National University of Modern Languages Lahore

Campus

Assignment Title
Assignment: 3
Dell Case Analysis & Big Data with examples

Submitted By : Abdullah Afzal (L-21305)

: Daniyal Tahir (L-21207)
Submitted To: Ma’am Zara
Submitted Date : 13/12/ 2020
Program : MBA (5) Morning
Course : Digital Marketing
Case Analysis of DELL & Big Data with Examples
Introduction & Background of DELL
• Dell is an American privately owned multinational company.
• Engaged with PC’s related businesses.
• founded by Michael Dell in 1984 by simple concept selling
computers directly to customers.
• the company was one of the largest technological
corporations in the world, employing more than 103,300
people worldwide.
• In the world pc, manufacturer industry dell is on no 2nd
and in the Fortune 500 list company dell come on 38th
position.
 Vision & Mission
Vision:
The company's vision statement is all about the
way they do business and the way they interact
with the community
 Mission
• Dell's mission is to be the most successful Computer Company
in the world at delivering the best customer experience in
markets we serve. In doing so, Dell will meet customer
expectations of:
• Highest quality
• Leading technology
• Competitive pricing
• Individual and company accountability
• Best-in-class service and support
• Flexible customization capability
• Superior corporate citizenship
• Financial stability
 Design
• In Dell 's line up there are some hits and misses since the catalog of
laptops is pretty large.
• However, some of the Dell's notebooks continue to vacillate
between captivating and lost in the shuffle, like the laptops Precision
3530, Latitude 3390 2-in-1, Inspiron 15 5000 and Inspiron 17 5770 fall
into the latter category as they're not ugly, but not exciting, either.
• Rounding out the catalog are the company's rugged laptops
(Latitude 7424 and Latitude 5420), which are large, and with massive
loads of MIL-SPEC-certified toughness to boot.
 DELL SUPPLIERS AND PRODUCTS
SUPPLIERS
• MICROSOFT - for Windows
• INTEL - for micro processors
• NVIDIA - for Graphic chips
• SONY - for monitors
PRODUCTS LINE
• Desktop computers o Notebook computers o Network
servers o Workstations o Storage products o Dell offers a
total of 1.6 million different possible product
configurations for all its product lines.
Products Line
Dell Business Model
 SWOT ANALYSIS

Strengths
• Strong brand name
• Product customization
• Environmental record
• Direct selling business model
• 75% sales revenues come from governments
agencies & large businesses
Weaknesses
• Commodity (computer hardware) products
• Poor customer services
• Low investments in R&D
• Buyer can’t touch product physically they want to
purchase
• Too few retail locations
• Low differentiation
Opportunities
• PC’s are purchased more, ever than before.
• Market of laptops are growing
• Increase in communication create opportunities
• Continuing to market on internet to gain large
market bases.
• Expend in to government & education market.
Threats
• High demand of tablets & smart phones
• Facing strong competition
• Price war between PC’s producers.
• Facing many problems in developing countries.
• Currency changeability
Competitors strategies
• High spending on R&D (Apple and HP) that makes them to
gain high profit margins
• Distribution strategy of competitors include direct marketing
as Dell, distribute in public retailers as Wal-Mart or exclusive
stores as Apple.
• Lowering cost to get back to profitability (Gateway)
-Acquisition of other companies (HP acquire Compaq)
• Asian competitors (Acer, Toshiba and Lenovo) win at emerging
markets and developing countries.
• Apple introduce I-pad and cannibalized 25% of notebook sales
• IBM, HP and oracle had advantages over Dell in introducing
services for their customers IBM had sold its laptop, hard
drive, and printer businesses to focus on building its services
business.
 Dell PESTLE Analysis

• ESTLE analysis is a framework which is

imperative for companies such as Dell, as it
helps to understand market dynamics &
improve its business continuously. PESTLE
analysis is also referred to as PESTEL analysis.
Political
• Relation among the countries
• Government in stability
• Rules and regulations
• Terrorism
• Policies to protect manufacturers
Economical
• Economic recession
• Low interest rates
• Rate of inflation(demand for Low)
• Countries relationship in trading
Socio-cultural
• Increase in purchasing power
• High end brand of computer
• Cheap laptops from
government
Technological
• New developments in
technology
• Investments in R&D
Porter’s five forces analysis
Threats of new entrants
• Intense competition in the industry
• New innovation by a competitor
• Benefits from the economies of scale
Bargaining power of suppliers
• Relation between suppliers and producer
• Less availability of raw material
Buyers are the final users of product
• Rivals firms offers discounts
• Level of competition increase due satisfaction
level of buyers
Threats of substitute products
or services
• Firms monitor the trends with in
the industry
• Companies offers products with
similar features
Rivalry among competitive
firms
• The ongoing war between firms
• Price war between competitors
 Business-level strategy
• Porter’s generic strategy Cost leadership
strategy Provide quality computers at low cost
than competitors and kept high percentage of
market share. This strategy gives them upper
hand in industry. They offer customize
products to their customers at lower cost.
 Corporate level strategy
• Offensive strategy They not pioneering new and better
technologies, they demand the latest and great from
suppliers.
• Related diversification
• Merger/Acquisition/Internal Start-Up In 2007 and 2008, Dell
began making a series of software-related acquisitions that
cost nearly $2 billion. These acquisitions were made to add
customer value. The acquired IT companies were Ever dream
Corporation, Silverback Technologies Inc., Message One Inc.,
Equal Logic, ASAP Software, and The Networked Storage
Company.
 Features of Dell's research
• CAP conduct open discussion sessions for
everyone to tell and hear about products and
services. Social media was also carried out
during session for people to give input online.
Dell support provides information regarding
trouble shooting guides. Customers can access
this information via popular topics, content
type or technical support topics.
 Dell's unique selling point
• Customization of product
• Direct sale o customer
• Various mode of purchase available
• Special discounts available
 Warranty and Support
• Some records shows that Dell provides the best tech
support on its social media in which their agents
demonstrates a strong understanding of its
technology and also provide answers within a minute.
• It also allows you to extend the warranties for
Inspiron laptops and XPS by up to four years, and the
company also covers shipping for both to and from its
centers.
• There is also an accidental damage protection as an
add on.
 Innovation
• In 2019, Dell built the best laptop by inserting a crazy-
small 0.08- inch HD camera into the XPS 13, so you get to
have the same barely there bezels just without the nose
cam.
• Meanwhile the Inspiron 13 and 15 7000 2-in-1s for
consumers sport a clover magnetic pen garage built in to
the hinge.
• Dell's Mobile Connect software is one of the best
solutions for transferring files between phones and PCs.
• When it comes to the business, the upcoming Dell
Latitude 7400 2-in-1 is the world's smallest commercial 2-
in-1, which also offers proximity sensing from Intel to make
unlocking your PC.
 Recommendation and conclusion
• My views In respect of market penetration and market segmentation is the
best part of Dell’s marketing strategy. Dell has done a good job in identifying
their economy and hence penetrating those aspects of markets leaving less
room for ambiguity. The e-business which they have adopted is a very cost
efficient method of selling their product. I recommend dell that what they
are doing, keep continuing but customers desires and needs are dynamic.
Use to take customers feedback and do improvement.
• In the current global competitive market the main challenge for Dell is
competition. Top competitors for the Dell Inc. are Gateway, Hewlett
Packard, and IBM. They are also manufacturing the same kind of product
and following the same kind of marketing strategies. If Dell does not keep
attention about these competitors it should bear huge losses in the future
sales and profit. So what I recommend to Dell is that what they have won is
customer’s faith and keeps it up. Watch the global market and competitor.
Find out the customer’s changing perception about product; try to provide
better quality and services with low cost than competitors.
 What is Big Data?
• Big data refers to the ever-increasing volume,
velocity, variety, variability and complexity of
information. For marketing organizations, big
data is the fundamental consequence of the
new marketing landscape, born from the
digital world we now live in.
#3 Big Data Analytics for Risk Management
• The unprecedented times and highly risky business environment calls
for better risk management processes. Basically, a risk management
plan is a critical investment for any business regardless of the sector.
Being able to fore see a potential risk and mitigating it before it
occurs is critical if the business is to remain profitable. Business
consultants will advise that an enterprise risk management
encompasses much more than ensuring your business has the right
insurance.
• So far, big data analytics has contributed greatly to the development
of risk management solutions. The tools available allow the
businesses to quantify and model risks that they face every day.
Considering the increasing availability and diversity of statistics, big
data analytics has a huge potential for enhancing the quality of risk
management models. Therefore, a business can be able to achieve
smarter risk mitigation strategies and make strategic decisions.
Example of Brand that uses Big Data Analytics for Risk
Management
• UOB bank from Singapore is an example of a brand that
uses big data to drive risk management. Being a financial
institution, there is huge potential for incurring losses if risk
management is not well thought of. UOB bank recently
tested a risk management system that is based on big data.
The big data risk management system enables the bank to
reduce the calculation time of the value at risk. Initially, it
took about 18 hours, but with the risk management system
that uses big data, it only takes a few minutes. Through this
initiative, the bank will possibly be able to carry out real-
time risk analysis in the near future
#2 Use of Big Data Analytics to Solve Advertisers
Problem and Offer Marketing Insights
• Big data analytics can help change all business
operations. This includes the ability to match
customer expectation, changing company’s product
line and of course ensuring that the marketing
campaigns are powerful. Let’s face the naked truth
here. Businesses have lost millions spent in running
advertisements that are not fruitful. Why is this
happening? There is a high possibility that they
skipped the research phase.
Example of a Brand that uses Big Data for Targeted Adverts
• Netflix is a good example of a big brand that uses big data analytics for
targeted advertising. With over 100 million subscribers, the company
collects huge data, which is the key to achieving the industry status
Netflix boosts. If you are a subscriber, you are familiar to how they
send you suggestions of the next movie you should watch. Basically,
this is done using your past search and watch data. This data is used to
give them insights on what interests the subscriber most. See the
screenshot below showing how Netflix gathers big data.
#3 Use of Big Data in Supply Chain Management
• Big data offers supplier networks greater accuracy, clarity
and Insights. Through the application of big data
analytics, suppliers achieve contextual intelligence across
the supply chains. Basically, through big data analytics
suppliers are able to escape the constraints faced earlier.
• This was through the use of the traditional enterprise
management systems and the supply chain management
systems. These legacy applications didn’t leverage big
data analytics, and therefore suppliers incurred huge
losses and were prone to making errors. However,
through modern approaches built on big data, the
suppliers can be able to leverage on higher levels of
contextual intelligence which is necessary for supply
chain success.
Example of a Brand that uses Big Data for Supply Chain Efficiency
• PepsiCo is a consumer packaged goods company that relies on huge
volumes of data for an efficient supply chain management. The
company is committed to ensuring they replenish the retailers’
shelves with appropriate volumes and types of products. The
company’s clients provide reports that include their warehouse
inventory and the POS inventory to the company, and this data is
used to reconcile and forecast the production and shipment needs.
This way, the company ensures retailers have the right products, in
the right volumes and at the right time. Listen to this webinar where
the company’s Customer Supply Chain Analyst talks about the
importance of big data analytics in PepsiCo Supply chain.
 Further Example of Big Data
Miniclip
• Miniclip, who develop, publish and distribute digital games globally,
use big data to monitor and improve user experience.
• Due to the nature of the company and sector, customer retention is
a priority for Miniclip in order to make games more profitable and,
therefore, to support business growth.
• Big data reporting, analysis, experimentation and machine learning
data products allow the company to measure the successful
elements of their products and implement them in future ventures,
while also eliminating or improving the problematic components.
Next Big Sound
• Next Big Sound (NBS) has figured out how to use the data from Spotify
streams, iTunes sales, SoundCloud plays, Facebook likes, Wikipedia page
views, YouTube hits and Twitter mentions to predict the next big thing in
music.
• The company's analytics provide insight into social media popularity, the
impact of TV appearances and many other nuggets of information that are
invaluable to the music industry. Artists can also use the data for their own
promotion, thanks to a partnership between NBS and Spotify.
• Billboard now publishes two charts based exclusively on NBS’s data and
they have worked with companies such as Pepsi and American Express to
help steer billions being spent brands on music-related marketing and
sponsorships.
T-Mobile
• The mobile network, like American Express, is combining customer
transaction and interactions data to predict customer fluctuations.
• By utilizing internal information on billing and customer relations
management along with data on social media usage, T-Moblie USA
claims they halved customer defections within a single quarter.
• The company has integrated the data gathering tools across its' IT
systems.
THANK YOU