SDRM

Group: 05
Jayati Agarwal - 291026
Kanav Chawla - 291027
Samyak Jain – 291028
Kashish Kewalramani - 291029
Sagar Singh Parihar - 291030
Raghav Aggarwal - 291024
 Company Profile

Global company that designs, develops, Dell shipped 13.9 million units
and manufactures personal computers, capturing 16.7 percent market share retaining its position compared to last year.

laptops and a variety of computer-

related products.

Dell Computers come for every budget Dell Technologies is one of the largest
offering a variety for everyone tech companies in the world, with over 165,000

employees across the globe.

5 Forces Analysis
 GENERAL ISSUES

Product related issues

Promotions related issue

Target market related issue

Pricing related issues

 • PRODUCT-RELATED ISSUES:
The nature and type of the product decide the distribution option that should be chosen for the product. A few products require
special handling. Ex. Flowers, Fragile goods, etc.

• PROMOTION-RELATED ISSUES:
The type of promotions that are required to sell the products to the customers also decides the distribution options; there are
products that require extensive contact of the salesperson with the customer like automobiles etc. and there are products that
require no sales assistance from the salesperson like milk etc.

• PRICING ISSUES:
The price at which the marketer desires to sell their product also decides the distribution option for the channel if product prices
are really less it cannot have many members in the distribution channel as each one of them looks at making their own profit in
the channel.

• TARGET MARKET ISSUES:

The distribution channel is successful only if the product can reach the right customer. Choosing a distribution channel is the path
to reach the target customer. A key decision in setting a channel arrangement is for the marketer to choose the approach to reach
his target customer in the best possible manner.
Dell Sales
Force
structure
 CHANNELS OF
DISTRIBUTION
The ease of Dell’s distribution channel for
large and small consumers alone makes it a
very powerful marketing strategy as it sets
itself apart from their competitors but also
allows Dell to minimise costs to the
consumers as a number of costs are
reduced, such as logistical costs,
advertising, and other mark up costs which
would be passed onto the consumer if there
was an intermediary in the distribution
channel.
CHANNEL OF DISTRIBUTION
(CUSTOMER)
INDIRECT CHANNEL
 DIRECT CHANNEL OF
DISTRIBUTION(CORPORATE)
 BENEFITS OF DISTRIBUTION/SALES
STRUCTURE
• This eliminated the reseller’s markup and the costs and risks of carrying large finished good

inventories
• The model was characterized by high-velocity, low-cost distribution, direct customer relationships,

build-to-order, Just-InTime manufacturing, and products and services aimed at specific market
segments
• Dell could dramatically reduce its channel cost
• Dell used the knowledge it gleaned from this direct contact to tailor its service and support¾as well

as future offerings
 ISSUES WITH DISTRIBUTION/SALES
STRUCTURE
• Different Suppliers and Partners

• Manufacturing plants being far away from the assembling plants

• Worker's internal Disputes

• Over time the company will lose its capability of extending service support to

customers. This weakness can be exploited by the competitors who can enter the

market with better service support and in turn eat the market share of Dell away.
• The service support employees do not identify themselves as being part of the Dell

team and might not be motivated enough.

• Supply chain risk management is a decision process that often requires a multidisciplinary approach.

• The overall objective of the framework is to reduce the impact of disruption and understanding the various
factors that play a role in the post- disruption recovery and decision-making process.

• Dell Computer’s doctrinal commitment to minimal inventories, however, is well known. Companies with
similar strategic commitments are unlikely to be interested in risk mitigation policies involving emergency
inventories along the supply chain.

• In light of Kunreuther and Bantwal’s (2000) discussion on rigidities in the successful introduction of Cat-
Bonds, one alternative risk transfer instrument, the latter task may be a challenging strategy to apply, but
appears to be worth the effort.
 Recommendations
1. Consider selectively adding other vendors to its supply chain management system.
2. Initiate a program to use Customer Surveys to gain market share.
3.Invest more in their Research and Development to develop new products and services.
4.Implement a program to reduce errors in their direct Internet ordering system and create a
clearance area on its website for systems produced in error.
5. Enhance Dell’s customer support services.
6. Enhancing Customer Value
7. Additional warranty