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    Dell Case

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    Lavil Zavala Garcia
    Dell was founded in 1984 by Michael Dell and initially sold IBM PC-compatible computers directly to customers. This direct sales model allowed Dell to understand customer needs better and provide efficient computing solutions. Dell adopted a customer sales model over the phone or internet to avoid intermediaries, which was the basis of their early success. However, Dell has struggled more recently as other companies improved their direct customer contact. Dell has made acquisitions and expanded into services to diversify beyond agreements with third parties and strengthen its business model. The direct relationship with customers remains key to Dell's approach.

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    Dell Case

    Uploaded by

    Lavil Zavala Garcia
    84 views1 page
    Dell was founded in 1984 by Michael Dell and initially sold IBM PC-compatible computers directly to customers. This direct sales model allowed Dell to understand customer needs better and provide efficient computing solutions. Dell adopted a customer sales model over the phone or internet to avoid intermediaries, which was the basis of their early success. However, Dell has struggled more recently as other companies improved their direct customer contact. Dell has made acquisitions and expanded into services to diversify beyond agreements with third parties and strengthen its business model. The direct relationship with customers remains key to Dell's approach.

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    Dell case

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    Dell case

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    Dell was founded in 1984 by Michael Dell and initially sold IBM PC-compatible computers directly to customers. This direct sales model allowed Dell to understand customer needs better and provide efficient computing solutions. Dell adopted a customer sales model over the phone or internet to avoid intermediaries, which was the basis of their early success. However, Dell has struggled more recently as other companies improved their direct customer contact. Dell has made acquisitions and expanded into services to diversify beyond agreements with third parties and strengthen its business model. The direct relationship with customers remains key to Dell's approach.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    84 views1 page

    Dell Case

    Uploaded by

    Lavil Zavala Garcia
    Dell was founded in 1984 by Michael Dell and initially sold IBM PC-compatible computers directly to customers. This direct sales model allowed Dell to understand customer needs better and provide efficient computing solutions. Dell adopted a customer sales model over the phone or internet to avoid intermediaries, which was the basis of their early success. However, Dell has struggled more recently as other companies improved their direct customer contact. Dell has made acquisitions and expanded into services to diversify beyond agreements with third parties and strengthen its business model. The direct relationship with customers remains key to Dell's approach.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Luis David Zavala Garca

    03/02/16
    Key learning
    Dell is a company that focuses on consumers and their direct contact with them, the
    customer as a tool for product development benefits, since it is the customer better known,
    its business model but has struggled was good for era and exemplary production model for
    other companies.
    Dell case
    Dell was founded in 1984 by Michael Dell, which at the time did business as PC's Limited,
    while a student of the University of Texas at Austin. He sold IBM PC-compatible
    computers built from stock components. Dell dropped out of school to focus on his
    business, after getting $1,000 from his family. In 1985, the company produced the first
    computer of its own design, the Turbo PC, which sold for 795 dolars. The company
    grossed more than $73 million in its first year of operation.
    With a simple concept: that by selling computer systems directly to customers, Dell could
    best understand their needs and efficiently provide the most effective computing solutions
    to meet those needs.
    The traditional distribution system of the PC industry is an indirect model often referred to
    as the channel
    Dell adopted a customer sales model over phone or internet, avoiding intermediaries and
    distributors. This models was the basis of their success, but this advantage today has
    been to change, thanks by other companies, that have been improving their direct contact
    with the client, for this cause, the Company has made efforts through acquisitions of
    companies storage systems to reduce their dependency on agreements with third parties
    to cover the portfolio. It has also acquired IT service companies to strengthen their
    professional services.
    Dell use the Just in time manufacturing approach, which minimizes inventory costs. Low
    inventory is another signature of the Dell business model, a critical consideration in an
    industry where components depreciate very rapidly. This Company maintains a negative
    cash conversion cycle, that means the payment receive for the product before it has to pay
    for the material.
    The relationship with the customer is the key to Dells business model, and provides
    distinct advantages over the indirect sales model.
    Dell has continued to provide new products, pioneering critical developments and
    innovations in home, small business and enterprise computing. The focus point of Dells
    innovation approach remains an unwavering commitment to delivering new and better
    solutions that directly address customer needs.

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