E-Commerce within Dell and How This New Way of Doing Business is Managed
Dell is one of the world’s top providers of computer products and services to businesses and Consumers. The Company has revenues of $38.2 billion worldwide and employs over 41,000 staff worldwide. Ireland is home to Dell’s European manufacturing operation, with a plant in Limerick, and a UK/Ireland sales and support operation in Bray/Cherry wood. Dell’s success has made it the number one PC supplier in Ireland. The company is the State’s biggest revenue generating technology firm. During 2002, Dell's revenue equated to 5.8 per cent of gross domestic product. During the same time period, Dell's exports of EUR.7bn account for 7.8 per cent of all Irish exports. Michael Dell founded the company back in 1984 when he was just 19 years old. He had $1,000 and the unique idea to sell computer systems directly to customers. Now he heads up one of the world’s most successful corporations with his direct sales approach acting as the cornerstone of the company’s global success. This case study will look at the impact of the internet and e-commerce on Dell and how the company has successfully managed the new ways of doing business that e-commerce has created. What Is E-Commerce?
Ecommerce refers to business transactions and communications that are carried out through computers - over networks and the internet. This includes buying and selling goods and services, funds transfers and other commercial communications. It creates a new way of buying and selling –one that uses technology to make the transaction. E-commerce can take place in different situations: Between businesses and consumers (B2C), as when you purchase from a shop’s website. You, the consumer can now do everything over the internet from banking online to shopping for computers, books, clothes, games, holidays, concert tickets etc! From one business to another (B2B), as when one company buys its supplies from another company online. E-business has transformed how the business world operates from the supply side to the selling side and all the banking and commercial transactions in between. This affects everything from small family-run enterprises to international stock exchanges. Something from your friend and pay for it by transferring money from your bank account online to your friend’s. Many websites such as eBay. Com enables consumers to buy and sell second-hand items to and from each other. E-commerce offers many benefits to businesses and consumers in their Purchasing activities. It changes the purchasing process from being a physical transaction to being a virtual transaction where no paper is involved. This saves time and money for everyone and opens up a virtual global marketplace – for example you could live in Cork and buy online from a shop in New York. It is also convenient as you can access the Internet 7 days a week, 24 hours a day, at your own convenience. However, it requires whole new business methods and infrastructures to meet the demands of the buyer and the needs of the seller. How Does Dell’s Supply Chain Work
Due to its efficient supply chain management, Dell is capable of shipping a PC within 24 hours of receiving an order. The introduction of the internet and e-commerce has helped Dell improve this efficiency and profitability. First we need to understand what is involved in a supply chain. A simple supply chain covers the whole process of the production of the goods for sale. Once the goods are produced, they lie in stock at the outlet until an order is made. When an order is processed, the specific goods are delivered to the buyer and payment is received by the seller. A computer manufacturer depends on suppliers for parts when designing and manufacturing a PC for the mass market. The complete product will then be sold to a distributor, who in turn will sell it to a retailer who will eventually sell it to the end consumer Let’s say Liam walks into...
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