Dell - New horizons
Dell entered the 21st century as the most successful company in the PC industry. Founded in 1984, the company had achieved phenomenal records in sales and profit growth. Engine of this success is Dell's Direct Model, which primary contains low costs for the manufacture and a direct customer relationship. Especially the computer business is characterised by the neck-breaking speed of new product development. As soon as a new technology emerges, it is immediately adopted in new products. IBM and also Compaq, for example, misjudged the market in 1994 and suffered a high loss in PC sales. Michael Dell on the other hand understood always to react currently to changed requests of the market and so he realised quickly that the retail channel didn't fit to his philosophy. The answer was the "Direct model", easy to describe, but difficult to duplicate. As orders come into the factory via website or call centres, the company relays to its suppliers details of which components it needs and when. All these hardware then rollup in vans to big bays at the back of the building and roll out again as complete computers just a few hours later. Because Dell's suppliers have real-time access to its orders via its corporate extranet, they can plan
Goal of this assignment is on one hand to introduce the different marketing instruments, whereby the focal point is on the formation of the Distribution system. Dell Computers History: The company was founded in 1984 by Michael Dell, now the computer industry's longest-tenured chief executive officer, on a simple concept: that by selling personal computer systems directly to customers, Dell could best understand their needs, and provide the most effective computing solutions to meet those needs. Dell arranges for system installation and management, guides customers through technology transitions, and provides an extensive range of other services. The time of new features available to the market is one of the sources of differentiation. The goal of Dell Computers and of Michael Dell was to make the customer the number one priority. Thereby Dell can charge a premium price for their always up to date products compared with the price charged by other manufacturers. Overall, the success of the company lies in their Direct-Model approach, and the strengths of efficiency, single sourcing, customer service, quality, and relationships with partners and their customers. their production and delivery to ensure that there are always just enough of the right parts to keep the production line moving smoothly. The very different idea of Dell computers is that all the computers or upgrades that came from it were sold direct from Dell without any retailer or distribution partner and they were built to order computers . In nowadays there is the basic necessity to sell the products. The presented direct selling model of Dell could not be the only factor to stay in the market and to succeed. Technological change and innovation is fast in the computer industry. Once you have produced it, it was very easy to sell it for a good price. As you can see in this example there are many ways to meet the challenge of selling products and by using the best distribution channels and offering good service it is possible to built up one of the world's largest company out of nearly nothing. Because of the growing business he had to get a bigger building soon and then in a couple of years an even bigger building.
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