Dell Goes Back To Its Roots

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November 14, 2011 Jada Evans Principles of Marketing Case 10.2 Dell Goes Back to Its Roots Dell is using wisdom in steering clear of pioneering new lines and instead focusing on adding new features to products they have already developed and have proven themselves in the market. The barrier to entry on new lines is too steep. Apple has such a huge market share, it would be more resourceful to use funds and ingenuity for enhancing products you already have in the market that are well respected and have a brand following. Time and money have already been spent on developing core products so Dell should be able to find ways to examine cutting cost on production without compromising quality. With personal computers perhaps being in the maturity stage, or even the decline stage, companies like Dell will scramble to reposition their product, reinvent or enhance their product or choose to diversify. While the first two, reposition or reinvent are more calculated risks, diversifying can be higher risk. For Dell, it proved to be unsuccessful. Timing of introduction into a new category of electronics was disastrous. In today’s world technology is advancing at such a rapid pace, unless you have research and development years ahead on new product ideas you could find yourself picking up the pieces of what you thought was going to be the newest in technology. Dell’s handheld computers sparked interest, but not enough to compete with companies like Apple and Nokia, who had more advanced technology and were introducing cell phones with computer app abilities. Consumers saw they could buy one device that could function as two. Dell was just always one step behind. The competition in technology is so intense that you can launch a new product one day and the next it’s already in a declining stage or worse, never even really get launched. Dell had the Digital Jukebox

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