Essay on Comparison the Value Proposition of

4679 Words 19 Pages
Comparison the Value Proposition of

Dell and Hewlett-Packard

Table of Contents
Introduction………………………………………………………………………...….4
Part One……………………………………………………………………………….4
1.0 Analyse the value proposition of Dell and Hewlett-Packard……………………...4
1.1 Mission analysis…………………………………………………………….…5
1.2 Market definition………………………………………………………………5
1.3 Market Segmentation………………………………………………………….6
1.4 Market Attractiveness………………………………………………………….6
1.5 Differentiating capabilities and Strategic position…………………………….7
1.6 Marketing assets……………………………………………………………….8
1.6.1 Customer Loyalty………………………………………………………..8
1.6.2 Demand Management……………………………………………………9
1.7 Brands………………………………………………………………………….9
2.0 Evaluation of Dell and
…show more content…
HP does not show their business model in mission statement.

1.2 Market definition

Piercy said, market definition is executive vision or understanding of customer differences which contain fixed and historical assumptions about what the market is. Dell is considered to be the leaders in the PC market industry. Michael Dell, 20 years ago in Texas USA, founded "PC's Limited" (renamed Dell) and is now the CEO of the concern. In 2005, Fortune Magazine ranked Dell as No. 1 on its annual list of the most-admired companies in the United States, which had held the top spot for the previous two years and fell to No. 4.
Comparably HP is known for its printer division, founded by Bill Hewlett and David Packard of Stratford University in the year 1939. The product range includes printing and imaging business, peripheral accessories, enterprise solutions, software to digital cameras. However, a major source of revenue is still derived from its printer business contributing to 76% of the operating margins (Business Week, December 13, 2001).

1.3 Market Segmentation

Segmentation is a fundamental issue of market strategy with far-reaching effects – indeed; ultimately the only real logic for how we organize the whole company is our understanding of the structure of the market (Piercy 2002). It is important to stress on the market segmentation of Dell because they focus on the customers and work hard to establish fast market segmentations and say the markets

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