Positive signs have come mainly in the
form of limited PC replacement programs at some large companies and sales of
46
notebook PCs. Any future PC market recovery will most likely be tied to an
improvement in the economy. Therefore, Dell should ramp its efforts in three noncore areas as key for future growth: servers, external storage and services.
Meanwhile, it can carry on with its aggressive price-cutting strategy for all of its
products. Hopefully, these moves will allow them to gain traction in some markets,
and even overtake some competitors in others. Once Dell has used its lowest price
strategy to increase its installed base of clients in hardware sales, particularly in the
enterprise market, the company can leverage its expertise in customer support to
keep those clients. Even though Dell has already made some impressive progress
in server and storage developments, it still lags behind other server vendors in total
shipments and sales. The company needs to create a greater presence among
enterprise and service-provider customers. Dell can quickly grow its storage
business by providing simplified and standardized storage solutions to customers
ranging from small businesses to large, global corporations with enterprise-class
requirements. It can leverage its ties to Microsoft, Intel and other prestige
component vendors to focus on providing Windows-based storage and server
products. This move will make its high-end storage products work with IBM,
Hewlett-Packard and Compaq Computer Windows servers, as well as Dell servers.
This allows Dell to widen its customer base by appealing to customers that don't
have Dell servers, or have a mixture of servers from different vendors. With
47
comprehensive support for multiple platforms, Dell can also offer customers a
storage solution that leverages their existing Windows server investments, while
scaling to accommodate their growing data requirements.
An expansion of the services group should also be pursued based on customer
needs, which will vary from country to country. While Dell continues to partner
with third-party services firms in some areas, it should also bulk up on its own
services capabilities so it can provide customers with more complete services
offerings. Dell should realize that it would need to expand its services capability
significantly in order to be taken seriously by some global enterprise and serviceprovider customers. Dell can also implement a fixed-price approach to services
that will boost its presence in that market. New services, such as migrating from
Unix-based servers to new ones based on Linux can be offered and combined with
Dell's hardware. A total of $2 billion to $3 billion in service revenue can be
achieved if this strategy is correctly implemented. Dell's three-pronged growth
strategy by no means guarantees a sure-fire path to future profitability, but Dell's
deliberate and measured steps to expand beyond its PC roots could result in
additional good news in the future.
International Expansion
48
rapidly in the next few years. Dell currently has two manufacturing plants and four
technical support offices in the Asia area. Dell should look for ways to optimize
these facilities and budget some advertising towards attracting enterprise and big
businesses in that region. If Dell can capture a few large clients in China, it may be
able to dominate the Asian market, drastically increasing its revenues.
To study the Effectiveness of the Marketing Analysis at Dell (India) Pvt. Ltd.
To come out with solutions that will help the organization in formulating better
strategies for the development of the employees and the organization.
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precision.
The sample size is restricted to only those employees of Dell (India) Pvt.
Ltd.
The study was done for a short period of time, which might not hold true
over a long period of time.
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RESEARCH PROBLEM
DELL Corporate selling and feedback and market share of DELL and
compared to other IT companies.
The business of DELL and the company through its researchers wants to
know the potential in order to expand and retain its market share.
52
RESEARCH DESIGN
1
DATA COLLECTION
The researcher collected information through the official websites, magazines
and journals.
NATURE OF STUDY
53
DATA SOURCE:
The researcher took the help of both primary as well as secondary sources.
Secondary sources being interaction with various IT people of the selected and
has been chosen for the research by the researcher. Secondary sources being the
internet as the medium and the official sites of the companies of IT sectors and
corporate selling and feedback of DELL.
INSTRUMENT USED
The researcher for the research used a Questionnaire cum Schedule for market
research for both the segments horizontal and vertical. The Questionnaire was
prepared by the researcher and Schedule was provided by the company in
which the researcher did its research report.
SAMPLE SIZE
54
Sample size for the research is fixed. It counts to 55. That is the DELL
companies and corporate selling and feed of DELL in comparison between
other IT sectors.
DATA ANALYSIS
& GRAPHICAL DATA INTERPRETATIOIN
SAMPLE SIZE : 55
1. What type of computers do you use?
a.)Branded
b.)Assembled
Branded
37
55
Assembled
18
Using branded
computers
Using assembled
computers
It was observed that almost 67% of the people use branded computers or other
gadgets for their business purpose. Hence can be concluded that more people want
branded products as they are not ready to compromise with the quality and services
being provided.
2.
Brand used
HP
Total Nos.
7
56
DELL
Acer
Others
14
13
21
HP
DELL
acer
others
This observation showed that DELL is among the top used brands. Major part
under the pie-chart goes to DELL. So DELL should continue making efforts to
attract new market and sustain the existing market.
3. What is the number of installed desktops?
1
<15
15-50
50-75
75-200
200-500
Installed desktops
< 15
15-50
50-75
75-200
200-500
Total Nos.
19
21
11
3
1
57
Most of the surveyed and found the use of computers within the 15-55 range. So it
can be inferred that the main target market is which lies in the middle range. Thus
we targeted mainly on SME (small and medium enterprise).
4. What is the number of used servers?
a. 1
b. 2
c. 3-5
d. 5
Servers used
1
2
3-5
>5
Total Nos.
10
11
21
13
58
From this observation, it was concluded that number of servers were directly
proportional to the number of desktops used.
1-5
5-15
15-30
>30
Number of laptops
1-5
5-15
Total Nos.
20
22
59
15-30
>30
8
5
It was observed that maximum computers and laptop users ranging between 5-25.
This area can be focused.
3
DELL
Toshiba
Lennovo
Others
Laptops brand
DELL
Toshiba
Lennovo
Others
Total Nos.
11
19
13
12
60
DELL
Toshiba
lennovo
others
Observation showed that Toshiba was the major brand used in laptops. Various
other brands like HP and Samsung etc. are also used. DELL has also a good market
share.
Yes
No
Total Nos.
30
25
61
According to above graphical data interpretation, that is the most important places
where computer has been used and it has been observation and showed that less
than 60% hospitals have their AMCs. This area can also be considered.
9. What type of company is having the AMC?
a.)Regional office of the company
1
Total Nos.
24
6
62
That the above graph shows that the use of AMCs in regional office and local
players prefers authorized regional offices to select for the service rather than
going for a local player.
10.Are you facing any problem with current used product line?
a.)Yes
b.)No
c.)Not yet
Facing problem
Not facing problem
Not faced problems yet
Total Nos.
15
18
22
63
Facing problems
Not facing problems
Not yet encountered
That the above graph shows that the above observation showed that major number
of users are either not facing any problem or they have not being encountered with
any.
11. Are you planning to make any new purchase?
a.) Yes
b.) No
c.) Not yet planned
Planning about new purchase
Planning to purchase
No planning
Not yet planned
Total Nos.
9
17
29
64
That the above graph show that the most of the users have not planned about
making a purchase and a very few are planning to make a buy.
65
Total Nos.
3
12
19
7
10
According to above graph shows that the maximum of DELL user are satisfied
with the products and services provided. Very few have not tried yet DELL on a
business scale, but most of them have an experience about DELL.
66
Total Nos.
42
13
That the above graph shows that the observation and the most of the people are
interested in knowing more about the brand and have the urge to buy.
67
a.)Yes
b.)No
Interested in demo
Not interested in demo
Total Nos.
24
31
interested in
demo
interested in
This observation showed that almost 45% of the sample was interested in demo.
68
Total Nos.
8
19
28
Interested in
commercial
proposal
Not interested in
commercial
proposal
That the above graph shows that the above observation showed that almost a huge
chunk of hospitals surveyed either doesnt want or they have not planned for any
commercial proposal.
70
71
RECOMMENDATIONS/SUGGESTIONS:
components
of
PC
before
end
user
delivery.
in
comparison to rivals.
4
pace.
5
Company should make policy for fixed end user price for all
dealers so that fair game will be played & dealer would not
to compromise on their margin.
73
CONCLUSION
74
and
the
distribution
process
undertaken
by
an
75
QUESTIONNAIRE
Name
____________________________________
Designation
____________________________________
Address
____________________________________
Contact No.
____________________________________
Yes
No
Branded
Assembled
76
HP
Dell
acer
Others
<15
15-50
50-75
75-200
200-500
3-5
>5
77
1-5
5-15
15-30
>30
Dell
Toshiba
Lennovo
Others
Yes
No
78
10
Are you facing any problem with current used product line?
1
Yes
No
Not yet
Yes
No
79
BIBLIOGRAPHY
Books
Web sites
www.google.com
www.hrmguide.net
www.managementscience.org
www.londonexternal.ac.uk
www.hr.com
www.wikipedia.com
80