DELL Distinctive Competencies

Direct Sales Model (Porters cost leadership))

• Dell used its direct sales model to develop an exceptional supply chain.

Has a unique e commerce model by embracing the internet in its supply

chain. Dell brings products to market faster than its competitors. Dell uses
direct sales via Internet, whereas traditional PC manufacturers previously
assemble PCs ready for purchase at retail stores. Thus, Dell enjoys early-to-
market advantage. Hence it has a price and differentiation advantage. .

Unique Customer services (porters differentiation strategy)

• Dell's service reputation has always been based on its quick response in
handling customer issues. Dell offers bundle customer service and technical
support which is the back bone for the company to lead the market. It has its
own captive unit for customer service and technical support.

• The company also offers training service to help customers develop the skills
and knowledge of key technologies and systems. Its courses include
hardware and software training as well as PC skills and professional
development classes available through instructor-led, virtual, or self-directed
online courses.

Dell’s first underlying principle, commitment to customer satisfaction, is the

unifying concept behind Dell’s successful customer satisfaction track record. It is a
directive throughout all of Dell’s customer satisfaction policies and practices. Dell
looks at customer satisfaction as the focal point from which
its business model radiates. While most companies in the industry designate
separate customer satisfaction units, at Dell the commitment to customer
satisfaction permeates throughout the entire organization. It is a priority among all
Dell employees. While competitive companies viewed customer satisfaction almost
as an afterthought, it is the original foundation from which Dell was built, and the
reason customers at that time viewed Dell as a new kind of company for the
computer industry.

Strong brand value

• Dell enjoys a strong brand image supporting its growth. The company is
among the top 100 brand in the world, with a brand value of $11,695 million,
according to Interbrand annual ranking 2008. It was ranked 32 in the list of
top 100 brands.
 • Moreover in second half of the FY2008, Dell started offering products through
indirect sales, such as leading retail chain stores. It offers select products
through strategic relationships with a various major retailers like Wal-Mart
and Best Buy in the US;Wal-Mart and Pontofrio in Latin America; Carphone
Warehouse, Carrefour, Tesco and DSGi in EMEA region; and Gome, HiMart,
Courts and Bic Camera in Asia Pacific region. With its entry into indirect sales
channel model, Dell’s visibility among the individual customer in the retail
space is increasing, which further increases its brand value.
• Strong brand value enhances the company’s market penetration capability
and provides cross selling opportunities.

Robust market position

• Dell has a robust market presence in IT systems market. Despite losing

market share to other players in the recent past, Dell continues to remain a
strong player in the IT systems market.
• Dell was the second largest player in the in the worldwide PC market with
approximately 15% share of the volume shipment in 2008.
• In the notebook PC segment, it was the second largest player in 2008 with a
market share of approximately 14%.
• In the US, the company continued to be the leading PC vendor with
approximately 30% market share of the volume shipments in 2008.
• It is also a leading player in the computer peripheral equipment and software
wholesaler market.
• The company is also the fourth largest player in the worldwide disk storage
systems market with a market share of over 10% in 2008.
• It is the third largest player in the worldwide servers' segment with a market
share of approximately 12% in 2008.
Dell's strong market position in the IT systems market provides it with a competitive
advantage.

Customer Targeting Strategies (Different Products for Different Customers)-

(Product differentiation strategy)

• The mobility products division offers notebooks under five lines: XPS,
Alienware, Inspiron, Latitude, Vostro and Precision.
• The XPS and Alienware lines of laptops are targeted at customers seeking the
best experiences. These laptops are available from sleek, elegant, thin and
light designs to the highest performance gaming systems.
• The Inspiron line of laptops is designed for users seeking the latest
technology and high performance with emphasis on stylish and affordability.
The Latitude line laptops are designed for allows business, government and
institutional.
• The Vostro line is designed to customize technology, services and expertise
to suit the specific needs of small businesses.
• The Precision line of mobile workstations is designed for professionals
requiring performance to run sophisticated applications.
• In FY2009, the company made the largest product launch in its history with
new E-Series commercial Latitude and Dell Precision notebooks.
• The software and peripheral division offers Dell-branded printers and displays
as well as third-party peripheral products, including software titles, printers,
televisions, laptop accessories, networking and wireless products, digital
cameras, power adapters, scanners, and other products.
• The company’s software offerings include a wide range of third-party
software products, including operating systems, business and office
applications, anti-virus and related security software,