Showing posts with label Dell. Show all posts
Showing posts with label Dell. Show all posts

Monday, March 4, 2013

DELL INDIA: CHANGING FORTUNES

As a report indicates, Dell has moved from being just about an also ran to a leading position in the Indian PC space; and an internecine tussle with HP for the top slot is now in order. B&E analyses the current and future dynamics of this competition. by Virat Bahri

A key iconic moment was IBM giving in their papers. Biswapriya Bhattacharjee, Group Business Director, IMRB International (eTech) points out to B&E, “In the corporate segment, when IBM sold off its PC division to Lenovo, a lot of IBM’s corporate customers defected. Dell was able to garner a larger share of these customers.” Lenovo was Chinese. Dell was American. In the Indian corporate segment, Dell’s model suddenly appeared to have undiminished value.

And then, things took a double jump when Dell decided to tweak its distribution model and finally went on to the multi-channel front. The company launched its channel programme in February 2008, when it had a market share of just around 5%. In just two months, Dell thundered up to 8% in the consumer notebook space; in the consumer desktop category, the jump was from 2% to 4%. While the jumps may seem small, one has to realize that for Dell, the evident shift was ground breaking.

HP at the same time refused to play the price war in India – it could well afford to, being the global leader with its differentiated offerings. Dell didn’t stop in the on-ground sales model; it adopted a Partner Direct model, where it appointed Master Sales Affiliates, who brought in more Sales Affiliates. These Sales Affiliates, took orders from customers, which were serviced by Dell directly, hence minimising inventory risks for the resellers.

Dell topped this with an extremely aggressive pricing strategy to compete with the likes of Acer and even intensified focus on above the line promotions. Experts mention to B&E that Dell’s advertising budget in the past two years has in fact been matching or exceeding the budgets of other top brands combined. Would all that and playing on price be enough to beat HP, which has a formidable brand recall? Apparently yes! Pankaj Arora, MD, Protiviti Consulting says to B&E, “According to IDC, over the last few years, notebook prices in India have been dropping by about 10% a year, primarily because of technological advancements, changes in the customs duty structure & growing volumes.” Significantly, nearly 40% of household sales for notebooks in India came from SEC B & C, sections which are the most price elastic.

And the growth in this sector is well established. In H2-2009-10 (Sep 09-March 10), netbooks grew by 66% and crossed the 1-lakh mark for the first time, and 3/4th of sales came from households (MAIT). Small form factor products like all-in-one PCs are expected to be a significant market by 2013, contributing around 38% of desktop sales. Wireless broadband & 3G roll outs are also key factors that will drive growth.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.


 
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Friday, October 5, 2012

"For Us Design Is Primarily A Business Tool"

A Part of the WPP Group and one of the World’s Leading Branding and Design Consultancies with clients like Microsoft, Vodafone, Dell, P&G and Nokia, among others, the London-based FITCH has just started its India journey. In an exclusive conversation with MONA MEHTA of B&E, FITCH’s South Asia managing director David Blair Explains why the Indian Banking players are suddenly Opening up to modern design and look when it comes to brand transformation

B&E: You mention Dhanlaxmi Bank has just roped in Fitch to roll out a new brand identity and retail design. What is it that the private sector bank is looking at with this latest move?
David Blair (DB): Though Dhanlaxmi Bank is an established name, the new leadership wants to communicate an up-to-date approach to banking. An approach that encourages an open relationship between the client and the bank, where banking is demystified and made easier, and as such becomes more in tune with the demands of a new and often younger audience. While the modern design of the bank’s branch offices reflects this new approach, the brand name & logo continue to communicate the values of trust & reliability that it has built over 80 years of experience.

Globally, the banking industry faced a slowdown in the last two fiscals. Did the global meltdown have an impact on the financials of Fitch as well, in terms of providing design consultancy to banks globally? Further, how has the company battled with the slowdown?
DB: Like all other global consultancies, Fitch too was affected by the recent slowdown. However, Fitch, like many of its banking clients which include Dhanlaxmi Bank, HSBC and Citibank, has come out well through the crisis and is now in a very good shape. In fact, we are back in action and ready to work for clients across all industries, and not just the banking sector.

B&E: But do you plan to tie-up with other local banks as well or would you expand beyond that sector?
DB: We are certainly looking forward to a strong presence in the Indian subcontinent, be it the banking industry or any other sector for that matter.

B&E: Give us some examples. We’re told Fitch has provided design consultancy to several big Indian retailers including Reliance, ADA, Tata group in the past. How has the new branding execution benefited these players?
DB: Some of our clients come to us to redesign existing brands and formats, like Westside and Landmark for Tata Trent. Some to create brand extensions, like Zoya for Tanishq (the Titan owned jewellery brand), and some to create entirely new brands, like the iconic stationary brand, P3, we created for Bilt. Majority of the time, this results directly in an increase in customer base and revenues. For instance, when we redesigned Godrej’s grocery brand and retail concept, Nature’s Basket, we were informed by the company that its revenues increased by 100%. Likewise, when we redesigned the Chemistry brand and experience for Esjay, a global garment manufacturer, a similar uplift in existing retail outlets was reported, even 60% to 70% increase in revenues in some cases.


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Saturday, September 8, 2012

“AMD provides the ‘right’ quality; we will maintain this”

After years of being stuck in the doldrums, AMD, with its relatively new CEO Dirk Meyer and the fusion technology bet, is finally gaining some momentum. B&E’s Steven Philip Warner talks to Chris L. Cloran, Corporate Vice-President, AMD, about how AMD plans to save its semiconductor skin
 
B&E: AMD is looking to strike back at its competitors in the PC and notebook market with its new Turion chips. And the results so far look promising, with HP, Acer, Dell, Lenovo, MSI and Asus either having already launched or announcing the launch of AMD-based notebooks in 2010. It looks like the entire operational and front end model of AMD underwent a radical change with 2010 setting-in.

Cloran_Chris (CC): Yes. AMD entered 2010 with a new business model, compelling products and greater access to customers. Our first quarter marked a good balance of achieving strategic milestones and operating performance in an improving market. Our Server, Desktop and Notebook businesses saw double digit revenue growth compared to the same period in 2009. So after the tough times during the slowdown, we started 2010 with a different mindset altogether.

B&E: When he was made the CEO two years back, what were the immediate fire-fighting steps that Dirk Meyer took to make changes to save a market share that was growing weaker by the day?
CC: July 2010 marked Dirk’s two year anniversary as CEO and over the past two years, yes, he has tried to make certain serious changes. During this time, he has worked to strengthen the company’s leadership team, align the company’s focus on delivering AMD’s Fusion family of products, improved the company’s product and platform execution and implemented several moves to improve the company’s financial position.

B&E: Late last year, AMD settled a $1.25 billion anti-trust complaints with Intel. More than Intel, market watchers view this settlement as being of more help to AMD. Are they right?
CC: No comments on whether they are right or not! But yes, it has been very encouraging for AMD. For us, the settlement marks the beginning of a renewed focus on innovation and development. We now have the essential tools to compete and innovate – ground rules for an open and competitive market, the freedom to design and manufacture to serve our customers, and a new IP cross-license. This settlement is in the public’s best interest as well. 


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
 
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