Dells Differentiation Strategy free essay sample

An analysis of Dells differentiation strategy in areas of direct selling, developing new technology and meeting clients expectations. This paper analyzes Dells differentiation strategy in areas of direct selling, developing new technologies and meeting customers expectation. The author describes how Dell differentiated itself from other competitors in the computer industry such as Cisco Systems, Compaq and IBM. A differentiation strategy incorporates the development of a product or service so it can offer a customer perceived uniqueness in the marketplace that seems to be better than or different from the products of the competition. Because of the products unique attributes, if suppliers increase their prices the firm may be able to pass along the costs to its customers who cannot find substitute products easily. Dell was founded in 1984 on a simple direct-to-consumer model, which was their differentiation strategy. The idea behind selling computer systems directly to customers was that could better understand customer needs, and efficiently and effectively provide the most compelling computing solutions to meet those needs. We will write a custom essay sample on Dells Differentiation Strategy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This direct business model, according to Dell, eliminates retailers that add unnecessary time and cost. They can also diminish Dells understanding of customer expectations. The way they differentiated themselves form the market was that Dell builds every system to order and offers their customers powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slower-moving, indirect retail channels of distribution, thusly being able to turn inventory over every four days on average. Dells thrive to market leadership results from the companys goal to sell computing products and services that measure up to industry-standard technology, directly to customers.