Comparison The Value Proposition Of

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 HP................................................................10

2.1. Dell..........................................................................................10

2.2. Hewlett Packard............................................................................11

3.0 Conclusion...................................................................................12

Part Two..........................................................................................12

4.0 Suitable the value proposition of consumer electronic market.......................12

5.0 Strategic Pathway..........................................................................14

6.0 Customer Focus and Market Sensing....................................................15

6.1 Market choices..............................................................................16

7.0 Value Proposition...........................................................................17

8.0 Key Relationships.........................................................................17

8.1 Customers....................................................................................18

8.2 Collaborators / Partnerships...............................................................19

8.3 Co-Workers.................................................................................19

8.4 Competitors.................................................................................19

9.0 Conclusion...................................................................................20

Bibliography.....................................................................................22

Introduction

This purpose of fist part of this report is using Piercy's theory to analyse the value proposition, from different point of view on mission, competitive differentiation, marketing assets and brands. Moreover, use product concepts to evaluate the value proposition of Dell and HP. Then, contrast these two value propositions and draw a conclusion from these analyses. Then, compare the value proposition of these two companies. Second part is to identify a suitable value proposition for Dell, which helps them expanding business into the consumer electronics market.

Part One

1.0 Analyse the value proposition of Dell and Hewlett-Packard

As below figure 1 shows the value proposition involves all the concepts starting from the mission of the company, the market different with others, the segments and its attractiveness differentiates them from others and their strategic position defining their assets and their brands.

Figure 1 Building the value proposition (Source: Piercy 2002, p.481)

Mission

Brands Market Definition

Market

Marketing Assets Segmentation

Strategic

Position Market Attractiveness

Differentiating

Capabilities

1.1 Mission analysis

According to Piercy, mission is a reflection of the core-competencies of a company with regard to creating customer value and sustainability (Piercy 2002). A mission statement defines the core purpose, objectives and strategy of the organisation. It should effectively inspire, long-term in nature, and easily understood and communicated. In other words mission of the company is to prove themselves to the customers and establish a customer value and loyalty.

Dell emphasizes best to be direct with the customers leading them to configure their PC of their own interest and also it stands best in customer experiences where market they serve. Dell diverts part of its funds to customer service programmes reducing its physical marketing.

Hewlett Packard (HP) believes that they are able to develop and produce