Dell's market development strategy for Singapore using Ansoff's Growth Matrix

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Dell Computer Co: Market penetration in Singapore

The Dell Computer Company

While Apple and Microsoft are famous for the unique forms of technology they have created, Dell Computer achieved its success through its innovative supply chain model. What set Dell apart from its competitors was its "consumer-oriented focus" and the fact that it allowed for people to "customize their computers during the ordering process. Because each computer was individually assembled" Dell could keep inventories fairly low and thus reduce waste, storage, and operating costs (Dell, 2010, Printer Ink Cartridges). Dell also gained a strong reputation for catering to the needs of its customers, and for being user-friendly. The main criticism leveled against Dell as a company was that many of its office supplies were only compatible with Dell computers, such as the ink cartridges that specifically needed to be used with Dell printers.

From a consumer-focused U.S. company, Dell has expanded its international outreach to include Europe, the Middle East, Africa, and the Asia Pacific region. At present, it is looking to expand its market into Singapore.

Singapore market

"Singapore, with its small population and lack of natural resources, relies on manufacturing, financial services and tourism to drive economic growth" (Kennedy 2010). It has a highly educated, tech-literate population. It appeared to be weathering the recent global recession well, when compared with other Asian neighbors: At 15%, Singapore's economic growth this year is the highest in Asia -- and perhaps the world (Kennedy 2010). This high degree of technological literacy means that most Singaporeans have computers, and are well-versed in the use of technology. However, to some this fact could make expanding in the market a challenge for Dell, given that Dell prides itself upon user-friendliness, and Singaporeans might be less attracted to the emphasis of Dell on 'idiot-proof computing.'

However, one potential attraction of Dell is its strong stress upon serving the customer. Service is of great importance in East Asia and Dell has always had an impeccable reputation for its customer support. Service is also critical for nations highly dependent upon computers in specific industries, such as the volatile financial sector and pharmaceuticals. Dell is "the number one healthcare IT Services provider in the world" and "the number one provider of PCs to large enterprises around the world," doing business "with 98% of Fortune 500 corporations" (Facts about Dell, 2010, Dell). The pharmaceutical and financial service industries dominate Singapore's economic profile. Specifically marketing to these sectors of the Singaporean economy could give Dell an important 'edge' over its competitors.

Conclusion

Dell must give itself a distinct 'brand image' to achieve market dominance in Singapore, as it cannot compete on price and simplicity of use alone. Furthermore, given the robust growth of the Singaporean economy, pricing itself low and cultivating a 'bargain basement' image would not necessarily be ideal positioning for Dell in one of the world's most rapidly expanding sectors. Technology is a vital component of Singapore's economic growth, and marketing Dell specifically to Singapore's business sector, based upon Dell's quality of service, seems like the best way for Dell to distinguish itself. Additionally, because certain components of Dell's computers, such as its ink cartridges, are Dell-specific, once a company establishes a relationship with Dell, it has a strong incentive to continue that relationship.

Market development through expansion in Singapore's business sector, with a specific emphasis on Dell services (such as timely repairs, quality guarantees, and customer support) in this already-saturated market seems like the best way for Dell to gain traction over its competitors in Singapore. This is not a specific 'differentiation' strategy, which can be more difficult in a competitive marketplace. Additionally, Dell has never marketed itself as an innovative company. Rather, Dell strives to do what other computer companies do -- only better, more reliably and at a higher standard of quality and excellence. These are all attributes which will be greatly appreciated in Singapore.