Analysis of Dell Online

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Analysis of Dell Online

Introduction:
1) In July 1996, Dell Computer had launched its online website, www.dell.com 2) Dell also developed Premier Pages, online interfaces with its key corporate accounts.

Story of Dell:
* In 1985, Dell shifted it’s company’s focus to assembling its own brand of PCS & business grew dramatically with $70 million(Rs.364 crores) in sales at the end of the 1985. * Dell’s success continued through 1992, until in 1993, it faced an operating loss for 1st time. * Dell’s product line evolved with PC market.

* Dell came with Inspiron line & introduced its PC\LAN product the power edge in 1996 & workstations in 1997. * To lower the costs of ownership, Dell also worked with its customers on proper software management practices. * Throughout its remarkable history, Dell’s sales were to large corporate accounts, educational institutions, medium and small business.

The Dell Direct Model:
* Dell Direct Model was a very efficient “made-to-made order” high velocity, low cost distribution system & products & services targeted at specific market segments. * Dell serviced North American market from its 2 plants in Austin, Texas. * Dell process became a model of efficiency for the industry. * Dell also introduced concept of build-to-order in PC industry.

Dell Customer:
* Dell broadly segmented its customer as either “Transactional” or “Relationship”. * 40% being relationship & 30% being transactional.
* Transactional customers were individuals or business, who bought from a variety of vendors over time. * Dell’s main competitors in this segment were companies such as Gateway 2000 & Micron Electronics. * Relationship customers were a key component in Dell’s success story.

Dell Sales force:
* Dell organised its business into 4 regions, the Americas, Europe, Japan & Asia, with a president within each region. * In America, Dell sold its products...
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