dell’s strategy for growth* 1.current market portfolio * business model 2. advantages of dell...

Dell’s Strategy for Growth*1. Current Market Portfolio* Business Model2. Advantages of Dell Model

1. Cost efficiency of direct model2. Customization & Responsiveness

3. Focus on detail

3. Three-Step Growth Strategy*

4. New Frontier for Dell: Consumer Electronics

Dell’s Strategy for Growth5. Three Main Challenges for CE Market

1. No Customization and Less Responsiveness2. Will People Buy CE Direct?

3. Dell’s Brand Equity for CE ProductMike George’s two comments

6. Playing the OEM game (back page) - Who are customers?

- Upside & Downside - Response from resellers and small

manufacturers

Dell’s Strategy for Growth7. Recent Performance (FT article in 2005)

1. Slowing growth2. “Now Dell is the market.”

3. Heavy Reliance on PC segment4. Slipping Price Advantage and Built-to-Order

System5. Competitors have caught up

6. Dilemma for Dell - Shoot low?

- Shoot high? - Is Dell Model Obsolete for Now?

Dell To Rely Less on Direct Sales (WSJ article in 2007)

• Dell’s Broad, Global Retail Push– Selling Dell PC through Wal-Mart

• Why Go to Retail?• What is happening to Its Direct business

model?• “The Direct model has been a

revolution, but it is not a religion.” - Michael Dell

Discounting Continues to Haunt Dell (WSJ article in 2010)

• Revenue is up, but profit is down. Why?– HP: Revenue is up and profit is also up

• Now no. 3 behind HP and Acer

• Share of total revenue from consumer market: 2003 (???) 2010 (???)

• Compete against “white box”

Customer Health Care1. Current Healthcare Delivery System

2. Problems of the current system

3. Business Model of a walk-in clinic: Accessible and affordable health care: - limited service, lower prices, and using nurses 90% satisfaction rate and cover uninsured

4. Challenges for this idea1. Doctor Skepticism & Resistance2. Recruiting Nurse Practitioners3. Customer Awareness4. State Regulation!

Wal-Mart To Expand In-Store Clinics1. 400 Clinics by year 2010

2. Service delivered by local health care practice Co-branding

3. No proven track record so far What do you think?- Pros: Convenience and Cheap

- Cons: Can you trust them?

Move Over, Coke1. Key Challenges for small guys

2. Describe Bikoff’s Product Strategy

3. Describe Bikoff’s Marketing Strategy

4. Describe Bikoff’s Marketing Channel Strategy

1. Structure: types of stores, intensity, level 2. Management: support & relationship

* Positioning of vitaminwater

After the Sale is Over1. Brand Ownership Change

2. What happened to existing distribution network of Vitaminwater?

3. What is the problem here?

4. How would you solve the problem?

5. Learning from the past: Snapple

Ping Golf Club

1. Through what type of channel intermediary are Ping Clubs being sold?

2. What are key factors that drive Ping’s channel choice?

3. What is the intensity of their distribution?

4. How would you describe Ping’s channel Relationship management?

The Monster that Ate Hollywood

• Key Word: Channel Evolution– Supply side factor, demand side factor, technology

• Changes in Movie Studios• Changes in Studios’ Competitive Strategy*

– Movie Making Side– Revenue Model (Distribution and Exhibition)

• Changes due to alternative movie distribution channels: – Marketing Channels: – Products: – Markets: