Dell.com differentiation strategy
How Dell.com uses Information technology and Information systems to support its Operation efficiency and Differentiation strategies?
Dell.com is an American multinational computer technology company and one of the largest technological corporations in the world. The company is well known for its innovations in supply chain management, particularly its approach of delivering individual computers configured to customer wants and specifications, and by selling directly to the customers without going through retail or other intermediaries. But how these innovations are parts of its operation efficiency and differentiation strategies? First of all, information technology and information systems are everywhere in business and can be an important enabler of business success and innovation. Thanks to these information technology and systems, Dell.com allows people to customize their computers by using online strategic information system which definitely enhance its differentiation strategy. Therefore, they know their customers better than anyone else in the market; they are perfectly aware of their “customer profiles” thanks to data mining. Eventually, customers could then receive personalized emails that will automatically design a promotion or information for them, with all the recorded information in the system. This differentiation strategy creates a significant competitive advantage for Dell.com Company and builds stronger customer loyalty and satisfaction over time. In the customers’ minds, they are “part” of the brand, the company actually knows them and a strong relationship is created. Thanks to information technology and systems, their differentiation strategy offer a customer perceived uniqueness in the marketplace that seems to be better than or different from the products of the competition such as Cisco Systems, Compaq and IBM. Moreover, the idea of selling computer systems directly to customers was that could better understand customer needs, and
Dell.com is an American multinational computer technology company and one of the largest technological corporations in the world. The company is well known for its innovations in supply chain management, particularly its approach of delivering individual computers configured to customer wants and specifications, and by selling directly to the customers without going through retail or other intermediaries. But how these innovations are parts of its operation efficiency and differentiation strategies? First of all, information technology and information systems are everywhere in business and can be an important enabler of business success and innovation. Thanks to these information technology and systems, Dell.com allows people to customize their computers by using online strategic information system which definitely enhance its differentiation strategy. Therefore, they know their customers better than anyone else in the market; they are perfectly aware of their “customer profiles” thanks to data mining. Eventually, customers could then receive personalized emails that will automatically design a promotion or information for them, with all the recorded information in the system. This differentiation strategy creates a significant competitive advantage for Dell.com Company and builds stronger customer loyalty and satisfaction over time. In the customers’ minds, they are “part” of the brand, the company actually knows them and a strong relationship is created. Thanks to information technology and systems, their differentiation strategy offer a customer perceived uniqueness in the marketplace that seems to be better than or different from the products of the competition such as Cisco Systems, Compaq and IBM. Moreover, the idea of selling computer systems directly to customers was that could better understand customer needs, and