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Dell
Group 9
M
Mat
atcchhiinngg D
Deellll GGrroouupp 99 BBuussM
M 481
481 99––21–
21–22010
010
How can dell adapt to the changing pc market?
I
Maintain cost
advantage
II
Focus on key
market segments
III
Seek growth
opportunities
Cost
Industry price is Identify Key Emphasize Increase product International
competitiveness is
converging Markets Differentiation offering Expansion
vital
800
600
400
200
-200
-400
-600
-800
-1000
1996 1997 1998
20.0% 9%
8%
18.0%
7%
16.0%
6%
14.0% 5%
12.0% 4%
3%
10.0%
2%
8.0%
1%
6.0% 0%
1996 1997 1998 Dell Gateway Compaq IBM HP
Dell Compaq Gateway
Education
35 70
Education
30 60
Consumer
25 50
Billions of Dollars
Millions of Units
Consumer
20 40 Small
Business
15 Small 30
Business
10 20
Large Business & Large Business &
Government Government
5 10
- -
1994 1995 1996 1997 1998 1994 1995 1996 1997 1998
$16
$14
$12
Billions of Dollars
$10
$8
$6
$4
$2
$-
Total All Business & Large Business Small Business Consumer Education
Government and Government
New
Markets
Old
Old New
Products
M at c h i n g D e l l Group 9 B u s M 481 9 – 21– 2 010
Seek growth opportunities: Increase product offering
E xisting network of business customers provide opportunities for
increasing revenue through expanded product and service offerings
Product Example:
New
Old New
Service Example:
Products
IT - Many large business may be
interested in bundling IT service
with their PC provider
20
New
Markets 0
82 84 86 88 90 91 92 93 94 95 96 97 98
Old
Us (millions) Worldwide
Old New
Products