Dell Computer
Nature of Dell Computer’s business The traditional distribution system of the PC industry is an indirect model. ... The key to Dell’s success has been its direct sales and build-to-order business model. Dell has continually refined and extended its business model while making a balance between control and flexibility. Dell’s strategies of direct sales and build-to-order production have proven successful in minimizing inventory and bringing new products to market quickly, enabling it to increase market share and achieve high returns on investment in a highly competitive industry. Customer Dell’s two major market segments are “Transactional” and “Relationship” customer. ... Lacking retailers and storefront, Dell has problems in providing physical-access sales process. ... Therefore, Dell’s direct system matches experienced and computer-literate buyers. Focusing on computer-literate customers including relationship customers and experienced buyers in transactional customers will provide better business opportunity for Dell to "grow" the most profitable segments. Dell business model The distinct characteristic of Dell business model are 1. ... Dell’s highly efficient supply chain management and manufacturing organization, efficient direct-to-customer model, and concentration on standard-based technologies allow Dell to maintain the lowest cost structure in the industry. Another key point to understand Dell’s business model is that IT plays a vital role in the implementation of its business model.