Case Study of P&G
Dell Computer Corporation Is one of the most famous computer brands In the world, and relies on Its unique development and management model that occupies the large number of PC sales volume in a long term period. Dell Computer Corporation can be successful and lead the PC sales industry, because of the simple vision and business concept- the personal computer could be built to order. Through the build- to-order strategy customers were able to order directly and their orders were routed y means of a credit check and soon after directly to the manufacturing.
Finally their orders were then built, tested and shipped to the customer eventually. Furthermore, the customers were promised to receive the order 5-7 days after the order was made. In addition, Dell Computer Corporation also took steps to reduce middle man so that to identify the customer needs, keep costs down, wring efficiency out of Its direct sales and business model, which Is the another significant reason that Dell can still keep the leading position In the PC sales Industry In nowadays. Further Dell practiced Just-Len-tell Inventories as well. Moreover, Dell Computer Corporation has a diversity of product portfolio.
The company has Implemented various categories for the each segment of the market. (Thompson, A.. Gamble, All these strategies are vital for the company’s success. The foundation of Dell Computer Corporation can be traced back to the 1984, when Michael Dell was study at the University of Austin.
In 1985, the company began to produce their own PC and sale directly to the customer, and also provide the customized services depend on the customer’s selection of options. In 1988, the company changed the name to the Dell Computer Corporation and the business expanded to the world.
The successful of Dell Computer Corporation is a great example for any one of the companies or enterprises. By focusing on the strategies the Dell Computer Corporation applied, this case report will mainly analyze two relevant factors that make Dell Computer Corporation so successful In this competitive PC sales marketing. The first factor Is managing communication strategy, and it will show how unique communication ways that help Dell occupies the large number of PC marketing. The second one is the placement and research of Dell, which implies Dell spend a lot of energy in innovation and changing.
Therefore, through analysis, the report will show how Dell’s communication strategy and its development and research strategy have close relation with each other and finally lead Dell Computer Corporation to the success. The paper is finalized by a conclusion summarizing the analysis and findings. Theory Communication can be briefly defined as a reciprocal process of exchanging ideas, feelings and information through different ways such as speech, symbols or body languages between two or more people or entitles. College, S. , Greenbrier, M.
And Pipits, T. 2008) However, communication Is not Just sending and receiving messages; It also Involves different audiences such as employees, suppliers, customers and so on in the reception of meaning. It is rightly said that the success of an organization apneas on ten communication Detente ten company Ana clear unreasoning AT ideas between customers. Hence, no doubt, one of the most important organization’s communicating audiences is customer. The company should be able to pass benefits to customers to satisfy their needs while getting profitability from them.
There is a short definition of marketing that meet customer needs profitably.
(College et al. , p 322, 2008) Usually, people would not agree that marketing is a part of organizational communication. However, the core of activity of marketing such as advertising, sales promotion, selling, direct marketing and so on is in fact a communication exercise. (College et al. , IPPP, 2008) Therefore, marketing is one part of organizational communication. (College et al.
, p 323, 2008) Behind the definition of this short definition of marketing involves with complex tasks.
Dell, for instance, found that direct sale arsenal computers to customer can fits their needs more while reducing company cost. Identifying customers’ needs is a start point for strategy making. The next step is to communicate with customers. The companies should communicate their unique selling proposition to potential customers, making people understand why you offer what you offer and why they should buy your products or services.
(College et al. , IPPP, 2008) College et al (2008, IPPP) suggested Jostler’s five steps of developing optimal communication: 1 . Identifying target audience 2.
Defining communication objectives 3. Designing the message 4. Selecting communication channels 5.
Measuring the communication process’s results If companies want to sell a new product they have to identify the target they want to sell to firstly. Then they have to define the objective of communication, what do you expect from your customer? Do you want customer know about your brand for instance. Next based on the customer and the objective of communication, the message would vary significant. If you want your customer come to the Saturday sale you might promote interesting products in a low price.
The communication should be implemented through proper channels like TV, radio, advertising, e-mail, direct sale and so on. Finally the company should measure the effectiveness on how to communicate the messages.
Basically, communication can be divided into interpersonal communication and mass communication. Interpersonal communication is when you interact with others directly. (College et al. , p 308, 2008) Mass communication is delivery messages to a large audience in public through mass media such as radio and television.
It is an innovative strategy to integrate marketing communication which combines the marketing tools an organization uses o accomplish its goals as organizations become increasingly customer oriented.
(College et al. , p 323,324 2008) On the other hand, the organizations have to not only managing communication but also be in constantly innovation. Innovation can be defined as to create new products, new processes and new services or to change the existed things into better and appropriate forms. It will have relevant impact on the way the organization operates. College et al. , 2008, p 374) Innovation is quite significant, an organization needs to accept the inevitable of change and to innovate itself constantly so as to succeed.
However it is hard and painful to innovate, especially in big-size firms. Looking at the traditional strategy of managing Innovation, ten companies were mainly relying on ten research Ana development innovation model. In order to come up attractive ideas and manufacture new product, it is far not sufficient for the company concentrating only on the R;D department internally.
The companies’ products cannot meet customers’ interests and needs if they never go out of the R;D office and have a good communication with their audiences. In this technology-driven global economy and ore and more customer oriented world, one of the most important strengths of a company is how they effectively manage and accomplish innovation and change strategies through communication with their audiences to know what they really need and what is the market.
What’s more, nowadays it is successful organization that creates the market instead of creating by consumers.
Organization clearly knows the needs of consumers by means of good communication and create novel and attractive products which makes consumer feel they really need them. That’s a successful market creation. In a word, a company wants to be great successful, one of he most significant approaches is to keep innovating while communicating well with consumers. Analysis Dell Computer Corporation truly becomes a PC sales company started in 1985.
In that year, the company began to produce their own computers and sale to the customers directly.
For a traditional point, we will have a question that how and why can dell sale computer directly to their customer instead of through resellers or other middle man. We can get this answer from the company founder Michael Dell. Before he started his business, he had already focused on his customers for a few years and now the customer preferring to buy cheap goods. Therefore Michael Dell found an approach that skip the product dealer, and directly face and sale products to the customer.
This is the simple vision and business concept of Dell Computer Corporation when the company founded. (Thompson et al. ) Through this innovative direct sale strategy Dell has eliminated the reseller’s markup as well as the risks associated with large inventories of components and finished goods. Dell frequently receives components and parts Just hours or even minutes before assembling a PC to fill a customer’s order. The company currently maintains 6 days of inventory compared to 11 days in November 1997.
(A typical competitor has 58 days of inventory). (Thompson et al. ,) Since the prices of computer parts and components are keeping going down, it is significant to avoid buying large inventories of stock that could be purchased at a later date for less.
Besides as computer parts and components are also out of date quickly, this avoids old stock. This, in turn, improves company’s profitability while allows a lower price products to the customer.
(Hanson, D, 1999) The Dell Computer Corporation are successful, however the success cannot only attribute to its direct sale strategy, another most important reasons is the way they manage communication through and with customer quite well. The first step of Dell Computer Corporation managing communication is to accurately identify target audience.
Their target audiences are people who hope buy the cheap computer, and at the same time the computer must be have a good quality. Dell also found these groups of people occupied a considerable proportion in the PC marketing. (Thompson et al. , 1999) Through focus on the targets audience, dell also gets ideas that sale directly is quite appealing for the customers.
Further, company should communicate Walt n tenet target group AT Dryers Day means AT proper channel sun as mass or interpersonal communication. Hence, the company can possibly adapt to different customers’ needs and also convince them to buy the products.
On one hand, the mass communication such as advertising through television is general and viable at past. But since the high costs and the minimal direct response from target audience, it is ineffective. On the other hand, the company was come to know that they should moving from mass media advertising technique to implementation of direct marketing efforts. Hanson, D, 1999) In today’s fast pace of life and with the rapid development of techniques, Internet, cable TV, direct mail, etc are most effective and convenient for companies to implement better and direct communication.
Among these techniques, Dell Computer Corporation takes advantage of internet for its low cost and prevalence and uses online direct marketing as its main communication channel that interacts with consumers directly online. (Thompson et al. ,) Although the online direct marketing providing by Dell is not a real interpersonal communication, Dell has achieved their objective. For instance, it makes customer feel they may need a computer when they visit the website of dell. The website will provide the detail information and option of each part of computer, and the customer can assembly their own computer online.
This can be regarded a form of interpersonal communication effect. In addition, the marketing audit of the company is illustrated the move to direct marketing technique has led the company to implement a successful integrated marketing communication plan. (Hanson, D, 1999) This is the unique communication way that dell proceed to achieve the success. Adding to that, besides the direct sale strategy and communication strategy, in this highly competitive PC sales industry, keep innovation and changing is very vital for every company, Dell Computer Corporation certainly is also one of them.
The Dell believed that provide the new technology to the customer and help them solve the problem they meet is their responsibility. “Dell had about 1 ,600 engineers working on product development and spent about $250 million annually to improve users’ experience with its products?including incorporating the latest and best technologies, making its products easy to use, and devising ways to pep costs down” (Thompson et al.
) The reason that Dell put a lot money on innovation and changing, because through the communication with the customer, they conducted a large number of observations, got information, messages and demands from customer so that Dell constantly improve itself and keep producing appealing products which make company always keep the position on the top of the PC sales industry.
The innovations not only on the PC product, the extended products are also one of the parts in the innovation and changing. Conclusion This case report is set to demonstrate how two factors: managing communication tragedy and innovation and change strategy are related with each other which make Dell Computer Corporation success and keep the leading position of PC industry. It discussed the theory behind that is managing communication and managing innovation. (College et al.
2008) The report has analyzed the inspiration and the implementation of direct sale strategy; how does this direct business model have impact on the success of Dell Computer Corporation. Associated with the direct sale model, the company has to improve the efficiency of communicating with consumers Ana get valuable Teacake Trot teen. I Nils also noels ten company Implementing innovation, getting ideas for manufacturing new products. In return, helps the company improve themselves so that to better meet consumers’ demands.
From the case of Dell Computer Corporation, we can conclude that innovation is always a necessity for a successful company to keep its position in the competitive market. The company has to manufacture new products to attract customer.
Besides, the innovation should be based on the consumers’ demands and preferences. To convince the consumer to buy the products, this requires a well communication approach and proper communication channels with consumers to understand them.