As suggested by the title, the fundamental element in succeeding is to “Do It Right”. There are many businesses that have adopted e-commerce as their means to transact, but unfortunately, not all can reap its benefits. Before we further discuss, I would like to give an example of a company that has succeeded big-time with e-commerce to help you grasp the key points of e-commerce.
Dell.Inc, is the chosen one. Dell is one of the world’s crown providers of computer products and services such as servers, storage, workstations, notebook and notebooks computers, to businesses and consumers. Furthermore, Dell was considered a primitive and fervent business that had converted to the Internet, creating its first web site in 1994 and then moving much of its business strategies to the Internet ahead of its rivals. The company foreseen that its direct model gave it an advantage in selling online. The company's strategy of selling over the Internet was carried out with absolutely no physical outlets and no intermediaries. Dell’s online sales strategies has proven a grand victory and an Aberdeen Group analyst Kent Allen has even questioned “Does consumer need to go to the store to buy a PC anymore?”.
History of Dell.Inc
Dell was created in 1984 by Michael Dell on a few simple concepts, which are by selling computer systems directly to customers, they also was able to recognize customer’s demands and efficiently offer the most effective computing solutions to meet those demands. Dell’s ever-changing business strategies combined their revolutionary direct customer model with the new distribution channels to reach commercial customers and potential individual consumers all around the planet.
1. Dell’s Delivery System
Due to its efficient supply chain management, Dell is competent of shipping a PC within 24 hours of receiving an order. The establishment of the internet and e-commerce has aided Dell in improving its efficiency and profitability. Moreover, transacting through the internet speeds up a lot of procedures, thus making Dell well-organized in its services.
2. Dell Ventures
Another vital adding point of Dell’s e-commerce strategy is Dell Ventures, which has invested $700 million in approximately 50 Internet companies (as of July 2000). These investments, includes broadband and wireless communications, business-to-business and business-to-consumer e-commerce, ASPs, server and storage infrastructure, Internet content, and e-consulting. With the variety investments, Dell is able to access to new technologies without expanding its own R&D activities. This will help to control its internal funds wisely within the necessary parameters of Dell Inc.
3. The front end
A dominant part of Dell's success is that the site proposes "choice and control" to its users. With just a simple click of a finger, the consumers are able to assemble computer system piece by piece, choosing each particular components, such as hard drive size and processor speed inline with their budgets and requirements. This flexibility allows people to customize the designs and individualization is the core of identity. Consequently, this direct contact with consumers gives Dell competitive advantage. On top of that, Dell also value constructive feedbacks from its fellow customers. Feedback regarding its website as well as service.
4. The back end
Other than the front end which is seen by the customers, the back end is equally important as well. According to Aberdeen Allen, “Nowadays that many e-tailers have built a customer-friendly front end, their back end supply chain is a greater focus”. The progress on ensuring that they are not just capturing the order but was fulfilling the order. That is when Dell continues to thrive. One of the main reasons Dell can use the Just-In-Time (JIT) system is because the receive orders beforehand online, making it possible to order their inventories after an order has been secured. This helps to cut down on the managing inventories section, where they don’t need to store up so much to display like the traditional storefront would do.
After analyzing the above tips, it is obvious that Dell handles e-commerce well, and benefited on this method. You may check out the website to experience dell's services. http://www.dell.com.my/
2 comments:
Hi,
It is no doubt that Dell has become one of the leading e commerce organizations nowadays with all the reasons you’ve mentioned in your post.
I personally have bought a Dell computer through its website, and I found that it allows great flexibility in customizing my own ideal computer with reasonable price.
Besides, I think it is a convenient and easy way to purchase a computer merely with few clicks on the mouse.
Nevertheless, Dell is certainly a successful e-commerce company.
Cheers.
Yes, besides Dell, Amazon and Ebay are other examples of ecommerce success that we would like to bring your attention to and to learn their tips of success. =)
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