There is no a standard approach which would help a company to achieved a global success and brand recognition. Every business searches for unique strategies and methods which best suit its marketing objectives and products delivered to a mass consumer. Dell, an American-based technology company, has developed a set of unique methods and tools used in marketing and management in order to obtain and sustain its brand image and service quality. These methods can be described as company’s philosophy and outward manifestations of a basic and important development in marketing and management (Corporate Strategy. Boston Consulting Group 2008).
From historical perspective, Dell tends to see marketing operations as complete systems. The first computer of Dell was “Turbo PC” appeared on the market in 1985. Since that time, Dell is a market leader in personal computers, servers, network switches and software. In order to coordinate these divisions and improve marketing management, Dell follows the systems approach essential for effective decision making, for the utilization of models in marketing, and for the application of computer technology. 1996, Dell sold its first computer through the web site. The main silent factors of success are unique corporate strategy and coordination activities used by Dell.
These strategies are used by every company and business, only an effective selection and analysis of the market help Dell to achieve success on the global scale. In contrast to many other companies in this industry, Dell involves employees in corporate strategy management and decision-making. Employees must understand, accept and internalize corporate strategy if the strategic blueprint is to be transformed into positive strategic results (Cage 2009).
Blue Ocean Strategy
Dell Corporation follows a Blue ocean strategy based on a unique product image and innovative solutions in computer industry. Suppliers, strategic partners and customers must have a basic understanding and appreciation of the firm’s strategic direction if these stakeholder relationships are to flourish and be productive. The financial community must be aware of a company’s strategic intentions in order to properly evaluate a firm’s current value and prospects for the future.
Only when the corporate strategy message is communicated in a clear, concise, timely and persuasive manner to key corporate stakeholders does the firm have an opportunity to achieve competitive advantage (Dell’s Corporate Strategy1997). The focus of Dell is on corporate strategy communications designed to create competitive advantage. Effective strategy communications can result in significant benefits. Payoffs include an improved climate within the financial community, better relationships with suppliers, customers and strategic partners and increased employee morale. Some firms have experienced a boost in their share price and improved shareholder value (Lee 2007).
Coordination of organizational activities is often neglected by big companies perceived as a traditional and old fashioned tool of management. Thus, Dell uses this strategy in order to improve its internal activities and increase productivity. Coordination necessitates communication, formal and informal, vertical and horizontal, to and from the marketplace. In Dell, with multiple levels of management, widely diversified products, and geographically decentralized plants and distribution centers, complex networks of marketing communication have come into being, and the information it gathers affects the efficiency of the organization and largely determines its operational effectiveness. Dell contains several structures.
A task structure delineates the work people are expected to perform. An authority structure gives some people the responsibility for directing others, although in practice there may be a discrepancy between responsibility and authority. A status structure determines the rights and privileges of people. A prestige structure permits people to expect deferential behavior from others. A friendship structure stresses interpersonal trust. These structures have an important effect on organizational relationships and particularly on communication. In establishing organization patterns, Dell management is concerned with the span of control — the number of subordinates reporting to or accountable to a manager (Financial News 2008).
Whether Blue Ocean became a Red Ocean?
It is possible to assume that in 10 years, Dell’s strategy and market position will be characterized as Red ocean strategy. In 10 years, the computer market will be saturated with low cost computers and digital devices, so the majority of Dell’s products will have to compete with other companies in the same industry. These decisions are based on information from market research, sales analysis, distribution cost accounting, standard costs, surveys, experiments, sales forecasts, simulations, and statistical techniques.
The information required concerns competitive prices, cost data, demand estimates, product profitability, salesmen and customer reactions, and middlemen needs. Information about future demand schedules, future competitive reactions, and future costs is incomplete at best. Dell passes information to markets through promotion and receive information from them through feedback (Dell Inc. Still a growth Company? 2006).
Financial reports allow to say that Dell will remain competitive and will be able to increase its sales during the next years. Analysis of four main areas of performance shows that Dell uses traditional approaches to management and marketing but selects a unique combination of methods and tools which the company to compete and create a strong brand image. The philosophy implies that such activities as pricing, management of the sales force, advertising, personal selling, credit, physical distribution, and other marketing efforts should be integrated, coordinated, and directed at satisfying consumer wants.
It also emphasizes that the success of Dell is dependent on profitable sales, which in turn depend on consumer action. Dell gives a special attention to marketing resources, with particular emphasis on the organization of marketing activities. As an organizing activity, marketing, through institutions and processes, matches products and services with needs. Through promotion, Dell unleashes stimuli and supplies the marketplace or components of the marketing network with informative and persuasive messages in order to stimulate, reinforce, or modify behavior (Dell To Complete Acquisition 2007).
Conversely, through feedback the marketplace and marketing network transmit information to a company. In marketing,, this span should also include the span of markets and variety of product line. As product diversity, geographical spread, and heterogeneity of markets increase, so do the complexities of marketing organization. The main silent factors that influence success of Dell are price and integrated marketing communication (IMC. Dell underlines that since they have both economic and political dimensions, pricing policies are more likely to be governed by tradition than by innovation. The uniqueness of Dells approach is that its executives consider the whole marketing system — manufacturers, wholesalers, retailers, and consumers — and the impact at each stage (Dell Home Page 2008).
Corporate Strategy. Boston Consulting Group. 2008. Web.
Cage, M. 2009, Dell’s Marketing Strategies. Web.
Dell Home Page. 2008. Web.
Dell’s Corporate Strategy. 1997. Web.
Dell To Complete Acquisition Of Dell Financial Services. 2007. Web.
Dell Inc. Still a growth Company? 2006. Web.
Financial News. 2008. Web.
Lee, L. Dell’s marketing Makeover. Business Week. 2007. Web.