Dell Harvard Case Essay

2266 Words Nov 7th, 2012 10 Pages
Dell Online
Case Presentation

Introduction & Challenge
Dell has emerged as one of the biggest sellers in the PC market. From humble beginnings in 1983, when Michael Dell worked out of his campus dorm room, to 1996 when we reached $7.8 billion in sales, the source of our amazing success has been our unwavering focus on the customer, termed the “Dell Direct Model.”
The Dell Direct Model was ingenious. Michael Dell took a simple concept, selling direct to the consumer (Appendix. 1), and built a business model that, quite simply, outclassed his competitors. By selling to the customer direct, eliminating the traditional dealer channel and using a just-in-time (JIT) production procedure, Dell has created unparalleled efficiencies
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The internet is a new phenomenon with approximately 70 million users worldwide (1997, IDC). With the growing online demographic, Dell want to position itself in the consumer market and reach new homes.
Environment: One of the advantages of going online is being in a virtual space; it is essentially an unlimited resource that can be used without any regrets of harming the environment. There is a growing awareness of the environment and an increased effort to save resources, Dell is positioned well in wanting to move sales online, and make use of their potential advantage. Dell had a track record for being efficient and with efficiency there are fewer resources wasted in the long run. Dell will continue to be a company that prides itself on corporate responsibility and being aware of environmental needs. Political: The virtual world as we know it is a free running space, with very little rules or regulations governing its space. So with this uncertainty that looms the online space we have to be vigilant and always be aware of changes that may arise in the future. At Dell we must set our standards high and predict the foreseeable future to the best of our ability, and make sure we set the benchmarks.
Economic: The decision to go online is an important move business wise as well as economic, because with shrinking margins we have to look for ways to be more efficient and improve our bottom line. By going online we are able to shift resources

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