Verified Document

Dell Business Model And Strategy Is One Essay

¶ … Dell business model and strategy is one of the best strategies that can be employed by various organizations for them achieve their set goals and business objectives (Hall, 2000). In this paper we describe how the auto industry might work differently if it were designed in accordance with the Dell Model. The Dell model

The Dell Model (Hall,2000,p.6).

The strategy comprises of three main components namely the best direct customer experience, virtual integration as well as low cost provider. In the Dell Model, the company occupies the Original Equipment Manufacturer (OEM) space between the suppliers and customers.

The best direct customer experience

One of the strategies that are employed by Dell is the provision of the best direct customer experience that they can have with machines (computers) as a tool. This involves the obtaining of these computers, using them as well as servicing them appropriately. This stage involves no intermediaries whatsoever. The company therefore interacts with the clients directly. This allows the company to directly learn its clients likes and dislikes. This strategy can be replicated in the auto industry through the direct sale of products via a direct channel. The auto manufacturers just like Dell would need to keep a record of all of the vehicles as well as their customization details. These vehicles should therefore be manufactured...

Elements of auto design, logistics, product build as well as test must be considered at this stage. The aim is to enhance customer experience.
Low cost provider

Low cost is indicated by Hall (2000) to be a prerequisite in staying successful in any business.

Virtual integration strategy

Comparing Ford and Dell Model

The auto industry would indeed run differently if it applied the Dell model as indicated below. The Ford Motor case is used to illustrate this.

Ford had a number of projects underway that were meant to position the company advantageously for success in incorporating with the expanding enterprise that also consisted of suppliers and consumers. In addition, there were chronological factors that would have to be taken into consideration in many virtual integration stratagem.

The present supply base was in many respects a product of history. As the firm had grown over the years, so did the supply base, to an extent where in the late 1980s there were numerous suppliers of production materials in an intricate network of business affiliations. Suppliers were chosen primarily on the basis of cost, and little consideration was paid to overall supply chain costs, including the intricacy of dealing with such huge network of suppliers.

Starting in the early…

Sources used in this document:
References

Hall, RW (2000). Distributed Excellence and the Dell Model. Target Volume 16 (2)

Kraemer, KL and Dedrick, J (2002): "Dell Computer: Organization of a Global Production Network," Center for Research on Information Technology and Organizations, 2002.

Kraemer, KL.,Dedrick, J ., Yamashiro, S (2002). Refining and Extending the Business Model With Information Technology: Dell Computer Corporation
Cite this Document:
Copy Bibliography Citation

Related Documents

Dell, Inc.
Words: 6698 Length: 15 Document Type: Term Paper

Dell Inc. The head office of Dell is at Austin, Texas at the same place where the company was based. Dell Americas is also located in Texas, which is the regional business unit for the United States, Canada and Latin America. The regional headquarters offices of the company are in England, for Europe Middle East and Africa; in Singapore catering to Asia-Pacific; and in Kawasaki, Japan, to serve the market for

Dell Computer Dell Operations Management: Dell Computer
Words: 1581 Length: 5 Document Type: Essay

Dell Computer Dell Operations management: Dell Computer This seems fitting, given that it was Dell who conceived of the unique business model that catapulted Dell to the forefront of the PC market for nearly a decade. What is so extraordinary about the Dell success story (and some would say, the Dell fall from grace) is that Dell achieved its success through its operations management rather than creating a new product like Apple or

Dell Is in a Strong
Words: 3767 Length: 13 Document Type: Research Proposal

Thus far, Dell has largely ignored the consumer market since the company views the margins in this market to be insufficient. Yet, if Dell can develop an effective route to market for consumers and/or streamlines its ordering process, Dell can expand its customer base substantially. It is already finding that consumers are coming to it after buying their first computer elsewhere, so the market is clearly ready for Dell

Dell Computers in 2003: Driving
Words: 2878 Length: 8 Document Type: Term Paper

(Microsoft Solutions) Constraints to Success Achievement As mentioned earlier, Dell Computers was just another second-tire personal computer maker in the early months of the year 1994, and like all other PC makers, it had to order all the components in advance, and therefore had a large inventory of components. Then Michael Dell decide to implement his brand new business model, wherein the initial process by which he would use a build

Dell.com Analysis the Potential the Internet Provides
Words: 2605 Length: 8 Document Type: Essay

Dell.com Analysis The potential the Internet provides businesses to scale their supply chains, manufacturing, fulfillment, services and new product development strategies globally is exemplified in the decades of lessons learned at Dell Corporation. Of the thousands of businesses that sought transformation of their business models with the Internet by concentrating only on the websites, Dell was immediately contrarian, looking to streamline back-office systems first. This analysis presents how the core strategies

Dell Ebusiness the Impact of
Words: 722 Length: 2 Document Type: Research Paper

The customer expectations of large business or enterprise customers is also very specific about the customization of PCs and their delivery, as are the many government accounts Dell has globally. What all of these customers share in common is an expectation of receiving a PC customized to their specific needs in the timeframes committed (Gunasekaran, Ngai, 2005). Compared to traditional procurement and SCM strategies, the Dell e-business model requires a

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now