An Example of an E-commerces success and its causes (0)
Tuesday, February 03, 2009 by , under Dell, E-Commerce, Success, Week 3
The success story of Dell's e-commerce business was being famous story in the business world. The founder of Dell, Michael Dell was a myth that he had been created a revolutionary new model for doing business in the information age and became the youngest CEO in history to ever head a Fortune 500 company. He started the PC company by $1000 twenty years ago from now, and now it had became a large global enterprise with an annual turnover of more than 410 billion dollars. Michael Dell always indicates that "Dell win because we have a better business model." which is the famous model created by him call "Dell Model". By relying on this model, combined with an high efficiency production process and scientifically cost control management, it has bring Dell get a great success in personal computer market over the past 20 years.
Here are a few causes on Dell become a successful personal computer company:
Dell Model
Dell Company assembly their product according to customers' orders, and send directly to their customers. The essence of this model is its save costs and reduced the product prices by put aside the traditional sales chains, which are brokers and retailers. This model can be summarized in the following main features:
Here are a few causes on Dell become a successful personal computer company:
Dell Model
Dell Company assembly their product according to customers' orders, and send directly to their customers. The essence of this model is its save costs and reduced the product prices by put aside the traditional sales chains, which are brokers and retailers. This model can be summarized in the following main features:
- Produce according to orders: Assembling products according to the orders made by customers through the website and telephone, which customers have full freedom to choose their favourite product. The company also purchased accessories in accordance with orders, which can reduce the stock keeping and increase the cash flow.
- Connect to customer directly: Direct link to the customer to save time and cost that will be wasted by selling through the middle channel, and get better understanding on customer needs.
- Efficient logistics system to reduce cost: Establish a highly efficient supply chain and production process management , which had reduced production cost significantly.
- Standardization of product and technology: The production line operated are mainly applying those standardize product and technology, which can reduce cost and production time.
Low Costing, High Efficiency, Better Service
Low Costing was the rules of survival for Dell all the time, and also the core for "Dell Model", but there must implement high efficiency in order to achieved low costing. Dell had create a well-known production and marketing line with their precise management , smooth flow and provide ultra-high efficiency service all the time, its help Dell can always control the cost at the lowest level effectively.
Dell seeks to simplify everything in order to improve efficiency. The company breaks downs the calling sell process into eight simple steps, with a 24hours working production lines the. The accessories can be turned into finished products within two hours in the high efficiency production line, and then transported directly to the Customer Service Center. Dell has owned 550 patents on theirs simplified process, this is why analysts generally believe that other companies can not really copy the "Dell Model"
Beside, Dell also putting much effort to establish the brand and improving service quality. Dell not only has a strict quality guarantee system, but also established a strong after-sales service network. Dell's staff not only provide comprehensive technical advice and guidance service for maintance through the website and telephone, but also on the spot service.
Low Costing was the rules of survival for Dell all the time, and also the core for "Dell Model", but there must implement high efficiency in order to achieved low costing. Dell had create a well-known production and marketing line with their precise management , smooth flow and provide ultra-high efficiency service all the time, its help Dell can always control the cost at the lowest level effectively.
Dell seeks to simplify everything in order to improve efficiency. The company breaks downs the calling sell process into eight simple steps, with a 24hours working production lines the. The accessories can be turned into finished products within two hours in the high efficiency production line, and then transported directly to the Customer Service Center. Dell has owned 550 patents on theirs simplified process, this is why analysts generally believe that other companies can not really copy the "Dell Model"
Beside, Dell also putting much effort to establish the brand and improving service quality. Dell not only has a strict quality guarantee system, but also established a strong after-sales service network. Dell's staff not only provide comprehensive technical advice and guidance service for maintance through the website and telephone, but also on the spot service.
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