Dell Case

1071 Words Mar 9th, 2006 5 Pages
Business Model

Dell has managed to become remarkably successful in a short span of time by following a direct "business to customer" model. By selling computers directly to customers, they have been able to best understand their needs and provide effective solutions to meet those needs. Dell built PCs to order, so customers received only what they wanted. Dell 's just-in-time inventory system allowed them to order only parts that customers demanded, thus keeping the minimal inventories and enjoying the cost-reductions which in turn were passed to customers. Dell 's extensive use of e-commerce contributed to further cost minimization, reduced the order and delivery time for customers, and customization. There are three golden rules
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Trust and confidence are important to LCA customers. If Dell were to further segment this market, they would have a better understanding of those customers and what their specific needs are. Currently, four main industries within this segment account for 50% of Dell 's business in China. By further segmenting their markets they will be able to build real and meaningful relationships directly with their customers and present even more tailored offerings. This option will also be affected by the lack of qualified people in China and there will still be issues related to low internet accessibility and the tendency to use credit cards. It will also reduce the amount of cost savings associated with having all corporate accounts in one segment. This will, however, allow Dell to allow Dell to gain a more intimate knowledge of their customers and continue with the direct business model. It will allow Dell to capitalize on a strategy that has already proven to be successful even more.

Conclusion

I recommend that Dell implements option 2 and focus on involving customers in leasing computers through Dell Financial. I make this recommendation based off of Dell 's business model, Dell 's strengths, and the current environment in China. Dell has already successful implemented in this program in other regions that it is operating in.

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