marketing strategies of DELL

Dell Computer is indeed an assembler rather than a manufacturer, the company mostly assembles computer components from major suppliers such as Intel, AMD, and other component manufacturers after taking orders from customers, who are mostly office and institution buyers seeking for low cost with heavy buying. These buyers would have own IT staff that are competent of what computer configuration, system and software needs and installation for operation.

Dell's business strategy is emphasis of high efficiency and low cost, its product is simple and basic, and looks very odd without any differentiation (such as stereo sound, different style or color because Dell considers computer product just a commodity or it is easily obsolete that few customers are willing to invest too much for something prestigious

It would build the order at last minutes after collecting substantial no. of orders from customers that could realize economies of scale in assembling processes.
Its direct sales is able to forecast customer wants, needs and demand precisely that it doesn't need to have high inventory and avoid the risks of dead stocks since computer is an extremely or easily obsolete product
It doesn't employ retailers and sales staff--the intermediaries that the cost can be saved or return to customers for their interests.
It delivers computers to customers by courier service; the courier (DHL) companies would have low bargaining power to Dell when Dell continuously can give big business to them. Dell also exhibit strong bargaining power to component suppliers with heavy buying. Dell marketing its products on economic media such as newspapers, pamphlets, advertising flies and internet that are very low cost.

Why low cost? Because Dell smartly plays well supply chain management—for HK and China market, its products are usually made in Xiamen, China, with DHL courier service in one day for rapid delivery. Limited maintenance service is offered. Dell has very less inventory thus less dead stock, strong bargained to component suppliers and manufacturers, and courier because Dell is a heavy buyer and user. No cost for intermediaries and sales staff, economic method in marketing, targeting volume buyers for mass quantity.
However, Dell’s business model is able to be imitated by Legend/IBM, HP/Compaq who are also able to offer low priced products but with bit higher differentiated and some service. Buyer would prefer to buy from them if the price different is not big. Dell recently is losing some market share!

The marketing strategy of Dell is ORDER TO MAKE, means start production after receive order, different to others that well made the product ready and sell. However, Dell is changing the marketing strategy recently that Dell is also get well made product ready to sell, and using advertisement in news paper plus promote products in stores instead of before only promote in news paper and website(main).