E-Commerce within Dell and How This New Way of Doing Business is Managed
Introduction
Dell is one of the world’s top providers of computer products and services to businesses and Consumers. The Company has revenues of $38.2 billion worldwide and employs over 41,000 staff worldwide. Ireland is home to Dell’s European manufacturing operation, with a plant in Limerick, and a UK/Ireland sales and support operation in Bray/Cherry wood. Dell’s success has made it the number one PC supplier in Ireland. The company is the State’s biggest revenue generating technology firm. During 2002, Dell's revenue equated to 5.8 per cent of gross domestic product. During the same time period, Dell's exports of EUR.7bn account for 7.8 per cent of all Irish exports. Michael Dell founded the company back in 1984 when he was just 19 years old. He had $1,000 and the unique idea to sell computer systems directly to customers. Now he heads up one of the world’s most successful corporations with his direct sales approach acting as the cornerstone of the company’s global success. This case study will look at the impact of the internet and e-commerce on Dell and how the company has successfully managed the new ways of doing business that e-commerce has created.
What Is E-Commerce?
Ecommerce refers to business transactions and communications that are carried out through computers - over networks and the internet. This includes buying and selling goods and services, funds transfers and other commercial communications. It creates a new way of buying and selling –one that uses technology to make the transaction.
E-commerce can take place in different situations: Between businesses and consumers (B2C), as when you purchase from a shop’s website. You, the consumer can now do everything over the internet from banking online to shopping for computers, books, clothes, games, holidays, concert tickets etc! From one business to another (B2B), as when one company buys its supplies from another