Presentation on

Case Studies

Prepared by : Sujan Khaiju

Case ; 1

Dell is now the world's leading direct distributor of computer systems

and one of the major manufacturers in the industry. For the four
fiscal quarters, Dell's revenue reached $27 billion, making it the
world's second largest and fastest-growing computer company, with
35,800 employees worldwide. In the United States, Dell is the No. 1
major PC vendor for business users, government agencies,
educational institutions and the consumer market. At present, dell
company uses the Internet to further promote its direct order model,
once again in the leading position in the industry.
Question ：
What is Dell's revenue model? Analyze the advantages of this
model by combining case study and query data.

– A revenue model is a part of the business model that explains different

mechanisms of income generation and its sources and help to manage a
company’s revenue streams, predict income, and modify revenue strategy.
– Dell’s revenue model is a transaction-based revenue model. It is a classic way a
business can earn money. The revenue is generated by directly selling an item
or a service to a customer. The customer can be another company (B2B) or a
consumer (B2C).
– Dell has two revenue streams: Product Revenues: The company sells hardware
and software products. Service Revenues: The company sells services to assist
customers with use of its products; these include software-related support
services.
 The advantages of this model by combining case study
and query data are discussed below :

– Full control over the pricing strategy.

– Consumers are more attracted to this experience because of its simplicity and
the wider set of options.
– the business is able to generate more income from direct sales in online.
– Provides good customers support and service for good sales..
– Make a wide chain of consumers physically and online for long term.
– Can make good sales with required specifications as per customer’s needs.
– Safe and convinent way of payment.
Case ; 2
Groupon is one of the more popular new deals in the United States in the
last six months. Groupon was founded on November 11, 2008 and is
headquartered in Chicago, Illinois. Groupon offers deals in more than 150
cities around the world that offer discounts of 50% or more. At the end of
2010, there were more than 2,000 group buying websites in China. By July
2011, the number had grown to 5,000. Since the end of 2011, a large
number of group-buying websites have closed down, including well-known
group buying websites such as Groupon, which also suffered from the
collapse of their capital chain. Thousands of small and medium-sized group-
buying websites have withdrawn from the group-buying "river's lake"
without any notice.
Question ：
What's Groupon's revenue model? What are the differences with
Dell and who do you think will fare better?

– Groupon is a global e-commerce marketplace connecting millions of subscribers

with local merchants by offering daily deals, activities, travel, goods, and services
at huge discounts, offers and coupons in more than 28 countries.
– It also sells goods and services directly to consumers in many case, so it has
transaction based revenue model. Further, it place ads. of it’s merchants on its
platform and charges certain percent commission of total sales from them, so it
has also affiliated revenue model. Moreover, it charge $4.99 per month as
subscription fee from its consumers, so it has subscription revenue model as
well.
– Therefore, Groupon revenue model is transaction, affiliate and subscription
based revenue model.
The differences of Groupon with Dell can be described as
below”

– Dell is an American multinational computer technology company that develops,

sells, repairs, and supports computers and related products and services
whereas Groupon is only a huge e-commerce platform which provide huge
discounts, offers , deals on any products and services.
– Dell has much more higher revenue than Groupon .
– Dell has wide range of products and services of its own than Groupon.
– Groupon has much more competitive advantages and competition than Dell in
e-commerce platform.
I think Dell will obviously fare better than Groupon
because of following points:

– Dell is an American multinational computer technology company that develops,

sells, repairs, and supports computers and related products and services
whereas Groupon is only a huge E-commerce platform which provide huge
discounts, offers , deals on any products and services.
– Dell has much more higher revenue from huge sales of wide ranges of its
products and services than Groupon .
– Dell is a very strong and popular brand with wide range of products and services
of its own whereas Groupon is just a rapidly growing e-commerce platform.
– Dell has huge number of skilled man power, capital , technology and many more
others than Groupon.
The End
Thankyou