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Introduction

Dell Corporation is one of the largest vendors for computers and servers all around the world which mainly develops, manufactures, sells, and supports personal computersfor the global market. Although the market for computer industry is competitive and many of manufacturers are struggling with slumping sales and billions of dollars in losses, Dell is still gaining market shares and profits. The innovated strategy---the virtual integration, which was brought by the founder of Dell, Michael Dell plays the significant role in Dell's successful business model. When most of the competitors are still utilizing the tradition Marketing strategies, Dell's unique strategy breaks the traditional boundaries and starts the marketing revolution. However, Dell’s marketingmodel is simple in concept, but complex in execution.Therefore, this report will evaluate the strategic and tactical marketing practices in the Dell case study and identify the critical issues in this case by utilizing and applying the theoretical underpinning from the module. The major factors for Dell's business strategy consist of direct marketing strategy, customerization, inventory control, customer segmentation, customer relationship management. Through the factors and components consisting the Dell's unique business strategy, we can have a better understanding of the background, operation and advantages of virtual integration.
Strategic and Tactical Marketing Practices in Dell' Marketing Strategy
Direct marketing strategy is a pioneering business model in computer industry which proves to be quite successful. "The traditional value chain in the personal computer industry was characterized as'build-to-stock.'PC manufacturers, such as IBM, Compaq, and Hewlett-Packard,designed and built their products with preconfigured options based on marketforecasts" (Achtmeyer, 2002, p. 2 ). They used to produce every components of computer by themselves, and focus on the research and development of latest components. The fate of company depends on who can create more updated products, who can bring fresh products faster. And then the products are transferred from the manufacturers to the whole sellers, then to the retailers. The profit margins for the manufacturers are narrowing under so many links. Under such a competitive market, Dell's direct marketing model brings a fresh look to the computer industry. Theoretically, direct marketing is any unsolicited contact your business makes with existing or potential customers in order to generate sales or raise awareness (business link, 2008). The chart below clearly shows the traditional marketing model and Dell's direct marketing model.
Dell Computer: Using the E-commerce to Support the Virtual Company, 2001
The utilizing of direct marketing works on some premises: Firstly, the customers do not require intense personal introduction about computers by salespeople, they have better understanding of the technology of the components, what they need and what is suitable for them. Secondly, the different components of computers are becoming standard modules, permitting mass customization in computer configuration (Achtmeyer, 2002). With the direct marketing strategy, Dell could best understand the consumer needs by selling computers to them and receive direct information from customers, and promote to provide more suitable products. What本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。