Innovation and New Product Development Case Study

XPS PC: NEW GROWTH DRIVER FOR DELL

OR

Abstract:
Dell Incorporated, the world's largest personal computer (PC) manufacturer, known for its customisation of PCs and unique direct sales strategies, was facing problems in 2005. The already developed PC market in the US was saturated and the PC industry was undergoing consolidation. Between 2004 and 2005, despite increased profit, the company's revenue declined and it failed to achieve its expected growth targets. In August 2005 Dell launched the XPS line of gaming and multimedia PCs, targeted at the niche market of affluent computer game enthusiasts. The case enables students to discuss the product, price, and promotion strategies undertaken by Dell for the XPS brand. Students could also discuss whether the new brand would be successful in providing Dell with the much needed revenue growth.

Pedagogical Objectives:

Keywords :  Dell Incorporated, Gaming and multimedia personal computers (PCs), PC industry consolidation, Saturation of PC industry, XPS range, Intel Pentium D Dual-Core, Genuine Windows Media Centre, Gaming PCs, Pricing strategy, Promotion, Speeds and feeds, Voodoo PC, Apple, Be Direct, Dell4Me