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Desiree B.

Famulagan

Case Study #1

1. Dell offers a service where they directly sell their products to consumers through the
Internet or telephone. They are unlikely to manufacture or stock a lot of PCs in advance,
but rather they will only assemble the PC after the customer is satisfied with the
features or parts that they have chosen. However, as time went on, consumers
developed a greater interest in purchasing PCs from shops or marketplaces where they
could see and try the features to determine if they were functional or not. They are
unsure of the quality they will receive or whether an item is worthwhile when they
purchase it online. People have developed diverse tastes and purchasing habits over
time, which is where Dell's business began to deteriorate. Since they keep utilizing the
same approach to market their products, Dell's competitors, HP, Apple, and Acer, have
started to realize that selling their products to businesses that let customers physically
view the PCs is more convenient for customers. Because people's habits have changed
about how they acquire goods, the sales plan that was so successful in the past will no
longer be effective. Compared to ordering things online, consumers have a better option
when buying goods in physical stores because they can compare the costs, the quality
and general characteristics of various items. This gives them the opportunity to select
the best products that fit their needs and their budget.

2. Channel conflicts can arise within a company's operations when various sales or
distribution channels are used continuously. These conflicts can impact pricing
competitiveness, cannibalism, inventory management, customer service, and territorial
disputes. Pricing competitiveness can be affected by customers becoming irate or
perplexed when goods are offered at varied price points across different distribution
channels. Cannibalism can result from customers choosing between different channels
based on price or convenience, leading to internal rivalry and disputes amongst sales
teams. Inventory management can be difficult across multiple channels, leading to
stockouts or challenges with extra inventory. Consistency in customer service is crucial,
as customers want the same level of quality and support regardless of the channel they
select. Disparities in service levels or rules can cause confusion and disagreement,
damaging the brand's reputation. Territorial disputes may occur when online sales
intrude on certain areas or regions. Companies must use tactics such as maintaining
constant pricing, integrating inventory systems, clearly communicating policies,
customizing strategies to each channel's strengths and weaknesses, and working
closely with channel partners to reduce conflicts. The ultimate goal is to offer clients a
smooth, positive experience regardless of the engagement channel they select.
Successful multi-channel strategies require thorough planning and management to
eliminate conflicts and maximize the advantages of each channel while maintaining
brand integrity and consumer loyalty.

3. Since opening a physical shop would need a lot of money—including the rent,
utilities, staff salaries, and other costs—which might result in lower profit margins,
traditional retail sales frequently encounter significant obstacles in the business world.
Physical establishments have geographic restrictions that prevent them from reaching
clients outside of a specific area and prevent them from capturing prospective online
customers. Traditional merchants frequently experience inventory management issues,
which can result in overstock or understock problems and financial losses. It is difficult
for traditional shops to compete on price and convenience due to fierce competition
from online merchants with reduced overhead expenses. Foot traffic in physical
businesses has declined as customer tastes toward online buying and the ease of home
delivery have changed. The profitability of physical stores can be negatively impacted
by theft, vandalism, and security breaches. Because traditional retailers frequently have
limited access to customer data and analytics, it is more difficult to customize marketing
initiatives and enhance customer experiences. It can be difficult to maintain consistent
revenue throughout the year for many traditional retailers who experience seasonal
sales fluctuations. Customer dissatisfaction may result from supply chain disruptions
that affect traditional retailers' capacity to stock products. Energy use, waste production,
and transportation emissions all have an impact on the environment when it comes to
physical stores.

4. To restore market share and take the lead globally in the PC industry, a corporation
must take strategic action. Conducting in-depth market research and analysis, investing
in product development and innovation, streamlining operations and supply chains,
revamping marketing and branding, putting a stronger emphasis on customer
experience, expanding internationally, acquiring talent, developing sustainability
initiatives, adjusting to emerging technologies, forming strategic alliances and
partnerships, financial management, market diversification, quality assurance, and they
should develop a companies that can carry out in-depth market research, make
research and development investments, simplify processes, and concentrate on the
customer experience if they are to meet these objectives. They should also improve
marketing techniques, put more emphasis on customer experience, and make
investments in cost reduction, supply chain optimization, the online store where they
start their business I personally think they should not delete their websites because
there are still customers who also prefer buying online, on the other hand, they must
also provide a retail store which they can sell their PCs, so that the customers will be
able to see the products and test its qualities and performance that they provide.
Businesses should implement eco-friendly techniques in product design, production,
and packaging to keep up with technology improvements. To establish synergies and
improve product offerings, they should also work together with other industry leaders,
software developers, and ecosystem partners. For a business to be profitable and have
a steady cash flow, financial management is crucial. To broaden the market, market
diversification should be investigated outside conventional PCs, such as gaming PCs,
tablets, and hybrid devices. In order to guarantee product dependability and customer
pleasure, quality assurance should be maintained. Companies must carefully implement
these strategic goals, evaluate success, collect feedback, and make required
modifications if they want to achieve continued development and leadership in the PC
sector.

5. Strategic planning, technological integration, risk management, and adaptability are


some strategies Dell may use to improve the resilience of its supply chain. In order to do
this, Dell needs to diversify its suppliers and sourcing locations, invest in advanced
supply chain visibility tools, enhance demand forecasting, implement just-in-time (JIT)
inventory practices, strengthen supplier relationships, continuously assess supply chain
risks, embrace digital transformation, implement agile manufacturing processes,
diversify its modes of transportation and logistics, ensure strong cybersecurity
measures, conduct supplier audits, and exercise due diligence. Additionally, DELL has
to concentrate on lowering reliance on a single area or supplier, increasing supply chain
visibility, raising the accuracy of demand forecasts, and implementing just-in-time (JIT)
inventory policies. Dell can maintain a robust supply chain through regular risk
assessments and mitigation, digital transformation, and supplier audits. A more reliable
supply chain may also be achieved by including sustainability programs, encouraging
eco-friendly behaviors, cutting waste, and working with suppliers that share your
commitment to sustainability goals. Finally, strategic planning, technological integration,
risk management, and adaptability are necessary to create a robust supply chain. Dell
may strengthen the resilience of its supply chain and be more ready for unanticipated
difficulties by putting these techniques into practice.

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