Theory of Consumer Behavior: There are two main approaches to the of consumer behavior of demand. The first approach is the Marginal Utility or Cardinalist Approach. The second is the Ordinalist Approach. We discuss these two approaches separately. Cardinal Utility Analysis: Human wants are unlimited and they are of different intensity. The means at the disposal of a man are not only scarce but they have alternative uses. As a result of scarcity of recourses‚ the consumer cannot satisfy all
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based on the issues related with potential acquisition of Compaq by HP. Case tells about circumstances of computer hardware industry at 2001‚market was highly competitive‚ frequent and fast product introduction in market ‚continuous improvements in product/price characteristics market needs quick customization in products and service offerings to being profitable. Through differentiation and cost leadership strategy how IBM and Dell not only survived but earned a huge profit Compaq had net loss of
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Key Learning From The Article – 1. Insist on innovating operating strategies. 2. Do not go ahead if you do not have a plan to increase the shareholders’ value even in the long run. 3. Do not look always for growth only in high – growth industries. 4. Evolve in house capabilities. Note –Article main point was that nonsynergistics deals can be successful. HP – Compaq Case – As the PC‚ printing and services related to this and IT were changing fast because
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manufacturing plants have moved to cheaper labor cost countries. In the future‚ the industry will keep seeing mergers and alliances between companies to complement their services and product to better satisfy their customers such as the alliance between Dell and Lexmark. Apple Apple was founded in 1977. Its mission statement is “Apple will be a leader in providing simple‚ powerful‚ high-quality information products and services for people who learn‚ communicate‚ and create”. Apple is distinguished
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years‚ Dell Inc. has been on a long‚ hard journey‚ experiencing quite a lot of ups and downs. Dell has had several rivals throughout the years such as Hewlett-Packard(HP)‚ Acer‚ Gateway‚ Sony‚ Asus‚ Lenovo‚ IBM‚ MSI‚ Samsung‚ and Apple. Micheal Dell‚ at the age of 19‚ “started the company that would dominate the industry. The computer whiz had $1‚000 and a novel idea: to eliminate the retailer and sell directly to the consumer.”(1). IBM computers were selling at $3‚000 in stores and Dell had realized
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lower cost Compaq was a significant player in enterprise systems and HP in IT services business Wider spectrum of products for its clients through the merger Strong brand recognition‚ something that takes time to build Highly complimentary R&D Overlapping management Overlapping product lines Diluted interests in imaging and printing which were traditionally HP’s strengths Opportunity Threat The next IBM? (HP was looking to expand its services business through both organic and
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1996 profit margin of 5.1% remains constant‚ profits will fund $405 million of the additional assets. Dell would require additional funding of $315 million. 1996 Profit Margin: Net profit/sales = 272 000 000 / 5 296 000 000 = 5.136% 2) The second liability assumption is that liabilities remain at 1996 sales ratios. With this assumption‚ Dell has excess capital of $217 million. This is consistent with the adjusted sustainable growth calculations
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Findings Dell started out as a direct seller‚ first using a mail-order system‚ and then taking advantage of the internet to develop an online sales platform. Well before use of the internet went mainstream Dell had begun integrating online order status updates and technical support into their customer-facing operations. By 1997‚ Dell’s internet sales had reached an average of $4 million per day. While most other PCs were sold preconfigured and pre-assembled in retail stores‚ Dell offered superior
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The strategy Dell currently implements is the cost leadership and maximizes the operational efficiency. This strategy is accomplished through the low cost to reach the low price product and service to obtain the larger market share in order to generate more profit. On the other hand‚ Dell attempts their excellent supply chain model to control their inventories in low level and maintain the high quality production. Moreover‚ Dell motivated their employees to be nimble atmosphere to deal with unexpected
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Marketing Mix DELL Dell is one of the leading Consumer durables brand. The marketing mix of dell talks about the way in which dell has improvised to gain a competitive position. Product: Dell believes that‚ ‘Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer’. Dell provides a wide variety of both business class and home/consumer class products and services. Dell designs‚ develops‚ manufactures
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