Lenovo And Dell's Competitive Strategy And Marketing Strategy Analysis

The purpose and importance Although the competition for the domestic personal computer (PC) market is very heated, two enterprises still run quite well. One is Legend Group, who has been No.1 market share for several years, the other is Dell computer, who increases its market share at the highest speed. The article focuses on these typical companies. After the comparative analysis of their competitive strategies and marketing techniques, the research gives some ideas to other enterprises on how to build competitive strategies and then obtain the competitive advantages.Basic thoughts and logical structureStarting with the general introduction to the domestic PC industry, the essay applies Michael Porter's five forces model to analyze the PC market in order to give some background information of Legend and Dell. Then the essay makes a thorough study on Legend's differentiation strategy and Dell's cost-leading strategy. It reveals that although their competitive strategies are quite different, they get competitive advantages by making full use of their own advantages and adapt to the market through never-ending creation. Using marketing mix 4-PS, the essay makes a comparative study on Legend and Dell's marketing techniques guided by their competitive strategy. Accordingly, some key factors are unconcealed after the comparison and analysis of the two companies' advantages and disadvantages. Finally through the case study of Legend and Dell, the author emphasizes the importance of "focus on clients" and "continuing creation" to build competitive advantage by using 4-CS theory.Main contents and viewsThe first chapter makes a brief introduction to current desktop PC market competition state, including the market volume of desktop PC, market features and the industrial cycle with the Michael Porter 5-forces model analysis. It also gives out some background information of Legend and Dell companies.The second chapter especially points out Legend's differentiation strategy with which it has obtained product-differentiation through technical innovation and created service-differentiation through service innovation. The second chapter also analyzes Dell's innovation of direct sales model. By accomplishing the model, Dell has got cost-leadership competitive advantage. Then this chapter comes to the conclusion that innovation is the key to Legend and Dell's success. They got continuing competitive advantage by ever-lasting innovation.By using target marketing strategy theory and the marketing mix of 4-PS, the third chapter makes a comparative analysis of Legend and Dell's marketing techniques guided by their strategies. It points out that both Legend and Dell are employing differentiation marketing while their product positioning is different. Legend is positioned on high quality while Dell is positioned on native product price. With the analysis of products line, the chapter points out that Legend has improved the customer value through improving products' quality, focusing on products' selling points and strengthening service. The chapter also reveals that Dell has increased customer delivery value by decreasing its products' price and accordingly decreasing customer cost. As to price strategy, Legend employs over-pricing while Dell employs penetration- pricing technique. With the analysis of distribution channel, the essay comes to the conclusion that Legend's new vertical channel model is fit for common customers, while Dell's 'one-to-one' direct sale model is fit for industrial customers. With the analysis of sales promotion, this chapter also points out that salespromotion must be combined with culture and pay more attention to soft ad and sub-consciousness. By making use of celebrity-effect and several sales promotion techniques, enterprises should build up powerful brand character.Through the 4-CS study of Legend and Dell, the forth chapter makes it clear that the focus-on-customer concept is the key to gaining the competitive advantages. It also emphasizes the importance...