Market Management

Marketing Management

HBS case

Dell Computers (A): Field Service for Corporate Clients

2014/9/30 Members: MBA 張君熙 Troy60355023O MBA 蘇怡如 Claire 60355018O MBA 林歆芸 Cindy 60355013O MBA 黃小瑄 Susan 60355007O

Q1.What should be Dell’s positioning in the server market?

According to the case, we find out Dell’s characteristics and analyze with STP Model (Figure 1).

• The category of users：Business、Customer Segmentation • Users needs：Entry - Level、Midrange 、High-End server • Acceptance of price：Low、Moderate、High price

• Business Targeting • Entry - Level server • Low price

Positioning

• The direct distributor who provides Entry-Level servers to the companies with low prices and high-quality service after sales.

We can know Dell is good at entry-level server from exhibit 4～6 in the case.

Business clients comprise 90% of Dell’s customers. Because of Dell Direct and Inventory Control, Dell can provide low prices to its customers. Dell improves its first-time resolves to almost 90%.

↑Figure 1: Dell’s STP in the server market

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Q2. Whether Dell should create an in-house field service team to ensure service quality and maintain control of its customer relationships or outsource the field service to a third-party provider? Justify your suggestion.

First, we analyze the pros and cons of Dell’s outsourcing (Figure 2).

Pros

Centralizing sources on core operation

Cons

Being unable to control products’ quality

Saving considerable downtime

Losing customers

In accord with lean production standard

Having possibility of leaking customers’ important data by the third party

Cutting down training expense

↑Figure 2:The Pros and Cons of Dell’s outsourcing

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Next, we will discuss the environmental impact of the period (Figure3):

Dell value

Customer

Dell

Purchasing spare parts

Customer

Intermediary

Competitors

Produce and develop independently Reducing the cost of manufacturing and development (e.g.,...