Download - Dell vs HP

marketing strategy

Suleyman Aliyev Sevinj Naghiyeva Shahriyar Aliyev Tarlan Amrahli

2001 2002 2003 2004 2005 2006

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56 59 56 59 51 53 OTHERS

Market Leaders in 2001-2006

2007 2008 2009 2010 2011 2012

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44 47 42 43 41 OTHERS

Market Leaders in 2007-2011

1 Dell got its start out of Michael Dell's dorm room at the University of Texas in 1984. He was only 19

7 FACTS ABOUT DELL

7 FACTS ABOUT DELL

2 Started with just $1000 seed money, the company grew so rapidly that its 1988 IPO raised $30 million.

7 FACTS ABOUT DELL

3 When the company made the Fortune 500 for the first time in 1992, Michael was the youngest (27) CEO to ever lead a company on the list

7 FACTS ABOUT DELL

4 Michael has led the company as CEO for nearly its entire existence, taking a break between 2004 and 2007 to run his and his wife's charitable foundation.

7 FACTS ABOUT DELL

5 He supposedly owns one of the largest homes in the world, a mansion that sprawls 2,000 square meters on 60 acres.

7 FACTS ABOUT DELL

6 Dell currently employs 110,000 people worldwide

7 FACTS ABOUT DELL

7 All Dell's campus is completely powered by green power

1 7 FACTS ABOUT HP

HP’s $120,5 billion revenue equals to Azerbaijan’s Georgia’s and Armenia’s GDP combined

2 Stanford grads William (Bill) Hewlett and David Packard founded the company with $538 capital in 1939

7 FACTS ABOUT HP

3 The friends decided the order of their surnames in the company name and logo with the toss of a coin.

7 FACTS ABOUT HP

4 HP was begun in a Palo Alto garage. It is considered to be the "Birthplace of Silicon Valley“ and now it is historical landmark.

7 FACTS ABOUT HP

5 HP's first product was a resistance-capacitance audio oscillator. Walt Disney Studios used this to make the it’s film, Fantasia.

7 FACTS ABOUT HP

6 The handheld HP-35 calculator, released in 1972, was been named one of the 20 products that changed world

7 FACTS ABOUT HP

7 The first mass-market laser printer was brought to market in 1980 by HP

7 FACTS ABOUT HP

SWOT Analyses - Dell

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• Well Known Brand Name

• Dell’s Direct Sales Model (Dell controls its supply chain which makes it easier to build a computer to a customer's specifications)

• Strong Customer Relationship Management (CRM)

• Dell is a computer maker, not a compute manufacturer (Dell is dependent on it’s suppliers)

• Any defect part of suppliers can cause embarrassment for Dell


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• Diversification strategy by introducing many new products to its range (printers, LCD televisions and other non-computing goods)

• Opportunity to sell directly to computer retailers


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• Competitive Rivalry (Big competition from HP, Lenovo and ACER)

• Fluctuations in the World currency markets (Changes in world currencies affects costs of supplies, then Dell’s production costs)


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• Strong Market Position (Biggest PC producer)

• Prominent Brand Name Recognition

• Successful Strategic Acquisitions (Compaq Computers in 2002, Mercury Interactive in 2006, Electronic Data Systems (EDS) in 2008,, 3Com in 2009 – a provider of computer network equipment

SWOT Analyses - HP

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• Weak Market Segment Integration (Lack of presence in some seemingly obvious segments)

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SWOT Analyses - HP

• Expanding presence in cloud computing market (In 2009, HP announced HP Cloud Assure)

• Expanding portfolio of imaging and printing solutions

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SWOT Analyses - HP

• Projected decreases in the IT markets

• Hyper-competitive environment

SWOT Analyses - HP

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Dell - Differentiation Strategy

1 2 3 4 5 6 7 Direct to the Customer


1 2 3 4 5 6 7 Build to Order Manufacturing


1 2 3 4 5 6 7 Mass Customization


1 2 3 4 5 6 7 Just in time components inventories


1 2 3 4 5 6 7 Partnership with Suppliers


1 2 3 4 5 6 7 Market Segmentation


1 2 3 4 5 6 7 Customer Relationship Management