How H-P Reclaimed Its PC Lead Over Dell

I. Hiring Todd Bradley from PalmOne

II. “HP is fighting on the wrong battlefield” Shift of Channel Focus (ex: Store-exclusive notebook)

III. Migration of PC demand: Desktops Notebooks(different buying/using behavior)

IV. H-P needed to convince shoppers that retailer was the better channel choice Shift of H-P PC Positioning: Product Focus User Focus (“The Computer is Personal Again”)

V. Promotion Shift: More Pull More Push*

1212 Two Promotional Strategies**Two Promotional Strategies**

Pull Strategy

Manufacturer

Channel members

Final users(consumer or industrial)

Final users(consumer or industrial)

Channel members

Manufacturer

Push Strategy

1*

2

3

*Numbers indicate sequence of flows

Promotion flowNegotiation flowProduct flow

1

2 3

• Different Channels for Movie viewing• Why is Redbox so popular?• The idea of self-service retailing:

– When does it work?– New venture for Coinstar

• Future of video rental• Redbox vs. Netflix• Any good item for self-service retailing?

Think Outside the Redbox

Dell’s Strategy for Growth*1. Current Market Portfolio

* Business Model

2. Advantages of Dell Model

1. Cost efficiency of direct model

2. Customization & Responsiveness

3. Focus on detail

3. Three-Step Growth Strategy*

4. New Frontier for Dell: Consumer Electronics

Dell’s Strategy for Growth5. Three Main Challenges for CE Market

1. No Customization and Less Responsiveness

2. Will People Buy CE Direct?

3. Dell’s Brand Equity for CE ProductMike George’s two comments

6. Playing the OEM game (back page)

- Who are customers? - Upside & Downside

- Response from resellers and small manufacturers

Dell’s Strategy for Growth7. Recent Performance (FT article in 2005)

1. Slowing growth2. “Now Dell is the market.”

3. Heavy Reliance on PC segment4. Slipping Price Advantage and Built-to-Order

System5. Competitors have caught up

6. Dilemma for Dell - Shoot low?

- Shoot high? - Is Dell Model Obsolete for Now?

Dell To Rely Less on Direct Sales (WSJ article in 2007)

• Dell’s Broad, Global Retail Push– Selling Dell PC through Wal-Mart

• Why Go to Retail?• What is happening to Its Direct

business model?• “The Direct model has been a

revolution, but it is not a religion.” - Michael Dell

Discounting Continues to Haunt Dell (WSJ article in 2010)

• Revenue is up, but profit is down. Why?– HP: Revenue is up and profit is also up

• Now no. 3 behind HP and Acer

• Share of total revenue from consumer market: 2003 (???) 2010 (???)

• Compete against “white box”

Move Over, Coke1. Key Challenges for small guys

2. Describe Bikoff’s Product Strategy

3. Describe Bikoff’s Marketing Strategy

4. Describe Bikoff’s Marketing Channel Strategy

1. Structure: types of stores, intensity, level

2. Management: support & relationship

* Positioning of vitaminwater

After the Sale is Over1. Brand Ownership Change

2. What happened to existing distribution network of Vitaminwater?

3. What is the problem here?

4. How would you solve the problem?

5. Learning from the past: Snapple

Ping Golf Club

1. Through what type of channel intermediary are Ping Clubs being sold?

2. What are key factors that drive Ping’s channel choice?

3. What is the intensity of their distribution?

4. How would you describe Ping’s channel

Relationship management?

The Monster that Ate Hollywood

• Key Word: Channel Evolution– Supply side factor, demand side factor, technology

• Changes in Movie Studios

• Changes in Studios’ Competitive Strategy*– Movie Making Side

– Revenue Model (Distribution and Exhibition)

• Changes due to alternative movie distribution channels: – Marketing Channels:

– Products:

– Markets:

Video Case: The Monster that Ate Hollywood

• Changes in Movie Studios– cottage industry global industry

• Changes in Studios’ Competitive Strategy*– Movie Making:

• Changing Importance of Marketing vs. Movie Quality• Create Buzz• Opening Weekend

– Movie Production: Make a Safe Bet Earnings Management and Relying on Big Movie Stars

Video Case: The Monster that Ate Hollywood

– Movie Distribution and Exhibition– Movie Distributors: Part of Multinational Movie Studios

Show only “Big Money” movies– Movie Exhibition: Wide Release and Short-term

• Changes due to alternative movie distribution channels:

– Channels: more vertical integration – Products: build a franchise around a movie– Markets: domestic go International

• Topics for thoughts– An example of another industry for this kind of business

model?– Future of Movie Marketing Channel