Question 1: Although Dell Began Selling Pcs Through Retailers in 2007, The Firm
Question 1: Although Dell Began Selling Pcs Through Retailers in 2007, The Firm
Question 1: Although Dell Began Selling Pcs Through Retailers in 2007, The Firm
5 days ago
Case 1: Dell Computers
Question 1: Although Dell began selling PCs through retailers in 2007, the firm
continues to rely heavily on direct sales to end users. How did and does Dell’s
marketing strategy differ from that of its major competitors such as HP and Lenovo?
Though Dell, HP, and Lenovo were all selling similar products, Dell used a
different sales strategy that would cut out the middle man and lower costs to
consumers while maintaining satisfactory profit margins. Dell was and still is
focused on, but probably not as much as before, selling direct to consumer
instead of using retail outlets as the primary way that a customer can purchase a
Dell product. The other companies put more of an emphasis on making sales at
retail stores.
Question 2: Sales of personal computers grew rapidly in the 1980s and early 1990s but
have leveled off in the 2000s. Is it possible for Dell to continue to grow in such a heavily
saturated market?
Question 3: Will Dell face significant problems of CEO succession when Michael Dell
eventually leaves the firm?
Since Dell has a strong management team and large amount of resources, I do
not see it being a detrimental problem to the company. Stock prices may
fluctuate and there will be speculation from blockholders during the transition, but
the consumer isn't going to stop purchasing Dell products as long as the
company continues to sell decent computers and innovates. When Steve Jobs
died, did Apple stop making Iphones and other products? No. But, the stock
prices dropped and there was much speculation about the future of Apple as a
company. Dell will be fine when Michael Dell eventually leaves the firm.