Dell Case Study

Since its inception, Dell has dug its heels into the PC market as a company that has been able to weather the IT bubble burst, and been able to vary itself and its strategies to keep itself afloat without compromising its integrity and brand equity as a company that provides quality solutions at a reasonable cost. As a company, especially in the US market, Dell has been successful utilizing three main components in their strategy: low cost, direct customer relationship, and virtual integration. As an advocate of �don’t fix what is not broken,’ it would be wise for Dell to continue these trends as much as they can into their new horizons.

There is room for market expansion for Dell that will definitely have to be paid more close attention to as the US market is reaching saturation with PCs. Dell should practice intense marketing strategies to enter the international market, the server market, and the external storage market.

The international market is not as �educated’ a consumer as the US markets are generally. Although they should definitely have a virtual online store that ships internationally, it should be a separate website than the one that is designed for the domestic US market. Dell should focus on building the one on one customer relationships that they offered when they started in the states (direct selling channels through the phone), and then build into the virtual integration as the consumers become more familiar with the terminology. As far as the more high involved relationship customers (as opposed to the one time), Dell should first target the US based companies that they work with currently that are expanding overseas. Heavy direct marketing through phone calls (with the relationship agent already assigned) focusing on reliability, educating the customer on Dell’s overseas expansion and assuring that the customer service that they are used to in the US is available and of equal quality internationally will ease the decision for these companies to continue a global relationship with Dell as opposed to searching out local networking options.

Dell has been too cautious about the server market. During their initial market penetration, they targeted mainly entry level server markets (small businesses, etc). Eventually these also will be saturated, as servers have