According to Michael Cannon, Dell's President of Global Operations, the key differentiators that have made Dell so effective for nearly two decades are its made to order direct sales model and its innovative supply chain (SCN, 2008).
Historically, personal computer companies produced most of the components for a computer which they assembled into their final products and distributed to resellers. The manufacturing of these components was vertically integrated into the organisation. Dell, as a small start-up, could not build this infrastructure. Instead, they developed a model where they developed relationships with organisations that could provide these components, allowing Dell to focus on selling and delivering computers. By selling directly to customers, initially through mail orders and later by using the internet, Dell avoided reseller mark-up. Dell also enabled customers to order customised computers, which Dell then assembled after receiving the order (Magretta, 1998, p.73-74). “Customers got exactly the computer they wanted and Dell saved money making the computers only when they were ordered” (Hill & Seggewiss, 2008).
Dell also focused on developing an efficient and innovative supply chain, providing customers with their products within 2-3 days after ordering (Bozarth & Handfield, 2008, p.26). Dell have also focused on building strong partnerships... [continues]
Cite This Essay
(2008, 09). Dell Business Strategy Change. StudyMode.com. Retrieved 09, 2008, from http://www.studymode.com/essays/Dell-Business-Strategy-Change-166389.html
"Dell Business Strategy Change" StudyMode.com. 09 2008. 09 2008 <http://www.studymode.com/essays/Dell-Business-Strategy-Change-166389.html>.
"Dell Business Strategy Change." StudyMode.com. 09, 2008. Accessed 09, 2008. http://www.studymode.com/essays/Dell-Business-Strategy-Change-166389.html.