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Saturday, June 25, 2005

Dell Woos the Market

Dell, the computer manufacturer has shed some light on its strategies to woo the market.

Dinesh Pai, general manager, Dell India, said, "We started from being no. 8 in the market when we went direct in 2000. Today, Dell is at No. 4 according to IDC in terms of total value of shipment. We have also seen a 15.8% year-on-year growth for PC unit shipment."

"At the Asia Pacific level, India is the third market after China and Japan in terms of size. So we will continue focusing and developing ourselves in this market," said Pai.

According to the company their major benefit is their direct business model where no unnecessary people or processes get between you and your supplier. "We focus on the customer and offer "best value technology" to all our customers across the globe," said Pai.

The company claims its success has not been because of the price point at which it competes but because of the value delivered. Also the build-to-order model allows Dell to maintain little or no inventory, resulting in our ability to introduce the latest relevant technology.

"Enhancing the customer experience is very important to us. Customers can get quotes over the phone or via the web and place orders on the spot. Their hardware is built next day and shipped direct, arriving usually within 7 to 15 business days," said Pai.

When it comes to after sales service the company can fix more than 75% of technical problems over the phone and have engineers all around the country to provide field service when required.

In India, the Laptop to Desktop shipments ratio is 1:30 in contrast to a market such as Japan where the same ratio is 1:1. According to the company Laptops are typically 2.5 times the cost of a desktop of similar configurations.

"This is an entry barrier for an individual considering the purchase of a Computer. However over a period of time, this gap has come down substantially as a result of better technology in laptop components such as the LCDs, processors etc," he added.

"Dell because of its direct model is able to offer to the customers the latest in technology at the most competitive prices. Currently we offer Inspiron, our laptop line for the home and small business user, starting at Rs 47,000," said Pai.

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