distribution channels‚ and Part 2 relates the findings of a case study of the computer industry. The first section of the case study explores Dell’s use of direct channels and Compaq’s use of indirect channels in Canada. We will see how Dell uses the direct model to easily allow the customization of computers for consumers‚ and how the direct model allows Dell to operate with very little inventory through the use of a just-in-time inventory system. Compaq uses indirect channels to utilize the ability of its
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This rapid success of the Dell Computer Corporation has interested business analysts the world over. The paper from the Harvard Business School is an analysis of the meteoric rise of this company until 1994. It delves into the factors that made the company a success and the kind of strategic decisions that the management of the company needed to make at various junctures. One such strategic decision that the management made was to shift from its existing "Direct Made to Order" business model to
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Corporate Strategy The economic activities performed by Dell encompass the development‚ manufacturing‚ sale and support of personal computers and computer-related products. Since its foundation‚ the company has been based on the Direct Model‚ i.e. Dell has always tried and managed to create direct relationships with its customers‚ by selling products directly and without the participation of intermediaries. The sale has always taken place through a telephone service or via the Internet. In order
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Dell Case Study - Harvard Business Pregunta 1: Capital de trabajo ventaja competitiva de Dell- Una de las mayores ventajas que tiene Dell es su ventaja competitiva en no tener que gastar tanto capital en su inventario y almacenamiento. Dell construye sistemas informáticos después de que la compañía recibe órdenes de compras de sus clientes. Como resultado de esta práctica prudente‚ el trabajo de Dell‚ en el proceso (Wip) y el inventario de producto terminado como un porcentaje del
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a large market share from existing competitors in the market. By using the direct model strategy‚ Dell is using a different approach to woo the Chinese consumers. Dell ’s Just-In-Time (J-I-T) inventory keeps inventory costs to a minimum. Companies like China ’s market leader Legend (local Chinese PC)‚ Lenova ‚ recently purchased IBM Hardware Business outside China ‚ they are beginning to move to Dell ’s J-I-T model‚ selling direct to their corporate customers. A barrier to entry in China is dealing
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Focus BPR from Dell Inc. In recent centuries‚ market conditions are changing all the time. Tens of thousands of enterprises are faced with severe challenges due to the increasingly fierce competition. The competition makes customers have more choices for commodities as well as higher requests to services. What should companies do for the sake of gaining a foothold and developing their own advantages? Most of them had already found the answer – business process reengineering. Business process
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Business Analysis of Dell Inc. A Strategic Management Case Sailesh R. Pant Strategic Management Class ctober 11‚ 2012 Business Analysis of Dell Inc. A Strategic Management Case Dell Inc. has been renowned for its name in desktop computer sales and its direct model of dealing with customers and suppliers to eradicate interference of intermediaries. The concept of direct model has provided Dell Inc. with competitive advantage in achieving cost leadership and visibility of customer demand
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I. Problems/Recommendations In 1995 Dell entered the Chinese computer vendor market. It initially focused at the low-priced end of the PC Market with direct sales. As competition grew and price wars at the low end consumer market began‚ Dell was unable to compete as their low end consumer model cost consumers twice as much as one of its competitors. Dell was also having trouble with their direct sales model‚ which led to complaints about slow delivery‚ service and support. Overall the industry
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Michael Dell Taking The Direct Approach October 9‚ 2008 2. URL: http://www.entrepreneur.com/article/197566 Michael Dell Founder of Dell Computer Corp. Founded: 1984 "You don’t have to be a genius or a visionary or even a college graduate to be successful. You just need a framework and a dream."-Michael Dell Michael Dell wasn’t the
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Dell Computers: A Case Study in Low Inventory When managers discuss low inventory levels‚ Dell is invariably discussed. Hell‚ even I’ve mentioned Dell on this site. So why all the commotion? Has their low inventory REALLY helped out that much? In short‚ yes. This article is primarily going to discuss how much it helped. This article will not discuss how they achieved such high inventory turns using a state of the art just in time inventory system. Reasoning behind need for lower inventory
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