Paper Example on Fundametal Reasons for Dell's Success

Published: 2021-07-29 11:47:26
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Case study
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Dell computer leads personal computer manufacturer both in U.S sales and overall online sales. Its cybernetic amalgamation structure disregards the need to manufacture everything and as an alternative uses the supremacy of the internet to share and exchange information with merchants and dealers to build a truly bigger supply chain that keeps catalog turnover low and costs to a minimum ( Christopher, 2016). The fundamental reason for Dell success is that it works in a high speed. It takes hours and days to deliver its orders while other competitors took weeks.

The strategy dell use for distribution also contribute to its success is Dell Direct, it sells directly to the customers meaning there is no intermediation of middlemen making the product to reach faster and directly to the customer, it helps Dell emphasis on value for customization, service, and support, enactment, latest expertise, and grander shareholder value. It is able to distinguish itself from its competitors with its customized on-demand manufacturing. Through this customization of the manufactured products, the establishment has the aptitude to offer more significance for the money of its clienteles due to the exclusion of arbitrators in the manufacturing process, procurement and distribution processes of Dell. This also maintains the quality of the product; the company has a relationship with its customers which makes close to them (Christopher, 2016). Its supply chain is visible and chained with production and sales systems that are linked to the suppliers who supplies products in time

Dells primary possessions include the most progressive technology, which allows the establishment to efficaciously move along their higher supply chain and realize the value they strive for (Wisner, Leong, Tan, 2015). It is therefore evident that Dells competitive advantage lies in its Direct Model success. Its unique and superb IT performance, which help in combination of its resources, its relationship with its suppliers and its consumers communication capabilities thus attaining a great advantage over its competitors.

What Dell should consider in maintaining its competitive advantage

Analysis of Dell Model shows an already prospered process. However, even with its current success, the ever-changing technology demands continuous improvement.

First, it should consider adding other vendors to its supply chain management system. This is as a result of its increased sales; additional suppliers will be needed so as to meet the demand of their customers (Wisner, Leong, Tan, 2015). However, addition of suppliers should not lead to an increase in its operational costs; many suppliers would like to be associated with a big company name and thus laying a platform for negotiation.

Secondly, it should consider conducting market surveys so as to gain a wider market share; this will help increase its domestic market share as it is seen to do well in the overseas (Wisner, Leong, Tan, 2015). They should consider doing more advertisement so as to increase its potential in both the domestic and international markets, for Dell to achieve this independence, it is fundamental to carry out an in-depth customer survey should be carried out so as to gain knowledge on what its competitors are doing better so as to improve on the same.

Thirdly, it should invest more in research and development ( Christopher, 2016). . It is of great importance for Dell to maintain its competitive advantage by offering new technologies, products, and services. It should consider its expansion into peripheral product markets that would complement their computer sales.

Additionally, it should consider offering online data backup capabilities. They should consider giving their existing customers back-up (Wisner, Leong, Tan, 2015). This is another way they can increase revenue. This procedure will have benefits for both buyers and Dell. For the consumers, it is more advantageous, as they can be able to retrieve their saved data in case of breakdown.

It should consider enhancing customer support services. Successful customer support and communications are very vital to Dells success. It should consider having a 24 hours support providers, both on phone and online who are fully equipped and train to offer reliable customer service to its clients at times of needs(Christopher, 2016). Based on the feedback received from the surveys conducted they should do an evaluation in its cost-benefit analysis to define whether they should capitalize in more recruits who can offer support to its customers in times of need. Dells business manufacturing model is still being used to build products for vanilla which are customized.

Applicability of Dells model in other firms

Dells formula is very much pertinent even in other scenarios, as it provides a platform that if exercised and applied efficiently it can lead to an increase in companies development and productivity. Dells direct to customer strategy can be used in other firms so as to engage its customers directly without an intermediary. This will help in increasing its productivity as it will strive to meet its goals in the production activity. Dell centers on Business to Business and Business to Customer markets (Christopher, 2016). This model helps in differentiating the needs of the customers; they are able to classify them into how much they purchase and after how long the purchase is done. This will help the firms in ensuring that they are able to produce what the consumers need and at the right time. Direct engagement as advocated for by the Dells model provides a platform whereby the consumers are able to raise their issues, concerns, and challenges to the companies (Wisner, Leong, Tan, 2015). This will help in the continuous improvement in the productivity of the companies. It is therefore applicable in other fields.

References

Christopher, M. (2016). Logistics & Supply Chain Management. Wisner, J. D., Leong, G. K., & Tan, K.-C. (2015). Principles of supply chain management: A balanced approach. Cengage Learning: Boston, Mass. [u.a..

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