______________________________________Dell computers, like many other personal computer companies, have been left in the dust behind the technology advancements and diversity that Apple has created in the past couple years. We have to break down the key components that make Apple Inc. leaders in the computer technology market and a unique reputation in consumer elecrtonics. While both companies have consistently out-performed the market on wallstreet there are similarities that led them to the top, however, there are different paths each company has now taken. We realize it is not just a technology advancement or improvement it has been a way to incorporate the product into every aspect of their consumer's lifestyle. Not only apple have developed this kind of practice such companies as Starbucks and Harley Davidson have also created this "product lifestyle". In my efforts I will try to help develop Dell Inc. into diversifing their products and creating this multiple market niche to ultimately help the company prosper.
What companies have created a "PRODUCT LIFESTYLE"?
::::::Apple::::::
Computers are still an important part of Apple but now they have devoted a lot of attention towards music related products. The most popular of their music related products would be the IPOD and the online music store iTunes. Both the IPOD and iTunes have created product uniqueness and product loyalty. On top of the music related products apple has another huge and still upcoming market with mobile phones. Apple's iPhone was an innovator and now a couple years later companies are still trying to come out with mobile phones that can compete with the iPhone. In addition to the computers, computer software, music products, and mobile phones Apple also has to offer servers(Xserver), wireless networking equipment, and publishing and multimedia software. What started off as Apple Computers Inc. suddenly became just Apple Inc. when they acknoledged there diversified workforce and products. I'm sure their goal isn't to just sell the most Ipods or desktops but to promote their product as a lifestyle, a nessecity.
::::::Starbucks::::::
Starbucks is now the world's number one specialty coffee retailer. If you were to tell me 15 yrs ago that a company could be this successful selling $5 coffee's I would have never believed it. Now Starbucks has more then 16,000 coffee shops in more than 35 countries. But its not just the coffee, food items, or accessories that starbucks sells its the enviroment it creates. People are obviously willing to pay that high price for their morning coffee because they want to be associated with that crowd of people. They have created this enviroment where people go to mingle and socialize.
::::::Harley Davidson::::::
Harley Davidson seems to be the most unique company that has created this product lifestyle. They have learned to market their motorcycle, that metal engine on two wheels, as a way of life. They are the only major US maker of motorcycles and the company depends on dependable and loyal customers. They don't just sell you a bike, they sell you attitude. The company is notorious for the bikers that wear leathers and are better then the rest. One Harley Davidson t-shirt reads "Put your a** on some class" displaying the attitude the company personifies. Harley Davidson displays that tight network of customers that wear Harley or Ride a Harley because they want to be part of that lifestyle.How do those companies profits compare to the market?
{Graphs}
{Graph of apple, Dell, Starbucks, Harley Financial forecasts}
*The Forecasts of these companies are continueing to climb. But clearly Apple, Starbucks, and Harley-Davidson are pulling in staggering numbers with this PRODUCT LIFESTYLE they have created.
*All the companies are clearly above the market median but you can see the PRODUCT LIFESTYLE exceeds the best.
Background and Looking forward
Dell is now the worlds #1 direct sales computer vendor. They harvest a broad range of computer products for the consumer and enterprise markets. Likewise to Apple, Dell also lost the "computer" in their name by being called just Dell Inc. now. However, after acknowledging they can accomplish more by not just focusing on personal computers they are still yet to maximize their horizons. The potential is there to not only be a leader in the computer market but to create a niche or lifestyle consumers can live by. Through this new vision we could optimize Dell more frequently in our daily lives.
The plan is to develop a a cafe environment geared with Dell's latest in computer technology. They can tease people with the new technology and gather people of common interest as a place to socialize. The setup could be set up like a starbucks but as interactive like an apple store. People have these hobbies and common interests so they can meet people. By creating this advanced technology cafe Dell would be bringin people together while creating the environment for a product lifestyle.This will ultimately lead us to the most loyal customers.Target audience
Locations => With locations this would be easiest to attack the same audience as people who already visit starbucks or Dunkin in the morning but still would enjoy an nvironment of people with a common interest. Malls or street corner cafe's would be the lost reasonable places to start.
Consumers => Your daily business people would be who you are targeting. Maybe an even more upscale crowd or whoever likes to stay up to date with technologies.
How to create this Dell Lifestyle?
How => There is the possibility of merging with a cafe company or building hands on cafe environments near workplaces or in a busy mall.
How much => One could compare the cost's of starting this new idea with Apple's expenses of forming Apple stores located in malls with hands on technology. One thought of merging with a possible starbucks or another high end coffee retailer is acquiring two similar backgrounds of people with common interests and bringing them together. Could result in higher revenues and cheaper expenses for both companies.
RESULTS
{Graph of starbucks and Dells Revenues}
The graph displays the Revenues of both Starbucks and Dell inc. seperately then displays a combined revenue if the companies were to merge. The companies expenses could also be cut down as for they will not need as many top management jobs if the companies were to merge.
{Table comparing characteristics of starbucks and Dells customers}
This table clearing points out the similarities in the customers that Dell Inc. attracts and that Starbucks attracts. People with these common interest and common characteristics could come together and socialize at this new environment where COFFEE MEETS TECHNOLOGY.
$$$ POTENTIAL CONCLUSION $$$
The companies that have best succeeded are the ones that have not just focused on one certain part of the market. People where a certain brand of clothing or drive a certain car because it is the life they want to be personified as. They drive the BMW and associate themselves with other people that drive BMW's. This could be the case for Dell Inc. where people with the passion for technology can all come together to socialize in a cafe environment and can play or experiment with the latest in technology Dell has to offer. You could reach people that are not fully into the latest in technology but this way you are marketing your product to a broader range of consumers.The sky is the limit and the potential is there to create product lifestyle and the most loyal of customers.
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