Most Dangerous Thing for Dell to Extrapolate
Dell has for a long time used trend extrapolation in focusing on historical data on technological requirements since its inception for projecting future trends. If they will assume that the demand for their computers will continue like in the past. This assumption to quantify any change in performance of computing technology based on either straight line trend extrapolation, that is, on the continuation of the past behavior oblivious of whether there might have ever had some regular rate of change in the past of functional capability.
It is probable this trend can only be sustained for a limited period (Mars Library, 2011).Michael Dell in 1981founded a computer company that provided hard-drive upgrades to corporate customers. Soon the company grew and later changed to Dell Co. Inc. Today Dell is multinational company competing with other computer based companies for space in the world technology market.
The technological machine industry has not remained static and steady influxes of the newer companies are in play, and especially with the Republic of China developing fast and cheaper gadgets from its Silicone Valley. There is a technological shift from the much hyped Japan-Made technological products to more affordable gadgets. For this reason, in changing market trends, Dell can no longer sit pretty and do business as it used to be.
New and the existing companies in the technological industry are adopting new methods into the already existing ones to edge one another out of the market share. In the last decades when Dell and other computer based companies, such as Compaq, Toshiba among others is gone. Now new technology that includes a smart phone, IPads and Tablets have flooded the market and almost serve the same purpose as the mainstream computers.
Dell favored disintermediation and eliminated all the middle players in the distribution chain which initially worked to their advantage but not for a long time. This way they thought they were substantially reducing operating costs and improving margins. Though Dell for a long time has repeatedly and with notable success adopted do-my-self means as a direct contact with its customers, this method is fraught with some short and long time inadequacies.
It is a risky method since opportunistic companies emerge in the time to cushion the gap left after eliminating an element in the traditional distribution chain, for example, many young companies like IBM (International Business Machines) and HP (Hewlett- Packard). This opportunistic company poses a great threat by enlisting the support and franchise of already existing companies selling similar products with additional products utilized hand in hand for example computers and Operating Systems to the Internet providers. ( Mars Library, 2011)
Current Strategy
Dell had for a long period continued to offer cost- saving services through highly discounted rates while forging a close contact with their customers. They thought this was a more effective way while eliminating middlemen. With the advent of internet services present in today’s market, Dell can still achieve same and better results by adopting this technology with a broad spectrum effect in information distribution in assessing the demand, knowing the market trends, product improvements. This new technology gives an unparalleled advantage in comparing one company performance, intention and some of their intended market strategies.
With the coming of web administrations present in today's business sector, Dell can, in any case, accomplish same and better results by receiving this innovation with an expansive range impact on data dissemination in evaluating the interest, knowing the business sector patterns, item changes. This innovation gives a definite advantage in contrasting one organization, execution, aim and some of their expected business sector procedures.
Rather than Dell using its accrued profits and sharing with its customers through undercutting, the company should instead franchise and encourage external shareholding in the face of the ever-growing market competition. Also, away from its unique way of costly direct models the company should make use of present technologies for example online marketing. A survey carried by a firm known as Gartner suggested that by the year 2017, with the rise of the related consumer, and the significance of exploration and social media in the making of their decision, the traditional path to purchase has been obliterated. The research recommends the use of the available channels which includes search engines, web pages, blogs, digital advertisements and emails included (Akhtar, 2014).
The companies that already have adopted digital marketing have shown significant growth within a short span of time while cutting down unnecessary costs and still maintaining their profit margins. Adobe, for example, has the distinction as the first to join an integrated digital marketing hub. IBM had for a long time as well played with the idea of creating a digital platform of their own.
In 2009, Adobe with its acquisition of digital marketing and an analytical platform Omniture, which currently works as Adobe Analytics, is at the digital market core solutions. It is a big data tool that enables marketers not just to see who is visiting their website and using their substances, but also to segment those visitors into the particular set based on their demographics as well as online fashions (Akhtar, 2014).
The complexity of reaching many customers through digital options grows up. Dell should adopt this technology and spend on technology, which is a more accurate way to increase their returns in comparison to the traditional way of relying on probabilities. Automating their operations still will have the much-desired way with their valued customers in a more frequent and cost-effective through the existing modern technological channels.
With the technology, they can form specific programs to meet their tailor-made customer desires in a cost effective manner. For instance, HP has adopted merger methods to weather some of the seasonal economic challenges bedeviling Dell; behind the scenes it has been working with large telecommunications and telecom to create a converged communication solution, that is, networking and telecom. This mode of sweeping adoption effectively meets customer’s communication and technological needs (Enerle, 2013).
Industry pioneers such as Apple Computer Inc. for a long time has been using distributors and dealers to gain leverage and gain a wide base of customer. I.B.M. has had one of the most sophisticated field sales organization worldwide, and they chose to sell the PC (Personal Computer) through the channel because it was a preferred way of doing serious business. Compaq market infiltration is equally through following the same channel.
Cisco Systems(an American Multinational IT skills and career building program), is another success story in communication saw virtualization technology as a way to bridge its data center networking dominance in computing and storage area. It adopted the SAN(Storage Area Network), it provides enhanced data storage network by connecting to the servers, the market then later the server market, widely adopted a way of running storage of data(Duffy, 2011).
References
Akhtar,O.(2014). Who is Winning the Marketing Cloud Wars. The HUB. http://www.thehubcomms.com/marketing-cloud/who-is-winning-the-marketing-cloud-wars/article/336854/
Enderle,R.(2104). Why HP’s Successful Turnaround is Closer than Than it Looks. http://www.cio.com/article/2382517/tablets/why-hp-s-successful-turnaround-is-closer-than-it-looks.html
Duffy,J.(2011). Cisco Vs. HP Vs. IBM Vs Dell. Cisco Invades the Data Center Server Market and Former Partners Respond by Acquiring Rival. Networld.(2011).http://www.networkworld.com/article/2182529/lan-wan/cisco-vs--hp-vs--ibm-vs--dell.html
