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Dell Computer Success and Decline

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Submitted By carmenbibi
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Dell Computer Corporation is one of the world’s largest computer systems organizations. They design, build and customize products and services to satisfy a range of customer requirements, from the server, storage and professional services needs of the largest global corporations, to those customers at home. Dell is a perfect example of how harnessing the power of the Internet can lead to total market dominance. Through the company’s direct sales model, Dell has managed to grow from a $6 million to a $23 billion dollar company in 15 years. This is largely due to their extension of the direct model with information technology and the World Wide Web. The Internet became a worldwide tool for reaching Dell’s customer base and gave the company the ability to directly do business with partners and customers all over the world, one at a time, at no additional overhead. This successful business model put much emphasis on the customers. From the beginning to the end of the transaction, Dell understood completely what the needs of the customers were and this ony led to a network of satisfied customers with the potential to do business again and again in the future. However, the direct-sales business model was merely a tool for Dell to do business. If the success of Dell was based solely on this model, Dell would have not been able to rise to the top of the competition in two decades despite being a late entrant. Many competitors of Dell duplicated the model and tried to do business the same way as them. However, there are a few core elements that differentiate Dell’s strategy: build-to-order manufacturing, mass customization, partnerships with suppliers, just-in-time components inventories, direct sales, customer service, and extensive data and information sharing with both supply partners and customers. Through this strategy, the company hoped to achieve what...

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