In 1984, with only $1,000 in startup capital, Michael Dell established Dell as the first company in its industry to sell custom-built computers directly to end users, bypassing the dominant system of using resellers to sell mass produced computers. Since a young age Michael Dell has been intrigued and fascinated in the idea of eliminating unnecessary steps. So it was not surprising when he established a company where there marketing strategy was based on eliminating the middleman. “We sell computers directly to our consumers, deals directly with our suppliers, and communicate directly with our people, all without the unnecessary and inefficient presence of intermediaries. We call this “the direct model,” and it has taken us, to use a common phrase at Dell Computer Corporation, “direct to the top””. The direct business model eliminates retailers that add unnecessary time and cost, that could diminish Dell’s understanding of customer expectations. The direct Continue reading
Marketing Case Studies
Case Study: Marketing Strategies of IBM
International Business Machines Corporation, better known as IBM, is a multinational IT company involved in the manufacture and retail of computer hardware and software applications, and IT consulting services. The company has established itself as one of the selected information technology companies since 19th century. Adoption of marketing strategies for IBM has been a planned structure since 19th century and by means of these strategies it has earned enough success all over the world. With its growth in the manufacturing as well as marketing domains of computer hardware and software, it has gained the nickname of “Big Blue”. On marketing grounds, IBM follows strict infrastructural services, added by hosting provisions and consulting services in various areas from mainframe computers to the persuasion of nanotechnology. Well – devised and efficient marketing strategies have been the key to IBM’ global success. The company strongly believes that devising effective marketing strategies requires making Continue reading
Case Study: Starbucks Social Media Marketing Strategy
With more than 17000 Starbucks stores in the world, spanning throughout 49 countries , and with significantly higher prices than the market average, the Starbucks enterprise is a tale of success, and a direct result of a genius social marketing and branding strategy. At the core of the business their signature fresh, dark-roasted, full-flavored coffee brews and beans consorting with specialty teas and blended beverages, the special ambiance, its principles and its sense of connection and community; it’s all about creating the ‘Starbucks Experience’, which is the soul of the business, a place to gather, talk and enjoy the allures of their savory brews, a ‘Third Place’ in people’s lives between home and work, for customers to feel perfectly comfortable and imbued with familiarity. Connecting and engaging with the customers is a very important aspect of Starbucks philosophy and one of the reasons why they have been so successful in Continue reading
Case Study: Failure of Vodafone in Japan
Vodafone Group plc is a British multinational mobile network operator, its main headquarter is in Newbury, England. It is the world’s largest mobile telecommunication network company, based on revenue, its market value on the UK stock exchange is about £80.2 billion as of August 2010, making it Britain’s third largest company. It is currently operating in 31 countries and has partner networks in a further 40 countries. In 2001 Vodafone announced to get into Japanese market with acquiring AT&T’s 10% economic interest in Japan Telecom Co., Ltd. (“Japan Telecom”) for a cash consideration of US$1.35 billion ( £0.93 billion). Japan Telecom was one of Japan’s leading telecommunications companies and parent of the fast growing mobile network, J-Phone Communications Co., Ltd., and its regional wireless operating companies (collectively known as “the J-Phone Group”). After this deal, Vodafone held 25% of Japan Telecom’s equity. The reason for Vodafone going into Japanese market Continue reading
Case Study of Starbucks: Creating a New Coffee Culture
Is it possible to convince ordinary Americans who routinely open 3-pound value cans of coffee, shovel the grounds into a paper filter, push a button, and go about their business to suddenly change their ways? Will they be willing to spend $2 or more per day on the same item? Will this eventually evolve into a $1400 per year habit of a latte and a scan each day? The answer to these questions, according to Starbucks, is “absolutely!” Starbucks began as a coffee importing firm. Howard Schultz, an employee in the organization, toured Italy in the early 1980s and watched as crowds of city dwellers began each morning with a stop at a coffee bar. Schultz tried to convince the owners of Starbucks to do something similar in the United States and was roundly rejected. Quitting the firm and launching out on his own quickly turned into a lucrative decision Continue reading