Dell Company - Dell Goes Back to Its Pc Roots
Essay by Greek • July 12, 2011 • Case Study • 1,020 Words (5 Pages) • 1,925 Views
Shayla Canty
Dell Goes Back To Its PC Roots
Case Summary
Dell earned its name, market share, and recognition by selling personal computers. The company attempted to gain more market share by expanding its product lines. Management decided to exploit the market of flat screen televisions, tiny digital music players, and other noncomputer products. This strategy was not successful and Dell made a decision to not continue with diversification. The failure quickly taught Dell to stick with its PC roots and remain focus on its core computer expertise.
Key Marketing Issues
Product - a service, good, idea, or a combination of the three
Good - a tangible physical entity
Service - an intangible result of the application of human and mechanical efforts to people or objects
Idea - a concept, philosophy, image or issue
Consumer product - products purchased to satisfy personal and family needs
Business product - products bought to use in a firm's operations, to resell or to make other products
Product item - a specific version of a product that can be designated as a distinct offering among a firm's products
Product line - a group of closely related product items
Product mix - the composite or total, group of products that an organization makes available
Width of product mix - the number of product lines a company offers
Depth of product mix - average number of different products offered in each product line
Product life cycle - progression of a product through four stages: introduction, growth, maturity & decline
Introduction stage - initial stage of a product's life, the first appearance in the marketplace when sales are zero and profits negative
Growth stage - sales rise rapidly, profits reach a peak, and then they start to decline
Maturity stage - the product's sales curve peak and starts to decline and profits continue to fall
Decline stage - sales fall rapidly
Product adoption process - 5-stage process of buyer acceptance: awareness, interst, evaluation, trial and adoption
Early adopters - people who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters
Innovators - first adopters of new products
Early majority - people who adopt a new product just prior to the average person
Late majority - skeptics who adopt new products when they feel its necessary
Laggards - the last adopters, who distrust new products
Personal Case Analysis
It was very courageous for Dell to make a marketing decision to expand its product line. It was smart of the company to quickly realize it was an unsuccessful strategy and quickly pulled out of the market and went back to its core competency. Success businesses always exploit opportunities. Marketing effectively and efficiently
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