Project Report (Group) - Dell Technologies Scenario 2: Assessment 2A

Assessment 2A:
Project Report (Group) - Dell Technologies

Scenario 2
24100-24101 Applied Project in Marketing (Capstone)
Bachelor of International Marketing

Anne Isabell Larsen
Tutor: Peter Rodgers

Due: 09.05.2017
“This paper is done as a part of the undergraduate program at BI Norwegian Business School. This
does not entail that BI Norwegian Business School has cleared the methods applied, the results
presented, or the conclusions drawn.”
Team: 7B
Table of Contents:
1. Internal Analysis p.04
1.1 Product Line Overview p.04
1.2 Business Model Canvas p.04
1.2.1 Customer Segments p.04
1.2.2 Value Propositions p.05
1.2.3 Channels p.05
1.2.4 Costumer Relationships p.05
1.2.5 Revenue Streams p.06
1.2.6 Key Resources p.06
1.2.7 Key Activities p.06
1.2.8 Key Partners p.06
1.2.9 Cost Structure p.07
2. External Analysis p.07
2.1 Market Analysis p.07
2.2 Competitor Analysis p.08
2.2.1 Apple Inc. p.08
2.2.2 Microsoft p.09
2.3 Customer Analysis p.10
2.4 Macro-Environmental Analysis p.15
3. SWOT-Analysis p.18
3.1 Key Issues Identified p.18
3.1.1 Issue 1 p.18
3.1.2 Issue 2 p.18
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3.1.3 Issue 3 p.19
4. References p.20
5. Appendices p.22
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The following report comprises Dell’s internal and external situations through various
analyses. This is considered essential, as an overview might be helpful to understand
the organization’s current environment, predict future changes and make
recommendations of possible improvements in terms of business. The findings in the
following sections will be used to conduct a SWOT-analysis that will point out Dell's
strengths, weaknesses, opportunities and threats. Subsequently, the company’s
three main issues will be derived and identified.
1. Internal Analysis
To be able to look at the internal environment, a product line overview and the
Business Model Canvas will be performed to highlight any strengths and weaknesses
regarding Dell Technologies and their 2:1 Notebooks. The Business Model Canvas is
also presented as a summary in appendices (appendix 1).
1.1 Product Line Overview

Dell is providing its customers a wide range of products; both laptops, desktops,
workstations, servers, printers, monitors and accessories. Nonetheless, the 2:1
Notebooks go under the category laptop/tablet, and there are so far two types of 2:1
devices on the market (appendix 2). The first type to be released was the device that
is a combination between a tablet that has a detachable keyboard. This first
alternative comes in different versions through the 7000 2:1 series. The other option
is a device similar to a normal laptop with the possibility to “bend” the hinges
attached to the screen, allowing the screen to be turned to the opposite side of what
is its original locked position. This type of 2:1 notebooks also comes in different
versions through the 5000 convertibles 2:1 series.
1.2 Business Model Canvas

1.2.1 Customer Segments
These are the people that Dell would like to create value for. When placing focus
generally on the B2C market, the identified segments are students, self-employed,
workers with assigned equipment budgets from their employers, and mobile people
that need a device with many features. These segments commerce frequently and
are therefore in need of a lightweight machine that is able to handle certain
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programs. Furthermore, different situations require a certain performance from the
machine being used, making the more expensive notebooks an alternative to suit this
need.
1.2.2 Value Propositions

Traditional laptops or workstations are often bulky and heavy, requiring more space.
In contrary to this, tablets do often lack the performance to run Adobe or other
analytical programs. Because of this, Dell is giving their customers additional value
by merging these two components together into a 2:1 notebook. It is easy to carry
due to its lightweight, and can still run more requiring programs. It creates value by
offering a lighter and more convenient solution to busy people that commute
frequently. The price, however, is quite high. Smaller machines require smaller
components that are more expensive. For instance, the price increases significantly
with performance. Compared to a laptop, in terms of specifications, the 2:1’s
performance is not as good. It has fewer ports, which makes it difficult to add other
third-party devices like keyboards and USBs.
1.2.3 Channels
Through their own website, Dell is able to communicate with their customers, with a
user-friendly design, giving easy access and navigation. The customers are able to
contact dell with questions that they might have, either by chatting directly or calling.
By doing so, Dell tries to deliver the greatest possible value to its customers by
attending to their needs. Dell does however not have their own physical stores;
opposing to competitors like Microsoft. Based on the fact that Dell only list JB Hi-Fi
as their retailer on their homepage, it could make it difficult for them to get their
products all the way through the distribution system and to their customers,
increasing the difficulty to generate value.
1.2.4 Customer Relationships

Customer relationship is very important to Dell, and one way to strengthen the
relationship is through post-purchase customer service, after the purchase of a 2:1
convertible notebook. This would generate loyal customers. However, the lack of
retailers makes it difficult to communicate with their customers, making it even more
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difficult to establish any strong relationships. Their weak customer relationships are
also highly affected by their key activities, which are mentioned further down.
1.2.5 Revenue Streams

The primary source of revenue is through the sale of 2:1 convertible notebooks. A
steady revenue stream will be created as a result of loyal customer, as the loyal
customer increases the probability of the same customer making a second purchase
from Dell in the future. A second revenue stream comes forward through sales of
accessories suitable for 2:1 devices. Furthermore, to promote loyal customers, Dell
has a partnership with Unidays that hands out discounts of their products to students;
generating more sales within one of the main customer segments of the product.
1.2.6 Key Resources

The essential resources Dell need for its 2:1 convertible notebooks are technology,
software, programs, competent employees and program developers. By having a
skilled staff, Dell will be able to exploit their essential resources, and create value for
their customers through the service and product itself. Having knowledgeable
software and program developers, Dell will be able to offer a unique combination of
overall resources.
1.2.7 Key Activities

Dell’s mission is to create a notebook that is useful and sought for. By focusing on
marketing and customer relationship, it would be possible to emphasise the need for
customers to buy this product in addition to or instead of a computer. Dell is
operating within an industry with high a competitive rivalry, thus, making it essential
for Dell to emphasise differentiation in their products and services. However, Dell has
not been very effective on performing key activities. As seen in the data gathered
from the questionnaire (appendix 3), approximately 76 per cent say they have never
seen any kind of advertisement from Dell. This results in lack of knowledge about
their products among their customers, losing sales to their competitors like Microsoft,
due to weak customer relationships.
1.2.8 Key Partners
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In line with the lack of marketing activities, Dell is reliant on having partners that can
help them leveraging their business model. As mentioned, they already have a
partnership with Unidays where they offer discounts for students. Dell do also have a
partnership with Microsoft, by offering devices that supports their Office programs.
Although these partnerships are valuable, it is not in particular usual for this industry.
This emphasizes the pressure to improve their key activities.
1.2.9 Cost Structure

Dell’s costs can possibly be divided into five main groups; the first one being raw
materials, the different components that are necessary to build their 2:1 convertible
notebooks. Second, costs will appear when producing and putting components
together to a complete product, including salaries for employees. Dell would also
need to distribute their products, which results in a great deal of costs in terms of
transportation. To be able to convince their main customer segments to purchase
their devices, a great deal of capital is essential in marketing and sales. Thereafter,
providing service after the sales have taken place is crucial to achieve loyal
customers. Beyond this process, research and development for future improvements
and new editions will also be of cost to Dell. Since 2:1 convertible notebooks recently
got introduced, it is hard to find specific numbers related to each activity.
2. External Analysis
Next, a few analyses will provide insight in external forces influencing Dell’s
performance and activities. Identifying current circumstances and emerging changes
might be helpful for the company in terms of being prepared to respond and maintain
a favourable position in the marketplace.
2.1 Market Analysis

Further, we will look into the Australian industries of 2:1 Convertible Notebooks,
namely the computer and software retailing industry, including desktop computers,
laptops, printers, keyboards and computer game consoles, and the online computer
and tablet sales industry with desktops, tablets and notebooks online. The market
consists of a few players that have the majority of the market shares.
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The computer and software retailing industry has total revenue of $6 billion dollars,
and profit of $83,3 million, the revenue is divided on 3050 businesses across
Australia with a high competitive landscape. According to Ibis World the computer
and software retailing industry in Australia is in its declining phase of the industry life
cycle. The overall industry revenue has been growing the past few years after the
revenue-drop during the global financial crisis, however the growth is expected to
stagnate from 2017. The industry is expected to grow by 2% over the next 10 years,
which is less than the expected GDP growth in Australia; expected to be 2,5%.
Therefore the industry is expected to perform worse than the rest of the economy
(appendix 4).
As for the online computer and tablet sales industry, the total revenue is $775,4
million, which is divided between 662 businesses. Ibis reports a steady growth of
revenue the past five years. It is expected to grow even more as a cause of
consumers feeling more confident about purchasing more technical advanced and
value added products online. The predicted growth of revenue in the 2016-2017
financial years for this industry is 14,9%. The laptop and tablet segment is expected
to grow, as a result of the development of the 2:1 notebooks (appendix 5).
Demands for the products in this industry is sensitive for change, due to the
assumption that consumers tend to spend less on non- essential electronics when
the economy is either not going too well, or if it is expected to stagnate. The demand
for electronics is affected by how optimistic or pessimistic the consumers look at the
economy. If they have an optimistic view about the market situation, the consumers
tend to spend more on these kinds of products.
2.2 Competitor Analysis

The brands posing the biggest threat in terms of competition to Dell’s 2:1 Notebook,
are alternative brands within the computer manufacturing business that consumers,
both B2C and B2B, have in their evoked set when evaluating the alternatives when in
need for a new computer (appendix 6).
2.2.1 Apple Inc.
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According to Dell’s graph (appendix 6), Apple stands as Dell’s highest indirect
competitor. Apple describes its own products as something that ‘has been designed
for the way we work as much as for the way we live’ (Apple 2017). The importance of
simplicity has been emphasised in both consumption and design of the products.
Apple Inc. does not produce 2:1 Notebooks, however, Dell competes for the same
customers. The loyalty of Apple’s customers is one of the strongest in the world,
which is only reinforced by how dependent its consumers are on Apple’s own
software (Mac OS).
Since founded by Steve Jobs and Steve Wozniak, Apple has grown into a
multibillion-dollar business. In 2004, revenue was estimated at 8 billion US dollars
and kept increasing to 230 billion US dollars in 2015. The number of stores
worldwide went from 116 in 2005 to 463 in 2015. Introducing the iPad in 2005, set a
new benchmark for the whole industry (Statista 2016), and was one of the initiatives
that started the 2:1 Notebooks. Using the information provided by Dell (appendix 7),
Apple’s vendor share in Australia is approximately 54%.
Apple’s goal is: “Our goal, in a nutshell, is to obtain stellar products and services
within tight timeframes, at a cost that represents the best possible value to our
customers and shareholders (Apple 2017).” Apple offers products for many
industries; phones, computers, tablets and watches, and the software used in the
different products are programmed by Apple Inc. Two of the biggest competitive
advantages of Apple’s products are the user-friendliness in terms of simplicity, sleek
professional design with rounded edges that comes in different colours and sizes, as
well as its strong protection against computer viruses.
In terms of Apple’s marketing strategy, the strength of the brand makes it easy to
market their new products. Their ads are simple and effective in communicating the
message of their offerings, to whom they are selling to and why you should purchase
the product. They broadcast their new products over various channels: the Internet
and television. Apple also makes sure to have big billboards (Appendix 8) in highly
populated areas as one of their stronger marketing
2.2.2 Microsoft
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Microsoft was established back in 1975 by Bill Gates and Paul Allen, and has since
that day become one of the worlds largest and most successful IT companies.
Furthermore, Microsoft is the biggest direct competitor of Dell’s 2:1 convertible
notebook series. Their mission is: “We believe in what people make possible. Our
mission is to empower every person and every organisation on the planet to achieve
more” (Microsoft 2017). Microsoft has a wide range of products that it offers to its
customers in a big number of stores worldwide. Microsoft offers its customers the
ability to customise and conduct more advanced tasks while also offering
conventional design. In terms of 2:1 convertible notebooks, Microsoft was the first to
enter the market, and have managed to be the frontline innovator and manufacturer
for this technology. They were amongst the first to take advantage of the detachable
screen and keyboard, and has since then been able to maintain this position. In
contrary to most other brands that mostly manufacture physical products, Microsoft is
known for its computer software, like the ‘Office pack’. However, it is most famous for
is the widely used operating system ‘Windows’ that Dell’s machines use. Most of
Microsoft’s revenue has historically come from its licensing business segment, which
comprises the Microsoft Office software as well as the Windows operative system.
Their goals are clear and simple: “To minimise the impact of their operations and
products, and to foster responsible environmental leadership.” Microsoft has a
leading market share with its popular Microsoft Surface series, which was the first
notebook of this kind to penetrate the market successfully. The design is simple and
practical and offers the same functions as Dell’s 2:1. Mainly, Microsoft serves other
brands with software. Because of this, Microsoft does not have to create new
products/services to sustain.
Microsoft’s marketing is often automated through their products as an integrated part

of the software. When a new Windows operative system update is released, the
operative system automatically gives the user a notification about it. However, when
they decided to launch the Microsoft Surface, they did comprehensive marketing
through different channels to reach out to as many potential customers as possible.
Reaching out before the competition was essential. Microsoft did this in both the B2B
and B2C markets to maximize awareness.
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2.3 Customer Analysis
The customer analysis will be based on secondary data, providing an indication of
key market segments and corresponding behaviour and needs. Information derived
from secondary data will further be used to create an overview of trends and
perceptions characterizing the customers. This overview will be used to conduct in-
depth interviews with the general public and “experts”, to give insight into behaviour
and needs of the customers. Further on, a questionnaire, which will cover the
different sides of the decision-problem, will be implemented. Questions based on the
information we receive from the secondary data and the in-depth interviews will also
be included.
Based on the direct feedback Dell have received on their website from customers
who have bought the 2:1 convertible notebook, the feedback is somewhat variable.
This feedback indicates that most of the customers are “students” (31 respondents)
and “professionals” (19 respondents). Also, the main reason for purchasing a 2:1
convertible notebook seems to be for “everyday computing” (49 respondents). In
addition to this, there are several factors that have been rated. As for the “features” of
the 2:1 convertible notebook, the customers have rated a score of 3,2/5,0 for this.
The “value” and “operating system” have both been rated 3,6/5,0. “Performance” has
been rated with the lowest score, namely 2,6/5,0. Out of all the customers that have
rated the 2:1 convertible notebook, a total of 63 % will recommend this product.
However, it is important to bear in mind that these results only can be used as an
indicator for further research, because of the low number of respondents. In addition
to the secondary research, we want to dig deeper into the preferences and needs of
current and prospect customers.
The in-depth interviews conducted with the general public (appendix 9) indicate that
other brands than Dell are preferred, such as Apple and Microsoft. The most
important factors when buying a laptop/workstation are speed, performance, price
and battery life. The impression of Dell as a company is that they are a traditional
and respected company within the IT industry, but that they are somewhat out-dated,
both when it comes to design and performance. The respondents’ general knowledge
about the 2:1 Convertible Notebook is varied, but they think the product sounds
interesting because of its ability to detach the screen.
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For the in-depth interviews with the “experts” (appendix 10), the goal is to get
information at an “advanced” level that is outside our level of knowledge. The
respondents in these interviews have great knowledge about Dell and their product
range. These interviews indicate that there is only a matter of time before everyone
will be holding a 2:1 convertible notebook in the corporate world due to the flexibility
and mobility required by the workforce. The general perception of why other
manufacturers, such as Microsoft, are doing better than Dell in terms of 2:1 sales, is
that Microsoft have a clearer understanding of what the customers want and that they
know how to give it to them. The respondents also think Dell’s late entry into this
market can explain some of the reasons that they are behind manufacturers such as
Microsoft. About the specifications the respondents are looking after in a 2:1
convertible notebook, these are mainly the same as in a laptop, but all bundled in a
shape of a tablet. The respondents also gave important feedback in terms of the
negative sides of the 2:1 convertible notebook. They state that Dell’s version of the
2:1 is too heavy compared to its competitors, and that this is an area where Dell
needs to emphasize to get “back in the game”. Our respondents also agreed with
Dell emphasizing on the importance of good support software because this is where
the value comes in. The importance of good support software also plays an important
role when it comes to re-purchasing from the same company, because this factor
creates loyalty with the customer.
Based on feedback and information received through secondary research and in-
depth interviews, four different marketing research questions is defined to cover the
decision problem: “How Dell can penetrate new markets and broaden sales of its 2:1
convertible notebook range”. We have considered that the marketing research
questions shall include questions about customers, competition, positioning and
attributes. The four marketing research questions are the following:
1. Which brands of laptops/workstations do customers value the most, in general?

2. In which way could Dell make themselves more visible in the consumer market?
3. What are the customers’ most valued attributes when buying computers/laptops, in
terms of factors?
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4. How much are customers willing to spend on a 2:1 convertible notebook, based on
their experience with the product?
In order to answer these research questions in a satisfactory way, we have

developed a questionnaire (appendix 3) with 2-3 questions relevant to each
marketing research question. These questions are developed to cover the affective,
behavioural and cognitive attitudes of each respondent, this to ensure that the width
of the respondent’s attitudes is covered. 108 individuals responded to the survey, an
amount high enough to cover the marketing research questions, and defining key
marketing segments. However, we are aware that a larger number of respondents
will give a better result in terms of validity and reliability. Firstly, we will analyse the
data we received to answer the marketing research questions, and then we will
define two key market segments based on the analysis.
To analyse marketing research question 1, a descriptive design will help figure out
which brand that is most preferred. An independent samples t-test will be conducted
to determine whether the means of the variable “gender” differs from factor to factor.
To figure out which brands of laptops/workstations customers value the most, we will
analyse questionnaire question 1; when purchasing computer products, which brand
do you prefer? This shows that 74,1 % of the respondents prefer Apple as their
brand. Second comes Asus with 6,5 %. What is worrying, is that Dell come out last
with only 1,9 % of the total percentage (appendix 11). Next, we will figure out if this
percentage differs from gender or not. The independent samples t-test we conducted
shows that “men” with a mean of 2.36 are more likely to buy Dell’s products (mean;
3.0) than “female” which have a mean of 1.76. However, this result is not significant
as the significance value is higher than 0.05 with a value of 1.44. We can therefore
not be sure that this result is reliable (appendix 12).
For marketing research question 2, we will analyse questionnaire question 14 to

figure out which channels the consumers have seen any marketing of the 2:1
convertible notebook from Dell. This will give us an overview of where the
respondents are most active. The source where most of the respondents have seen
any marketing is “social media”. A total of 13 % says that they have seen marketing
of the product at this platform. Second comes “television” and “online ads” with 9,3 %
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each (appendix 13). A total of 75,9 % of the respondents says that they haven’t seen
any marketing of the product at all (appendix 14). Moving on to marketing research
question 3, we will take a closer look at the most important factors attributes for the
customers. Then we will conduct a chi-square test to determine whether the means
of the variable “occupation” differs from attribute to attribute. Questionnaire question
8: “When buying a notebook, which attributes are most important for you?” will be
used in this analysis. The analysis of this questions shows that “quality” is the most
important attribute with 67,6 % (appendix 15). Second comes “price” with 10,2 %
(appendix 16). Based on these descriptive statistics, we look to find out how
important these two attributes are based on the “occupation”. The analysis shows
that the attribute “quality” is most important for each occupation, except those who
are unemployed. This result is also significant as the significant value is below 0,05
(,000). The result is therefore valid (appendix 17). For the attribute “price”, the
analysis show that “students” are the ones that values this attribute the most
compared to other occupations. However, this result is not significant as the
significance value is higher than 0.05 (0,008). We can therefore not count this result
as reliable (appendix 18).
To analyse marketing research question 4, we will analyse questionnaire question 9;

“How much are you willing to pay for a convertible notebook/2:1?» and questionnaire
question 7; «Have you any experience with convertible notebooks/2:1 devices?» In
order to analyse these questions, a chi-square test to determine whether proportions
or frequencies are different between how much the respondents are willing to pay for
the 2:1 convertible notebook will be conducted. The result shows that most of those
who have experience with the 2:1 convertible notebook have answered that they
would spend between $1001 and $1250 for this product. Those who don’t have any
experience with the 2:1 convertible notebook mainly answers they would spend
between $500 and $750 for this product, or that they are not interested in buying the
product. This indicates that those who have not tried the product perceives it as
overpriced, or that they lack knowledge about the product. The result is also
significant; as the significance value is lower than 0.05 (,000) (appendix 19).
Based on these analyses, and the answers received from the questionnaire, we will
define two key market segments for the industry. The reason that we will only focus
on two key market segments, is because we believe that this will give Dell a better
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overview in terms of relevance and attractiveness of each segment. We also believe
that focusing on too many segments will make it harder to reach each one in the best
possible way. A few more analysis needs to be conducted, in order to find the
relevant characteristics of each market segment.
As we learned from marketing research question 3, “quality” is the most important

attribute when buying a notebook. As a result of this, we will name key market
segment 1 “the quality conscious”. In order to get more insight into this segment,
we need to figure out what the main characteristics of this segment are. All the
characteristics described in this segment have a significant value lower than 0,05,
which means that the results are valid and reliable. This segment includes both
genders, but dominated by males (appendix 20). The age ranges from 20-30 years
(appendix 21), and most of them have an annual income between $0 and $40 000
(appendix 22). As for the occupation, this segment includes mainly students
(appendix 23), and they are willing to spend between $500 and $750 on a 2:1
convertible notebook (appendix 24).
Key market segment 2 will be defined as “frequent users”, since they spend more
than 5 hours a day on their laptop device. It is reasonable to assume that this
segment possesses knowledge about the products, and that they disseminate this
knowledge to others via word of mouth among for instance. Therefore, it is important
to get a foot inside this segment. It is reasonable to believe that this segment
consists equally of males and females. However, this is not reliable since the
significant value is higher than 0.05 (0.218) (appendix 25). Most of the respondents
within this segment have an annual income of $0 - $20 000 (appendix 26). In addition
to this, the “frequent users” prefer the brand Apple within the laptop industry
(appendix 27) and their preferred computer device is laptop (appendix 28). None of
the last two factors are significant as they have a significant level higher than 0,05,
and they must therefore be used as indicators rather than “actual answers”.
2.4 Macro-Environmental Analysis

Identifying key external forces that may affect both the company’s activities and
performance through assessing the six following factors in the PESTLE-Framework
is crucial for Dell to be able to understand and monitor the circumstances in which
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they are operating. This might be helpful in defining strategic moves that will be
beneficial for Dell’s future success. Focusing on concerns that should be taken into
consideration and thereby minimise threats, enables Dell to better exploit emerging
changes in terms of opportunities.
Political Political factors mainly refer to the stability of the political

Factors environment as well as attitudes of political parties and
movements. It manifests in government influence on tax policies
and agreements or regulations regarding trade control, import
restrictions and competition regulation. Political factors are not in
need of careful analysis or tracking as Australia facilitates a great
political system, creating opportunities for brands to establish
themselves, spreading their products and protecting them with
patents.
Economic Prevalent economic factors such as economic growth, employment
Factors rates and income as well as inflation rates and monetary policies in
Australia, are forces that may influence the individual consumer’s
purchasing power to a great extent. The Australian economy has
been overall stable, although the GDP growth has been weak the
past few years. The notebook market has proven very popular
amongst consumers – and growing, posing great opportunities.
Socio-Cultural Lifestyle, buying habits, consumers’ preferences and attitudes is
Factors some socio-cultural factors of consideration. Demographic
influences such as population growth rates, level of education, age
distribution, distribution of wealth and social class, living conditions
and life expectancy rates are some others. This aspect is
representing the culture of the society in which the company is
operating. In regards to the Australian market, the culture amongst
the consumers and its characteristics represent a big group of
modern beings, with a need of always being updated on the latest
trends and keeping up with the rest of the society. Current living
conditions facilitates a climate for always being available and
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connected online, a lifestyle requiring a device in order to be
present.
Technological Factors of relevance are existing or possible changes in the
Factors technological environment; concerning international influences,
infrastructure and communication, access to technology and
possible technological change. Even though innovation in
technology has stagnated a bit the last decades, a great deal of
pressure on evolving and responding to the consumers needs,
keeping up with competition and renewing their brand and position
is never declining. In a time where technology is playing the main
role, innovators are likely to pop up and affect the market structure,
making it necessary any given brand to always be prepared to
actively respond to these changes in terms of product offerings.
Legal Factors Legal factors include taxation policies, international trade
regulations and restrictions, national employment laws, health and
safety, consumer- and data-protection in addition to industry
regulations in terms of copyrights and patents; current or emerging
legislations for the industry which are setting the legal frames for
operations. In similarity to the political factors, the Australian legal-
system is well functioning, facilitating opportunities for the IT-
industry including the Notebook market.
Environmental Moving forward to the sixth and last force; environmental concerns
Factors of the industry is assessed of some concern. Recent additions of
regulations and restrictions in regards to pollution - as well as the
fact that attitudes of customers in terms of preferences for green,
ecological and vegan products is increasing, is a reality. More
consumers are getting conscious of the ethics behind the
companies they consider to purchase from. Being aware of this
and being proactive, may pose an advantage for Dell to retrieve a
favourable reputation in regards to the matter. Looking into the
notebook market, there is not yet a great focus on environmental
responsibility among the competing brands, leaving an opportunity
of a first mover-advantage in this area. From a different view, the
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increasingly environmental-consciousness place a great pressure
on the industry and may be a concern if Dell does not manage to
keep up.
3. SWOT-Analysis
Subsequently after conducting both internal and external analyses; looking into Dell’s
internal climate in terms of strengths and weaknesses regarding the company and
external forces that may affect their activities and performance in terms of emerging
opportunities and threats (appendix 29: SWOT-analysis for Dell Technologies), three
issues of concern are presented in the section below.
3.1 Key Issues Identified

3.1.1 Issue 1:
The first key issue is the lack of market efforts and advertisement activities for the 2:1
Convertible Notebooks. As derived from the questionnaire (appendix 3), 76 per cent
of the respondents stated that they had not seen any marketing of the 2:1
Convertible Notebook. Weak information about Dell amongst potential customers is a
concern as their lack of appearance might decrease customer preference (appendix
11). Microsoft was the company establishing the market of 2:1’s, thus; they have
been able to achieve first mover advantage (Barney 1991) and great competitive
advantages. For Dell, this illustrates a great threat as competing with such a strong
company, putting pressure on the need to strengthen customer relationships to
generate more sales. It is therefore essentially important for Dell to be more visible
for potential customer to be able to survive as a brand in a competitive market.
3.1.2 Issue 2:
The second key issue is based on the findings regarding customer relationship
(appendix 1), highlighting Dell’s weak network of retailers. This issue might make the
customer communication inefficient, since the different touch points to reach possible
customers are limited. Dell is only listing JB Hi-Fi as their retailer on their website.
This could make it difficult to get their products all the way through the distribution
system to their customers, increasing the difficulty of generating value. The low
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number of retailers could also impair Dell’s ability to spread the 2:1 Convertible
Notebook in the market, pushing a negative effect on the margins within this product
segment. It is vital for Dell grasp this issue in order to improve their overall sales of
the 2:1 Convertible Notebook, in making the product more visible in the market, and
could help them decrease the head start of its competitors, such as Microsoft.
3.1.3 Issue 3:
The third issue is regarding Dell’s high prices. Friedel argues that price has a
stronger impact on sales than most other factors, and that the impact of a price
change is more effective than advertising when it comes to sales (Friedel 2014). With
purchasing a 2:1 Convertible Notebook, one might argue that you pay much for less.
It does not possess the same capabilities as a laptop, but offers a lightweight similar
option for a high price. Respondents state they are not willing to pay more than
$1001-1250 (appendix 3). This is not a complete price match with the price range of
the Dell 2:1 Convertible Notebooks. However, the results from the questionnaire are
mostly based on students responding; which generally is a segment of lower income.
Dell seems to be a brand of little interest among potential customers. As a result of
Dell being of little interest to potential customers, and the fact that the price does not
correlate with customers price range, is likely to lead potential customer to buying
less expensive products from more appealing competitors. The high prices also
reflect that Dell potentially have a rather weak customer relationship compared to
Microsoft and Apple. It will be hard to establish a good customer relationship, and
gain market shares when needs and wants of customers does not correlate with what
Dell’s current offerings.
19
Team: 7B
4. References
- Apple 2017, ‘Apple and Procurement’, viewed 16 April 2017,
<https://www.apple.com/procurement/>.
- Apple 2017, ‘The most powerful products for business are the ones people
already love to use’, viewed 16 April 2017,
<https://www.apple.com/au/business/>.
- Barney, J. B., 1991. ‘Firm Resources and Sustained Competitive Advantage’,
(Journal of Management: 17, 99-120), viewed 27 April 2017
<http://journals.sagepub.com.ezproxy.lib.uts.edu.au/doi/pdf/10.1177/0149206391
01700108>.
- Burgio-Ficca Claudia February 2017, ‘Computer and Software Retailing in
Australia’, IBISWorld, Melbourne, viewed 22 April 2017
<http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/industry/atagla
nce.aspx?entid=1836>.
- Cloutman Nathan November 2016, ‘Online Computer and Tablet Sales in
Australia’, IBISWorld, Melbourne, viewed 22 April 2017
<http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/industry/atagla
nce.aspx?entid=4170>.
20
Team: 7B
- Dell in Retail Stores 2017. ‘Dell’, viewed 27 April 2017
<http://www.dell.com/learn/au/en/audhs1/campaigns/dell-retail-au>.
- Dell 2017, ‘Dell Secondary Content’, viewed 24 April 2017,
<http://www.dell.com/au/p/inspiron-11-3162-laptop/pd#secondaryContent>.
- Friedel, E., 2014. ‘Price elasticity: research on magnitude and determinants’,
publisher: Frankfurt am Main; New York: pp.2
- Microsoft 2017, ‘About’, viewed 17 April 2017,
<https://www.microsoft.com/en-us/about/>.
- Pestle Analysis 2015, ‘An Overview of the PESTLE Framework’, viewed 26 April
2017
<http://pestleanalysis.com/pestel-framework/>.
- Statista 2016, ‘Facts and statistics on Apple’, viewed 16 April 2017,
<https://www.statista.com/topics/847/apple/>.
- Statista 2016, ‘Microsoft - Statistics & Facts’, viewed 17 April 2017,
<https://www.statista.com/topics/823/microsoft/>.
21
Team: 7B
- Turner T., 2011, ‘A history of apple in outdoor advertising’, viewed 8 May 2017,
<http://www.thehangline.com/creative-examples/a-history-of-apple-in-outdoor-
advertising/>.
5. Appendices
5.1 Appendix 1: Business Model Canvas
5.2 Appendix 2: Dell’s 2:1 Convertible Notebooks
22
Team: 7B
5.3 Appendix 3: Questionnaire

Q1: When purchasing computer products, which brand do you prefer?
Choose one.
- Apple
- Microsoft
- Dell
- HP
- Acer
- Asus
- Lenovo
- Toshiba
- Other
Q2: Which brand is your current main laptop device? Choose one.
- Apple
- Microsoft
- Dell
- HP
- Acer
- Asus
- Lenovo
- Toshiba
- Other
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Q3: Which brand do you prefer within the laptop industry? Choose one.
- Apple
- Microsoft
- Dell
- HP
- Acer
- Asus
- Lenovo
- Toshiba
- Other
Q4: What do you use your main laptop device for? Choose one or more.
- Work
- Studying
- Watch movies/streaming
- Gaming
- Surfing
- Other
Q5: What type of device do you prefer? Choose one.

- Laptop
- Tablet
- 2:1
- Desktop computer
- Mobile phone
Q6: Have you heard about convertible notebooks/2:1 devices?

- Yes
- No
- Not sure
24
Team: 7B
Q7: Have you any experience with convertible notebooks/2:1 devices?
- Yes
- No
Q8: When buying a notebook, which attributes are most important for you?
Please rank the most important to the least important. Drag the alternatives
to get the correct order.
- Quality
- Weight
- Price
- Brand
- Service
- Software
- Design
- Battery life
- Memory capacity
Q9: How much are you willing to pay for a convertible notebook/2:1? Choose
one.
- Less than $500
- $500 - $750
- $751 - $1000
- $1001 - $1250
- $1251 - $1500
- More than $1500
- Not interested to buy
Q10: How many hours do you approximately spend on your laptop device
daily? Choose one.
- Less than 1 hour
- 1-2 hours
- 2-3 hours
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Team: 7B
- 4-5 hours
- More than 5 hours
Q11: What do you associate with Dell? Please write three attributes in the
bow below.
Q12: How often do you buy a new laptop device?

- Every year
- Every second year
- Every third year
- Every fourth year
- Rarer than every fourth year
Q13: Have you seen any marketing of the 2:1 convertible notebook from
Dell?
- Yes
- No
- Don’t remember
Q14: If yes to the previous question, where? You may choose more than one.
- Social media
- Television
- Online ads
- Email
- Posters/billboards
- Newspapers/magazines
- Radio
- Other
- Have not seen any marketing
Q15: What is your age?

- Under 20
- 20 to 30
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Team: 7B
- 31 to 40
- 41 to 50
- Over 50
Q16: What is your gender?

- Male
- Female
- Do not wish to answer
Q17: What is your approximate annual income?

- $0 - $20 000
- $21 000 - $40 000
- $41 000 - $60 000
- $61 000 - $80 000
- $81 000 - $100 000
- $101 000 - $120 000
- $ 121 000 - $140 000
- More than $140 000
- Do not wish to answer
Q18: What is your occupation?

- Unemployed
- Employed full time
- Employed part time
- Student
- Student employed part time
- Retired
5.4 Appendix 4: Computer and Software Retailing in Australia
27
Team: 7B
5.5 Appendix 5: Online Computer and Tablet Sales in Australia
5.6 Appendix 6: Graph for Dell versus Competitors
28
Team: 7B
5.7 Appendix 7: Vendor Shares
5.8 Appendix 8: Billboard Advertisement, Apple
29
Team: 7B
5.9 Appendix 9: In-Depth Interviews, “The General Public”
Are there any particular brands within the IT industry that you prefer? Why?
What is important for you when buying a new laptop/workstation? (Attributes)
Have you heard about Dell? What do you know about them?
- What is your opinion of them? & - Is this a brand that you would consider buying
any type product from?
- (If negative, what do you think Dell should do to improve your opinion about them?)
Have you heard about 2:1 convertible notebooks?

- If yes, what do you think about it? Why negative/positive opinion?
- If no, would you be interested in hearing more about it?
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Team: 7B
Which brands would you consider instead of purchasing a 2:1 Convertible Notebook
from Dell? (Please elaborate)
Do you have any experience with using any of Dell’s 2:1 Convertible Notebooks?
Which attributes do you qualify as the most important when purchasing a new
laptop/2:1 Convertible Notebook? Why are these attributes the most important?
Is there anything else you would like to add?
5.10 Appendix 10: In-Depth Interviews, “Experts”

What do you already know about Dell from previous experiences?
Do you have any predictions about the future of the 2:1 market?
- Anything on Dell specifically?
In your opinion, why do you think larger manufacturers, like Microsoft, are doing
better than Dell in terms of 2:1 sales?
Which specifications would you find important if you were looking at buying a new
2:1?
Are there any specifications from other Dell products that you would like to see in
their 2:1 convertibles?
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Team: 7B
In regards to the Dell 2:1, what are some positive or negative attributes that you can
think of?
- Which improvements could be done to the product line?
Dell emphasizes the importance of good support software, what is your opinion on
that?
Is there anything else you would like to add?
5.11 Appendix 11: Preferred Brands
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Team: 7B
5.12 Appendix 12: Preferred Brands Within Genders
5.13 Appendix 13: Marketing Channels
33
Team: 7B
5.14 Appendix 14: “Have not seen any marketing”
5.15 Appendix 15: Quality Attribute
5.16 Appendix 16: Price Attribute
34
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5.17 Appendix 17: Quality and Occupation
5.18 Appendix 18: Price and Occupation
35
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5.19 Appendix 19: Experience and Price Perception
5.20 Appendix 20: Key Market Segment 1 and Gender
36
Team: 7B
5.21 Appendix 21: Key Market Segment 1 and Age
5.22 Appendix 22: Key Market Segment 1 and Annual Income
37
Team: 7B
5.23 Appendix 23: Key Market Segment 1 and Occupation
5.24 Appendix 24: Key Market Segment 1 and Willingness to Spend
38
Team: 7B
5.25 Appendix 25: Key Market Segment 2 and Gender
5.26 Appendix 26: Key Market Segment 2 and Annual Income
5.27 Appendix 27: Key Market Segment 2 and Preferred Brand
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Team: 7B
5.28 Appendix 28: Key Market Segment 2 and Preferred Computer Device
5.29 Appendix 29: SWOT-Analysis for Dell Technologies
STRENGTHS WEAKNESSES
- Well established in the - Less capacity than a traditional
marketplace laptop
- Creates customer value by - High Prices

merging a laptop together with a
notebook - Fewer ports for keyboards and
USBs.
- Lightweight device
- No physical stores
- Prior and Post-purchase service
- Weak network within retailers
- Partnership with Microsoft, which
provides support for programs - Competitors favoured because of
first mover-advantage; hard for
- Well-developed cost structure Dell to win over shares
- Highly dependent on employees

to develop programs and devices
40
Team: 7B
- Not actively advertising
OPPORTUNITIES THREATS
- Increase marketing efforts and - Predicted stagnation in the future
social media presence market
- Focus on new segments; - Strong competitors (Microsoft,

targeting quality-conscious Apple Inc., More)
consumers
- Technological changes or
- Universities and entrepreneurs innovations put pressure on Dell
can be considered for partnership to always evolve.
as they are in need for devices
that are able to support certain
programs they use for
schoolwork or in business.
41
Assessment 2B:
Project Report (Individual) - Dell Technologies
Scenario 2
Bachelor of Interantional Marketing
Anne Isabell Larsen
Tutor: Peter Rodgers
Due: 02.06.2017
“This paper is done as a part of the undergraduate program at BI Norwegian Business

School. This does not entail that BI Norwegian Business School has cleared the methods
applied, the results presented, or the conclusions drawn.”
1
Table of contents:
1. Executive summary p. 3
2. Marketing objectives p. 3
2.1. Objective 1 p. 3-4
2.2. Objective 2 p. 4
2.3. Objective 3 p. 4-5
3. Target market and positioning p. 5-6
4. Key strategies p. 7
4.1. Strategy 1 p. 7
4.2. Strategy 2 p. 8
4.3. Strategy 3 p. 8-9
5. Key recommendations p. 9
5.1. Recommendations to strategy 1 p. 9-10
5.2. Recommendations to strategy 2 p. 10-11
5.3. Recommendations to strategy 3 p. 11
5.4 Overall recommendation p.12
6. References p. 13-14
7. Appendixes p. 15-22
2
1. Executive summary
Three main issues were derived from the situation analysis. The first issue was a lack of
market efforts and advertisement activities of the 2:1 Convertible Notebooks. Most
questionnaire respondents state they have not seen the 2:1s advertised. Dell needs to focus on
market visibility and improvements concerning customer relationships to increase sales. This
is necessary if they want to compete with competitors like Microsoft.
The second issue derived from discoveries concerning customer relationship, emphasizing
Dell’s weak network of retailers. With only having JB Hi-Fi as a retailer, the customer reach
is limited. This could have a negative impact on customer communication, and evolving the
2:1s in the market.
The third issue is the high prices of Dell products. The 2:1s are a good alternative to a laptop,
but are quite expensive. Most respondents are students, a lower income segment, which are
not willing to pay as much for a brand that is not of preference. This could lead to losing
customers to lower priced alternatives. If Dell focuses on customer relationships, this could
help them gain market shares.
2. Marketing objectives
From the three main issues found in the group assessment, part 2A, three marketing
objectives have been created to try to solve these issues. One marketing objective has been
assigned to each of the issues.
2.1. Objective 1 - Increase direct and online advertisement of the Dell 2:1 Convertible
Notebooks through relevant channels by 10% within the next 12 months
This first objective is related to the first identified key issue regarding lack of market efforts
and advertisement. To solve this issue, it is important for Dell to focus on being more
noticeable in a competitive market. Increasing both direct and online marketing of the 2:1
Convertible Notebooks by 10% through relevant channels in the forthcoming year, will help
increase awareness to future potential customers. As Microsoft had the first mover advantage
in the market, Dell needs to find ways of making themselves more present and noticed to
future potential customers. Question 13 in the previously conducted Qualtrics survey show
that 63,33% have not seen any marketing of Dell’s 2:1 Convertible Notebooks, and 24,17%
3
say they do not remember. Only 12,50% say that they have seen it being marketed.
(Appendix 1). With having most people saying they have not seen any advertising of the
products, this is something to focus on improving. With a combination of different types of
advertising, this can hopefully be improved over the coming year. It is important to consider
exactly what channels will be relevant for the target market, and focus on a few.
2.2. Objective 2 - Increase Dell’s retail network of retailers by adding two new retailers
in Australia within the next 12 months
The second objective is related to the second identified key issue concerning customer
relationships and Dell’s weak network of retailers. As JB Hi-Fi is the only current retailer that
distributes the 2:1 Convertible Notebooks, this is something Dell should improve to have
better touch points with current and potential new customers. By aiming for adding two new
retailers to their network in Australia in the forthcoming year, it is likely to help strengthen
the customer relationship, as well as getting a rather new device out for people to see and try.
Question 9 from the survey show that 81,67% have no experience with 2:1 Convertible
Notebooks (Appendix 2), and question 6 show 35,83% have actually never heard of the
devices (Appendix 3). Adding two new retailers in the Australian market will be a way of
strengthening the retail network, and become more known to the customer. After 12 months it
will be possible to determine if this has had a positive effect or not. If it turns out to be a
success, then Dell could add even more retailers in the future.
2.3. Objective 3 - Increase market share of the 2:1 Convertible Notebooks in Australia
by 5% within the next 12 months by focusing on customer relationships and
preferences (to compensate for the high prices)
The last objective is related to the third key issue about Dell’s high product prices. Question 8
from the Qualtrics survey show that 31,67% of the respondents say they are not interested in
buying a 2:1 device, and 30,83% say they are only willing to pay between $500-750 if they
were to buy (Appendix 4). This does not correlate with the products of the 2:1 Convertible
Notebooks. Therefore, Dell needs to focus on customer relationships and preferences to
compensate for their high prices. Considering question 2 from the Qualtrics survey show that
only 1,67% prefer to buy Dell computer products (Appendix 5), this is something that can be
improved if the right actions are taken. Question 3 show that out of 120 respondents, zero say
4
that their current laptop device is from Dell (Appendix 6). If they can find ways for current
and potential customers to feel like the purchase is an investment, and worth the money, it is
possible for them to increase their market share by 5% within the next year.
As to how each of the objectives will be proceeded with, will be presented further in the key
strategies. Here it will be explained more in depth the steps that will be taken to achieve the
different objectives.
3. Target market and positioning

In the business model canvas in the internal analysis, we defined several customer segments.
Later in the analysis, a more detailed segment was defined. In the customer analysis, the
segment “the quality conscious” was identified. This segment was defined due to the main
occupation of the respondents were students between the age of 20-30 with an income
between $0-40 000. The “quality conscious” mainly answered that they would be willing to
spend between $500-750 on a 2:1 Convertible Notebook. 50,83% of the respondents from the
Qualtrics survey are students, and 24,17% are students employed part time (Appendix 7). By
targeting this “quality conscious” segment, it is possible to narrow in on a market with
significant potential.
Early in the analysis, we assumed the 2:1 Convertible Notebook would be of great interest for
anyone who was looking for a convenient, lightweight device with similar features of a
laptop. When it comes to positioning, it is important to know what the customers want, but
also to know how to convince them to want your product or service. Positioning is more
about what you do to the mind of the prospect, rather than what you do to the product. To be
able to position the Dell 2:1 Convertible Notebooks in the best possible way to the chosen
target market, it is also important to note that Dell needs to position themselves to be better
than competitors with similar, or close to equivalent, products (Ink Magazine 2017). As most
of the survey respondents are of a lower income category, Dell needs to emphasise that the
2:1 Convertible Notebooks might be of a slightly higher price than what they might be
willing to pay, but it will be an investment in a quality product. Question 11 in the Qualtrics
survey show that approximately 16 people associate Dell with quality (Appendix 8). This is
therefore something that is already in the minds of customers and potential customers.
Quality will therefore be an important feature to emphasise.
5
As mentioned earlier concerning question 2 from the Qualtrics survey (Appendix 5), 75% say
that they prefer Apple when buying new computer products. However, Apple does not
provide 2:1 Convertible Notebooks, but several of their computers are lightweight, and the
tablets have possibilities for connecting keyboards. Dell states that they consider Apple and
Microsoft as their main competitors. Microsoft had the first mover advantage, and already
have a well-established position in the market. Microsoft also offers 2:1 Convertible
Notebook devices, therefore it is important that Dell is able to compete with their product
offerings. Dell does however have mass customization regarding software etc., and this is
something that could differentiate them from the competitors.
To be able to position the Dell 2:1 Convertible Notebooks the best way possible for the
selected target market, it is important to emphasise what the attributes of the Dell Latitude
products. Dell says the Latitude 12 7000 is impressively agile, and sharply dressed. They
describe this edition as a “12.5" 2-in-1 for getting down to business with laptop power, tablet
flexibility and premium materials with accessories for mobile professionals” (Dell 2017). The
other version, the Latitude 13 7000 is referred to as “business as usual is never usual”. Dell
describes the device as “the world’s most secure 2-in-1 is a lightweight Ultrabook™ and a
detachable 13-inch tablet in one powerful device, featuring Intel® Core™ M processors”.
(Dell 2017). This needs to be emphasised to be able to compete, and also differentiate
themselves in the industry compared to their competitors. This is important to make
themselves stand out, and reach the target market that has a wish for quality products.
For Dell to be able to position themselves in the best possible way concerning the 2:1
Convertible Notebooks, a positioning statement has been made:
Dell provides quality conscious, price sensitive, students between the age of 20-30 with a
relatively low income, with a flexible and powerful 2:1 Convertible Notebook than any other
in the hybrid laptop industry. We do this by securing a high quality product that is worth the
price, focusing on having a well-known and reliable brand. (Holland 2015)
The positioning statement reflects on were Dell should aim to best be able to target the
chosen target market.
6
4. Key strategies
Based on the issues and objectives, a few key strategy options have been developed to
address the three issues and objectives.
4.1. Strategy 1 – Selecting the best channels to reach target market through advertising
Concerning the first issue and objective created related to that, it is stated that marketing
efforts and advertisement of the Dell 2:1 Convertible Notebooks were not as good as it could
be. Therefore, a strategy tactic to achieve this is to focus on advertising through relevant
channels to achieve an increase of the knowledge of the 2:1 Convertible Notebooks. Relevant
channels to focus on to achieve this will be determined by the target market. As the 2:1s fall
under the electronics category, it would be logical to advertise the products in electronics
magazines. They also tend to be kept longer by customers. Outdoor and transit locations such
as billboards and buses can be used to get the target markets attention. The posters can only
contain a certain amount of information, but by being exposed to it several times, it is likely
to be one of the products that first comes to the consumers mind when thinking of the specific
product. Having billboards in malls or close to stores and locations where it is possible to
purchase a Dell 2:1 Convertible Notebook might tempt the consumer to go in and check out
the product, or later do research about it. Online advertisement is a cost effective way of
spreading the word to gain new customers. (Business Queensland 2017). Dell has a good
website that provides information on the different Latitude products, as well as several
options about Dell and the Dell community consisting of events, etc. It is also possible for
Dell to advertise through social media such as Facebook, Instagram, Snapchat and Twitter to
best reach the rather young target market. As the 2:1 Convertible Notebooks likely are a
relatively new device for many, social media advertisements are a good way to show the
diversification and function of the product to potential customers on channels they are active
on. They are active on several of these, but the amount of followers can certainly be
improved. The more that are connected with them through the different sites, the more people
will be able to see and gain information about the 2:1 Convertible Notebooks. By doing all of
these various steps, it is possible to increase the different advertisement of the Dell 2:1
Convertible Notebooks up to 10% within the next year.
7
4.2. Strategy 2 – Finding new ways to distribute the Convertible Notebooks through
additional retailers in Australia
The second issue and objective related to this highlights Dell’s weak network of retailers.
This is considering the fact that Dell currently only operates through retailer JB Hi-Fi in
Australia. Dell, unlike Microsoft and Apple, does not have their own stores. This is
something that could potentially be a threat to them, considering the competitors then have
way of distribution they do not have. They do however sell the Dell 2:1 Convertible
Notebooks on their own websites, and other places online. For future potential customers, and
the target market, it is likely that actually touching and testing the product will determine
whether the product is for them. By adding two new retailers in the Australian market, this
will help spread the 2:1 Convertible Notebooks to the market. It will be crucial that Dell
focuses on JB Hi-Fi as this is the main and only current existing retailer to date. New retailers
in the market are likely to increase the demand of the 2:1 Convertible Notebooks when
combined with a strengthened market focus and increased advertisement. Adding two new
retailers in the Australian market in the first year will either make or break the spread of the
product. If the retailers do not seem to generate the best possible profits, then after the
forthcoming year they can look into potentially changing them. If the two new assigned
retailers are successful, they could look into adding even more retailers and different ones in
the coming years. It will also be important for the existing retailer, and the ones to come to
focus on having competent and service oriented employees. This is important to emphasize to
make sure that the right and correct information about the 2:1 Convertible Notebooks is given
to the people interested.
4.3. Strategy 3 – Market shares through quality and customization emphasis

The last strategy is on the issue and objective concerning the prices of the Dell 2:1
Convertible Notebooks, and to aim to increase the market share by 5% in Australia within the
forthcoming year with focusing on customer relationships and preferences. The strategy to be
able to achieve this will be to show off the Dell 2:1 Convertible Notebooks to get consumers
to know the products better, and to make them feel like this is an investment, and therefore
they should be willing to pay a little more than what they were initially thinking. The mass
customization aspect could be something to focus on to make them stand out to the target
market. The target market needs to be convinced that this is an extraordinary product, and
something they need in their lives. The other strategies mention possibilities of increasing
advertisement and amount of retailers to better communicate the value of the product. This
8
strategy however is important to encourage people to try the 2:1s, and to show the people that
might already have one from either Dell or other brands, that Dell is the way to go. It is also
important to keep current customers interested in Dell as a brand, and to show them the
different hybrid laptop products that are now evolving in the market. Providing them with
interesting ways of product information is likely to encourage them to want to try new
products like the 2:1 Convertible Notebooks of a brand they know and trust.
When it comes to determining market shares, it says under customer analysis in regards to
Microsoft and their Surface series, that they hold the majority of the current market share in
the industry. Their notebook was the first successful one in the market. Microsoft had the
benefit of first mover advantage compared to the rest of the competitors. This could make it
hard for Dell to win over market shares, but with the right strategies, it is not impossible to
win shares over time.
5. Key recommendations
As for recommendations, it will here be outlined the key strategic recommendations to each
of the three developed strategies.
5.1. Recommendations for strategy 1

Strategy one is based on selecting the best channels to reach target market through
advertising. Recommendations as to how to best be able to achieve this strategy is to two
different recommendations. Recommendation one would be to give a student discount on
Dell 2:1 Convertible Notebook products. This will enable Dell to further reach and narrow in
on the student quality conscious target market. By doing this, they are also ensuring that they
are able to keep up with competitors such as Apple, since they are already doing this. Apple
has a 10% discount for student on a wide range of products. Dell only offers certain student
discounts, such as 15% on Dell Inspiron and XPS systems online. (Unidays n.d.). The
discount is not related to the Latitude products, and is not over a longer period of time.
Microsoft also offers up to 10% discount on the Surface Book and the Surface Pro (Microsoft
n.d.). This is something Dell should consider as well, especially since competitors are already
doing this. This can be promoted particularly before the beginning of each school semester,
as many students will be looking for new devices around that time.
9
Another recommendation to reach the target market is by having promotional activities with
prizes. It is possible to hold raffles with a limited amount of Dell 2:1 Convertible Notebooks
of the Latitude range to promote their brand and products to the target market and other
potential customers. A way of doing so could be through Facebook and Instagram. Dell could
post a picture of the prize, tell the followers to share the picture, and like their Facebook and
Instagram page, and when the pages reach a large amount of followers – they select the
winners randomly out of the people that followed the steps. It is an interactive way for Dell to
gain followers within the target market. They will then be a part of the Dell community, and
will see coming updates and announcements.

For strategy number two, various recommendations to achieve this have been developed.
Strategy two is about finding new ways to distribute the Convertible Notebooks through
additional retailers in Australia. In regards to recommendations to where to locate the new
retailers in Australia. In order to be successful, it might be useful to first take a look at the
larger cites, or where there are most students within Australia. The top five cities that have
been ranked according to livability (climate, transportation, cost, activities), cost of living
(accommodation and other expenses), and university choice (choice, quality, student demand)
are in chronological order: Melbourne, Adelaide, Perth, Brisbane and Sydney (Student cities
2016). These are possible places to locate potential retailers to start with.
Another recommendation is which retailers to use as distributors. This needs to be considered

with the target market in mind. A possible way to determine this could be through looking at
rankings of possible options for new retailers. As JB Hi-Fi is the only current retailer, the
options for new ones are rather open. When it comes to overall rating of product range,
customer service, and value for the money, The Good Guys and Bing Lee rank first and
second. JB Hi-Fi comes in third place. The Good Guys has been ranked as the Australian
electronic retailer of the year six years in a row, and is therefore an interesting retailer for
Dell to look further into using as a distributor (Canstarblue 2017).
The last recommendation for strategy two is to consider having a price discount or to add
some additional value to the target market when they start distributing through these different
retailers. This will attract customers, and likely increase sales and attract and encourage
customers to buy the Dell 2:1 Convertible Notebooks. As this segment is of lower income,
10
and are more price sensitive, this could be a way of tempting them to taking action and
purchase the product.

The last recommendations will be for strategy three regarding market shares through quality
and customization emphasis. The first recommendation for this strategy is to host a press
event, or rent a venue and invite people from the target market, and other potential customers
to attend. If not, it is also possible to make an appearance at technology exhibitions such as
TGE, the technology and gadget exhibition held in Melbourne. This is the largest tech and
innovation event in Australia, and is therefore a perfect way for Dell to show off their product
to the public (TGE 2017). Here Dell can differentiate themselves, and show future potential
customers that this is a product worth investing in. In addition to this, Dell could recruit some
influential people within the tech world or other admired people to represent them as a brand
and promote the 2:1 Convertible Notebooks.
The second recommendation for strategy three is to have pop-up stores and stands at
universities. Considering the fact that Dell does not have their own stores, pop-up stores
around cities in Australia could be a good way of showing their product to people, and
increase market share by convincing them that the 2:1 Convertible Notebook is a product
they need. Having pop-up stores will also be less costly than having an actual store, and they
will be able to relocate around the areas they see has the most opportunity when it comes to
the target market. They will be able to choose for how long to stay in each area, and which
areas has more potential than others. This will also gather useful information that could be
used for later, if Dell were to consider opening their own stores.
The last recommendation is that Dell could come to universities around Australia and have
stands. By doing this, students are able to try the notebooks to see if it could be a product
they would be willing to buy. With having stands that are easily accessible where the students
spend most of their time, it is likely to spike their interest to stop by and try. It is hard to say
how many interactions a potential customer needs, but the sales process is not just one easy
step. The process consists of several steps to get to the point where someone is willing to
make a purchase. With having stands at universities around Australia, Dell is creating
visibility and familiarity around the 2:1 Convertible Notebooks, while also focusing on
creating touch points for the target market (Payne 2011).
11
5.4. Overall recommendation
To sum up, all these recommendations with unique tactical activities will help Dell reach new
heights within the next year. Out of the overall recommendations for each of the strategies,
some are likely to be better than others. The overall recommendation that seem more
important than the rest are the recommendations for strategy one. The reason for this is
simply that customers will need to know what the product is before actually be interested in
trying or purchasing it. Awareness is key. Focusing on firstly advertising the Dell 2:1
Convertible Notebooks will spark an initial interest for the target market, and the other
recommendations for the other strategies will then become more relevant as product
awareness increases. The order of importance would be to go from a more external
perspective with advertising, to product exposure, and then distribution expansions. However,
all the recommendations for the assigned strategies are important steps to get to where Dell
needs and should be in the 2:1 Convertible Notebook industry.
12
6. References
Business Queensland 2017, Types of advertising, Queensland Government, Brisbane, viewed

1 June 2017, <https://www.business.qld.gov.au/running-business/marketing-sales/marketing-
promotion/advertising/types>.
Canstarblue 2017, Electronics retailers, Brisbane, viewed 1 June 2017,

<https://www.canstarblue.com.au/appliances/retailers/electronics-retailers/>.
Dell 2017, Latitude 12 7000 Series 2-in-1 Laptop, French Forest NSW, viewed 30 May 2017,
<http://www.dell.com/au/business/p/latitude-7275-laptop/pd>.
Dell 2017, Latitude 13 7000 Series 2-in-1, French Forest NSW, viewed 30 May 2017,
<http://www.dell.com/au/business/p/latitude-13-7350-laptop/pd>.
Holland, B. 2015, ‘How To Write a Brand Positioning Statement In 3 Easy Steps’, 30

November, MilesHerndon, viewed 1 June 2017, <https://milesherndon.com/blog/how-to-
write-a-brand-positioning-statement>.
Inc Magazine 2017, Product Positioning, viewed 28 May 2017,

<https://www.inc.com/encyclopedia/product-positioning.html>.
Microsoft n.d., Student, viewed 1 June, < https://www.microsoft.com/en-au/store/b/student>.
Payne, D. 2011, ‘How Many Contacts Does It Take Before Someone Buys Your Product?’,
Business Insider Australia, 13 July, viewed 1 June 2017,
<https://www.businessinsider.com.au/how-many-contacts-does-it-take-before-someone-buys-
your-product-2011-7?r=US&IR=T>.
Student cities 2016, Best Cities for Students, viewed 1 June 2017,
<http://studentcities.com.au/>.
Technology gadget expo 2017, Exhibit at TGE 2017, viewed 1 June 2017,
<http://www.tge.melbourne/prospectus/>.
13
Unidays n.d., viewed 1 June 2017, <https://www.myunidays.com/AU/en-AU/category/all-
technology_all-technology>.
14
7. Appendixes
Appendix 1
Appendix 2
15
Appendix 3
Appendix 4
16
Appendix 5
17
Appendix 6
18
Appendix 7
19
Appendix 8
20
21
22

Project Report (Group) - Dell Technologies Scenario 2: Assessment 2A

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Assessment 2A:

Project Report (Group) - Dell Technologies

24100-24101 Applied Project in Marketing (Capstone)

Bachelor of International Marketing

Tutor: Peter Rodgers

1. Internal Analysis p.04

1.1 Product Line Overview p.04

1.2 Business Model Canvas p.04

1.2.1 Customer Segments p.04

1.2.2 Value Propositions p.05

1.2.3 Channels p.05

1.2.4 Costumer Relationships p.05

1.2.5 Revenue Streams p.06

1.2.6 Key Resources p.06

1.2.7 Key Activities p.06

1.2.8 Key Partners p.06

1.2.9 Cost Structure p.07

2. External Analysis p.07

2.1 Market Analysis p.07

2.2 Competitor Analysis p.08

2.2.1 Apple Inc. p.08

2.2.2 Microsoft p.09

2.3 Customer Analysis p.10

2.4 Macro-Environmental Analysis p.15

3.1 Key Issues Identified p.18

3.1.1 Issue 1 p.18

3.1.2 Issue 2 p.18

1.1 Product Line Overview

1.2 Business Model Canvas

1.2.2 Value Propositions

1.2.4 Customer Relationships

1.2.5 Revenue Streams

1.2.6 Key Resources

1.2.7 Key Activities

1.2.8 Key Partners

1.2.9 Cost Structure

2.1 Market Analysis

2.2 Competitor Analysis

2.2.1 Apple Inc.

Microsoft’s marketing is often automated through their products as an integrated part

1. Which brands of laptops/workstations do customers value the most, in general?

In order to answer these research questions in a satisfactory way, we have

For marketing research question 2, we will analyse questionnaire question 14 to

To analyse marketing research question 4, we will analyse questionnaire question 9;

As we learned from marketing research question 3, “quality” is the most important

2.4 Macro-Environmental Analysis

Political Political factors mainly refer to the stability of the political

3.1 Key Issues Identified

already love to use’, viewed 16 April 2017,

- Barney, J. B., 1991. ‘Firm Resources and Sustained Competitive Advantage’,

(Journal of Management: 17, 99-120), viewed 27 April 2017

- Burgio-Ficca Claudia February 2017, ‘Computer and Software Retailing in

Australia’, IBISWorld, Melbourne, viewed 22 April 2017

- Cloutman Nathan November 2016, ‘Online Computer and Tablet Sales in

Australia’, IBISWorld, Melbourne, viewed 22 April 2017

- Dell in Retail Stores 2017. ‘Dell’, viewed 27 April 2017

- Dell 2017, ‘Dell Secondary Content’, viewed 24 April 2017,

- Friedel, E., 2014. ‘Price elasticity: research on magnitude and determinants’,

publisher: Frankfurt am Main; New York: pp.2

- Microsoft 2017, ‘About’, viewed 17 April 2017,

- Statista 2016, ‘Facts and statistics on Apple’, viewed 16 April 2017,

- Statista 2016, ‘Microsoft - Statistics & Facts’, viewed 17 April 2017,

5.2 Appendix 2: Dell’s 2:1 Convertible Notebooks