Dell Case summary
...t their products the right target audience. These subdivisions also helped Dell identify economic opportunities in foreign markets as well as other domestic markets. Dell launched its web site in 1996 (www.dell.com) with great success. Customers were increasingly contacting Dell through the web site. Transaction buyers could obtain product information, configure a computer system, check pricing, place and order and track the progress of that order over the internet. Customers were also able to gain complete access to the catalog of services and support used by Dell customer service to provide information. By December 1998, Dells web site transactions equaled to 10 million dollars per day. Dell sold to resellers as well but only on a few occasions. In December 1997 they sent out flyers to a number of select resellers and offered them a price of 15-20 percent below retail. They did not allow returns however, and did not offer price protection. Roughly 5 percent of Dell’s systems were purchased by resellers. Dell worked closely with suppliers to arrange just-in-time delivery of parts. Dell cut down on inventory turnaround time from 32 days in 1995 to just 7 days in 1998. Dell also encouraged suppliers to set up warehouses near the production facilities close to its assembly operations. This was particularly easy to do in Austin TX where local government was trying to attract new technology companies. In 1993, growth pains resulted in a net loss. Dell’s cash supply fell as low as 20 million. That was considered small for a company th...