Analysis of Dell Online
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 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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