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PART 6-MARKETING MISCUES A PRICING EXECUTION ERROR AT DELL In a rare slip at Dell, Inc., a company known for its low-cost business model and close attention to operational detail, poor management of the average selling price resulted in a revenue shortfall in the second quarter of 2005. Basically, the company priced its computers too low. Though it shipped an industry-record 9.1 million computers during the quarter, the company failed to meet its quarterly revenue target. According to Dell’s Web site, the company’s climb to market leadership has been the result of a persistent focus on delivering the best possible customer experience by the direct selling of computer products and services. The company was founded in 1984 by Michael Dell, and its corporate headquarters are in Round Rock, Texas. A worldwide supplier of computer systems, Dell manufactures computers in the United States, Brazil, Ireland, Malaysia, and China. The company holds the number one market position in the United States, the number three position in the Asia Pacific/Japan market, and the number two position in Europe. Worldwide, the company employs about 64,000 people. Dell’s products include servers, storage, printing and imaging systems, workstations, notebook computers,
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This document was uploaded on 09/20/2011.
- Spring '08