Sunday, December 29, 2019

Dells Strategy and E-Commerce - 2167 Words

Dell Company was started by Michael Dell in 1984. After its establishment, it has grown to be one of the industry leaders in the PC industry through its two core strategy: i.e. customer satisfaction and cost lowering strategy. The core idea that Michael Dell had when he started Dell at the age of 19 has not changed even though the company has changed into a billion dollar corporation. The strategic plan of Dell includes the feature of individualized products as well as direct sales to the end users thus lowering their retail costs. Dells focus on the efficiency of manufacturing its products, and the approach of direct marketing, allowed him to establish a firm ground in the world of personal computers. In many cases, companies start out†¦show more content†¦One question arises here as to how does Dell’s use e-commerce to improve supply chain process? When the world of internet technology arrived, Dell was very fast to set up the e-commerce practice that would enable them to sell their products direct to customers online. In this way, selling online allows Dell to be more efficient and automate the whole process. The year 1996 was the year when Dell started its online website www.dell.com for ecommerce. Since then Dell has reports of tremendous sales success. By 1997, Dell was able to make a record of $1 million in online sales. Soon the online internet sales reached $50 million in a single day by 2000. The process of ordering Dell’s product is very easy and user friendly. (Farfan). The customer simply has to follow some easy and automatic instructions that appear on screen. These instructions allow the customer to customize the computer with different features that they want on it. They have the option of increasing the hard disk space, and in the end they can view the difference between the original price and the increment price because of more added feature. Customers can choose the color they want from 10-15 different options and can even engrave their names on it. Later during the process different options of payments are offered either directly or through a customer care representative. 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