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How H-P Reclaimed Its PC Lead Over Dell

How H-P Reclaimed Its PC Lead Over Dell. Hiring Todd Bradley from PalmOne “ HP is fighting on the wrong battlefield ” Shift of Channel Focus (ex: Store-exclusive notebook) III. Migration of PC demand: Desktops  Notebooks (different buying/using behavior)

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How H-P Reclaimed Its PC Lead Over Dell

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  1. How H-P Reclaimed Its PC Lead Over Dell • Hiring Todd Bradley from PalmOne • “HP is fighting on the wrong battlefield” • Shift of Channel Focus (ex: Store-exclusive notebook) III. Migration of PC demand: Desktops  Notebooks (different buying/using behavior) IV. H-P needed to convince shoppers that retailer was the better channel choice  Shift of H-P PC Positioning: Product Focus  User Focus (“The Computer is Personal Again”) V. Promotion Shift: More Pull  More Push*

  2. Two Promotional Strategies** 12 Pull Strategy Push Strategy Manufacturer Manufacturer 1* 1 3 Channel members Channel members 3 2 2 Final users (consumer or industrial) Final users (consumer or industrial) *Numbers indicate sequence of flows Promotion flow Negotiation flow Product flow

  3. Google Works on Launching Retail Stores (WSJ) Copying Apple’s Playbook? Does Google need retail stores? Why or Why not? What would they sell there? Microsoft Stores: How are they doing? Google Unveils Chromebook Pixel Touch-Screen Laptop

  4. Showdown in Silicon Valley Apple versus Google Apple’s Strategy Google’s Strategy Steve Job’s nightmare Who do you think will win?

  5. Samsung and Google (WSJ) Samsung (Hardware) + Google (Software) Samsung is becoming (too) strong? Google’s Two Responses Samsung’s Response Key Takeaway

  6. Dell’s Strategy for Growth* Current Market Portfolio * Business Model 2. Advantages of Dell Model Cost efficiency of direct model Customization & Responsiveness Focus on detail 3. Three-Step Growth Strategy* 4. New Frontier for Dell: Consumer Electronics

  7. Dell’s Strategy for Growth 5. Three Main Challenges for CE Market No Customization and Less Responsiveness Will People Buy CE Direct? Dell’s Brand Equity for CE Product Mike George’s two comments 6. Playing the OEM game (back page) - Who are customers? - Upside & Downside - Response from resellers and small manufacturers

  8. Dell’s Strategy for Growth 7. Recent Performance (FT article in 2005) Slowing growth “Now Dell is the market.” Heavy Reliance on PC segment Slipping Price Advantage and Built-to-Order System Competitors have caught up 6. Dilemma for Dell - Shoot low? - Shoot high? - Is Dell Model Obsolete for Now?

  9. Dell To Rely Less on Direct Sales (WSJ article in 2007) • Dell’s Broad, Global Retail Push • Selling Dell PC through Wal-Mart • Why Go to Retail? • What is happening to Its Direct business model? • “The Direct model has been a revolution, but it is not a religion.” - Michael Dell

  10. Discounting Continues to Haunt Dell (WSJ article in 2010) • Revenue is up, but profit is down. Why? • HP: Revenue is up and profit is also up • Now no. 3 behind HP and Acer • Share of total revenue from consumer market: 2003 (???)  2010 (???) • Compete against “white box”

  11. Move Over, Coke * Positioning of vitaminwater Key Challenges for small guys Describe Bikoff’s Product Strategy Describe Bikoff’s Marketing Strategy Describe Bikoff’s Marketing Channel Strategy Structure: types of stores, intensity, level Management: support & relationship

  12. After the Sale is Over Brand Ownership Change What happened to existing distribution network of Vitaminwater? What is the problem here? How would you solve the problem? Learning from the past: Snapple

  13. DVD versus VHS (Part 1) 4. Buyer Behavior for a Movie DVD 1. When would you “buy” instead of “rent”? 2. How much are you willing to pay to buy? 3. When would you “rent” instead of “buy”? 4. Where would you go to “buy” or “rent”? 5. “People can be conditioned to buy just about any movie they want to see if it is priced low enough.” Warner Home Video Chief “If the studios keep dropping (DVD) prices, my margin would go through the roof, and customers would still rent” Blockbuster Video Chief  Whose view do you support?

  14. DVD Versus VHS (Part 1) A Quandary for marketing DVDs for Movie Studios DVD Pricing Scheme Rental-only period for DVDs? Changes in Movie Pricing VHS Tape: two-tier pricing* & revenue sharing DVD: one mass-market pricing ($14.99) Marketing Channel Changes Customer Migration From Blockbuster to Wal-Mart Who has more power over movie studios? 3. Power struggle between W-B and Blockbuster 4. Timing between rental and sale of movies: Different interests among movie studios (old versus new)

  15. Ping Golf Club Through what type of channel intermediary are Ping Clubs being sold? What are key factors that drive Ping’s channel choice? What is the intensity of their distribution? How would you describe Ping’s channel Relationship management?

  16. Video Case: The Monster that Ate Hollywood • Key Word: Evolution of Marketing Channel • Supply side factor, Demand side factor, Technology changes • Changes in Movie Studios • Changes in Studios’ Competitive Strategy* • Movie Making Side • Revenue Model (Distribution and Exhibition) • Changes due to alternative movie distribution channels: • Marketing Channels: • Products: • Markets:

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