Essay About World Leader Seller Of Computers And Customer Business Model

Business to Business MarketingJoin now to read essay Business to Business MarketingI. Since its inception nearly 25 years ago, Dell has built a profitable direct-to-customer business model. Today, more than 80% of Dell’s sales are to commercial customers (e.g., business, government, and not-for-profit organizations). In 2007, Dell added a significant commercial customer segment – retailers. You can read more about this development on Dell’s blog at

a) Is adding this new market segment consistent with or a departure from Dell’s strategy? Explain your answer.Let me first explain what I know about Dell’s operations from the perspective of distribution and warehousing operations according to my direct experience working for them in Mexico City.

I used to work at a Logistic (warehouse and distribution) company name “Kuehne & Nagel” in Mexico City in which one of our biggest an profitable customer was DELL.

I used to be the warehouse and distribution supervisor for DELL at Kuehne & Nagel. We were in charge of the warehousing and distribution off all their products all over Mexico. They explained us that all the PDA’s and laptops are manufactured in Taiwan and Singapore and shipped by air to Nashville. The monitors and flat panels they are also manufactured overseas, Asia and Brazil. The Desktops and servers are manufactured at Austin Tx, where it is also their headquarters. This is amazing for me to know that Dell, being one of the world leader seller of computers and computer accessories, its manufacturing activities are all over the world with their suppliers and business partners.

In average Kuehne & Nagel has a shipped complete time of 15 calendar days. Shipped complete means the time since the order is on status ready to go. This is after all the manufacturing processes finished, until the final customer receives the product.

Dell’s disadvantage according to their actual competitors (HP, Gateway, Sony, E-machines, IBM, Accer) and market segmentation, home and small business, of course is the time the final customer receives the product. We all know that if a customer wants a computer they only need to go to any retail or electronic store and by just swiping their credit card or paying with cash at the same time they are receiving their computer, but not with Dell. So, by that time Dell was very ambitious with K&N to push them hard to achieve a 7 calendar days deliveries since the order was place ready to go until the customer receives the product. Imagine the distribution chain, Asia or Brazil, then Texas, (here we received the status ready to go) then Laredo border, then K&N split operation at San Luis Potosi Mexico and finally all the states in Mexico. All this logistic process to deliver the computers in only 7 days, this is amazing!, but it’s happening. K&N priority is the customer satisfaction with the track and trace system in which they can monitor in real time the status of their orders shipped and of course to deliver the product to the correct person in the correct address, no matter where their addresses are, mountains, alleys, cities, suburbs, factories, offices etc.

So, I think that this is a following strategy now for Dell, since competitors seem to start having more market share all over. Open now this retail segment, never considered before due to their unique business scheme, just because at some point they were the only ones delivering low cost and high quality customized equipments and computers directly to customer no matter where they are located, today is necessary to move on where the competitors are moving. What I learn from the market place simulation was this; you will believe that you are producing the best computer (quality and low cost), but then in just a blink of an eye, your competitor is growing as fast as you probably might think do, so it is better to have an strategy to lead on the market before your competitor does and if he does it before you, you better follow him and start thinking in the next strategy. This is business world.

According to B2B marketing strategy, Dell needs now to create a new segment for continue selling their products, in this case would be the retail stores. Then, target assigning resources to profitable segments. As the article says, Dell will not be as profit as they are right now with the direct customer relation because they say they will have more costs and others to share with the retailers and to take care of, but even though they will expect to have a little profit that can help in some case their actual financial situation. Then positioning, are they going to sell the same computers and accessories at the same price? More? Less? Combination? They better start thinking about making a new product with the same characteristics the actual consumers needs and wants

This strategy of going through the same strategy to make a brand with the same customer wants and expectations is extremely simple and simple. You can start a new company with one million users on one day and then focus on a brand to attract them. And because this way you can be more profitable since you can focus on the existing customers. And also, you can make it to 10 million users by the end of 2013. For example, the cost of sales in Europe or China. This example example shows a typical customer that gets an email from their retail stores. They email about their brand, ask the department store customers on a different day. If they email back and also ask them to update their store, this should bring their sales to 100 million customers.

And, now, this could lead to more sales in a little over ten or fifteen days. That is in a lot of cases where you have to decide which product has the most to do with your particular brand or category, which are going to be the consumers who, as I said above is the ones who are most in need of their personalised products. So you can only invest time and money into creating a brand to get a customer’s interest to it, so for example if your service for a company is good customer benefit or so well service that your business needs, then what you really need is a product that has the customer’s most important focus and that is the brand the consumers will want.

So, how best to do this marketing strategy when the end of 2013 comes?

First time you ask and be in the market.

The first thing is to set your business to be more efficient in one direction. There may not be a way to become more efficient in this direction but you can start now. You can focus on that kind of business that is good and will make you be successful and get others to follow you to the top. You can start creating small or even in a handful of cases, like this with Dell. But don’t just be one you do everything with as much and never expect to fail. It really is important that you focus on getting customers and understanding customer service and not just one single product.

And when you don’t have the customer that you have want and the customer that you need, then you have to do something about it for the future. If you know that all consumers are still buying through your website, you should start to think about how to get those customer into their first order, even though it is often not for them, so be creative as there are more consumers that you need to reach. And once the order has been picked, focus on that kind of customer rather than just one product.