(Dell Computer : Using E-commerce to support the virtual company)
1.0 INTRODUCTION
1.1 Project Description
The Internet has given Dell to grow revenues without suddenly increasing customer service costs. Dell has linked electronically by the Internet to network as a “virtual company” or value web in order to capitalizing its reputation as an e-commerce pacemaker. Dell’s alteration of using the virtual company approaches is to expand its business scope without making a major acquisition. Therefore, Dell are aimed that e-commerce efforts can improves their efficiency, enhance customer satisfaction and reaching new product markets.
Based on journal entitled Dell Computer: Using E-Commerce to support the virtual company. The type of e-commerce classification is Business–to-Consumer (B2C). B2C is defined as E-commerce model in which businesses sell to individual shoppers. It was stated in jurnal that Dell computer used value web to expand their product and at once satisfy their customer.
1.2 Company Background
Dell Computer was founded by Michael Dell in 1984. From the beginning, Dell operated as the direct sales model, taking orders over the phone and building PCs to the customer’s specifications. In the early 1990s, Dell entered the retail PC channel for several years but a downturn in business in 1993 led it to return to its roots as a direct vendor. Dell grew rapidly and in the mid-1990s Dell had become the number one PC seller in the United States and numbers two in worldwide.
1.3 Business Strategy
Recently, Dell’s business has been built on a direct sales, build-to-order strategy for producing and selling PCs. Dell has capitalized on the succeed advantages of its business model to grow rapidly and profitably. The key advantage of direct sales and build-to-order production is that expensive inventory does not build up in the channel and lose value before it can be sold and new products can be introduced without having to clear out old inventory in the channel.
1.4 Business Concept
Dell concept through
1.1 Project Description
The Internet has given Dell to grow revenues without suddenly increasing customer service costs. Dell has linked electronically by the Internet to network as a “virtual company” or value web in order to capitalizing its reputation as an e-commerce pacemaker. Dell’s alteration of using the virtual company approaches is to expand its business scope without making a major acquisition. Therefore, Dell are aimed that e-commerce efforts can improves their efficiency, enhance customer satisfaction and reaching new product markets.
Based on journal entitled Dell Computer: Using E-Commerce to support the virtual company. The type of e-commerce classification is Business–to-Consumer (B2C). B2C is defined as E-commerce model in which businesses sell to individual shoppers. It was stated in jurnal that Dell computer used value web to expand their product and at once satisfy their customer.
1.2 Company Background
Dell Computer was founded by Michael Dell in 1984. From the beginning, Dell operated as the direct sales model, taking orders over the phone and building PCs to the customer’s specifications. In the early 1990s, Dell entered the retail PC channel for several years but a downturn in business in 1993 led it to return to its roots as a direct vendor. Dell grew rapidly and in the mid-1990s Dell had become the number one PC seller in the United States and numbers two in worldwide.
1.3 Business Strategy
Recently, Dell’s business has been built on a direct sales, build-to-order strategy for producing and selling PCs. Dell has capitalized on the succeed advantages of its business model to grow rapidly and profitably. The key advantage of direct sales and build-to-order production is that expensive inventory does not build up in the channel and lose value before it can be sold and new products can be introduced without having to clear out old inventory in the channel.
1.4 Business Concept
Dell concept through
References: Kraemer, L., & Dedrick, L., (2001). Dell computer: Using E-commerce to support the virtual company. University of California, Irvine Johnston, R., & Clark, G., (2005). Service Operations Management. Prentice Hall