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Dell Company - Dell Goes Back to Its Pc Roots

Essay by   •  July 12, 2011  •  Case Study  •  1,020 Words (5 Pages)  •  1,972 Views

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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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