dell
...more and more people owned a P.C and was beginning to use the internet. In 1997 Dell became the first company to record $1 million in daily online sales. Dell had three major objectives for initiating their Web-Based program. 1. Make it easier to do business with Dell 2. Reduce the cost of business for both parties 3. Enhance customer relationships They accomplished these objectives with architecture comprised entirely of Dell servers in a multi location managed, and fully integrated environment. The results have been more than was expected. There have been verifiable savings compared to phone-in order processing and customer feedback and acceptance has been positive. The technology infrastructure has been the showcase of Dell hardware and the site reliability exceeded expectations. The internet proved to be a perfect marketing tool for Dell allowing the company to further apply the direct model approach online. Dell computer Corporation continued to grow and is now one of the largest direct computer distribution companies in the world. Current position Dell has been able to sustain competitive advantage over its rivals over the years by enhancing and broadening the companies Direct Business Model. Dells Direct to customer model has provided the company with a constant flow of information about trends in customer plans and requirements. With this knowledge Dell has been able to meet these requirements providing its customers with exactly what they want. Dell designs and customises its products and services to the requirements of the individuals and organisations purchasing them. Dell provides customers with flexibility and choice whilst allowing their purchasing decisions to be based on performance and cost. Customer satisfaction is a high priority as part of its core values. Dells unique Direct Model Dell's award-winning customer service, industry-leading growth and consistently strong financial performance differentiate the company from competitors for the following reasons: • Price for Performance -- With the industry's most efficient procurement, manufacturing and distribution process, Dell offers its customers powerful, richly configured systems at competitive prices. • Customization -- Every Dell system is built to order. Customers get exactly what they want. Reliability, Service and Support -- Dell uses knowledge gained from direct customer contact before and after the sale to provide award-winning reliability and tailored customer service. • Latest Technology -- Dell introduces the latest relevant technology much more quickly than companies with slow-moving indirect distribution channels. Dell turns over inventory every six days on average, keeping related costs low. Dells direct-to-customer model has created a myriad of competitive advantages, including customization, inventory savings, low product obsolescence, real-time customer information, and lack of retail mark-up. Dell is utilising the Internet to its full potential providing greater convenience and efficiency to customers and in turn to Dell itself. Dell not only sells and markets its products and services on-line it has built a network that allows the company to manage its internal organisations more efficiently. Dell has incorporated a network that allows Dells to communicate with its suppliers, enabling the company to order the supplies required to keep production running for two hours. As the two-hour clock winds down, suppliers who are in a warehouse near Dell's factories are electronically told what to deliver so Dell can build the next two hours' worth of computers. That virtually eliminates parts inventory. Dell is also networked to shipping companies that arrange pickups; PCs often are loaded onto trucks for shipment just 15 hours after the customer clicks on the buy button. By taking the direct business model and its associated customer experience to even higher levels, Dell initiatives include moving even greater volumes of product sales, service and support to the Internet; using the Internet to improve the efficiency of Dell's procurement, manufacturing and distribution process; and further expanding an already broad range of value-added services. Dell also hosts and builds E-commerce sites. Dell has built more than 50,000 Web sites, which are customized for companies ranging from start-ups to American Airlines. Until recently, each page had to be created and maintained by a Dell sales rep. If a customer wanted to add new products or give more employees access, the rep had to manually make changes. Dell updated the program to allow customers to make changes themselves leaving the reps free to go out and chase more business. Dell hopes to keep growing with the help of new businesses, such as Web hosting services. Many businesses are transgressing towards a more virtual business approach. Although some businesses may not be utilising the Internet strategy as a large component of their business functions, Dell uses the strategy as the dominant form of business. Dell is putting ample pressure on competitors to quickly modify traditional channel practices. Computer companies, which have long relied on distributors and resellers, have to move to some form of direct dealings with their customers, or risk losing sales. At the same time, they must ensure that they don't jeopardize their existing lucrative distribution channels. Dell is among the most impressive, efficiently run companies in the world. The company are continuing to take market share from its rivals, and to successfully penetrate new markets. Dell’s radically superior cost structure should allow the company to continue to effectively attack competitors profits. However, Dell’s success over the years has caused concern for the future of the young company. Dell’s growth rates had caused some hindrance to the company in terms of the quality of customer support it delivers to its customers and there is no doubt that Dell faces new major challenges in managing the customer support, and the growth. As customers struggle to mix and match photo quality printers, MP3 players, laptops, PCs, handhelds and other digital marvels, they're running into lots of new problems, which continue to pump up customer support call volume. Dell has over 20 support centres spread across the globe with about 25 percent of those centres in the U.S, and the rest are scattered around the planet, which provides a very uneven customer experience! Dell must address these issues rapidly as its reputation may become tarnished. Dell prides itself on the company’s ability to provide excellent customer service and many of dells customers expect the standard of service to be high as promised. If these issues are not addressed then Dell could end up losing its valued customer loyalty. Future prospects The future for Dell Computer Corporation is in the company’s ability to achieve globalisation with continued growth. If Dell is able to achieve its goals and establish itself as a prime seller of computer products and accessories around the world then I believe it will be-able to continue to lead its rivals. Over the years Dell has proved to be extremely successful in its ability to differentiate itself from its rivals. Dell is always looking for ways to improve its strategies and provide a better service to its customers. Dell has been the leader in its market for years and I believe the company will continue to be successful. Due to the rapid advances in technology computers are more reliable and robust than ever and therefore are lasting longer. This has resulted in a decline in sales. Technology in computing is advancing so rapidly it is outgrowing its market. Dell is taking strategic steps to diversify further away from the PC into other markets, joining rivals such as Gateway, Hewlett-Packard, Sony Electronics and Apple Computer in trying to tap into the home electronics market. Dell wants to establish an early presence in the so-called digital home. ...