Market Model: Patterns of Change



Market Model: Patterns of Change

Brief Overview of the Company

The company that I have chosen that is publicly traded is Dell. Dell is currently ranked as second when it comes to computer hardware design, distribution and manufacturing and currently has a market share of 16 percent. Dell as a company was founded in the year of 1984 by Michael Dell. In the year of 1985, the company developed its very first design of a personal computer known as “The Turbo PC” and it was priced as US$795. The sales volume in that particular year had crossed $50 Million per day via internet and Dell as a company had revenue of $55.908 Billion and had 78,000 employees. Dell underwent severe crisis in the recent past and was on the verge of bankruptcy when it Michael Dell decided to revamp the company completely and move towards the road of success (www.investorguide.com). Dell believes in direct selling via stores as well as kiosks in the mall. It gives its customers the opportunity to see, touch and browse through different products and then making the purchase decisions.

Impact of Change on Business Model of Dell

Dell, post revamping, has shifted its focus on retailing by halting its operations in the traditional manner. It has developed a new business model and the key feature it has hiring highly competent employees from the competitors companies. Dell's focus has also said to shift towards the retail side (Edwards, 2009). It was essential to render the consumerism and the retail side of the business for the company to flourish. Dell has decided to enter into new markets and at the same time ensuring that they carve a niche for themselves in the new markets. The same idea was opposed earlier and it is the only premise based on which it suffered. It is this strategy that can aid in acquiring high market share as well as attracting new segments or untapped customer segments of the market.

Consumerism & Customer Groups of Dell

Dell's emphasis on the consumer side led to the establishment of the elements of channels. The set of decision makers at Dell along with the presence of difference channels entails high potential for growth and maximization of profits. The company is more inclined towards the protection of the consumer interests and at the same time also promoting the interests of the consumer. The consumers can be enlightened about the products and services of Dell via dissemination of the right information at the right time, that is, when the customer requires. Consumerism, simultaneously, also has the ability to boost the consumption of services and goods which in the long run can benefit the economy.

When it comes to the customer groups, Dell recently hired new design executives. Dell has planned on tapping four customer segments such as educational buyers, the government, the organizations, customers as well as medium and small businesses. When it comes to the management, initially there were all departments were head by one management and now ...