Apple Inc. is a multinational organization renowned for its production of consumer electronics. Its range of products encompasses the Mac, iPod, iPhone, recently released iPad, and software such as Mac OS X, iTunes, and iLife. Originally founded in California on April 1, 1976 under the name Apple Computer Inc., the company rebranded on January 9, 2007 to signify a transition from personal computers to consumer electronics. With a global workforce of approximately 35,000 individuals, Apple has transformed the computer industry through its imaginative and aesthetically pleasing devices.
Dell Inc. is a multinational organization that specializes in manufacturing PCs and related products and services. Founded in 1984 in Texas by Michael Dell under the name PCs Limited, the company’s objective was to sell computers compatible with IBM PCs using off-the-shelf components. In 1988, it changed its name to Dell Computer Corporation and later rebranded as Dell Inc. in 2003. As of 2009, Dell employs approximately 76,500 individuals. Renowned for its direct customer relationship strategy, Dell offers customized PCs designed to meet individual customer preferences while eliminating middlemen.
Customers have the option to visit the Dell website and make a purchase for their desired PC. Apple’s Situation Analysis has involved many chief executives over time, each contributing their own strategies and making necessary adjustments. While certain aspects of the company may have changed, Apple still upholds its reputation for encouraging uniqueness and excellence, which in turn attracts talented individuals to join its workforce. Furthermore, Apple has successfully tackled numerous obstacles, including significant delays in software development during its initial stages.
Furthermore, Apple’s sales representatives lacked direct access to corporate clients, resulting in the company’s inability to project a favorable business image. Consequently, employee turnover rates were high. Consequently, Apple made changes to both its products and marketing strategies to better align with the computer industry landscape. They focused on providing products that met customer demands. Additionally, Apple began recruiting individuals with professional business backgrounds to effectively engage and communicate with corporate managers, who shared similar professional backgrounds.
Apple experienced a 30% increase in sales, going from $1.9 billion in 1986 to $2.66 billion in 1987 due to its business market expansion. In addition, there were issues within the sales, marketing, and engineering departments. The marketing department faced disorganization and lacked respect from technical staff members while senior management was primarily focused on their own departmental responsibilities. To address these challenges, Apple’s CEO Sculley introduced the position of Chief Operation Officer to centralize operations and involve senior management in day-to-day decision-making. This change also allowed Sculley to allocate more time for long-term planning.
The company’s growth led to the realization that its markets were distinct and required different expertise. As a result, Apple split its international divisions and created the Apple USA division to focus on sales in the United States.
Additionally, Apple faced challenges in May 2008 when a non-profit organization called Climate Counts ranked them last among electronic companies, awarding them only 11 points out of 100. To address this issue, Apple upgraded the iMac and Macbook in October 2009.
Furthermore, Apple faced criticism for keeping their Chinese workers in unfavorable conditions and providing them with low pay.
This issue was brought to the attention of the people through media. Apple immediately launched a thorough investigation and collaborated with their manufacturers to ensure that conditions met Apple’s standards. Situation Analysis for Dell: Dell PC was established in 1986 and has since revolutionized the IT industry by introducing groundbreaking developments crucial for home, small business, and enterprise computing. Dell’s R&D team comprises highly skilled product designers and engineers who have played a pivotal role in disseminating Dell Technology worldwide.
Dell’s success and innovation can be attributed to its dedication to meeting customer needs with improved solutions. One major concern addressed by Gartner Analysts was whether the PC business, which is Dell’s core business, is at risk. Michael Dell, the CEO and chairman of the company, stated that if a user chooses to migrate their client computing to servers in the datacenter, Dell can effectively meet their requirements. In fact, they already offer “Flexible Computing Solutions” as a strategy to cater to consumer needs.
Today, Dell announced the introduction of a new product called Demand Desktop Streaming. This innovative solution streams the operating system and applications to a diskless desktop, shifting costs to servers and storage. After returning as CEO earlier this year, Michael Dell emphasized the importance of bringing back customer-centricity to the company and focusing on new markets to meet consumer demands. Additionally, Dell plans to ship Linux on a Desktop and has recently announced the launch of Tablet Computers. However, Dell user Peter Ulyatt encountered a problem with his CD drive and contacted Dell’s support team. Unfortunately, after being placed on hold for 45 minutes, he struggled to understand the technician who ultimately identified it as a software issue.
The call was initially transferred to the software technician but was dropped. When Ulyaat called back, they were put on hold for another 45 minutes and asked for the software desk. They waited for an additional half-hour before eventually hanging up. This incident directly contributed to Dell’s customer-satisfaction rate dropping 6.3% according to a survey conducted by the University of Michigan. In an effort to reverse this decline in service, Dell is taking action. John Hamlin, the senior vice-president of Dell U.S. consumer business, explains that the company is hiring thousands of additional representatives this year and working towards reducing call transfers.
According to him, Dell reports a 35% surge in customer satisfaction compared to last year based on internal weekly surveys of 5,000 customers. Dell intends to revamp its support system due to the inefficiency of the direct model. The message conveys that new Personal Computers come with basic support while additional support and services incur extra costs. Problem 3: In 1995, Dell introduced the ‘direct model’ for selling products to customers when it entered the Chinese market. This successful model was also effective in urban areas of China.
Dell experienced slow growth in 2004 and 2005 primarily due to the failure of their ‘direct model’ in the semi-urban and rural markets of China. This was attributed to the limited internet access and low credit card usage in these areas. Consequently, Dell’s market share in China began to decline by late 2005. To combat this, Dell should have focused more on selling their products in urban areas rather than relying on rural areas. Additionally, increasing their advertising efforts in these regions could have been beneficial. Apple, on the other hand, employs unique marketing strategies. Rather than simply promoting product features and specifications, Apple creates an image of superiority for their products. Their advertisements for the popular “iPod” feature individuals enjoying themselves at parties and dancing while using their iPods. The backgrounds are vibrant and energetic, portraying Apple’s products as extraordinary compared to competitors.
By owning an iPod, one is automatically inclined to join a unique community consisting of fellow iPod owners. The release of the iPod has caused a sensation, establishing it as an essential possession, especially among the younger demographic. Recognizing that people are attracted to products desired by others and desire to be part of such groups, Apple’s strategy revolves around enhancing existing products rather than being the first in the market. Their emphasis lies on product improvement rather than invention, prioritizing delivering good quality and incorporating captivating features that enhance the appearance of their products.
Apple’s Newton, a graphic interface, was an unsuccessful invention. Nevertheless, the company has reembraced this approach. They heavily depend on their loyal fans and customers to advocate for their product. Apple is renowned for its profound understanding of consumers. The remarkable quality of their products often leads satisfied owners to recommend them, resulting in word-of-mouth sales. Their philosophy revolves around creating exceptional products that effortlessly market themselves.
DELL’s marketing strategies revolve around direct sales to consumers, eliminating the involvement of intermediaries. This approach lowers advertising expenses and boosts profits. Moreover, customers have the option to purchase personalized laptops from Dell’s website at competitive prices in comparison to rival brands such as Apple, HP, Lenovo, etc.
Dell focuses on the financial aspects of their consumers and offers custom-made products, while Apple emphasizes quality, extra features, and attractive designs. The choice between the two depends on individual preferences and budget. Personally, we recommend Dell because they offer similar features at a lower price. • • •N. A. (2009). Dell’s Problems in China. Available: http://www. icmrindia. rg/casestudies/catalogue/Business%20Strategy/BSTR193. htm. Last accessed 20 Feb 2010. •Patrick Thibodeau. (2007). Is Dell’s core PC business at risk?. Available: http://www. infoworld. com/t/hardware/dells-core-pc-business-risk-122. Last accessed 15 feb 2010. •n. a. (2008). Shopper Research Pinpoints Loyalty, Problems. Available: http://www. ifoapplestore. com/db/2008/02/27/shopper-research-pinpoints-loyalty-problems/. Last accessed 18 feb 2010. •n. a. (2009). Apple Computer Inc. Available: http://www. answers. com/topic/apple-computer-inc.
Last accessed 14 feb 2010. •Richard D. Freedman and Jill Vohr. (1998). APPLE COMPUTER, INC.. Available: http://www.stern.nyu.edu/mgt/private_file/mo/rfreedma_ca/apple.pdf. Last accessed 14 feb 2010. •Steven Levy. (2010). Garage start-up. Available: http://www.britannica.com/EBchecked/topic/30632/Apple-Inc/92993/Garage-start-up. Last accessed 16 feb 2010. •Steven P. Jobs. (2010). Reinventing Apple. Available: http://www.britannica.com/EBchecked/topic/304313/Steven-P-Jobs /280816 /Reinventing-Apple. Last accessed 16 feb 2010.
