Price Elasticity

In using the price elasticity of demand which can determine the performance of Alienware computers, in such case Alienware continues to design the highest performance PCs using bleeding-edge technologies and innovative industrial design. "We believe that Alienware will realize significant advantages from Dell's world-class supply chain and operational efficiencies. They will allow us to continue to satisfy our core customers with the most innovative and highest-performing PCs, and ultimately extend the reach and appeal of the Alienware brand stated by Nelson Gonzalez, CEO of Alienware. (Dell 2006) "A typical Alienware system can start at around $2,000 and computers costing as much as $5,000 are not uncommon from the company.

Alienware established its EMEA (Europe, the Middle East, and Africa) headquarters in Athlone, Ireland in October 2002. As of FY 2005, Alienware brought in upwards of $170 million USD in annual sales, while undertaking an international expansion initiative launched in 2003 to maintain a presence in Australia, Canada, France, Germany, United Kingdom, and Costa Rica. Alienware has had a call center in Costa Rica to handle all sales and support call for a number of years. (Crum, MarketWatch, 2006) Additionally, Alienware allows you to send in old computer hardware in exchange of credit towards new hardware (Wikipedia 2008).

In looking at the graph below Alienware continues to tremendously improve there product line every time a new product is release so in order to receive the product customers would be willing to pay the price for Alienware products. Alienware allows the customer to send in their old computer hardware in exchange for credit towards new hardware so paying more for a product does not matter with the options Alienware gives to customers.