CHAPTER-1 INTRODUCTION
Dell, Incorporated Incorporated is a computer computer hardware hardware manufacturer manufacturer and distributor distributor.. The company is one of the world's largest computer distributors distributors in terms of both quantity of units’ sold and gross income, and one of the United States' largest corporat corp orations ions.. rom !""" unti untill #$$% Del Delll deli deli&ere &ered d more com complet pletee com compute puterr systems worldwide per quarter than any other ( manufacturer. )owe&er, a bad reputation stemming from poor customer support had seen Dell's mar*et shrin*, with ri&al )ewlett+ac*ard outselling Dell for the first time in - #$$%. Dell is now no w
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laptop models, a community+dri&en idea generation website, and a mo&e to less e/pensi&e 01D processors. 1ost of Dell's products are I21 (+compatible des*top, laptop, and ser&er computers using Intel or 01D processors. The company also mar*ets a line of )T(+produced handheld computers hand, rebranded computer peripherals such as *eyboards and mice, and Sony+de&eloped monitors and tele&isions. 3ther Dell+ branded peripherals such as scanners and printers are often designed in+house with production outsourced. Dell also distributes third+party hardware such as gaming consoles from Sony, Sony, 4intendo, and 1icrosoft. 3ften Dell will mar*et &ia the company website third+party de&ices that compete with its own products, such as the alm Tungsten handheld that competes with Dell's own 0/im line.
Dell (omputer was founded as ('s imited in !"5- by uni&ersity student 1ichael Dell. Selling assembled computers from his dormitory room, 1ichael abandoned the uni&ersity during the planning stage of his first in+house computer design in !"56. The company was so successful that within two years ('s imited im ited had dist distribu ributio tion n off offices ices in 7ur 7urope, ope, and chan changed ged its gram grammat matical ically+ ly+ incorrect name to Dell (omputer (orporation. 2y !""!, se&en years after selling its first computer, Dell (omputer (orporation was listed in the ortune 6$$. 8ith much mu ch e/ e/pe peri rien ence ce in ma mail il or orde derr te tele leph phon onee sa sale les, s, De Dell ll wa wass on onee of th thee fi firs rstt companies to offer computers for mail order &ia the internet. The Dell (oupon program made many Internet models cheaper than other brands, and continues to be popular to this day da y.
Dell Inc. is an 0merican pri&ately owned multinational computer technology company based in 9ound 9oc*, Te/as, Te/as, United States, that de&elops, sells, repairs and supports computers and related products and ser&ices. 2earing the name of its foun founde derr, 1ich 1ichae aell Dell Dell,, the the comp compan any y is one one of the the larg larges estt tech techno nolo logi gica call corporations in the world, employing more than !$:,:$$ people worldwide. Dell sells personal computers, ser&ers, data storage de&ices, networ* switches, software, software, computer peripherals, )DT;s, cameras, printers, 1: players and also electronics built by other manufacturers. The company is well *nown for its inno&ations in supply chain management and electronic commerce, particularly its direct+sales model and its
Dell is listed at number 6! in the ortune 6$$ list. In #$!# it was the third largest ( &endor in the world after ) and eno&o. Dell is currently the >! shipper of ( monitors in the world. Dell is the si/th largest company in Te/as by total re&enue, according according to ortune maga?ine. maga?ine. It is the second largest non+oil company in Te/as Te/as @ behind 0TAT 0TAT @ and the largest company in the Breater 0ustin area. It was a publicly traded company C40SD0 D7E, as well as a component of the 40SD0+!$$ and SA 6$$, until it was ta*en pri&ate in a le&eraged buyout which closed on 3ctober :$, #$!:. Dell traces its origins to !"5-, when 1ichael Dell created ('s imited while a student student of the Uni&ers Uni&ersity ity of Te/as at 0ustin. 0ustin. The dorm+roo dorm+room m headquar headquartere tered d company sold I21 (+compatible computers built from stoc* components. Dell dropped out of school to focus full+time on his fledgling business, after getting about about F:$$,$$$ F:$$,$$$ in e/pansio e/pansion+ca n+capita pitall from his family family.. In !"56, !"56, the company
produced the first computer of its own design, the Turbo (, which sold for FG"6.('s imited ad&ertised its systems in national computer maga?ines for sale directly to consumers and custom assembled each ordered unit according to a selection of options. The company grossed more than FG: million in its first year of operation. In !"5%, 1ichael Dell brought in ee 8al*er, a 6!+year+old &enture capitalist, as president and chief operating officer, to ser&e as 1ichael's mentor and implement 1ichael's ideas for growing the company. 8al*er was also instrumental in recruiting members to the board of directors when the company went public in !"55. 8al*er retired in !""$ due to health, and 1ichael Dell hired 1orton 1eyerson, former (73 and president of 7lectronic Data Systems to transform the company from a fast+growing medium+si?ed firm into a billion+dollar enterprise. The company changed its name to Dell (omputer (orporation in !"55 and began e/panding globally. In Hune !"55, Dell's mar*et capitali?ation grew by F:$ million to F5$ million from its Hune ## initial public offering of :.6 million shares at F5.6$ a share .In !""#, ortune maga?ine included Dell (omputer (orporation in its list of the world's 6$$ largest companies, ma*ing 1ichael Dell the youngest (73 of a ortune 6$$ company e&er. In !"":, to complement its own direct sales channel, Dell planned to sell (s at big+bo/ retail outlets such as 8al+1art, which would ha&e brought in an additional F!#6 million in annual re&enue. )owe&er, 2ain consultant e&in 9ollins persuaded 1ichael Dell to pull out of these deals, belie&ing they would be money losers in the long run. Indeed, margins at retail were thin at best and Dell left the reseller channel in !""-. 9ollins would soon Join Dell full+time and e&entually become the company resident and (73. Growth in 1990s and early 000
3riginally, Dell did not emphasi?e the consumer mar*et, due to the higher costs and unacceptably low profit margins in selling to indi&iduals and households, howe&er this changed when the company’s Internet site too* off in !""% and !""G. 8hile the industry’s a&erage selling price to indi&iduals was going down,
Dell’s was going up, as second+ and third+time computer buyers who wanted powerful computers with multiple features and did not need much technical support were choosing Dell. Dell found an opportunity among (+sa&&y indi&iduals who li*ed the con&enience of buying direct, customi?ing their ( to their means, and ha&ing it deli&ered in days. In early !""G, Dell created an internal sales and mar*eting group dedicated to ser&ing the home mar*et and introduced a product line designed especially for indi&idual users. !ro" 199# to 00
%$ Dell enJoyed steady growth and it gained mar*et share from competitors e&en during industry slumps. During the same period, ri&al ( &endors such as (ompaq, Bateway, Inc., I21, ac*ard 2ell, and 0ST 9esearch would struggle and e&entually lea&e the mar*et or get bought out. Dell surpassed (ompaq to become the largest ( manufacturer in !""". 3perating costs made up only !$ percent of Dell's F:6 billion in re&enue in #$$#, compared with #! percent of re&enue at )ewlett+ac*ard, #6 percent at Bateway, and -% percent at (isco. In #$$#, when (ompaq merged with )ewlett ac*ard Cthe -th place ( ma*erE, the newly combined )ewlett ac*ard too* the top spot but struggled and Dell soon regained its lead. Dell grew the fastest in the early #$$$s. Dell attained and maintained the >! rating in ( reliability and customer ser&iceKtechnical support, according to (onsumer 9eports, year after year, during the mid+to+late "$s through #$$! right before 8indows L was released. In !""%, Dell began selling computers through its website. In the mid+!""$s, Dell e/panded beyond des*top computers and laptops by selling ser&ers, starting with low+end ser&ers. The maJor three pro&iders of ser&ers at the time were I21, )ewlett ac*ard, and (ompaqM many of which were based on proprietary technology, such as I21's ower- microprocessors or &arious proprietary &ersions of the U4IL operating system. Dell's new ower 7dge ser&ers did not require a maJor in&estment in proprietary technologies, as they ran 1icrosoft 8indows 4T on Intel chips, and could be build cheaper than its competitors. (onsequently, Dell's enterprise re&enues, almost none/istent in !""-, accounted
for !: percent of the company's total inta*e by !""5. Three years later Dell passed (ompaq as the top pro&ider of Intel+based ser&ers, with :! percent of the mar*et. Dell's first acquisition occurred in !""" with the purchase of (on&erge 4et Technologies for F::# million, after Dell had failed to de&elop an enterprise storage system in+house, howe&er (on&erge 4et's elegant but comple/ technology did not fit in with Dell's commodity+producer business model, forcing Dell to write down the entire &alue of the acquisition. In #$$#, Dell e/panded its product line to include tele&isions, handhelds, digital audio players, and printers. (hairman and (73 1ichael Dell, howe&er, had repeatedly bloc*ed resident and (33 e&in 9ollin's attempt to lessen the company's hea&y dependency on (s, which 9ollins wanted to fi/ by acquiring 71( (orporation. In #$$:, the company was rebranded as simply
)owe&er in #$$6, while earnings and sales continued to raise, sales growth slowed considerably, and the company stoc* lost #6N of its &alue that year. 2y Hune #$$%, the stoc* traded around F#6 USD which was -$N down from Huly #$$6=the high+water mar* of the company in the post+dotcom era.
The slowing sales growth has been attributed to the maturing ( mar*et, which constituted %%N of Dell's sales, and analysts suggested that Dell needed to ma*e inroads into non+( businesses segments such as storage, ser&ices and ser&ers. Dell's price ad&antage was tied to its ultra+lean manufacturing for des*top (s, howe&er this became less important as sa&ings became harder to find inside the company's supply chain, and as competitors such as )ewlett+ac*ard and 0cer made their ( manufacturing operations more efficient to match Dell, wea*ening Dell's traditional price differentiation. Throughout the entire ( industry, declines in prices along with commensurate increases in performance meant that Dell had fewer opportunities to up sell to their customers Ca lucrati&e strategy of encouraging buyers to upgrade the processor or memoryE. 0s a result the company was selling a greater proportion of ine/pensi&e (s than before, which eroded profit margins. The laptop segment had become the fastest growing of the ( mar*et, but Dell produced low+cost noteboo*s in (hina li*e other ( manufacturers which eliminated Dell's manufacturing cost ad&antages, plus Dell's reliance on Internet sales meant that it missed out on growing noteboo* sales in big bo/ stores. (47T has suggested that Dell was getting trapped in the increasing commoditi?ation of high &olume low margin computers, which pre&ented it from offering more e/citing de&ices that consumers demanded. Despite plans of e/panding into other global regions and product segments, Dell was hea&ily dependent on U.S. corporate ( mar*et, as des*top (s sold to both commercial and corporate customers accounted for :# percent of its re&enue, 56 percent of its re&enue comes from businesses, and Si/ty+four percent of its re&enue comes from 4orth and South 0merica, according to its #$$% third+quarter results. )owe&er, U.S. shipments of des*top (s were shrin*ing. urthermore, the corporate ( mar*et which purchases (s in upgrade cycles had largely decided to ta*e a brea* from buying new systems. The last cycle started around #$$#, three or so years after companies started buying (s ahead of the percei&ed O# problems, and corporate clients were not e/pected to upgrade again until e/tensi&e testing of 1icrosoft's 8indows ;ista Ce/pected in early #$$GE, putting the ne/t upgrade cycle around #$$5.)ea&ily depending on (s, Dell had to slash prices to boost sales &olumes, while demanding deep cuts from suppliers.
Dell had long stuc* by its direct sales model. )owe&er consumers had become the main dri&ers of ( sales in recent years, yet there had a decline in consumers purchasing (s through the 8eb or on the phone, as increasing numbers were &isiting consumer electronics retail stores to try out the de&ices first. Dell's ri&als in the ( industry, ), Bateway and 0cer, had a long retail presence and so were well poised to ta*e ad&antage of the consumer shift. The lac* of a retail presence stymied Dell's attempts to offer consumer electronics such as flat+panel T;s and 1: players. Dell responded by e/perimenting with mall *ios*s, plus quasi+retail stores in Te/as and 4ew Oor*. Dell had a reputation as a company that relied upon supply chain efficiencies to sell established technologies at low prices, instead of being an inno&ator. 2y the mid+#$$$s many analysts were loo*ing to inno&ating companies as the ne/t source of growth in the technology sector. Dell's low spending on 9AD relati&e to its re&enue Ccompared to I21, )ewlett ac*ard, and 0pple Inc.E=which wor*ed well in the commoditi?ed ( mar*et=pre&ented it from ma*ing inroads into more lucrati&e segments, such as 1: players and later mobile de&ices. Increasing spending on 9AD would ha&e cut into the operating margins that the company emphasi?ed. Dell had done well with a hori?ontal organi?ation that focused on (s when the computing industry mo&ed to hori?ontal mi/+and+match layers in the !"5$s, howe&er by the mid+#$$$ the industry shifted to &ertically integrated stac*s to deli&er complete IT solutions and Dell lagged far behind competitors li*e )ewlett ac*ard and 3racle. Dell's reputation for poor customer ser&ice, since #$$#, which was e/acerbated as it mo&ed call centres offshore and as its growth outstripped its technical support infrastructure, came under increasing scrutiny on the 8eb. The original Dell model was *nown for high customer satisfaction when (s sold for thousands but by the #$$$s, the company could not Justify that le&el of ser&ice when computers in the same line+up sold for hundreds. 9ollins responded by shifting Dic* )unter from head of manufacturing to head of customer ser&ice. )unter, who noted that Dell's D40 of cost+cutting
had spent F!$$ million in Just a few months to impro&e on this, and rolled out Dell (onnect to answer customer inquiries more quic*ly. In Huly #$$%, the company started its Direct#Dell blog, and then in ebruary #$$G, 1ichael Dell launched IdeaStorm.com, as*ing customers for ad&ice including selling inu/ computers and reducing the promotional
Dell announced a change campaign called
reduction in the number of managers reporting directly to 1ichael Dell from #$ to !#, and reduction of
the closure of its manufacturing plant in imeric*, Ireland with the loss of !,"$$ Jobs and the transfer of production to its plant in od? in oland. The release of 0pple's iad tablet computer had a negati&e impact on Dell and other maJor ( &endors, as consumers switched away from des*top and laptop (s. Dell's own mobility di&ision has not managed success with de&eloping smart phones or tablets, whether running 8indows or Boogle 0ndroid. The Dell Strea* was a failure commercially and critically due to its outdated 3S, numerous bugs, and low resolution screen. Info8orld suggested that Dell and other 371s saw tablets as a short+term, low+in&estment opportunity running Boogle 0ndroid, an approach that neglected user interface and failed to gain long term mar*et traction with consumers .Dell has responded by pushing higher+end (s, such as the LS line of noteboo*s, which do not compete with the 0pple iad and indle ire tablets. The growing popularity of smart phones and tablet computers instead of (s dro&e Dell's consumer segment to an operating loss in : #$!#. In December #$!#, Dell suffered its first decline in holiday sales in fi&e years, despite the introduction of 8indows 5. In the shrin*ing ( industry, Dell continued to lose mar*et share, as it dropped below eno&o in #$!! to fall to number three in the world. Dell and fellow 0merican contemporary )ewlett ac*ard came under pressure from 0sian ( manufacturers eno&o, 0sus, and 0cer, all of which had lower production costs and willing to accept lower profit margins. In addition, while the 0sian ( &endors had been impro&ing their quality and design, for instance eno&o's Thin*ad series was winning corporate customers away from Dell's laptops, Dell's customer ser&ice and reputation had been slipping.P%:QP%-Q Dell remained the second+most profitable ( &endor, as it too* !: percent of operating profits in the ( industry during - #$!#, behind 0pple Inc.'s 1acintosh that too* -6 percent, se&en percent at )ewlett ac*ard, si/ percent at eno&o and 0sus, and one percent for 0cer.P%6Q Dell has been attempting to offset its declining ( business, which still accounted for half of its re&enue and generates steady cash flow, by e/panding into the enterprise mar*et with ser&ers, networ*ing, software, and ser&ices. It a&oided
many of the acquisition write downs and management turno&er that plagued its chief ri&al )ewlett ac*ard. Dell also managed some success in ta*ing ad&antage of its high+touch direct sales heritage to establish close relationships and design solutions for clients. )owe&er despite spending F!: billion on acquisitions to di&ersify its portfolio beyond hardware, the company was unable to con&ince the mar*et that it could thri&e or made the transformation in the post+( world, as it suffered continued declines in re&enue and share price. Dell’s mar*et share in the corporate segment was pre&iously a
0fter se&eral wee*s of rumours, which started around Hanuary !!, #$!:, Dell announced on ebruary 6, #$!: that it had struc* a F#-.- billion le&eraged buyout deal that would ha&e delisted its shares from the 40SD0 and )ong ong Stoc* 7/change and ta*en it pri&ate. 1ichael Dell and Sil&er a*e artners, aided by a F# billion loan from 1icrosoft, will buy the public shares at F!:.%6 a piece. The F#-.- billion buyout is the largest le&eraged buyout bac*ed by pri&ate equity since the #$$G financial crisis. It is also the largest technology buyout e&er, surpassing the #$$% buyout of ree scale Semiconductor for F!G.6 billion. The founder of Dell, 1ichael Dell, said of the buyout
institutional shareholders ha&e &oiced opposition, including South eastern 0sset 1anagement and 1ason )aw*ins. 1ichael Dell owns the largest single share of the company's stoc* and was part of negotiations to go pri&ate, howe&er he is offering only FG6$ million of his own money for a deal that will in&ol&e almost F!% billion in new debt. T. 9owe rice, which has the third largest holding, also obJected to the low price of the proposal. South+eastern 0sset 1anagement, the largest shareholder of Dell stoc* with about 5.6N, is opposed to the deal at the per share price of F!:.6$ to F!:.G6 as they &alue the company at F#:.G# a share.Southeastern also complained that the o&erseas funds aren't offered to sweeten the buyout offer. Typical le&eraged buyouts ha&e been &iewed as tools of &ulture capitalists. 3rdinarily, the buyer see*s to brea* up the firm and lay off wor*ers, or bring greater efficiency and new management to a troubled firm. The Dell le&eraged buyout is unusual because the dri&ing force behind the deal was not a &ulture capitalist, but rather, 1ichael Dell, who was already the (hairman and (73, founder, and largest shareholder of the firm. Unli*e most le&eraged buyouts that aim to wrest management control away from incumbents, the Dell deal intends to *eep the same leadership team in place. The main aim of Dell's le&eraged buyout is to reJigger the company’s financial structure. 2y going pri&ate, Dell would be able to radically restructure its legacy ( business and build up its enterprise solutions and cloud computing, without worrying about the impact on its quarterly results and its stoc* price. Bartner has warned that this may include Dell lea&ing the ( mar*et entirely. In 1arch #$!:, the 2lac*stone Broup and (arl Icahn e/pressed interest in purchasing Dell .In 0pril #$!:M 2lac*stone withdrew their offer, citing deteriorating business. 3ther pri&ate equity firms such as 9 A (o. and TB (apital declined to submit alternati&e bids for Dell, citing the uncertain mar*et for personal computers and competiti&e pressures, so the
when the company would hold an I3 to go public again, and one warned R2ut e&en if you can get a F#6bn enterprise &alue for Dell, it will ta*e years to get out. In 1ay #$!:, Dell Joined his board in &oting for his offer. The following 0ugust he reached a deal with the special committee on the board for a raised price of F!:.G6 plus a special di&idend of !: cents per share, as well as a change to the &oting rules. The offer was accepted on September !# and closed on 3ctober :$, #$!:, ending Dell's #6 year run as a publicly traded company. 0fter the buyout the newly pri&ate Dell offered a ;oluntary Separation rogramme that they e/pected to reduce their wor*force by up to se&en percent. The reception to the program so e/ceeded the e/pectations that Dell may be forced to hire new staff to ma*e up for the losses. A.,isitions
or more details on this topic, see ist of Dell ownership acti&ities. In #$$%, Dell acquired 0lien ware, a manufacturer of high+end (s popular with gamers. The company acquired 7qual ogic on Hanuary #5, #$$5, to gain a foothold in the iS(SI storage mar*et. 2ecause Dell already had an efficient manufacturing process, integrating 7qual ogic's products into the company dro&e manufacturing prices down. In #$$", Dell acquired erot Systems, a technology ser&ices and outsourcing company, mainly acti&e in the health+sector, founded by former presidential hopeful ). 9oss erot In #$$", Dell acquired erot Systems, based in lano, Te/as, in a reported F:." billion deal, and amalgamated into Dell Ser&ices. The acquired business pro&ided Dell with applications de&elopment, systems integration, and strategic consulting ser&ices through its operations in the U.S. and !$ other countries. In addition, the acquisition of erot brought a &ariety of business process outsourcing ser&ices, including claims processing and call centre operations.
3n ebruary !$, #$!$, the company acquired 0(7 4etwor*s a leader in Systems 1anagement 0ppliances. The terms of the deal were not disclosed. 3n 0ugust !%, #$!$, Dell announced plans to acquire the data storage company :09. 3n September #, )ewlett+ac*ard offered F:: a share for :09, which Dell declined to match. 3n 4o&ember #, #$!$, Dell acquired Software+as+a+Ser&ice CSaaSE integration leader 2oomi. Terms of the deal were not disclosed. In ebruary #$!! Dell completed the acquisition of (ompellent e/tending the storage solution portfolio. In 0ugust #$!! Dell completed the acquisition of orce!$ networ*s changing the name in Dell orce!$. 2y acquiring this company Dell now has the full Intellectual property for their networ*ing portfolio, which was lac*ing on the Dell ower (onnect range as these products are powered by 2roadcom or 1arcell I1. 3n ebruary #-, #$!# Dell acquired bac*up and disaster reco&ery software solution pro&ider 0pp 0ssure Software of 9eston, ;0. 0pp0ssure deli&ered !" percent re&enue growth in #$!! and o&er :6$$N growth in the prior three years. 0pp0ssure supports physical ser&ers and ;1ware, )yper+; and LenSer&er. The deal represents the first acquisition since Dell formed its software di&ision under former (0 (73 Hohn Swainson. Dell added that it will *eep 0pp0ssure’s #:$ employees and in&est in the company. In 1arch #$!#, US0 Today said that Dell agreed to buy Sonic 8all, and the acquisition was completed " 1ay #$!#.0 (ompany with !:$ patents, Sonic 8all de&elops security products, and is a networ* and data security pro&ider. 3n 0pril #, #$!#, Dell announced that it wants to acquire 8yse, global mar*et+ leader for thin client systems 3n 0pril :, #$!#, Dell announced that it acquired (larity Solutions. (larity, a company offering ser&ices for application CreEhosting, was formed in !""- and
has its headquarters in (hicago. 0t the time of the ta*e+o&er appro/imately G$ people were wor*ing for the company. 3n Huly #, #$!#, Dell announced that it was buying uest Software. The acquisition was completed on #5 September #$!# 3n 4o&ember !%, #$!#, Dell announced it was acquiring Bale Technologies, a pro&ider of Infrastructure 0utomation roducts. Bale Technologies was founded in #$$5 and is headquartered in Santa (lara, (alifornia 3n December !5, #$!#, Dell announced it was acquiring (redant Technologies, a pro&ider of storage protection solutions. (redant is the !"th acquisition in four years, as Dell had spent F!: billion on acquisitions since #$$5 and F6 billion in the past year alone. 3n 1arch #-, #$!-, Dell announced it was acquiring Stat Soft, a global pro&ider of analytics software, in order to bolster its 2ig Data solutions offering. Dell facilities Dell's headquarters is located in 9ound 9oc*, Te/as. 0s of #$!: the company employs about !-,$$$ people in central Te/as and is the region's largest pri&ate employer, which has #,!$$,$$$ square feet C#$$,$$$ m#E of space. 0s of !""" almost half of the general fund of the (ity of 9ound 9oc* originates from sales ta/es generated from the Dell headquarters. Dell pre&iously had its headquarters in the 0rboretum comple/ in northern 0ustin, Te/as. In !"5" Dell occupied !#G,$$$ square feet C!!,5$$ m#E in the 0rboretum comple/. In !""$, Dell had !,#$$ employees in its headquarters. In !"":, Dell submitted a document to 9ound 9oc* officials, titled
demonstration centre, and &isitor meeting room. ess than one month prior to 0ugust #", !""-, Dell mo&ed !,!$$ customer support and telephone sales employees to 9ound 9oc*. Dell’s lease in the 0rboretum had been scheduled to e/pire in !""-. The company sponsors Dell Diamond, the home stadium of the 9ound 9oc* 7/press, the 000 minor league baseball affiliate of the Te/as 9angers maJor league baseball team 2y !""%, Dell was mo&ing its headquarters to 9ound 9oc*. 0s of Hanuary !""% :,6$$ people still wor*ed at the current Dell headquarters. 3ne building of the 9ound 9oc* headquarters, 9ound 9oc* :, had space for %,-$$ employees and was scheduled to be completed in 4o&ember !""%. In !""5 Dell announced that it was going to add two buildings to its 9ound 9oc* comple/, adding !,%$$,$$$ square feet C!6$,$$$ m#E of office space to the comple/ In #$$$, Dell announced that it would lease 5$,$$$ square feet CG,-$$ m#E of space in the as (imas office comple/ in unincorporated Tra&is (ounty, Te/as, between 0ustin and 8est a*e )ills, to house the company's e/ecuti&e offices and corporate headquarters. !$$ senior e/ecuti&es were scheduled to wor* in the building by the end of #$$$. In Hanuary #$$!, the company leased the space in as (imas #, located along oop :%$. as (imas # housed Dell's e/ecuti&es, the in&estment operations, and some corporate functions. Dell also had an option for !:5,$$$ square feet C!#,5$$ m#E of space in as (imas :. 0fter a slowdown in business required reducing employees and production capacity, Dell decided to sublease its offices in two buildings in the as (imas office comple/. In #$$# Dell announced that it planned to sublease its space to another tenantM the company planned to mo&e its headquarters bac* to 9ound 9oc* once a tenant was secured. 2y #$$:, Dell mo&ed its headquarters bac* to 9ound 9oc*. It leased all of as (imas I and II, with a total of :!#,$$$ square feet C#",$$$ m#E, for about a se&en+year period after #$$:. 2y that year roughly !$$,$$$ square feet C",:$$ m#E of that space was absorbed by new subtenants.
In #$$5, Dell switched the power sources of the 9ound 9oc* headquarters to more en&ironmentally friendly ones, with %$N of the total power coming from TLU 7nergy wind farms and -$N coming from the 0ustin (ommunity andfill gas+to+energy plant operated by 8aste 1anagement, Inc. Dell facilities in the United States are located in 0ustin, Te/asM lano, Te/asM 4ashua, 4ew )ampshireM 4ash&ille, TennesseeM 3*lahoma (ity, 3*lahomaM eoria, IllinoisM )illsboro, 3regon Cortland areaEM 8inston+Salem, 4orth (arolinaM 7den rairie, 1innesota CDell (ompellentEM 2owling Breen, entuc*yM incoln, 4ebras*aM and 1iami, lorida. acilities located abroad include enang, 1alaysiaM Liamen, (hinaM 2rac*nell, UM 1anila, hilippines (hennai, India )yderabad, IndiaM )ortolandia and orto 0legre, 2ra?ilM 2ratisla&a, Slo&a*iaM dV, oland, anama (ity in anama, Dublin and imeric*, Ireland and (asablanca, 1orocco. The US and India are the only countries that ha&e all Dell's business functions and pro&ide support globally research and de&elopment, manufacturing, finance, analysis, and customer care. /an,at,rin)
rom its early beginnings, Dell operated as a pioneer in the
out manufacturing of base noteboo*s for configuration in+house .)owe&er, the company's approach has changed, as cited in the #$$% 0nnual 9eport, which states, <8e are continuing to e/pand our use of original design manufacturing partnerships and manufacturing outsourcing relationships.< The 8all Street Hournal reported in September, #$$5 that
le/tronics, situated in (astletroyE closed in #$$#. 0nd Dell Inc. has consolidated production into 71: C71! now PwhenXQ contains only officesE.Subsidies from the olish go&ernment did *eep Dell for a long time. 0fter ending assembly in the imeric* plant the (herrywood Technology (ampus in Dublin was the largest Dell office in the republic with o&er !#$$ people in sales Cmainly U A IrelandE, support Centerprise support for 7170E and research and de&elopment for cloud computing, but no more manufacturing e/cept
Dell's 0lien ware subsidiary,
which manufactures (s in an 0thlone, Ireland plant. 8hether this facility will remain in Ireland is not certain. (onstruction of 71- in dV, oland has started Dell started production there in autumn #$$G. Dell opened plants in enang, 1alaysia in !""6 and in Liamen, (hina in !""". These facilities ser&e the 0sian mar*et and assemble "6N of Dell noteboo*s. Dell Inc. has in&ested PwhenXQ an estimated F%$ million in a new manufacturing unit in (hennai, India, to support the sales of its products in the Indian subcontinent. Indian+made products bear the <1ade in India< mar*. In #$$G the (hennai facility had the target of producing -$$,$$$ des*top (s, and plans en&isaged it starting to produce noteboo* (s and other products in the second half of #$$G. Dell mo&ed des*top and ower 7dge ser&er manufacturing for the South 0merican mar*et from the 7ldorado do Sul plant opened in !""", to a new plant in )ortolandia, 2ra?il in #$$G.
Prod,ts o&e and +rand
Dell's tagline 'Oours is here', as seen at their 1all of 0sia branch in asay (ity, hilippines The corporation mar*ets specific brand names to different mar*et segments. Its 2usinessK(orporate class represent brands where the company ad&ertising emphasi?es long life+cycles, reliability, and ser&iceability. Such brands include 3ptile/ Coffice des*top computer systemsE
Dimension Chome des*top computer systemsE ;ostro CofficeKsmall business des*top and noteboo* systemsE 4 Series Cdes*top and noteboo* computers shipped with inu/ or reeD3S installedE atitude Cbusiness+focused noteboo*sE recision Cwor*station systems and high+performance noteboo*sE, ower 7dge Cbusiness ser&ersE ower ;ault Cdirect+attach and networ*+attached storageE orce!$ Cnetwor* switchesE ower (onnect Cnetwor* switchesE Dell (ompellent Cstorage area networ*sE 7qual ogic Centerprise class iS(SI S04sE Dell 719 Celectronic medical recordsE Dell's )ome 3fficeK(onsumer class emphasi?es &alue, performance, and e/pandability. These brands include Inspiron Cbudget des*top and noteboo* computersE LS Chigh+end des*top and noteboo* computersE 0lien ware Chigh+performance gaming systemsE ;enue CTablets 0ndroid K 8indowsE Dell's eripherals class includes US2 *ey dri&es, (D tele&isions, and printersM Dell monitors includes (D T;s, plasma T;s and proJectors for )DT; and monitors. Dell Ultra Sharp is further a high+end brand of monitors. Dell ser&ice and support brands include the Dell Solution Station Ce/tended domestic support ser&ices, pre&iously
Ce/tended support ser&ices abroadE, Dell 2usiness Support Ca commercial ser&ice+ contract that pro&ides an industry+certified technician with a lower call+&olume than in normal queuesE, Dell 7&er dream Des*top 1anagement C
Dell routes technical support queries on products for the professional mar*et according to component+type and to the le&el of support purchased. 2asic support pro&ides business+hours telephone support and ne/t business+day on+site supportK 9eturn+to+2ase, or (ollect and 9eturn Ser&ices Cbased on contracts purchased at point of saleE Dell ro Support pro&ides #-/G/:%6 telephone and online support, a selection of - or %+hour onsite support after telephone+based troubleshooting, and a 1ission (ritical option with two+hour onsite support, for customers who choose the highest le&el of support for their most critical hardware assets. In addition, the company pro&ides protection ser&ices, ad&isory ser&ices, multi&endor hardware support,
installed originally, purchase date and pro&ides the latest upgrades for the original hardware dri&ers. Dell's (onsumer di&ision has #-/G phone based and online troubleshooting in the United States and (anada. In #$$5, Dell redesigned ser&ices+and+support for businesses with
The board consists of nine directors. 1ichael Dell, the founder of the company, ser&es as chairman of the board and chief e/ecuti&e officer. 3ther board members include Don (arty, 8illiam Bray, Hudy ewent, laus uft, 0le/ 1andl, 1ichael 0. 1iles, and Sam 4unn. Shareholders elect the nine board members at meetings, and those board members who do not get a maJority of &otes must submit a resignation to the board, which will subsequently choose whether or not to accept the resignation. The board of directors usually sets up fi&e committees ha&ing o&ersight o&er specific matters. These committees include the 0udit (ommittee, which handles accounting issues, including auditing and reportingM the (ompensation (ommittee, which appro&es compensation for the (73 and other employees of the companyM the inance (ommittee, which handles financial matters such as proposed mergers and acquisitionsM the Bo&ernance and 4ominating (ommittee, which handles &arious corporate matters Cincluding nomination of the boardEM and the 0ntitrust (ompliance (ommittee, which attempts to pre&ent company practices from &iolating antitrust laws. Day+to+day operations of the company are run by the Blobal 7/ecuti&e 1anagement (ommittee, which sets strategic direction. Dell has regional senior &ice+presidents for countries other than the United States, including Da&id 1armonti for 7170 and Stephen H. elice for 0siaKHapan. 0s of #$$G, other officers included 1artin Bar&in Csenior
&ice president
for
worldwide
procurementE and Susan Shes*ey C&ice president and (hief Information 3fficerE.
/ar2etin)
Dell ad&ertisements ha&e appeared in se&eral types of media including tele&ision, the Internet, maga?ines, catalogs and newspapers. Some of Dell Inc's mar*eting strategies include lowering prices at all times of the year, free bonus products Csuch as Dell printersE, and free shipping to encourage more sales and sta&e off competitors. In #$$%, Dell cut its prices in an effort to maintain its !".#N mar*et share. )owe&er, this also cut profit+margins by more than half, from 5.G to -.: percent. To maintain its low prices, Dell continues to accept most purchases of its products &ia the Internet and through the telephone networ*, and to mo&e its customer+care di&ision to India and 7l Sal&ador. 0 popular United States tele&ision and print ad campaign in the early #$$$s featured the actor 2en (urtis playing the part of
0 Dell ad&ertising campaign for the LS line of gaming computers featured in print in the September #$$% issue of 8ired. It used as a tagline the common term in Internet and gamer slang <T8<, meaning <or The 8in<. )owe&er, Dell Inc. soon dropped the campaign. In #$$G, Dell switched ad&ertising agencies in the US from 22D3 to 8or*ing 1other 1edia. In Huly #$$G, Dell released new ad&ertising created by 8or*ing 1other to support the Inspiron and LS lines. The ads featured music from the laming ips and De&o who re+formed especially to record the song in the ad <8or* it out<. 0lso in #$$G, Dell began using the slogan
2eginning in the year #$!!, Dell began hosting a (onference in 0ustin, TL at the 0ustin (on&ention (entre titled
In late #$$G, Dell Inc. announced that it planned to e/pand its program to &alue+ added resellers C;09sE, gi&ing it the official name of
In #$$5, Dell recei&ed press co&erage o&er its claim of ha&ing the world's most secure laptops, specifically, its atitude D%:$ and atitude D5:$. 0t eno&o's request, the CU.S.E 4ational 0d&ertising Di&ision C40DE e&aluated the claim, and reported that Dell did not ha&e enough e&idence to support it. Retail Dell irst o&ened their retail stores in India' United tates
In the early !""$s, Dell sold its products through 2est 2uy, (ostco and Sam's (lub stores in the United States. Dell stopped this practice in !""-, citing low profit+margins on the business, e/clusi&ely distributing through a direct+sales model for the ne/t decade. In #$$:, Dell briefly sold products in Sears’s stores in the U.S. In #$$G, Dell started shipping its products to maJor retailers in the U.S. once again, starting with Sam's (lub and 8al+1art. Staples, the largest office+
supply retailer in the U.S., and 2est 2uy, the largest electronics retailer in the U.S., became Dell retail partners later that same year. 3ios2s
Starting in #$$#, Dell opened *ios* locations in shopping malls across the United States to pro&ide personal ser&ice to customers who preferred this method of shopping to Internet or telephone orders. Despite the added e/pense, prices at the *ios*s match or beat prices a&ailable through other retail channels. Starting in #$$6, Dell e/panded *ios* locations to include shopping malls across 0ustralia, (anada, Singapore and )ong ong. 3n Hanuary :$, #$$5, Dell shut down all !-$ *ios*s in the U.S. due to e/pansion into retail stores. 2y Hune :, #$!$, Dell had also shut down all of its mall *ios*s in 0ustralia. North Par2 er4ie Centre
In #$$%, Dell Inc. opened one full store, :,$$$+square+foot C#5$ m#E in area, at 4orth ar* (entre in Dallas, Te/as. It operates the retail outlet se&en days a wee* to display about :% models, including (s and tele&isions. 0s at the *ios*s, customers can only see demonstration+computers and place orders through agents. Dell then deli&ers purchased items Just as if the customer had placed the order by phone or o&er the Internet. In addition to showcasing products, the stores also support on+site warranties and non+warranty ser&ice C
Retail tores
0s of the end of ebruary #$$5, Dell products shipped to one of the largest office+ supply retailers in (anada, Staples 2usiness Depot. In 0pril #$$5, uture Shop and 2est 2uy began carrying a subset of Dell products, such as certain des*tops, laptops, printers, and monitors. Since some shoppers in certain mar*ets show reluctance to purchase technological products through the phone or the Internet, Dell has loo*ed into opening retail operations in some countries in (entral 7urope and 9ussia. In 0pril #$$G, Dell opened a retail store in 2udapest. In 3ctober of the same year, Dell opened a retail store in 1oscow. In the U, )1;'s flagship Trocadero store has sold Dell LS (s since December #$$G. rom Hanuary #$$5 the U stores of DSBi ha&e sold Dell products Cin particular, through (urrys and ( 8orld storesE. 0s of #$$5, the large supermar*et+chain Tesco has sold Dell laptops and des*tops in outlets throughout the U. In 1ay #$$5, Dell reached an agreement with office supply chain, 3ffice wor*s Cpart of (oles BroupE, to stoc* a few modified models in the Inspiron des*top and noteboo* range. These models ha&e slightly different model numbers, but almost replicate the ones a&ailable from the Dell Store. Dell continued its retail push in the 0ustralian mar*et with its partnership with )arris Technology Canother part of (oles BroupE in 4o&ember of the same year. In addition, Dell e/panded its retail distributions in 0ustralia through an agreement with discount electrical retailer, The Bood Buys, *nown for
shopping centres throughout 0ustralia. 3n 1arch :!, #$!$ Dell announced to 0ustralian ios* employees that they were shutting down the 0ustralianK4ew Zealand Dell *ios* program. In Bermany, Dell is selling selected smart phones and noteboo*s &ia 1edia 1ar*t and Saturn, as well as some shopping websites. Co"&etition
Dell's maJor competitors include )ewlett+ac*ard C)E, 0cer, uJitsu, Toshiba, Bateway, Sony, 0sus, eno&o, I21, 1SI, Samsung and 0pple. Dell and its subsidiary, 0lien ware, compete in the enthusiast mar*et against 0;0 Direct, alcon 4orthwest, ;oodoo ( Ca subsidiary of )E, and other manufacturers. In the second quarter of #$$%, Dell had between !5N and !"N share of the worldwide personal computer mar*et, compared to ) with roughly !6N. In late #$$%, Dell lost its lead in the (+business to )ewlett+ac*ard. 2oth Bartner and ID( estimated that in the third quarter of #$$%, ) shipped more units Pdead lin*Q worldwide than Dell did. Dell's :.%N growth paled in comparison to )'s !6N growth during the same period. The problem got worse in the fourth quarter, when Bartner estimated that Dell ( shipments declined 5."N C&ersus )'s #:."N growthE. 0s a result, at the end of #$$% Dell's o&erall ( mar*et+share stood at !:."N C&ersus )'s !G.-NE. ID( reported that Dell lost more ser&er mar*et share than any of the top four competitors in that arena. ID('s - #$$% estimates show Dell's share of the ser&er mar*et at 5.!N, down from ".6N in the pre&ious year. This represents an 5.5N loss year+o&er+year, primarily to competitors 71( and I21. Partnershi& with E/C
The DellK71( brand applies solely to products that result from Dell's partnership with 71( (orporation. In some cases, Dell and 71( Jointly design such products. 3ther cases in&ol&e 71( products that Dell supports=generally midrange storage systems, such as fibre channel and iS(SI storage area networ*s.
The relationship also promotes and sells 371 &ersions of bac*up, reco&ery, replication and archi&ing software. 3n December ", #$$5, Dell and 71( announced the multi+year e/tension, through #$!:, of their strategic partnership that began in #$$!. In addition, Dell plans to e/pand its product line+up by adding the 71( (elerra 4L- storage system to the portfolio of DellK71( family of networ*ed storage systems, as well as partnering on a new line of de+duplication products as part of its Tier Dis* family of data+storage de&ices.
3n 3ctober !G, #$!!, Dell announced officially discontinued reselling all 71( storage products, this put end to !$ years of partnership. En4iron"ental reord
Dell committed to reduce greenhouse gas emissions from its global acti&ities by -$N by #$!6, with #$$5 fiscal year as the baseline year. It is listed in Breen peace’s
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to
Breener
7lectronics
that
scores
leading
electronics
manufacturers according to their policies on sustainability, climate and energy and how green their products are. In 4o&ember #$!!, Dell ran*ed #nd out of !6 listed electronics ma*ers Cincreasing its score to 6.! from -.", which it gained in the pre&ious ran*ing from 3ctober #$!$E. Dell was the first company to publicly state a timeline for the elimination of to/ic poly&inyl chloride C;(E and brominated flame retardants C29sE, which it planned to phase out by the end of #$$". It re&ised this commitment and now aims to remo&e these to/ics by the end of #$!! but only in its computing products. In 1arch #$!$, Breenpeace acti&ists protested at Dell offices in 2angalore, 0msterdam and (openhagen calling for Dell’s founder and (73 1ichael Dell to [drop the to/ics’ and claiming that Dell’s aspiration to be [the greenest technology company on the planet’ was [hypocritical’ Dell has launched its first products completely free of ;( and 29s with the B+Series monitors CB##!$ and B#-!$E in #$$".
In its #$!# report on progress relating to conflict minerals, the 7nough roJect rated Dell the eighth highest of #- consumer electronics companies. Green initiati4es
Dell became the first company in the information technology industry to establish a product+recycling goal Cin #$$-E and completed the implementation of its global consumer recycling+program in #$$%. 3n ebruary %, #$$G, the 4ational 9ecycling (oalition awarded Dell its <9ecycling 8or*s< award for efforts to promote producer responsibility. 3n Huly !", #$$G, Dell announced that it had e/ceeded targets in wor*ing to achie&e a multi+year goal of reco&ering #G6 million pounds of computer equipment by #$$". The company reported the reco&ery of G5 million pounds Cnearly -$,$$$ tonsE of IT equipment from customers in #$$%, a ":+percent increase o&er #$$6 and !#.-N of the equipment Dell sold se&en years earlier. 3n Hune 6, #$$G, Dell set a goal of becoming the greenest technology company on 7arth for the long term. The company launched a ?ero+carbon initiati&e that includes reducing Dell's carbon intensity by !6 percent by #$!# requiring primary suppliers to report carbon emissions data during quarterly business re&iews partnering with customers to build the
The company aims to reduce its e/ternal en&ironmental impact through energy+ efficient e&olution of products, and also reduce its direct operational impact through energy+efficiency programmes. Internal energy+efficiency programmes reportedly sa&e the company more than F: million annually in energy+cost sa&ings. The largest component of the company's internal energy+efficiency sa&ings comes through ( power management the company e/pects to sa&e F!.5 million in energy costs through using specialised energy+management software on a networ* of 6$,$$$ (s. Critiis" ee also5 6aws,its in4ol4in) Dell In'
In the !""$s, Dell switched from using primarily 0TL motherboards and SU to using boards and power supplies with mechanically identical but differently wired connectors. These meant customers wishing to upgrade their hardware would ha&e to replace parts with scarce Dell+compatible parts instead of commonly a&ailable parts. 8hile motherboard power connections re&erted to the industry standard in #$$:, Dell continues to remain secreti&e about their motherboard pin+outs for peripherals Csuch as 11( readers and power onKoff switches and 7D'sE In #$$6, complaints about Dell more than doubled to !,6::, after earnings grew 6#N that year. In #$$%, Dell ac*nowledged that it had problems with customer ser&ice. Issues included call transfers P#$:Q of more than -6N of calls and long wait times. Dell's blog detailed the response <8e're spending more than a F!$$ million = and a lot of blood sweat and tears of talented people = to fi/ this.< ater in the year, the company increased its spending on customer ser&ice to F!6$ million. Despite significant in&estment in this space, Dell continues to face public scrutiny with e&en the company's own website littered with complaints regarding the issue escalation process.
3n 0ugust !G, #$$G, Dell Inc. announced that after an internal in&estigation into its accounting practices it would restate and reduce earnings from #$$: through to the first quarter of #$$G by a total amount of between F6$ million and F!6$ million, or # cents to G cents per share. The in&estigation, begun in 4o&ember #$$%, resulted from concerns raised by the U.S. Securities and 7/change (ommission o&er some documents and information that Dell Inc. had submitted. It was alleged that Dell had not disclosed large e/clusi&ity payments recei&ed from Intel for agreeing not to buy processors from ri&al manufacturer 01D. In #$!$ Dell finally paid F!$$ million to settle the S7('s charges of fraud. 1ichael Dell and other e/ecuti&es also paid penalties and suffered other sanctions, without admitting or denying the charges. In Huly #$$", Dell apologi?ed after drawing the ire of the Taiwanese (onsumer rotection (ommission for twice refusing to honour a flood of orders against unusually low prices offered on its Taiwanese website. In the first instance, Dell offered a !"< (D panel for F!6. In the second instance, Dell offered its atitude 7-:$$ noteboo* at 4TF!5,665 CUSF65$E, G$N lower than usual price of 4TF%$,"$$ CUSF!"$$E. (oncerning the 7-:$$, rather than honour the discount ta*ing a significant loss, the firm withdrew orders and offered a &oucher of up to 4TF#$,$$$ CUSF%#6E a customer in compensation. The consumer rights authorities in Taiwan fined Dell 4TF! million CUSF:!#6$E for customer rights infringements. 1any consumers sued the firm for the unfair compensation. 0 court in southern Taiwan ordered the firm to deli&er !5 laptops and G% flat+panel monitors to :! consumers for 4TF-"$,$$$ CUSF!6,!#$E, less than a third of the normal price. The court said the e&ent could hardly be regarded as mista*es, as the prestigious firm said the company mispriced its products twice in Taiwanese website within : wee*s.1
1
Source httpKKen.wi*ipedia.orgKwi*iKDell
PET6E ANA67I
Politial !ators5
The laptop and ( industry is e/pected to grow at a faster rate in de&eloping countries compared to the de&eloped countries. Therefore, changes in go&ernment policies in de&eloping countries li*e India and (hina can affect the potential growth rates in their mar*ets. or instance, the remo&al of import duties on laptops in India in #$$6 was one of the factors that resulted in a growth of "-N in laptop sales in #$$6. Increasing focus on the en&ironmental impact of high+tech trash has lead to more stringent en&ironmental regulations on the electronics industry such as the 9o)S C9estriction of )a?ardous SubstancesE and 8777 C8aste 7lectrical and 7lectronic 7quipmentE Directi&e. The additional testing and certification in&ol&ed directly affect the supply chains for laptop and ( manufacturers, resulting in increased costs. or instance, in (anada, then forcement of the 8777 Directi&e will increase the cost of computers by F!6.The increase either affects the consumer or reduces profitability for manufacturers. Eono"i !ators5
The global economy influences &arious different factors that affect the growth of the ( industry. 2usiness capital spending for small and large corporations, resulting in reduced demand for (s. Bartner, Inc. forecasts a decline of :.5N in global IT spending, of which computing hardware spending is e/pected to decrease by !-."N in #$$". Though this decline in IT spending is li*ely to reco&er slowly during #$!$, the global ( mar*et is e/pected to face declining growth rates in terms of mar*et &alue, from an e/pected 6.-N growth in #$$" to -.!N in #$!# 1ost laptop Cand (E manufacturers such as Dell, ), 0cer, eno&o, and 0pple generate sales throughout the world and therefore currency e/change rates are an important factor as well. The strength Cor wea*nessE of the US dollar &ersus other currencies can directly affect a company’s bottom line \"],\!$]. The economies in de&eloping countries such as (hina, India, 2ra?il, and atin 0merica are growing at a much faster rate than de&eloped countries and therefore pro&ide better growth opportunities for computer manufacturers, since de&eloped countries li*e the US and Hapan ha&e become saturated .This trend is reflected in the slower single digit growth in the last few years as opposed to the consistent double digit growth in the de&eloping mar*ets
oial
Social factors such as education, preferences, income le&els, and other cultural factors influence demand patterns in the different regions and therefore affect how a company operates in each region. The education and income le&el of users affects the brand perception of the computer remanufacturers. 0s shown in igure 6, households with higher income ha&e higher percentages of 0pple computers. Such households are also more li*ely able to afford Cand wantE 0pple computers. This has allowed 0pple to continue its strategy of premium pricing and performance compared to 8indows (s, while at the same time increasing its mar*et share of the total laptop and ( mar*et. 0t the other end of the education spectrum, new de&ices such as the rugged and ultraportable 3( C3ne aptop per (hildE ha&e been de&eloped for under pri&ileged users in de&eloping countries li*e 0frica. Thus, education le&els affect both product demand as well as preference. (ultural aspects of different regions affect the occurrence of seasonal sales, which significantly affect the performance of the computer industry as a whole. or instance, in the U.S., the periods from 4o&ember+December CThan*sgi&ing K (hristmasE and 0ugust Cbac*+to+schoolE are significant earnings period. Tehnolo)ial5
Technological ad&ances o&er the past decade, such as increased processing power with reduced power consumption and reduced cost, or the standardi?ation of 8indows and Intel in laptops, are one of the main reasons for the increase in mar*et share of the laptop segment compared to the o&erall ( industry. or instance, the net boo* category’s a&erage selling price C0SE ofF:$$ was made possible by the low cost Intel 0tom microprocessor, released in #$$5. 4ew technologies, such as hosted &irtual des*tops C);DE, threaten to completely change the industry dynamic, due to the possibility of cheaper computers along with lower software costs .);Ds in&ol&e centrali?ed computing.
!I8E !ORCE ANA67I
ar)ainin) Power o ,yers The personal computer industry is somewhat &ulnerable against the bargaining power of buyers. In recent years customers ha&e more and more alternati&e
options to the personal computer. Smart phones, tablet computers, and other handheld de&ices li*e Iods ha&e most of the same capabilities as a personal computer. 0nd because of the a&ailability, slee*ness, and trendiness of these alternati&es, they ha&e become increasingly popular ma*ing personal computers more and more obsolete. In order for the personal computer to compete with these newer alternati&e options, it must differentiate itself in order to regain mar*et share.
The +ar)ainin) &ower o s,&&liers 0ccording to common assumption, power is high where the brand is powerful. Therefore, Dell is assumed to ha&e far higher bargaining power than the suppliers. Dell has been successfully managing its competitors in terms of getting the needed supply of in&entories and get them produce the in&entories according to the specifications of the company.
0nd the (73 of the company, 1ichael Dell also mentioned that Dell (ompany ne&er stic*s to one supplier fore&er, as they always change the suppliers if the suppliers are not meeting the demands of Dell. 0nd the company always goes to the supplier which is inno&ati&e and cost competiti&e among other ri&al suppliers. Therefore, it again indicates that Dell has higher bargaining power than its suppliers.
0nother indication of Dell to be in better position than its suppliers is that Dell got most of its suppliers locate their businesses and manufacturing units close to Dell’s manufacturing and assembly units. 2y getting the suppliers near its manufacturing units, in&entory is down to an incredible four days and efficiency is the *ey ingredient.
1oreo&er, suppliers can regularly supply their in&entories to Dell within hours of assembling the computers which indicates a strong corporate understanding of both Dell and its suppliers.
Threat o new Entrants 0s it has been stated by 1ichael Dell, his only fear about his business empire is the possibility of new entrants to the mar*et who could ad&ersely affect his business. 0nd moreo&er, Dell’s new strategy is the product di&ersificationM therefore, almost all electronic companies are potential entrants to this new mar*et.
ar)ainin) &ower o C,sto"ers 3ne of the competiti&e ad&antages Dell has gained has been through offering in+ person relationships with corporate and institutional customers. This is done by telephoneM internet purchasing, customi?ed computer systems where corporate clients can go to Dell’s special website called remier Dell.com and configure computer systems in regard to the price and specifications.
1oreo&er, they ha&e post sales online supports which are online and in some cases the company engineers can e&en &isit the customer sites.
0s long as the company has been ser&ing giant companies such as go&ernments, and huge companies such as (o/ communications, 7DS and etc, they tend to be permanent customers as it costs massi&e money for the customers to switch from Dell to another company.
1oreo&er, as the company has been di&ersifying its product ranges from simply computers to other products such printers, storage ser&icesM this indicates that the company will be ser&ing all type of customers, not only corporate clients. Therefore, Dell has to focus on impro&ing its customer ser&ice to small business and indi&idual customers as well to gain their lifetime loyalty.2
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ANA67I:
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Dell's winning ways begin and end with its culture. Dell has created a disciplined culture that relentlessly focuses on optimi?ing its operational model, responding to its customers' needs and sustaining a self+moti&ated wor*force.
' Inor"ation is a &ower,l strate)i wea&on Information is *ing at Dell + it is widely distributed, analy?ed and acted upon. eople *now where they and their business units stand at any time. 0ccording to Dell
*' ein) a low ost &ro4ider reates le;i+ility and "ar2et ad4anta)e 2eing a low cost pro&ider unloc*s mar*et opportunities
$' Prod,t de4elo&"ent is ,sto"er and shareholder o,sed 2ecause they ha&e ta*en the time to identify and measure the *inds of 9AD that help them differentiate their products, they are able to allocate capital offensi&ely, not defensi&ely. This is a crucial distinctionM particularly in fast+mo&ing, ambiguous mar*ets where getting e&en a quarter's Jump on competitors can ha&e huge upside. This approach rewards both customers and shareholders. 3 3:
httpKKwww.studymode.comKessaysKDell+ey+Success+actors+!6$!55.html
Do"inant +rand na"e5 1any companies in the industry ha&e strong brand name. Their dominant presence in the mar*et is because of the image they created for their products through their strategic mo&es. This enabled them to earn more mar*et share in the industry. 7.B. 0pple, Dell, Sony.
Or)ani(ational Poliy and trate)y eeping up with the demand The industry is up+to+date with the technological inno&ations ta*ing place around the mar*et. 0lso, it sells products that are preferred by the consumers. (onstant replacement of products is ta*ing place in the industry. 4ew &ersions of laptops, ( etc ha&e increased the compatibility, storage, loo* and usage of the product
Eono"ies o sale 7&en though the industry e/perience high learning cur&e effects, once the learning is achie&ed, the companies are benefited from economies of scale. 0lthough this is a disad&antage to the new entrants, in the long run this ma*es Justification to their in&estment.
Priin) &oliy The pricing policy in the industry is &ery clear and appropriate. The pricing in the industry is related to the economies of scale. 0s the production cost has come down because of the economies of scale, the industry is capable to maintain their current pricing le&els. The pricing is also acceptable by the consumers. ^ The supplier relations, distribution systems and strategic approaches li*e bac*ward or forward integration ha&e also acted as success factors in the industry. In particular, Dell had its own in house manufacturing of its components which helped them to build e/pertise in their technology they use.
The 9AD capabilities in the industry impro&ed and enabled them to *eep their products on the cutting edge because of the efficiency achie&ed in &ertical integration. % Dell Inc + (ase
Or)ani(ational Poliy and trate)y 3utsourcing the manufacturing of certain components and ha&ing a concentrated assembly line also pro&ed to be effecti&e in the industry. The reduction in the supply chain by integrating and collaborating with outside &endors and suppliers ha&e acted as a success factor in reducing product and production cost. 4
4
httpKKwww.slideshare.netKbalabswKdell+!#:!5!-!
3E7 DRI8ING !ORCE
^ 7/plosion of digital and information content is a *ey dri&er as it impro&ed data a&ailability. The o&erall rate of global spending increased and the data a&ailability also doubled.
^ The ad&ent of search engine acti&ity, social networ*ing sites, e+mail, mobile phones, android applications etc. also acted as a *ey dri&er. This digital e/pansion impro&ed the industry’s economic presence and o&erall demand in the industry. : Dell Inc + (ase 3rgani?ational olicy and Strategy ^ The demand for information technology in emerging mar*ets li*e India, 2ra?il, 9ussia, (hina and India increased. The population is high in these areas and thus the demand for IT products and ser&ices also increased. This was a *ey dri&er in the industry . ^ (ertain dri&ers had negati&e implications on the industry. The digital &olume content lac*ed authentication and there are many security issues in the industry. 0lso the consumers’ e/pectations are not stable. These *eep changing. The o&erall ability of the consumers to deal with comple/ity and sophistication is low. The consumers want quic* access to their demands. 0ll these factors are the downside dri&ing factors of the industry . ^ 9eplacement factor is a *ey dri&er in the industry. The e/isting (’s are getting replaced with the ad&ancement in features, design and compatibility of the ( . ^ The entry of smart phones into the industry is a *ey dri&er. The cross category competition became more intense with the de&elopments in the smart phone industry. These de&ices also ga&e access to the internet. The smart phones are slee* and they offer compatible usage. The costs of these smart phones are also low compared to the ( and laptops. Thus consumers may switch to smart phones from (. ^ The mobile phones are offering the features of the internet at a subsidi?ed rate. These dri&ing forces ha&e negati&e implications on the industry. ^ rocessor speed and 901 were the dri&ing forces in the industry that generated profit. They are no longer the dri&ing force as cloud computing is introduced. They are slowly replacing processors and 901.
CHAPTER- 6ITRATURE RE8IE<
aptop A ( Industry is e/pected to grow fast in de&eloping countries li*e India A china because of changes in go&ernment policies. In #$$6, Indian go&ernment remo&ed the import duties on aptops, which resulted in growth of "-N in #$$6.
Chysorg.com, #$$%E(yber 1edia 9esearch C#$!!E study states that nearly !$ million des*top A noteboo* personal computers ha&e been installed in #$!$ and thus India has estimated to cross 6#million till Dec #$!$ for total installation of both.ID( is India’s quarterly ( sales mar*er, for the quarter ending in 3ct+Dec #$!$, it suggested that Indian ( mar*et had found reco&ery from the effect of global recession. (ompared to last quarter of #$$", aptop mar*et has seen the growth of -"N, while with compare to :rdquarter it has decreased by GN because of )igh inflation A low industrial growth. Aordin) to Pin2i har"a% The entire study shows that aptop usage is &ery
much popular in between the students whether their residential status is urban and rural. It’s the present day demand to run hand with the latest technology. This technology not only simplify students tas* but it also seem to morale boost up of the students. Students found themsel&es connected with the entire world with the help of aptops. Aordin) to Dr' Nilesh ' Ga==ar% The study of student beha&iour is quite
comple/, because of many &ariables in&ol&ed and their tendency to interact with A influence each other. These are the factors controlled by e/ternal en&ironments li*e the following form the basis of e/ternal influences o&er the mind of a customer _ Social (lass, and Social Broup,(ulture, and Sub+culture,_Couter circleE. amily, and Inter+ersonal Influences, Aordin) to Rinal 'hah% The research was aimed to e/amine the applicability
of 0a*er’s conceptual framewor* of student +based brand equity for laptop brands in Indian mar*et .)ere the findings don’t support completely to the entire brand equity dimensions of 0a*er’s model, it was found that percei&ed quality and brand loyalty had a significant positi&e direct effect on brand equity. It had the strongest impact which indicated the essential role of de&elopment of percei&ed quality and brand loyalty in minds of customers to build brand equity for laptop brands. Anna"alai olaya&&an% >othi >aya2rishnan ?010@ their research showed that
branded computers play a prestigious role in the students segment. Due to the computer world e&erything is in the hands of the students. 7&erything in the world seems to be digital. 7&eryone needs a computer to dri&e a smooth and fast race. 7specially, branded computers will try to safeguard the competiti&e race. So, the
&arious factors discussed may determine the student to purchase branded computers. Aordin) to 8adla"ani '?011@% Des*top A laptop mar*et has achie&ed the
growth of %N C#.% million unitsE in India in first quarter of #$!!. the growth was dri&en by laptop &endor by #:N. Top fi&e brands are Dell, ), 0cer, eno&o and )( with combined mar*et share of 6G.6N.ID( C#$!!E wrote that, in the second quarter of #$!!, the sales of laptop A des*tops has decreased by -.#N at #.-million units, compared to ! #$!!M Dell has again leaded the mar*et share by !G.-N, while top 6 companies cumulating %$N mar*et shareM companies are targeting tier+: A tier+- cities now through large+format retails.
factors C1oti&ation, perception, and attitudeE are associated with brand equity Cbrand loyalty, brand association, percei&ed quality, and brand awarenessE of laptop. The result re&ealed that, consumers’ moti&ation to use laptop and brand association criteria wor* separately. They consider battery lifetime Cbrand associationE as important feature while satisfying those purposes. (onsumers’ attitudes are shaped up by others, especially by family members while buying high+in&ol&ement products. 9espondents show a positi&e association between their attitudes with one of the highest ran*ing laptop 0pple. i*e other products, consumers’ perception for choosing laptop relies upon different sources of information. In this particular case, they choose newspaper and websites to build up their perception. Though newspaper and websites play the &ital role for organi?ing, e&aluating information, they rarely help them to choose the brand. Dr' Ansir Ali Ra=&,t% a+ir H,ssain 3alhoro ?01@
presented in this article
has significant impact on both price and quality, one thing has been noticed during the sur&ey that people do gi&e more focus to price rather quality because of low income le&el. eople ha&e more alternati&es in products that are the reason people go for lower price products. aptop A ( Industry is e/pected to grow fast in de&eloping countries li*e India A china because of changes in go&ernment policies. In #$$6, Indian go&ernment remo&ed the import duties on aptops, which resulted in growth of "-N in #$$6. Chysorg.com, #$$%E (yber 1edia 9esearch C#$!!E study states that nearly !$
million des*top A noteboo* personal computers ha&e been installed in #$!$ and thus India has estimated to cross 6# million till Dec #$!$ for total installation of both. ID( is India’s quarterly ( sales mar*er, for the quarter ending in 3ct+Dec #$!$M it suggested that Indian ( mar*et had found reco&ery from the effect of global recession. (ompared to last quarter of #$$", aptop mar*et has seen the growth of -"N, while with compare to :rdquarter it has decreased by GN because of )igh inflation A low industrial growth. CShinde H.E 0ccording to ;adlamani S.C#$!!E, Des*top A laptop mar*et has achie&ed the growth of %N C#.% million unitsE in India in first quarter of #$!!. The growth was dri&en by laptop &endor by #:N. Top fi&e brands are Dell, ), 0cer, eno&o and )( with combined mar*et share of 6G.6N. ID(C#$!!E wrote that, in the second quarter of #$!!, the sales of laptop A des*tops has decreased by -.#N at #.-million units, compared to ! #$!!M Dell has again leaded the International Hournal of 0d&anced 9esearch in mar*et share by !G.-N, while top 6 companies cumulating %$N mar*et shareM companies are targeting tier+: A tier+- cities now
through large+format retails.
rand e.,ity one&t "odel
2randing will add &alue to the product which will influence the customer’s purchase decisionsM the brand which gi&es strong, optimistic A enduring impression in customer’s mind can become successful Cotler, #$$:E. 0ccording to 0a*er C!""!E, 0 brand is name andKor symbol used to identify the goodsKser&ices of sellers, and to differentiate it from the competitors. 2rand equity is an impact on mental association created by customers for different brandsM )e ga&e the model to measure customer based brand equity, in&ol&ing si/ brand
building bloc*s, namely brand salience, brand performance, brand imagery, brand Judgment, brand eeling, brand resonance Celler !""5E 2rand equity assets can help customers interpret process A store huge quantities of information about products A brandsM he proposed the model to measure brand equity based on consumer’s point of &iew, including percei&ed quality, brand awareness, brand association A brand loyalty components. C0a*er !""!E. ercei&ed quality 0a*er C!""!, p.GE defined ercei&ed quality as Rthe customer’s perception of o&erall quality or superiority of a product or ser&ice with respect to the intended purpose, relati&e to alternati&es (onsumers always want to spend less time A efforts in selection of brand, so they mostly rely on feelings about the characteristics of products of particular brands. )ere their perception is dri&ing the decision ma*ing process. It also depends on the willingness of the customer for purchase decision. Tsai C#$$-E Suggests those brands with lower emotional ratings may redirect mar*eting resources and efforts to increase consumer’s emotional perceptions, which will gi&e higher satisfaction. 2rand 0wareness 0ccording to 0a*er C!""!, p.%!E, brand awareness is Rthe ability of potential buyer to recogni?e or recall that a brand is a member of a certain product category International Hournal of 0d&anced 9esearch in It will lead customers to select the most familiar brands under their *nowledge. 8hen customer ta*es decision, he considers many alternati&es based on brand recall. So brands those are not recalled will not be considered in selection process. It will also increase the familiarity of brand with customers, thus the customers will be able to recogni?e the brand among the group of brands. 2rand 0ssociation
0a*er C!""!, p.!$"E claimed that brand association is Rthe category of brand’s implication which include anything lin*ed in memory to a brand. 0ccording to eller C!""5E, it is set of information nodes attached with the brand in mind of consumers, which can be classified as attributes, attitudes A benefits related to the brand. It is helpful to customers to retrie&e information about some brands from their memory. 8hen they are confronted with the brand, the associated benefits or e/perience or features will be reflected in customer’s mind. aptop firms need to increase brand awareness to increase the familiarity of brands in the mind of consumersM high le&el of brand association can moderately wor* to increase buying beha&ior of (hinese customers. Ciu Z., #$$GE 2rand oyalty It is the inclination of customer to purchase the same brand e&ery time C(ollin et al, !""!E. Bilbert C#$$:E wrote that when customer purchases the same brand of products on regular basis it is brand loyalty. It costs si/ times more to gain the new customer than to retain the old customers Cotler, #$$$E. 2rand loyalty will be helpful to increase the mar*et share. The e/isting old customers can be effecti&e communication to prospects for assurance of brand commitment. So brand loyalty can also attract new customers. 2ecause of brand loyalty customers will purchase the same brand, recommend it to others, and choose it o&er the competitors e&en if pro&ided at lower price A better featuresKser&ices. (ollege students are loyal to higher priced brands Codes 1., #$!$E. The post purchase ser&ices are e/tremely important as they are directly related to customer’s brand loyaltyM the companies should also in&est in technology through 9 A D and create differentiation at utmost le&el.5
5httpKKwww.studymode.comKessaysKiterature+9e&iew+3n+student+2eha&ior+
8hile+!:""$$5.html
CHAPTER-* REEARCH /ETHODO6OG7
O>ECTI8E5 •
To *now about the consumer preference le&el associated with dell laptop.
•
To understand brand loyalty of consumer.
•
actor that influence decision ma*ing in purchasing a laptop.
NEED O! THE TUD7 The needs of the study are+ •
This research is intended to describe and analy?e consumer brand preference on dell laptop purchase.
•
The purpose of this report is to understand the personal e/perience of dell laptop and analysis on preference of branded laptop among the consumers.
•
This will gi&e a conclusion on how does consumer percei&ed brand among different criteria in order to ta*e the decision in purchasing the branded dell laptop.
IGNI!ICANCE O! THE TUD7 •
indings of the study might be useful and important among consumer.
•
It can also become good information for those companies who has been engaging in research of branding process in order to indentify perception of the consumers for their branded product.
•
This finding will broad enough to generate interest among a sufficiently large group of researchers because it analysis of load of facts about the &arious criteria of choice that determine the perceptions and preferences of dell laptop.
•
This finding will gi&e a data of &arious sources from where consumer can get information about the product in percentage form which will help the planner, to ma*e decision regarding which source will be more effecti&ely to promote their branded products.
REEARCH DEIGN5 0 research design is the framewor* or plan for a study used as a guide in collecting and analy?ing data. There are three basic types of research design e/ploratory, descripti&e, and causal. The names of the three types of research design describe their purpose &ery well. The sample technique employed in this research was a non probability sample method gi&en that questionnaire was distributed randomly, which gi&es a fair
representation of the study population. 0mong &arious non probability techniques, the researcher selected con&enience sampling technique to study the proJect because the data was collected li*e as stopping people on a street corner as they pass by. 9espondents were selected based on their con&enient accessibility.
/ETHOD O! DATA CO66ECTION5 The *ey for useful systems is the selection of the method for collecting data and lin*ing it to analysis and decision issue of the action to be ta*en. The accuracy of the collected data is of great importance for drawing correct and &alid conclusions from the detailed in&estigations. PRI/AR7 DATA5
The primary data are those which are collected a fresh hand for the first time and thus happen to be original in character. There are se&eral methods of collecting primary data, particularly in sur&ey and descripti&e research. ECONDAR7 DATA5
Secondary data are used means that are already a&ailable 0mong them the study use sur&ey or structured questionnaires to obtain specific information such as ways of information search to obtain information , perceptions, attitudes , factors and beha&iour regarding mobile phones.
S01I4B 17T)3D33BO Sample Unit +
(onsumers are using different mobile phone.
Sampling 0rea+ Bandhi4agar. Sampling Technique + (on&enience sampling technique. tatistial Tools Used- SSS, t+test, chi square test otware ,sed - SSS, ms+office
Sample Si?e + :56 respondents are needed (onfidence le&el ` "6N Standard de&iation ` .6 1argin of error ` ]K+ 6N. ` CZ+scoreE @ Std De&\C!+StdDe&E K Cmargin of errorE `C!."%E/.6C.6EEKC.$6E `."%$-K.$$#6 `:5-.!% `:56 respondents are needed
`C:.5-!%/.#6EK.$$#6
CHAPTER-$ DATA ANA67I AND INTERPRETATION
' Gender 1ale
emale
#%$
!#6
Table no +! Braph no +! Inter&retation The graph will show the %5N are male, :#N are female.
C' A)e
2elow #$ years
2elow :$ Oears
2elow -$ years
-$ or abo&e years
6$
##$
"$
#6
Table no +#
Braph no +# Inter&retation The graph will show the !:N are below #$ years, 6GN are below :$ Oears, #:N 2elow -$ years, G N -$ or abo&e years of age.
D' O,&ation Ser&ice "$
)ousewife #6
2usiness %6
Student !5$
9etired #$
Table no +: Braph no +: Inter&retation The graph will show the #-N are Ser&ice, GN are )ousewife, !GN are 2usiness, -GN are Student, and 6N are retired.
E' Ed,ational a2)ro,nd Schooling %6
Braduate !"6
ost Braduate !!6
Doctorate !$
Illiterate $
Table no +Braph no +Inter&retation The graph will show the !GN are Schooling, 6!N are Braduate, :$N are ost graduate, and # N are doctorate.
!' Ino"e 6e4el ?&er "onth@ ess than or !$,$$! @ #$, #$,$$!@ equal to $$$ :$,$$$
:$,$$! -$,$$$
@ 1ore -$,$$$
than
!$,$$$ G6
!!G
!$:
66
:6
Table no +6 Braph no +6 Inter&retation The graph will show the #$N are ess than or equal to !$,$$$, :$N are !$,$$! @ #$, $$$, #GN are #$,$$!@ :$,$$$, !-N are :$,$$! @ -$,$$$, "N are 1ore than -$,$$$.
G' !or how lon) ha4e yo, +een ,sin) yo,r la&to&B !+: years
:+6 years
6+G years
G years and more
6G
!%6
"6
%5
Table no +% Braph no +% Inter&retation The graph will show the using laptop !6N are !+6 years, -:N are :+6 years, #6N are 6+G years and !G N are G years and more
H'
0d&ertisements Sales person
2rand image
roduct re&iews
-:
"!
!-"
6-
:G
%
others $6
Table no +G
Braph no +G Inter&retation The graph will show the !!N influence by friends, !$N influence by family members, #-N influence by ad&ertisement, !N influence by sales person, :"N
influence by brand image, !-N influence by product re&iew and !N influence by others.
I'
3nline retail stores
7lectronics retail stores
8arehouse stores
3thers
#:
#$$
!G
!$$
Table no +5 Braph no +5 Inter&retation The graph will show the !#N use brand’s own website for purchase, %N use online retail stoe, 6#N use electronics retail stores, -N use warehouse stores, #%N use others source for purchase laptop.
>'
Strongly agree
0gree
%G
!G:
4eutral !#"
Disagree
Strongly disagree
!:
:
Table no +!$ Braph no +!$ Inter&retation The graph will show the !GN strongly agree, -6N agree, :-N neutral, :N disagree and !N strongly disagree with processors.
' D8D dri4e
Strongly agree
0gree
4eutral
Disagree
Strongly disagree
5G
!-G
!!G
:$
$-
Table no +!! Braph no +!!
Inter&retation The graph will show the #:N are strongly agree , :5N are agree, :$N are 4eutral ,5 N are disagree, !N are strongly disagree.
*' In+,ilt HDD
Strongly agree
0gree
4eutral
Disagree
Strongly disagree
G%
!5!
!$!
#%
$!
Table no +!#
Braph no +!# Inter&retation The graph will show the #$N are strongly agree, -GN are agree, #%N are 4eutral, GN are disagree,$N are strongly disagree
$' O&eratin) syste"
Strongly agree
0gree
4eutral
Disagree
Strongly disagree
":
!!6
!-5
#!
$5
Table no +!: Braph no +!: Inter&retation The graph will show the #-N are strongly agree, :$N are agree, :5N are 4eutral, %N are disagree,#N are strongly disagree.
'
Strongly agree
0gree
4eutral
Disagree
Strongly disagree
66
!#!
!%G
#G
!6
Table no +!Braph no +!Inter&retation The graph will show the !-N are strongly agree, :#N are agree, -:N are 4eutral , GN are disagree, -N are strongly disagree.
'reen si(e
Strongly agree -:
0gree
4eutral
Disagree
!:6
!5"
!G
Strongly disagree $!
Table no +!6 Braph no +!6 Inter&retation The graph will show the !!N are strongly agree :6N are agree, -"N are 4eutral , 6N are disagree,$N are strongly disagree.
#' RA/
Strongly agree 5%
0gree
4eutral
Disagree
!66
!!$
#6
Strongly disagree $"
Table no +!% Braph no +!%
Inter&retation The graph will show the ##N are strongly agree, -$N are agree,#5N are 4eutral, GN are disagree,:N are strongly disagree.
' attery
Strongly agree
0gree
4eutral
Disagree
Strongly disagree
:G
-$
!-"
!-G
!6
Table no +!G Braph no +!G Inter&retation The graph will show the !$N are strongly agree, !$N are agree, :5N are 4eutral, :5N are disagree,-N are strongly disagree.
9' o,nd Tehnolo)y
Strongly agree
0gree
4eutral
Disagree
Strongly disagree
$5
66
!5#
!:G
$#
Table no +!5 Braph no +!5 Inter&retation The graph will show the :%N are strongly agree, !-N are agree, -GN are neutral , :%N are disagree,!N are strongly disagree
3' Colo,r
Inter&retation5 The graph will show the
. . . 8hat would you be willing to pay for a dell laptopX
2elow #6,$$$
#6$$$ #""""
#-
G%
to :$$$$ :"$$$
to -$,$$$ -""""
!-%
"6
to 1ore than 6$$$$ -6
1. . . 8here did you often see the dell laptop ad&ertisementX
T;
4ewspape r
1aga?in e
3nline outdoor 9adio leafle t
#-
G%
!-%
"6
-6
4. 8hich si?e of screen you preferX !: +!:." !-+!-." inch inch
!6+!6." inch
!%+!G." inch
#-
!-%
"6
G%
other
Hy&othesis5 T-TET
!. 93(7SS39S te& 15 hy&othesis
)$ :C(ustomer are agree with rocessors featureE )a : Ccustomer are disagree with rocessors featureE te&5 T-test te& *5 Al&ha 8al,e
`$.$6 (onfidence inter&al "6N te& $5 Deisional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected. te& 5 Data
One-Sample Statistics
N PROCESSOR
Mean 385
te& 5 Cal,late the T 4al,e
3.7481
Std. Deviation .80778
Std. Error Mean .04117
One-Sample Test
Test Vale ! 3 )5* Con"iden(e +nterval o" t,e Di""eren(e t PROCESSOR
d"
18.171
Si#. $%&tailed' 384
Mean Di""eren(e
.000
-oer
.74805
/er .71
te& #5 re=eted or ae&ted
3bser&ed T &alue is &17.104 hypothesis is accepted.
so
it is less than tabulated &alue
&.)007.
So the null
te& 5 +,siness i"&liation
(ustomers are satisfied with 2rand Image facilities.
#. D;D dri&e te& 15 hy&othesis
)$ :C(ustomer are agree with D;D dri&e featureE )a : Ccustomer are disagree with D;D dri&e featureE te&5 T-test te& *5 Al&ha 8al,e
`$.$6 (onfidence inter&al "6N te& $5 Deisional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected. te& 5 Data
One-Sample Statistics
N DVD
Mean 385
3.7351
te& 5 Cal,late the T 4al,e
Std. Deviation .)31%0
Std. Error Mean .0474
.8%)0
One-Sample Test
Test Vale ! 3 )5* Con"iden(e +nterval o" t,e Di""eren(e t DVD
d"
15.48)
Si#. $%&tailed' 384
Mean Di""eren(e
.000
-oer
.7350
/er .418
te& #5 re=eted or ae&ted
3bser&ed T &alue is &17.104 hypothesis is accepted.
so
it is less than tabulated &alue
&.)007.
So the null
te& 5 +,siness i"&liation
(ustomers are satisfied with 2rand Image facilities.
:. Inbuilt )DD te& 15 hy&othesis
)$ :C(ustomer are agree with Inbuilt )DD featureE )a : Ccustomer are disagree with Inbuilt )DD featureE te&5 T-test te& *5 Al&ha 8al,e
`$.$6 (onfidence inter&al "6N te& $5 Deisional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected. te& 5 Data
One-Sample Statistics
N 2DD
Mean 385
3.7)%%
te& 5 Cal,late the T 4al,e
Std. Deviation .84375
Std. Error Mean .04300
.8%84
One-Sample Test
Test Vale ! 3 )5* Con"iden(e +nterval o" t,e Di""eren(e t 2DD
d"
18.4%3
Si#. $%&tailed' 384
Mean Di""eren(e
.000
-oer
.7)%%1
/er .7077
te& #5 re=eted or ae&ted
3bser&ed T &alue is &17.104 hypothesis is accepted.
so
it is less than tabulated &alue
&.)007.
So the null
te& 5 +,siness i"&liation
(ustomers are satisfied with 2rand Image facilities.
-. 3perating system te& 15 hy&othesis
)$ :C(ustomer are agree with 3perating system featureE )a : Ccustomer are disagree with 3perating system featureE te&5 T-test te& *5 Al&ha 8al,e
`$.$6 (onfidence inter&al "6N te& $5 Deisional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected. te& 5 Data
One-Sample Statistics
N OS
Mean 385
3.857
te& 5 Cal,late the T 4al,e
Std. Deviation .)8
Std. Error Mean .04)%8
.878
One-Sample Test
Test Vale ! 3 )5* Con"iden(e +nterval o" t,e Di""eren(e t OS
d"
13.)1
Si#. $%&tailed' 384
Mean Di""eren(e
.000
-oer
.8571
/er .5888
te& #5 re=eted or ae&ted
3bser&ed T &alue is &17.104 hypothesis is accepted.
so
it is less than tabulated &alue
&.)007.
So the null
te& 5 +,siness i"&liation
(ustomers are satisfied with 2rand Image facilities.
6. 901 te& 15 hy&othesis
)$ :C(ustomer are agree with 901 featureE )a : Ccustomer are disagree with 901 featureE te&5 T-test te& *5 Al&ha 8al,e
`$.$6 (onfidence inter&al "6N te& $5 Deisional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected. te& 5 Data
One-Sample Statistics
N RM
Mean 385
3.7377
te& 5 Cal,late the T 4al,e
Std. Deviation .)553)
Std. Error Mean .048)
.78%
One-Sample Test
Test Vale ! 3 )5* Con"iden(e +nterval o" t,e Di""eren(e t RM
d"
15.150
Si#. $%&tailed' 384
Mean Di""eren(e
.000
-oer
.737
/er .41)
te& #5 re=eted or ae&ted
3bser&ed T &alue is &17.104 hypothesis is accepted.
so
it is less than tabulated &alue
&.)007.
So the null
te& 5 +,siness i"&liation
(ustomers are satisfied with 2rand Image facilities.
%. 2attery te& 15 hy&othesis
)$ :C(ustomer are agree with 2attery featureE )a : Ccustomer are disagree with 2attery featureE te&5 T-test te& *5 Al&ha 8al,e
`$.$6 (onfidence inter&al "6N te& $5 Deisional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected. te& 5 Data
One-Sample Statistics
N TTER
Mean 385
%.851)
te& 5 Cal,late the T 4al,e
Std. Deviation .)873
Std. Error Mean .05033
.8334
One-Sample Test
Test Vale ! 3 )5* Con"iden(e +nterval o" t,e Di""eren(e t TTER
d"
&%.)41
Si#. $%&tailed' 384
Mean Di""eren(e
.003
-oer
&.14805
/er
&.%470
te& #5 re=eted or ae&ted
3bser&ed T &alue is &17.104 hypothesis is accepted.
so
it is less than tabulated &alue
&.)007.
So the null
te& 5 +,siness i"&liation
(ustomers are satisfied with 2rand Image facilities.
G. Sound technology te& 15 hy&othesis
)$ :C(ustomer are agree with Sound technology featureE )a : Ccustomer are disagree with Sound technology featureE te&5 T-test te& *5 Al&ha 8al,e
`$.$6 (onfidence inter&al "6N te& $5 Deisional r,le
If obser&ed T &alue is greater than tabulated &alue, then )$ is reJected. te& 5 Data
One-Sample Statistics
N SO/ND
Mean 385
%.8130
te& 5 Cal,late the T 4al,e
Std. Deviation .71%
Std. Error Mean .03880
&.04)1
One-Sample Test
Test Vale ! 3 )5* Con"iden(e +nterval o" t,e Di""eren(e t SO/ND
d"
&4.8%0
Si#. $%&tailed' 384
Mean Di""eren(e
.000
&.18701
-oer
/er
&.%33
te& #5 re=eted or ae&ted
3bser&ed T &alue is &17.104 hypothesis is accepted.
so
it is less than tabulated &alue
te& 5 +,siness i"&liation
(ustomers are satisfied with 2rand Image facilities.
&.)007.
So the null
&.1107
CHAPTER- !INDING
,))estion
6i"itation
•
0 small sample si?e of :56 students is ta*en, so we cannot draw inferences about the population from this sample si?e.
•
Time period is short and resource constraints.
•
The scope of the proJect is limited to the city of Bandhinagar.
•
This study is based on the pre&ailing a study on consumer brand preference of dell laptop. lap top.
•
(onsumer test and preference *eep on changing day by day so the findings from the sur&ey may not be applicable in all cases.
•
Sur&eys should thus be underta*en periodically in order to gauge changing consumer laptop usage patterns and perceptions o&er time.
•
Test of null and alternati&e hypothesis can be done based on the literature re&iew. 3nly integrating the literature re&iew with the theory was done. The study can be further analy?ed in terms of different dimension li*e brand preference among amon g gender wise, income wise as well as &arious & arious factor they choose feature of dell laptop .
•
CHAPTER- CONC6UION
CHAPTER-# I6IOGRAPH7
