Dell is a telecommunication company which is privately owned, based in Texas, United States. The company sells, develops and repairs computers together with other products and services related to the telecommunication sector. The company deals with a lot of products such as personal computers, network switches, data storage devices and software. As a result of this, it is one of the biggest multinational telecommunication companies employing over 100,000 workers. Besides these products, it also deals with innovations in electronic commerce and supply chain management. The success of this company has been brought about by its efficient management, which has enabled it to get the right customers for its products (McDonald & Dunbar, 2012).
One of the factors that have contributed to Dell’s success is market segmentation. The company deals with a lot of products and services, which give its management team a difficult task of finding the right customers for their products and services. For example, the management team identified that many organizations needed efficient supply chain management systems as a result of globalization. They hence ventured into innovating efficient supply chain systems, which targeted multinational companies. This is based on the fact that these companies receive orders from many nations, as they also import raw materials from various parts of the world. This leads to these organizations requiring efficient and effective supply chain management system which enables them to avoid cases such as delays (Pride & Ferrell, 2006).
The revolution in the telecommunication sector has led to many things being done via the internet. Dell was able to identify this, hence came decided to venture into the electronic commerce. This has enabled it to sell its products online. This has enabled the company to access customers who are very busy to make the purchase via retail shops. Through electronic commerce, they are able to purchase the company’s products such as software while at work. This has eased transaction time and cost, and at the same time relieving the customers the stress of going to their retail shops to look for their products.
The company sells personal computers for example laptops. These computers are used for personal activities such as storing personal data. These computers are aimed at people working in offices and students. By identifying the needs of these people, the company came up with these computers, whose features favor their users (McDonald & Dunbar, 2012). For example, laptops are usually portable which makes it easy for their owners to move with them as they go on with their activities. For example, students can carry them to classrooms and library from where they can use them to study. At the same time, they also contain entertainment features such as games which enable the users to relax. Laptops also enables people to work outside office, for example while at their homes.
The company deals in software, which are needed by both individual persons and organizations. The company was able to identify that individuals and corporations would require various software for conducting various activities. For example, many organizations engage in accounting activities implying that they need accounting software as it is very difficult to conduct the accounting process manually, especially if it is a big corporation such as multinational organizations. The company also sells software that enable personal computers to work well. For example, games software, internet connection software and antivirus. These software are essential to any organization or person using computers. The company realized that these software needed updating, which meant that they will never lack market as the users have to keep on purchasing new software as they continue using their computers. The company also sell software that enable organizations or companies to prepare their payrolls. This activity has to take place in all organizations, implying that these software will always have market as new companies keep on coming up while the old companies have to purchase new ones so as to update the old software for the system to be efficient.
Besides computers and the supply management system, the company also deals with music gadgets as it sells MP3 players. These gadgets mainly targeted the young population, who like music. Some of the MP3 gadgets sold by this company are portable, which enables people to listen to their favorite music at any place, something that is common to young people.
The company also sells printers which are mainly used in offices and schools. While coming up with this product, the company targeted offices, where there is a lot of printing work. Schools were also targeted as there is also a lot of printing, for example assignments among students and exam papers.
Through market segmentation, the company was able to find the correct customers to its products. At the same time, it came up with products that fitted the customer needs. These products are also of top quality, as the company keeps on inventing new products in order to keep up with their customer’s changing demands. This has enabled the company to get a lot of customers as a result of its quality products, which are also bought by the right customers (Pride & Ferrell, 2006).
McDonald, M., & Dunbar, I. (2012).Market segmentation: How to do it and how to profit from it. Chichester: John Wiley & Sons.
Pride, W. M., & Ferrell, O. C. (2006).Marketing: Concepts and strategies. Boston: Houghton Mifflin Co.