Dell Online
DELL ONLINE
V. KASTURl RANGAN and
MARIE BELL are with Harvard
Business School.
Y. K a s t u r i
Marie
Rangan
Bell
Professor V. Kasturi Rangan and
Research Associate Marie Bell prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Certain facts and data in the case have been disguised.
Copyright © 1998 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800545-7685 or write Harvard Business
School Publishing, Boston, MA
02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business
School.
"It was Michaers idea. He is a visionaiy in our industry," stated
Morton Topfer, Vice Chairmen of Dell Computer Corporation, gesturing toward Michael Dell's office across the hallway.
"There's no doubt that Dell Online is a huge innovation, just as
Dell Direct was a decade ago. But times have changed. We are now a big company, with 1997 revenues of nearly $12 billion and a growth rate of 50% over the last three years. We bave to be nimble but metbodical in how we absorb and build on this new approach of going to market," added Topfer.
In July 1996, Dell Computer had launched its online Web site, www.dell.com. The online store mirrored the experience customers had when they called Dell Computer's toll-free 800 number to place a direct order. Site visitors could customize tbe computer's configuration to suit their needs, noting how those changes improved performance and affected pricing. Additionally, customers could check on the status of their order at their convenience and even receive technical support online. The store was open 24 bours a day. The response to the retail
V. KASTURl RANGAN and
MARIE BELL are with Harvard
Business School.
Y. K a s t u r i
Marie
Rangan
Bell
Professor V. Kasturi Rangan and
Research Associate Marie Bell prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Certain facts and data in the case have been disguised.
Copyright © 1998 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800545-7685 or write Harvard Business
School Publishing, Boston, MA
02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business
School.
"It was Michaers idea. He is a visionaiy in our industry," stated
Morton Topfer, Vice Chairmen of Dell Computer Corporation, gesturing toward Michael Dell's office across the hallway.
"There's no doubt that Dell Online is a huge innovation, just as
Dell Direct was a decade ago. But times have changed. We are now a big company, with 1997 revenues of nearly $12 billion and a growth rate of 50% over the last three years. We bave to be nimble but metbodical in how we absorb and build on this new approach of going to market," added Topfer.
In July 1996, Dell Computer had launched its online Web site, www.dell.com. The online store mirrored the experience customers had when they called Dell Computer's toll-free 800 number to place a direct order. Site visitors could customize tbe computer's configuration to suit their needs, noting how those changes improved performance and affected pricing. Additionally, customers could check on the status of their order at their convenience and even receive technical support online. The store was open 24 bours a day. The response to the retail