In addition to this, ithad thefirst mover advantage because it was aware of the fact it isa Chinese based company and itstarget market addressed the Chinese audience rather than going to a foreign market. It delivers the products to the distributors with large discount rate as compared to competitors. Lenovo has a strong marketing campaign that involves the best sales staff which helps them to add numbers in the income statement of the company. It helpedthe company to increase the sales of computer in terms of units and protect its profit from encroachment by competitors.Įffective Marketing & Distribution Strategy The advantages of distribution channel were to attract as many customers as they could. SinceLenovo is targeting through its immense network distribution thereforeithasaccess to almost 13000 sale points in its local distribution channel out of which 80 % wereexclusivedistributors. Importing is done by wholesaler therefore it reduces the effort of the workforce and it is betterto involve in making strategy to compete with the competitors. It handles all the transactionswith the distributors. Lenovo’s strategy was to maintain close contact withthe customers at corporate level. Importation offshore business model is depending on these principles: This helped Dell to identify the customers’ needs and trends early therefore this gave the desired products to its customer before any competitor can.
On top of that Dell was offering the customization options which made it become attractive and customer centric.ĭue to the direct relationship with the customers, Dell got the knowledge of its customers. Dell was also overlapping the distribution channels and it targets the end consumer therefore,it reduces the cost even further. It was providing Della cost advantage as high excess of inventory increased the cost of production. In this approach,Dell was operating with the lowest inventory level in the industry. The choice of location is very efficient and effective as it strikes to those regional markets in order to minimize delay between the purchase of raw material till finish goods and the delivery,there fore it was initial competitive advantage for them.ĭell’s strategy was comprised of direct selling and build to order approach. The manufacturing plant is situated in those markets where labor cost is low with highly productive work forces thus Dell is able to address the low cost factor.
#Hp vs dell marketing strategy Pc
It is ranked as the 3rd largest PC maker around the globe.ĭell’s business model is dependenton these principles:ĭell conducts its business operation all over the world in many different markets. Numerous employees are working with Dell. It is ranked 41 in the fortune 500 companies list. Dell is a U.S based multinational company that sells, develops computer related products and service. “Think Pad” notebooks and “Think Center” desktops are the leading market brand of Lenovo.ĭell wa sfounded in November 4th 1984. The company acquired IBM personal computer in 2005 since then it has become a worldwide brand.
Lenovo was consolidated in Hong Kong in 1988 under the tag of its previous name i.e.
It is marked as the 2nd largest PC maker all over the world.