Search icone
Search and publish your papers

Dell: Improving global brand equity

Or download with : a doc exchange

About the author

General public

About the document

Published date
documents in English
market study
7 pages
General public
0 times
Validated by
0 Comment
Rate this document

Third biggest personal computer provider worldwide:

The third leading personal computer manufacturer worldwide with market share of 12.6% (2009-2010), Dell offers horizontally and vertically integrated hardware, software and services solution portfolio to large enterprises, SMEs, B2C and public sector customer base across 195 countries worldwide. United States is the core market for Dell accounting for 52% (2008: 53.5%) of group revenues in 2011. Large enterprises form the core consumer portfolio constituting 29% (2010: 27%) of total revenue mix (2011). Dell is publicly traded on NASDAQ stock exchange with market capitalization of US$27.11 billion (September 2011). The company is shifting production facilities aggressively to low cost destinations across Europe and Asia to improve operating margins on long-term basis.

Global personal computer market to reach US$164 billion by 2014:

Global personal computer segment value sales reached US$159 billion, with year-on-year growth of 5.3% in 2009-2010. The market is stipulated to witness growth of 1.2% annually in the next 3-5 years (2014); worldwide personal computer volume sales will reach 411 million, with CAGR of 10.3% (2009-2014). Americas is biggest personal computer market space accounting for 42.3% of global value sales in 2010, with HP as the leading personal computer manufacturer globally with value share of 19.6% (2009-2010). Domestic market is slightly fragmented with four manufacturers controlling market share of 54%. Acer is the closest competitor to Dell controlling market share of 12.9%.

Server, software and service centric organic expansion worldwide:

Dell is aggressively purchasing assets (Kace Networks, Ocarina Networks, Scalent Systems, Boomi and InSite One) across higher margin centric product and solution portfolio such as servers, software, storage and services (2011). Globally, the company is shifting production facilities to low cost destinations such as Poland to improve cost synergies worth US$4 billion in 2011. Finally, the company plans to improve operational synergies via integration of large enterprise and public sector business activities. The horizontally integrated cloud based IT service portfolio will enhance competitive advantage.

Can Dell surpass Acer and HP as the biggest personal computer manufacturer worldwide?

In 2011, Dell generated net revenue of US$61.4 billion, with year-on-year growth of 16%. The growth was primarily attributed to improved business environment of service segment (+25%) and product portfolio (+14%). BRIC countries are the fastest emerging markets for Dell with year-on-year growth of 38% in 2010-2011. The core market, i.e., United States, witnessed moderate growth reaching US$32 billion in 2011. Although, the enterprise is improving cost synergies and organic expansion of core business segments, can Dell improve global brand equity and value?

Similar documents you may be interested in reading.

A study on the E-Brands and case studies of, & Gap

 Business & market   |  Business strategy   |  Research papers   |  05/26/2009   |   .doc   |   57 pages

Dell: Improved focus on large and SME customer portfolio in Europe

 Business & market   |  Business strategy   |  Market study   |  09/21/2011   |   .doc   |   10 pages

Top sold for business strategy

International Business Strategy - Acer, Inc.: Taiwan's rampaging dragon

 Business & market   |  Business strategy   |  Case study   |  09/29/2010   |   .doc   |   8 pages

Competitive Environment Analysis : Haagen- Dazs

 Business & market   |  Business strategy   |  Case study   |  09/29/2010   |   .pdf   |   24 pages