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Dell Research

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Dell Research
Table of Contents

Identify and describe the business model used by Dell. 2

Explain the different types of EC transactions used by Dell. 6

Analyze the competitive advantages Dell has over its brick and mortar competitors. 10

Relate this case study to supply chain management improvements 12

References 14

(Words: 2800 approx.)

Identify and describe the business model used by Dell.

1. Online direct marketing model

Dell implemented an aggressive online marketing and offered competitive price through its online store. Through online direct marketing model dell offered services to the following groups; individual users, SMEs, medium and large business and Government, education and NGOs.

Sales to individuals are considered as business to consumer groups whereas the remaining groups are business to business. Dell introduced online catalogs which are suited to respective customer groups at its website. This offers unique and personalize options to customers. Direct marketing sends advertisement through e-mail, social media and interactive media.

Clients of Dell can browse through different products available through online catalogues. After selecting the correct product, customers can purchase online through credit card or cheque.

Online direct marketing offers some advantages to Dell. As compared with traditional business which sale products through physical store, Dell save huge amount of costs by selling online; directly to customers. Online direct marketing can also enhance relationship between Dell and its customers because Dell handles all after sales services such as warranty and on-site support.

2. Auction marketing model

Auction is a process of purchasing and selling of products or services by offering them up for bid and taking bids and sell the item to the highest bidder.

Dell also used auction marketing model to dispose of refurbished Dell products through dellauction.com. Auctions will help dell sell


References: 1. Dell’s Supply Chain Management (2008) [Online] (Updated 12th June 2011) Available at : http://ivythesis.typepad.com/term_paper_topics/2009/12/dells-supply-chain-management.html 2. Efraim Turban (2008) Electronic Commerce 2008 – A Managerial Perspective, Pearson Int’ed. 3. Saunders (1993) Understanding Business Statistics, London, DP Publications Ltd.
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