Dell rode to success by offering low-priced computers, logistical efficiency, and after-sales service. The

firms maniacal focus on low costs has been a key ingredient in its success. When it shifted its customer-

service call centers to India and the Philippines to cut costs, however, understaffing frequently led to 30-

minute waits for customers. Almost half the calls required at least one transfer. To discourage customer

calls, Dell even re- moved its toll-free service number from its Web site. With customer satisfaction

slipping, while competitors matched its product quality and prices and offered better service, Dells market

share and stock price both declined sharply. Thats plus the continuous change in technology that Dell has

to cope with and invest millions of Dollars to be able to survive. Dell ended up hiring more North American

call center employees. The team was managing cost instead of managing service and quality, Michael

Dell confesses.

This has changed due to a decision made by Dell to change the whole strategy. First Dell, decided to work

on the concept of Customization where every buyer/user can customize his/her laptop according to the

specifications/features desired. In Addition to that, Dell launched Alien laptop series targeting its buyers

who can be a potential gamer Fans. Alien was successful in attracting very high number of customers

and created a series of more advanced series of this model as demand grown dramatically. This has

encouraged Michael Dell to decide on manufacturing very high quality Smart Bags with technology

enabled with feature that can recharge your laptop and your Smart phone. This product was considered an

attractive one to many customers but its growth in the market started to slower down. By this, Dell believed

that its customers and even potential ones can spend more on Dell Products.

Dell relied more on international distributors and retailers along with contracting with different research

agencies in order to market their products. Media was another factor that Dell has to out into consideration

along with its Chinese suppliers that have a strong role on marinating the efficiency of their products. After

doing an extensive research and surveying a sample of their customers, they found that: Buyers are greatly

influenced by groups opinion, Word of mouth, status of buyer in the society and his core values and beliefs.

This can make the buyer think very well before purchasing this type of high-end laptops and exert an effort

to make a final decision as differences can exist comparing to competing brands such as HP, Huawei, and

Lenovo. Another important factor can be the development of new Generations wants and their

characteristics; recent pandemic and its foreseen impact on Dells sales; and spending patterns of its

potential buyers.

Recently, the company has decided to stop producing its well-known Slim Cases due to low demand on

them and complains of many customers. Dell will direct its investment in increasing its promotions towards

its main target markets in order to attract more from its high profile customers. Another challenge to Dell

is how to main its position in the Market in 2021 which cant be predicted by stock market indicators only

but might need a more in-depth research into consumers behavior.

1. a. As a marketer, identify the type of Marketing management concepts that

   were adopted by Dell? Justify your answer? b. How did Dell was successful in increasing share of its customer? Can

   you suggest how can they increase customer equity?

2. a. IdentifytheMicro-environmentactorsandMacro-environmentforces

3. that were mentioned on the case? Justify your answer. b.What are the main strengths, weakness of Dell and the main threats that

4. are challenging to it?