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Case Study 1: Dell: Selling Directly, Globally
1) Dell´s success is founded on the direct business-to-consumer model. The company is dealing directly with suppliers and customers – they fully internalize the processes - , which increases the level of control. Selling the PCs directly to customers helps Dell to understand their wants and needs and to provide the most effective, personalized solutions for them. The advantage is not only a result of the model itself, but also of the first-mover advantage, that Dell could gain by choosing this way of selling their products. ... By cutting out the costs of distributors, Dell is able to realize a price advantage of 10 to 15% over its main competitors. Besides that, Dell has a huge time advantage. ... Also the high distances in the US favour the direct selling model. As the computer business is a fast developing market, Dell has another advantage over the competitors: just-in-time inventory allows to deliver new technical breakthrough within one week. By extending the model to the internet, Dell services become even more direct and help to enhance the customer relations. ... Further Dell already has a good reputation there and was already able to win the consumers´ trust.
Approximate Word count = 983
Approximate Pages = 3.9
(250 words per page double spaced)
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