Thursday, June 25, 2009

An example of e-commerce success and its causes



Today, Dell is one of the successful e-commerce companies. Dell is also considered as a market leader that gains competitive advantage with its effective e-commerce strategies.

Dell was the first company that used the direct marketing business model to sell PC directly to its customers. The selling of products directly through the internet without an intermediate is potentially cost saving. Furthermore, this direct model enables Dell to develop a thorough understanding of customer expectations which strengthens customer relationships and increases customer satisfaction and loyalty. It is undeniable that the direct-to-customer business model has contributed as the key success factor for Dell. Currently, this model has been operating in 13 regions such as Australia, Brunei, China, New Zealand, India and Malaysia.

In addition, Dell uses personalization and customization tools. For every major corporate customer, Dell creates a special Premier Page, which indicates all products covered under the purchasing contracts with that firm, as well as the special pricing under those contracts. This ensures that employees of that firm always get the right price for each purchase.

Moreover, Dell aims to meet exactly the needs of its customers by offering mass customized products. This enables Dell to know exactly what customers want and produces the products without experiencing wasteful resources in the production. Dell has integrated its e-commerce Web site with all back-office systems. When a customer orders a custom-configured PC, the integrated computer system will automatically transfer that information to the production system according to specifications. This further improves customer services.

As technology continues to develop and evolve, Dell has announced that it will utilize the simulation capabilities of Future Facilities’ 6SigmaDC as part of its data center consulting practice.

References:
  1. http://www.freeonlineresearchpapers.com/summary-dell-computers
  2. http://www.enotes.com/management-encyclopedia/electronic-commerce
  3. http://www.grin.com/e-book/66929/key-factors-of-successful-e-commerce-what-hp-can-learn-from-dell
  4. http://content.dell.com/us/en/corp/d/press-releases/DellHelpsCustomersDesignDataCentersForEnergyEfficiencyAndPeakPerformance.aspx

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