Running Case with Real Data Dell Direct Dell Ine. is the world’s number one direct-sale computer vendor and competes with Hewlet Packard in that sent. Dell offers network servers, workstations, storage systems, and Ethernet switches for enterprise customer, nation to fall Line of desktop and notebook PCS designed for consumers. It also sells handheld computers and markets thir party software and peripherals. Del's growing services ‘nit provides systems integration, support and traning, ‘Michael Dell, the flamboyant founder and chairman of Del, tated college atthe Univesity of Texas asa pre- ‘med student but found time to establish business selling random-access memory (RAM) chips and disk dives for TBM PCS. Dell bought products at cost from IBM dealers, who were required a the time to order large monthly quotas ‘ofPCs from IBM. Dell then resold his stock trough newspa- pets and computer magazines at 10 to 15 percent below ‘eal, By Apel 1984, Dell was grossing about $80,000 a _mont—enough to persuade him to drop out of college, Soon the started making and selling TBM clones under the brand ‘name PC's Limited. Del so his machines dietlyt con- ‘sumer, rather than though real outlets as most other man- ‘fetes di. By eliminating te retail markup, Dell could sell PCS at about 40 percent othe pice of an IBM. US. PC Shipment Estimates far Q3 2008 Michael Dell renamed his company Dell nd added international sales offices in 1987. In I ‘company started selling to larger customers, government agencies, That year Dell Computer public. In 1996, Dell started selling PCs and computers through its Web site, This channel of confirmation and shipping and handling is til the and-batier means of addressing Del's cons enterprise customers’ requirements. In 1997, Dell the marke or workstations and strengthened its. business by separating it fom its small-business launching a leasing program for consumers. Ia diversify is revenue sources, in 2001 Delle storage offerings when it agreed to resell sy EMC. To grow its services unit, Dell aquired software support specialist Plural in 2002, Despite is success at grabbing PC market continues to atack new matkets. It has put emphasis on server computers and storage enterprises. Furthering its push beyond PCs, Introduced a handheld computer, 2 line of switches, and consumer electronics such a di players and LCD televisions It orginally mba sm Helen Packard Are Acer Tosine2.00. 20.000: 1.900 Robo FeO to develop a line of Dell-braded printers, and it ‘ditional parnerships 1 quickly rw is Tine, On the sevice font, Del as mirrored its ard approach to hardware sales, embracing & fe model for offerings such as data migration ie systems implementation. Dell is curently fo imerational revenue to supplant sales inthe (od US. market, Sales insie the United States Mout 53 percent of consolidated net revenue in 2008, hs thrived as downward-spialing prices and m washed ove the PC indus, benefiting the Ps customers and basing ifs competitors. Instead of he ie By atemping to ret propitay sys, Sin TBM cfien did, Dell used its low-cost direst model to ide the wave, In 2008, Dell announced Fret global program that brought their existing natives une one umbrella. Del intends to expand lbelly. Continuing ts stategy and efforts of weeetng customers’ needs and demands they began elect pct in eta str in several cousin Pamerices, Europe, and Asia during fiscal 2008. These eprean the fis sep inthe eal sate. Wich ‘Allow them to extend ther business model 1 reach hat thy have not ben abl to reach cred: “ate, with lhe brand equity Dell as built wp» Dell is pushing ito consumer products. Dell has reenty ‘Prmove into manufacturing a-sereen TVs. With hat use the newest technology Dells now diversiy- ven rhe. The latest bate in the PC business isn it ‘uti printers. Dells now waging war on HP's Md imaging and peining division, which produces ‘Grows margin nos Jen 04 some 70 percent of HP's operating profit. tn the ease of rims the printer catidges is where HP has the biggest args, and Del seems 10 be focused on making inroads Ta thi market. over which HP has had a strong Hol. ‘With such an intense competition for marketshare and customer patronage, Dell conducting a survey of ‘Been purchasers of Dell PCs and notebooks. Dell wants {fo understand their consurmers' primary usage of their Smputers for Intrnet and other usage. Based on tha Dell wants to understand the satisfaction that their Consumers are deriving from Dell products. Dell wants to ‘Mtimate thei customers’ probability of repeat buying of Dell products and the extent to which their current Ccostomers will recommend Dell to theit friends and family Finally, Dell wants to understand if here is any Correlation on any ofthese identified usage factors and the underlying demographic aspects of the classification oftheir eustomers Questions The gusionare given inthe inte chaps Dell Running Case contained References 1. sor gamete pe 7761, sce Nov ioe 2, Han ssilcom/donloneglobaleoroncer ony pt SIS November 82008 set cm ppc din pr SIS nT ian eam oe Section tas ennacst einer Seesaw esDELL COMPUTERS Internet Interview ‘hank you for your meres in ours. Burk san independent marksting each fn that has bees commissioned by DELL Compuesto get the bones opinions of urcasers of DELL personal computer sjtems. Yo wl be asked 0 fer your views about DELI and deserie yout nest ‘This survey should only take a few minates of your ime. By completing this survey, you wll be atomatclly entered it aay {or 100 gi cerifcts tha canbe wed at ait of major online rel If you do" compee the sve), you ma) gui raving by writing wo the aes contained on th email ning Yu opaiciste in this pee ‘Unless you give us your permission atthe end of the survey to release your name o DELL slong with your responses, our nd responses wil kept conten. INTERNET USAGE (1 Approximately how many total hours pee week do you spend online? This would he the total fom all he sons yo ‘est than hoor =I Ho Shoars E-2 Gtol0houn 1-3 Wie20h0us + 2 wad bows O-5 4 hourormoe B-6 (Q2A, Flowing isa ist of ngs people cdo cline. Please ndcate wich of these owas eve ono te Inet (Rotate sponses) Ask Fit f ‘Commonicted with others via emsgroupe or Looked for aj -ae-0-= Planned or booked tips - Downloaded pict o graphic === Downlosded sounds oa clip. ‘Locke up infomation about aTV show o movie Downloaded video cip == doooo00 Sooocoa (03, What ser ype ofthis do yo we the Internet or? DELL SATISFACTION AND LOYALTY Overall how satisfied are you with your DELL computer system? Very sated Somewhat sified Someuat dss or Very eats (Q5, How tikely wuld you te to recommend DELL to fend o lative? Definitely would recommend Probably would Mig or might not Probably would not ‘or Definitely would not recommend (Q6, Ifyou could make your computer purchase denon agin how likely would you bec Defiiely woud Probably would Might or mish oot Probably woud not or Detintey woul ot oooo tage PPETe ig ELLY ooog5 7. Deleted (Open ended)JUTER MANUFACTURER IMPORTANCE/PERFORMANCE RATINGS se tof ects fe) ene pt aes. 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Tes net estes shut you am your nol an il ose wa ie ut inervee fm upe ‘Wha wa at pd af schol yo comple? Sone High ea or Tigh cto! Grae Some Caachi eho ‘Coleg: Groat ihr (O12 Which fe toning ot eseres our age? Som 3s (G18, Wc oft toning et dered your ch tl yy nme ite ns? ‘Unie S000 swnpa0 529.95 Scop 50.95 ssonai-si49 Sispa0-s9.985 Slooato ever Noanwwer= 0 14 Aveyon.-2 ‘Tis completes al he questions. ‘Tank you very muh for our asistance mith he er